Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Trading Symbol | MPB | ||
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 | 4,233,297 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 67,283,485 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 13,493 | $ 12,329 |
Interest-bearing balances with other financial institutions | 2,003 | 955 |
Federal funds sold | 30,477 | |
Total cash and cash equivalents | 45,973 | 13,284 |
Interest-bearing time deposits with other financial institutions | 4,317 | |
Investment securities available for sale | 133,625 | 135,721 |
Loans held for sale | 1,959 | 2,678 |
Loans and leases, net of unearned interest | 813,924 | 736,513 |
Less: Allowance for loan and lease losses | (7,183) | (6,168) |
Net loans and leases | 806,741 | 730,345 |
Bank premises and equipment, net | 11,074 | 13,993 |
Bank premises and equipment held for sale | 1,894 | |
Cash surrender value of life insurance | 12,780 | 12,516 |
Restricted investment in bank stocks | 2,443 | 4,266 |
Foreclosed assets held for sale | 224 | 1,185 |
Accrued interest receivable | 3,928 | 3,813 |
Deferred income taxes | 4,286 | 1,821 |
Goodwill | 3,918 | 3,918 |
Core deposit and other intangibles, net | 539 | 665 |
Other assets | 3,215 | 3,116 |
Total Assets | 1,032,599 | 931,638 |
LIABILITIES & SHAREHOLDERS’ EQUITY | ||
Deposits: Noninterest-bearing demand | 122,811 | 103,721 |
Deposits: Interest-bearing demand | 317,533 | 247,356 |
Deposits: Money Market | 252,271 | 208,386 |
Deposits: Savings | 60,163 | 56,731 |
Deposits: Time | 182,595 | 160,849 |
Total Deposits | 935,373 | 777,043 |
Short-term borrowings | 31,596 | |
Long-term debt | 13,581 | 40,305 |
Subordinated debt | 7,414 | 7,414 |
Accrued interest payable | 515 | 390 |
Other liabilities | 5,249 | 4,822 |
Total Liabilities | 962,132 | 861,570 |
Shareholders' Equity: | ||
Common stock, par value $1.00; authorized 10,000,000 shares; 4,233,297 shares and 4,226,717 shares issued at December 31, 2016 and December 31, 2015, respectively | 4,233 | 4,227 |
Additional paid-in capital | 40,688 | 40,559 |
Retained earnings | 28,399 | 23,470 |
Accumulated other comprehensive (loss) income | (2,853) | 1,812 |
Total Shareholders’ Equity | 70,467 | 70,068 |
Total Liabilities and Shareholders' Equity | $ 1,032,599 | $ 931,638 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Par Value | $ 1 | $ 1 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 4,233,297 | 4,226,717 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST INCOME | |||
Interest and fees on loans and leases | $ 36,402 | $ 32,840 | $ 26,905 |
Interest on interest-bearing balances | 12 | 44 | 41 |
Interest and dividends on investment securities: | |||
U.S. Treasury and government agencies | 1,346 | 1,222 | 1,346 |
State and political subdivision obligations, tax-exempt | 2,066 | 2,000 | 2,180 |
Other securities | 304 | 382 | 155 |
Interest on federal funds sold | 82 | 2 | |
Total Interest Income | 40,212 | 36,490 | 30,627 |
INTEREST EXPENSE | |||
Interest on deposits | 4,514 | 3,889 | 3,852 |
Interest on short-term borrowings | 15 | 47 | 55 |
Interest on long-term and subordinated debt | 838 | 671 | 520 |
Total Interest Expense | 5,367 | 4,607 | 4,427 |
Net Interest Income | 34,845 | 31,883 | 26,200 |
PROVISION FOR LOAN AND LEASE LOSSES | 1,870 | 1,065 | 1,617 |
Net Interest Income After Provision for Loan and Lease Losses | 32,975 | 30,818 | 24,583 |
NONINTEREST INCOME | |||
Income from fiduciary activities | 481 | 466 | 552 |
Service charges on deposits | 684 | 690 | 584 |
Net gain on sales of investment securities | 1,046 | 325 | 168 |
Earnings from cash surrender value of life insurance | 264 | 269 | 201 |
Mortgage banking income | 922 | 456 | 313 |
ATM debit card interchange income | 844 | 741 | 544 |
Merchant services income | 317 | 235 | 254 |
Net gain on sales of SBA loans | 470 | 252 | 119 |
Other income | 896 | 679 | 549 |
Total Noninterest Income | 5,924 | 4,113 | 3,284 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 15,564 | 14,043 | 10,879 |
Occupancy expense, net | 2,064 | 1,947 | 1,313 |
Equipment expense | 1,689 | 1,477 | 1,205 |
Pennsylvania Bank Shares Tax expense | 648 | 408 | 365 |
FDIC Assessment | 688 | 613 | 542 |
Legal and professional fees | 711 | 588 | 516 |
Marketing and advertising expense | 500 | 533 | 308 |
Software licensing | 1,380 | 1,472 | 965 |
Telephone expense | 548 | 569 | 467 |
Loss on sale or write-down of foreclosed assets | 217 | 111 | 204 |
Intangible amortization | 126 | 114 | 63 |
Merger and acquisition expense | 762 | 573 | |
Other expenses | 4,683 | 4,122 | 3,304 |
Total Noninterest Expense | 28,818 | 26,759 | 20,704 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 10,081 | 8,172 | 7,163 |
Provision for income taxes | 2,277 | 1,644 | 1,462 |
NET INCOME | 7,804 | 6,528 | 5,701 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 7,804 | $ 6,038 | $ 5,351 |
PER COMMON SHARE DATA: | |||
Basic and Diluted Earnings Per Common Share | $ 1.85 | $ 1.47 | $ 1.53 |
Cash Dividends Declared | $ 0.68 | $ 0.44 | $ 0.45 |
Series B Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends and redemption premium | $ 473 | $ 350 | |
Preferred stock dividends | 373 | $ 350 | |
Series C Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends | $ 17 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 7,804 | $ 6,528 | $ 5,701 | |
Other comprehensive (loss) income: | ||||
Unrealized (losses) gains arising during the period on available-for-sale securities, net of income taxes of ($1,954), $80, and $1,280, respectively | (3,794) | 154 | 2,482 | |
Reclassification adjustment for net gain on sales of available-for-sale securities included in net income, net of income taxes of ($356), ($110), and ($57), respectively (a) | [1] | (690) | (215) | (111) |
Change in defined benefit plans, net of income taxes of ($93), $185, and $7, respectively (b) | [2] | (181) | 360 | 14 |
Total other comprehensive (loss) income | (4,665) | 299 | 2,385 | |
Total comprehensive income | $ 3,139 | $ 6,827 | $ 8,086 | |
[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 (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized (losses) gains arising during the period on available for sale securities, tax | $ (1,954) | $ 80 | $ 1,280 |
Reclassification adjustment for net gain on sales of available for sale securities included in net income, tax | (356) | (110) | (57) |
Change in defined benefit plans, tax | $ (93) | $ 185 | $ 7 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series B Preferred Stock [Member] | Retained Earnings [Member]Series C Preferred Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Balance at Dec. 31, 2013 | $ 52,916 | $ 5,000 | $ 3,494 | $ 29,853 | $ 15,441 | $ (872) | ||||||
Net income | 5,701 | 5,701 | ||||||||||
Total other comprehensive (loss) income, net of taxes | 2,385 | 2,385 | ||||||||||
Common stock dividends | (1,575) | (1,575) | ||||||||||
Employee Stock Purchase Plan (3,432 shares for 2014, 4,162 shares for 2015 and 4,465 shares for 2016) | 53 | 4 | 49 | |||||||||
Preferred stock dividends | $ (350) | $ (350) | ||||||||||
Balance at Dec. 31, 2014 | 59,130 | 5,000 | 3,498 | 29,902 | 19,217 | 1,513 | ||||||
Net income | 6,528 | 6,528 | ||||||||||
Total other comprehensive (loss) income, net of taxes | 299 | 299 | ||||||||||
Common stock dividends | (1,785) | (1,785) | ||||||||||
Employee Stock Purchase Plan (3,432 shares for 2014, 4,162 shares for 2015 and 4,465 shares for 2016) | 66 | 4 | 62 | |||||||||
Preferred stock dividends | (373) | $ (17) | (373) | $ (17) | ||||||||
Preferred stock redemption | (5,000) | (1,750) | $ (5,000) | $ (1,750) | ||||||||
Preferred stock redemption premium | $ (100) | $ (100) | ||||||||||
Preferred stock issuance | $ 1,750 | $ 1,750 | ||||||||||
Common stock issued to Phoenix shareholders(723,851 shares) | 11,292 | 724 | 10,568 | |||||||||
Restricted stock activity (875 shares for 2015, 2,115 shares for 2016) | 28 | 1 | 27 | |||||||||
Balance at Dec. 31, 2015 | 70,068 | 4,227 | 40,559 | 23,470 | 1,812 | |||||||
Net income | 7,804 | 7,804 | ||||||||||
Total other comprehensive (loss) income, net of taxes | (4,665) | (4,665) | ||||||||||
Common stock dividends | (2,875) | (2,875) | ||||||||||
Employee Stock Purchase Plan (3,432 shares for 2014, 4,162 shares for 2015 and 4,465 shares for 2016) | 82 | 4 | 78 | |||||||||
Restricted stock activity (875 shares for 2015, 2,115 shares for 2016) | 53 | 2 | 51 | |||||||||
Balance at Dec. 31, 2016 | $ 70,467 | $ 0 | $ 4,233 | $ 40,688 | $ 28,399 | $ (2,853) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Stock issued during period, shares, Employee Stock Purchase Plans | 4,465 | 4,162 |
Stock issued during period, shares, acquisitions | 723,851 | |
Stock issued during period, shares, Restricted stock activity | 2,115 | 875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net income | $ 7,804,000 | $ 6,528,000 | $ 5,701,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan and lease losses | 1,870,000 | 1,065,000 | 1,617,000 |
Depreciation | 1,658,000 | 1,485,000 | 1,235,000 |
Amortization of intangibles | 126,000 | 100,000 | 62,000 |
Net amortization of security premiums | 11,709,000 | 4,251,000 | 1,250,000 |
Gain on sales of investment securities | (1,046,000) | (325,000) | (168,000) |
Earnings on cash surrender value of life insurance | (264,000) | (269,000) | (201,000) |
Mortgage loans originated for sale | (42,888,000) | (26,083,000) | (16,775,000) |
Proceeds from sales of mortgage loans originated for sale | 43,810,000 | 26,539,000 | 17,088,000 |
Gain on sale of mortgage loans | (922,000) | (456,000) | (313,000) |
SBA loans originated for sale | (5,872,000) | (3,484,000) | (1,168,000) |
Proceeds from sales of SBA loans originated for sale | 6,342,000 | 3,736,000 | 1,287,000 |
Gain on sale of SBA loans | (470,000) | (252,000) | (119,000) |
Loss on write-down/disposal of property, plant, and equipment | 142,000 | 18,000 | |
Loss on sale / write-down of foreclosed assets | 217,000 | 111,000 | 204,000 |
Restricted stock compensation expense | 53,000 | 27,000 | |
Deferred income tax (benefit) expense | (336,000) | 997,000 | (112,000) |
Increase in accrued interest receivable | (115,000) | (367,000) | (354,000) |
(Increase) decrease in other assets | (99,000) | 333,000 | (547,000) |
Increase (decrease) in accrued interest payable | 125,000 | 9,000 | (44,000) |
Increase (decrease) in other liabilities | 427,000 | (771,000) | 9,000 |
Net Cash Provided By Operating Activities | 22,271,000 | 13,174,000 | 8,670,000 |
Investing Activities: | |||
Net decrease in interest-bearing time deposits with other financial institutions | 4,317,000 | 1,455,000 | 1,741,000 |
Proceeds from the maturity of investment securities | 16,110,000 | 11,940,000 | 13,585,000 |
Proceeds from the sale of investment securities | 111,390,000 | 37,142,000 | 13,729,000 |
Purchases of investment securities | (142,861,000) | (35,858,000) | (43,633,000) |
Net cash received from acquisition | 8,095,000 | ||
Redemptions (purchases) of restricted investment in bank stocks | 1,823,000 | (576,000) | (212,000) |
Net increase in loans and leases | (77,795,000) | (60,043,000) | (27,170,000) |
Purchases of bank premises and equipment | (775,000) | (1,461,000) | (1,009,000) |
Proceeds from sale of foreclosed assets | 992,000 | 403,000 | 1,077,000 |
Net Cash Used In Investing Activities | (86,799,000) | (38,903,000) | (41,892,000) |
Financing Activities: | |||
Net increase in deposits | 158,330,000 | 15,883,000 | 29,792,000 |
Net (decrease) increase in short-term borrowings | (31,596,000) | 31,018,000 | (23,255,000) |
Common stock dividends paid | (2,875,000) | (1,785,000) | (1,575,000) |
Employee Stock Purchase Plan | 82,000 | 66,000 | 53,000 |
Long-term debt repayment | (26,724,000) | (16,226,000) | (184,000) |
Proceeds from long-term debt borrowings | 30,000,000 | ||
Deferred financing fees paid for subordinated debt issuance | (85,000) | ||
Subordinated debt issuance | 7,500,000 | ||
Net Cash Provided By Financing Activities | 97,217,000 | 29,131,000 | 34,481,000 |
Net increase in cash and cash equivalents | 32,689,000 | 3,402,000 | 1,259,000 |
Cash and cash equivalents, beginning of year | 13,284,000 | 9,882,000 | 8,623,000 |
Cash and cash equivalents, end of year | 45,973,000 | 13,284,000 | 9,882,000 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest paid | 5,242,000 | 4,566,000 | 4,471,000 |
Income taxes paid | 1,700,000 | 1,130,000 | 1,520,000 |
Supplemental Noncash Disclosures: | |||
Loan transfers to foreclosed assets held for sale | 248,000 | 1,135,000 | 881,000 |
Asset transfers to bank premises and equipment held for sale | $ 1,894,000 | ||
Phoenix Bancorp Inc. [Member] | |||
Supplemental Noncash Disclosures: | |||
Common stock issued to Phoenix shareholders | 11,292,000 | ||
Assets Acquired: | |||
Securities | 11,331,000 | ||
Loans | 110,363,000 | ||
Restricted stock | 509,000 | ||
Property and equipment | 1,792,000 | ||
Deferred income taxes | 503,000 | ||
Accrued interest receivable | 388,000 | ||
Core deposit and other intangible assets | 578,000 | ||
Bank-owned life insurance | 3,673,000 | ||
Other assets | 624,000 | ||
Assets acquired | 129,761,000 | ||
Liabilities Assumed: | |||
Deposits | 123,238,000 | ||
Accrued interest payable | 32,000 | ||
Long-term debt | 3,570,000 | ||
Other liabilities | 876,000 | ||
Liabilities assumed | 127,716,000 | ||
Equity Acquired: | |||
Preferred stock | 1,750,000 | ||
Series B Preferred Stock [Member] | |||
Financing Activities: | |||
Preferred stock dividends and redemption premium paid | (473,000) | $ (350,000) | |
Preferred stock redemption | (5,000,000) | ||
Series C Preferred Stock [Member] | |||
Financing Activities: | |||
Preferred stock redemption | (1,750,000) | ||
Preferred stock dividends paid | $ (17,000) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [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 former wholly-owned subsidiary Mid Penn Insurance Services, LLC, which was closed, effective March 1, 2016 (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 results of operations for the year ended 2016 compared to 2015 and 2014, in general, have been impacted by the acquisition of Phoenix as further described in Note 4. For comparative purposes, the 2015 and 2014 balances have been reclassified to conform to the 2016 presentation. Such reclassifications had no impact on net income. |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [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 21 retail banking offices located in Cumberland, Dauphin, Lancaster, Luzerne, 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 the Bank, and was immaterial to Mid Penn’s consolidated results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting 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 $1,046,000 in 2016, $325,000 in 2015, and $168,000 in 2014. Mid Penn had no held-to-maturity securities in 2016 and 2015. (e) Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are included in loans held for sale and are carried at fair value, as determined by outstanding commitments from investors. Gains and losses on sales of mortgage loans are included in the Consolidated Statements of Income in mortgage banking income. Mortgage banking income was $922,000 in 2016, $456,000 in 2015, and $313,000 in 2014. (f) 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. Residential loans held for sale are carried at fair value and are included in loans held for sale on the balance sheet. 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 typically 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 weakens 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 $120,000 at December 31, 2016 and $94,500 at December 31, 2015. 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 DCF, 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 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. (g) 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. Bank premises and equipment designated as held for sale are carried at the lower of cost or market value. (h) 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 $2,443,000 December 31, 2016 and $4,266,000 at December 31, 2015. This reduction was attributed to the decline in Mid Penn’s FHLB long term advances and its shift from a short-term borrowing to a short-term selling position in 2016. Total dividends received in 2016 and 2015 totaled $135,000 and $250,000, respectively. (i) 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, 2016, Mid Penn had $57,000 of residential real estate held in other real estate owned. There was $426,000 in loans for which formal foreclosure proceedings were in process at December 31, 2016. 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. (j) 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 $144,000 and $174,000 at December 31, 2016 and 2015, respectively. Amortization expense is reflected in the Consolidated Statements of Income in other income and was $30,000, $24,000, and $36,000 for the years 2016, 2015, and 2014, respectively. Servicing rights are evaluated for impairment based upon estimated fair value as compared to unamortized book value. (k) 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 $321,000 at December 31, 2016 and $365,000 at December 31, 2015, 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 2016, |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [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 2017 is estimated to be $86,000, $75,000, $65,000, $54,000, and $44,000 per year, respectively, and $70,000 in total for years after 2021. 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 unaudited 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. (Unaudited) (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 (Loss) Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | (5) Accumulated Other Comprehensive (Loss) Income The components of accumulated other comprehensive (loss) income, net of taxes, are as follows: (Dollars in thousands) Unrealized (Loss) Gain on Securities Defined Plan Liability Accumulated Other Comprehensive (Loss) Income Balance - December 31, 2016 $ (2,919 ) $ 66 $ (2,853 ) Balance - December 31, 2015 $ 1,565 $ 247 $ 1,812 |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Bank Accounts | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and December 31, 2015 because the Bank had sufficient vault cash available. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Securities Financing Transactions Disclosures [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 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 debt or equity securities in 2016, 2015, and 2014. At December 31, 2016 and 2015, amortized cost, fair value, and unrealized gains and losses on investment securities are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available for sale securities: U.S. Treasury and U.S. government agencies $ 48,520 $ 34 $ 1,542 $ 47,012 Mortgage-backed U.S. government agencies 26,181 17 579 25,619 State and political subdivision obligations 61,079 91 2,332 58,838 Corporate debt securities 1,000 — — 1,000 Equity securities 1,268 — 112 1,156 $ 138,048 $ 142 $ 4,565 $ 133,625 (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 Corporate debt securities 2,000 80 10 2,070 Equity securities 1,271 2 33 1,240 $ 133,350 $ 2,774 $ 403 $ 135,721 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 $131,469,000 at December 31, 2016, and $130,298,000 at December 31, 2015, 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, 2016 and 2015. (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2016 Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Available for sale securities: U.S. Treasury and U.S. government agencies 23 $ 43,698 $ 1,542 0 $ — $ — 23 $ 43,698 $ 1,542 Mortgage-backed U.S. government agencies 18 24,321 579 0 — — 18 24,321 579 State and political subdivision obligations 108 50,582 2,332 0 — — 108 50,582 2,332 Equity securities 0 — — 2 1,056 112 2 1,056 112 Total temporarily impaired available for sale securities 149 $ 118,601 $ 4,453 2 $ 1,056 $ 112 151 $ 119,657 $ 4,565 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2015 Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized 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 Corporate debt securities 1 990 10 0 — — 1 990 10 Equity securities 0 — — 2 615 33 2 615 33 Total temporarily impaired available for sale securities 29 $ 24,049 $ 209 18 $ 9,911 $ 194 47 $ 33,960 $ 403 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, 2016, Mid Penn had 149 debt securities and 2 equity securities with unrealized losses totaling $4,565,000 that depreciated 3.82% from their collective amortized cost basis. At December 31, 2016, the majority of the unrealized losses on securities in an unrealized loss position were attributed to state and political subdivision obligations and U.S. Treasury and government agencies. At December 31, 2015, Mid Penn had 45 debt securities and 2 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. 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. During 2016, Mid Penn realized gross gains on the sales of securities available for sale of $1,927,000 on 102 debt securities. Mid Penn also realized $881,000 in gross losses on the sales of 56 debt securities available for sale during 2016. Mid Penn realized gross gains of $325,000 and $168,000 on sales of securities available for sale during 2015 and 2014, respectively, while no gross losses were realized in 2015 and 2014. The table below is the maturity distribution of investment securities at amortized cost and fair value at December 31, 2016. (Dollars in thousands) December 31, 2016 Amortized Fair Cost Value Due in 1 year or less $ 1,293 $ 1,305 Due after 1 year but within 5 years 19,656 19,471 Due after 5 years but within 10 years 66,084 63,895 Due after 10 years 23,566 22,179 110,599 106,850 Mortgage-backed securities 26,181 25,619 Equity securities 1,268 1,156 $ 138,048 $ 133,625 |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [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 $196,000 and $178,000 as of December 31, 2016 and 2015, respectively, and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2016 and 2015, are noted below: (Dollars in thousands) December 31, 2016 Pass Special Mention Substandard Doubtful Total Commercial and industrial $ 170,780 $ 937 $ 801 $ — $ 172,518 Commercial real estate 437,592 1,683 7,249 — 446,524 Commercial real estate - construction 52,888 202 1,286 — 54,376 Lease financing 425 — — — 425 Residential mortgage 97,994 107 1,356 — 99,457 Home equity 37,242 142 224 — 37,608 Consumer 3,016 — — 3,016 $ 799,937 $ 3,071 $ 10,916 $ — $ 813,924 (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 — 100,665 Home equity 32,928 261 222 — 33,411 Consumer 3,917 — — — 3,917 $ 722,905 $ 6,516 $ 9,770 $ — $ 736,513 Impaired loans by loan portfolio class as of December 31, 2016 and 2015 are summarized as follows: December 31, 2016 December 31, 2015 (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 $ 4 $ 9 $ — $ 14 $ 49 $ — Commercial real estate: Commercial real estate 726 1,792 — 1,023 2,020 — Acquired with credit deterioration* 842 842 — 931 931 — Commercial real estate - construction: Commercial real estate - construction 618 618 — — — — Residential mortgage: Residential mortgage 848 882 — 1,329 1,434 — Acquired with credit deterioration* 389 389 — 400 400 — Home equity: Home equity 111 129 — 115 137 — With an allowance recorded: Commercial and industrial $ 56 $ 62 $ 6 $ 113 $ 128 $ 51 Commercial real estate 2,520 2,646 711 1,947 1,981 429 Commercial real estate - construction 242 242 72 — — — Residential mortgage 68 68 68 32 32 23 Home equity 29 49 1 — — — Total: Commercial and industrial $ 60 $ 71 $ 6 $ 127 $ 177 $ 51 Commercial real estate 4,088 5,280 711 3,901 4,001 429 Commercial real estate - construction 860 860 72 — — — Residential mortgage 1,305 1,339 68 1,761 1,466 23 Home equity 140 178 1 115 137 — * 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, 2016, 2015, and 2014 are summarized as follows: December 31, 2016 December 31, 2015 December 31, 2014 (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 $ 9 $ — $ 19 $ — $ 72 $ — Acquired with credit deterioration — — — 205 — — Commercial real estate: Commercial real estate 820 — 1,051 14 1,966 346 Acquired with credit deterioration 810 164 926 350 — — Commercial real estate - construction: Commercial real estate - construction 124 — — — — — Residential mortgage: Residential mortgage 821 21 816 8 541 — Acquired with credit deterioration 378 4 400 — — — Home equity: Home equity 75 — 107 — 29 — Acquired with credit deterioration — — — 3 — — With an allowance recorded: Commercial and industrial $ 59 $ — $ 123 $ — $ 93 $ — Commercial real estate 2,177 — 1,721 — 6,823 — Commercial real estate - construction 48 — — — — — Residential mortgage 14 — 25 — — — Home equity 32 — — — 76 — Total: Commercial and industrial $ 68 $ — $ 142 $ 205 $ 165 $ — Commercial real estate 3,807 164 3,698 364 8,789 346 Commercial real estate - construction 172 — — — — — Residential mortgage 1,213 25 1,241 8 541 — Home equity 107 — 107 3 105 — Nonaccrual loans by loan portfolio class as of December 31, 2016 and 2015 are summarized as follows: (Dollars in thousands) 2016 2015 Commercial and industrial $ 4 $ 66 Commercial real estate 2,939 2,607 Commercial real estate - construction 860 — Residential mortgage 715 1,630 Home equity 140 115 $ 4,658 $ 4,418 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 $666,000, $778,000, and $798,000, in the years ended December 31, 2016, 2015, and 2014, 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, 2016 and 2015 are summarized as follows: (Dollars in thousands) December 31, 2016 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 $ 164 $ 12 $ 4 $ 180 $ 172,338 $ 172,518 $ — Commercial real estate: Commercial real estate 475 — 1,004 1,479 444,203 445,682 — Acquired with credit deterioration — — 59 59 783 842 59 Commercial real estate - construction: Commercial real estate - construction — 404 84 488 53,888 54,376 — Lease financing: Lease financing — — — — 425 425 — Residential mortgage: Residential mortgage 548 124 237 909 98,159 99,068 — Acquired with credit deterioration — — 238 238 151 389 — Home equity: Home equity 33 13 125 171 37,437 37,608 — Consumer: Consumer — — — — 3,016 3,016 — Total $ 1,220 $ 553 $ 1,751 $ 3,524 $ 810,400 $ 813,924 $ 59 (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 2,275 366,258 368,533 — Acquired with credit deterioration 215 518 55 788 143 931 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 98,243 100,265 — 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 $ 730,781 $ 736,513 $ 55 Activity in the allowance for loan and lease losses for the years ended December 31, 2016, 2015, and 2014, and the recorded investment in loans receivable as of December 31, 2016, 2015, and 2014 are as follows: (Dollars in thousands) December 31, 2016 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 $ 3,552 $ 153 $ 1 $ 534 $ 317 $ 12 $ 206 $ 6,168 Charge-offs (820 ) (216 ) — — (4 ) (25 ) (42 ) — (1,107 ) Recoveries 4 211 — — 26 — 11 — 252 Provisions 1,003 776 (9 ) — (15 ) 87 22 6 1,870 Ending balance 1,580 4,323 144 1 541 379 3 212 7,183 Ending balance: individually evaluated for impairment 6 711 72 — 68 1 — — 858 Ending balance: collectively evaluated for impairment $ 1,574 $ 3,612 $ 72 $ 1 $ 473 $ 378 $ 3 $ 212 $ 6,325 Loans receivable: Ending balance $ 172,518 $ 446,524 $ 54,376 $ 425 $ 99,457 $ 37,608 $ 3,016 $ — $ 813,924 Ending balance: individually evaluated for impairment 60 3,246 860 — 916 140 — — 5,222 Ending balance: acquired with credit deterioration — 842 — — 389 — — — 1,231 Ending balance: collectively evaluated for impairment $ 172,458 $ 442,436 $ 53,516 $ 425 $ 98,152 $ 37,468 $ 3,016 $ — $ 807,471 (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 $ 100,665 $ 33,411 $ 3,917 $ — $ 736,513 Ending balance: individually evaluated for impairment 127 2,970 — — 1,361 115 — — 4,573 Ending balance: acquired with credit deterioration — 931 — — 400 — — — 1,331 Ending balance: collectively evaluated for impairment $ 160,134 $ 365,563 $ 68,068 $ 727 $ 98,904 33,296 $ 3,917 $ — $ 730,609 (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 The recorded investments in troubled debt restructured loans at December 31, 2016 and 2015 are as follows: (Dollars in thousands) Pre-Modification Post-Modification December 31, 2016 Outstanding Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 40 $ 35 $ 5 Commercial real estate 4,569 4,031 2,871 Residential mortgage 759 757 639 $ 5,368 $ 4,823 $ 3,515 (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 At December 31, 2016, Mid Penn’s troubled debt restructured loans totaled $3,515,000, including five loans totaling $877,000 represented accruing impaired loans in compliance with the terms of the modification. Of the $877,000, four are accruing impaired residential mortgages to unrelated borrowers totaling $571,000 and the other one is an accruing impaired commercial real estate loan for $306,000. The remaining $2,638,000 of troubled debt restructured loans represent ten loans among four relationships, are nonaccrual impaired loans, and resulted in a collateral evaluation in accordance with the guidance on impaired loans. Two large relationships account for $2,170,000 of the $2,638,000 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, 2016, there were no charge-offs associated with troubled debt restructured loans while under a forbearance agreement. As of December 31, 2016, 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 2016. One forbearance agreement was negotiated during 2008, eight forbearance agreements were negotiated during 2009, two were negotiated during 2013, one was negotiated during 2014, and three were negotiated during 2016. 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 accounted 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. 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 three loans modified in 2016 and no loans modified in 2015 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, 2016. (Dollars in thousands) Pre-Modification Post-Modification December 31, 2016 Number of Contracts Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial real estate 2 $ 934 $ 914 $ 914 Residential mortgage 1 68 68 68 3 $ 1,002 $ 982 $ 982 The following table provides activity for the accretable yield of purchased impaired loans for the year ended December 31, 2016. (Dollars in thousands) Accretable yield, January 1, 2016 $ 178 Accretable yield amortized to interest income (141 ) Reclassification from nonaccretable difference (a) 30 Accretable yield, December 31, 2016 $ 67 (a) Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio. The Bank has granted loans to certain of its executive officers, directors, and their related interests. The aggregate amount of these loans was $17,594,000 and $10,657,000 at December 31, 2016 and 2015, respectively. During 2016, $14,479,000 of new loans and advances were extended and repayments totaled $7,542,000. None of these loans were past due, in nonaccrual status, or restructured at December 31, 2016. |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Bank Premises and Equipment | (9) Bank Premises and Equipment At December 31, 2016 and 2015, bank premises and equipment are as follows: (Dollars in thousands) 2016 2015 Land $ 2,315 $ 2,906 Buildings 9,517 10,789 Furniture, fixtures, and equipment 8,184 8,742 Leasehold improvements 1,432 1,212 Construction in progress 89 18 Total cost 21,537 23,667 Less accumulated depreciation (10,463 ) (9,674 ) Net book value of bank premises and equipment 11,074 13,993 Assets held for sale 1,894 — Total bank premises and equipment $ 12,968 $ 13,993 Depreciation expense was $1,658,000 in 2016, $1,485,000 in 2015, and $1,235,000 in 2014. As of December 31, 2016, assets held-for-sale consisted of three full service retail banking properties. These properties were transferred from land and buildings to assets held for sale due to Mid Penn’s intent to sell them during January 2017. An impairment charge of $142,000 was recorded on one of the properties at December 31, 2016 and included in other expenses on the Consolidated Statements of Income. On January 20, 2017, Mid Penn consummated the sale of the three properties for an aggregate sale price of $2,240,000, which exceeded Mid Penn’s combined carrying value by approximately $346,000. Two of the properties are being leased back by Mid Penn for a period of at least 15 years, and the respective gains on the sales of those properties will be recognized over the life of the leases. Operating Leases: As of December 31, 2016, Mid Penn was obligated to utilize certain premises under certain non-cancelable operating leases, which expire at various dates through the year ending December 31, 2035. Many of these leases contain renewal options and certain leases contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating expenses or proportionately adjusted for increases in consumer or other price indices. Four of Mid Penn’s operating leases are with related parties. The rental expense paid to related parties was $348,000 in 2016, $279,000 in 2015, and $54,000 in 2014. The future minimum payments to related parties are $346,000 (2017), $302,000 (2018), $304,000 (2019), $305,000 (2020), $213,000 (2021), and $2,118,000 thereafter. In 2016, Mid Penn entered into two subleasing agreements with escalation clauses to two unrelated parties. The first sublease agreement began on April 1, 2016, while the second sublease began on July 1, 2016. Both subleases end on March 31, 2021. The following summary reflects the future minimum rental payments by year under Mid Penn’s operating leases as of December 31, 2016, including a breakdown of the sublease rental income and future minimum payments owed to related parties. (Dollars in thousands) Lease Obligation Sublease Rental Income Net Rental Expense 2017 $ 1,121 $ 74 $ 1,047 2018 1,115 79 1,036 2019 1,116 81 1,035 2020 793 81 712 2021 582 20 562 thereafter 5,666 — 5,666 $ 10,393 $ 335 $ 10,058 Rental expense in connection with leases was $716,000 in 2016, $627,000 in 2015, and $151,000 in 2014. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | (10) Deposits At December 31, 2016 and 2015, time deposits amounted to $182,595,000 and $160,849,000, respectively. Interest expense on certificates of deposit amounted to $2,156,000, $1,920,000, and $1,971,000 for the years ended December 31, 2016, 2015 and 2014, respectively. The aggregate amount of demand deposit overdrafts that were reclassified as loans were $285,000 at December 31, 2016, compared to $567,000 as of December 31, 2015. Time deposits at December 31, 2016, mature as follows: (Dollars in thousands) Time Deposits Less than $250,000 $250,000 or more Maturing in 2017 $ 64,993 $ 16,760 Maturing in 2018 35,238 5,360 Maturing in 2019 20,094 3,209 Maturing in 2020 20,997 950 Maturing in 2021 13,953 303 Maturing thereafter 738 — $ 156,013 $ 26,582 Brokered deposits included in the time deposit totals equaled $13,567,000, at December 31, 2016 and $11,168,000 at December 31, 2015. Deposits and other funds from related parties held by Mid Penn at December 31, 2016 and 2015 amounted to $19,279,000 and $17,163,000, respectively. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Short Term Borrowings [Abstract] | |
Short-term Borrowings | (11) Short-term Borrowings Short-term borrowings generally have original terms of less than a week. Mid Penn’s short-term borrowings consist of federal funds purchased. There were no short-term borrowings at December 31, 2016, and $31,596,000 with a rate of 0.40% at December 31, 2015. The Bank also has short-term borrowing capacity from the FHLB up to the Bank’s unused borrowing capacity of $404,204,000 at December 31, 2016, upon satisfaction of any stock purchase requirements of the FHLB. The Bank also has unused overnight lines of credit with correspondent banks amounting to $15,000,000 at December 31, 2016. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Maturities Of 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, 2016 and 2015, the Bank had long-term debt outstanding in the amount of $13,581,000 and $40,305,000, respectively, consisting of: (Dollars in thousands) At December 31, 2016 2015 Loans maturing in 2016 with rates ranging from 0.54% to 1.08% $ — $ 26,521 Loans maturing in 2017 at a rate of 3.03% 1,016 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% 2,504 2,703 Loan maturing in 2027 at a rate of 6.71% 61 65 $ 13,581 $ 40,305 The aggregate principal amounts due on long-term debt subsequent to December 31, 2016 are $1,229,000 (2017), $223,000 (2018), $10,235,000 (2019), $246,000 (2020), $258,000 (2021), and $1,390,000 thereafter. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
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, and began 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. As of December 31, 2016, related parties held $1,930,000 of the Notes. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [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, 2016 or 2015. 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, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) U.S. Treasury and U.S. government agencies $ 47,012 $ 1,864 $ 45,148 $ — Mortgage-backed U.S. government agencies 25,619 — 25,619 — State and political subdivision obligations 58,838 — 58,838 — Corporate debt securities 1,000 — 1,000 — Equity securities 1,156 1,056 100 — $ 133,625 $ 2,920 $ 130,705 $ — 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 $ 1,861 $ 25,129 $ — Mortgage-backed U.S. government agencies 38,804 — 38,804 — State and political subdivision obligations 66,617 — 66,617 — Corporate debt securities 2,070 — 2,070 — Equity securities 1,240 1,240 — — $ 135,721 $ 3,101 $ 132,620 $ — 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, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,404 $ — $ — $ 2,404 Foreclosed Assets Held for Sale 135 — — 135 Mortgage Servicing Rights 144 — — 144 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 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, 2016 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,404 Appraisal of collateral (a) Appraisal adjustments (b) 11% - 70% 30% Foreclosed Assets Held for Sale 135 Appraisal of collateral (a), (c) Appraisal adjustments (b) 26% - 31% 27% Mortgage Servicing Rights 144 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 365% (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 (a) Appraisal adjustments (b) 11% - 60% 30% Foreclosed Assets Held for Sale 453 Appraisal of collateral (a), (c) Appraisal adjustments (b) 17% - 27% 26% Mortgage Servicing Rights 174 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 360% (a) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (b) 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. ( c ) 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 Borrowings and Subordinated Debt: The estimated fair values of long-term borrowings and subordinated 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, 2016 and 2015. (Dollars in thousands) December 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 45,973 $ 45,973 $ 13,284 $ 13,284 Interest-bearing time balances with other financial institutions — — 4,317 4,317 Available for sale investment securities 133,625 133,625 135,721 135,721 Net loans and leases 806,741 824,293 730,345 738,773 Restricted investment in bank stocks 2,443 2,443 4,266 4,266 Accrued interest receivable 3,928 3,928 3,813 3,813 Mortgage servicing rights 144 144 174 174 Financial liabilities: Deposits $ 935,373 $ 935,075 $ 777,043 $ 777,320 Short-term borrowings — — 31,596 31,596 Long-term debt 13,581 13,614 40,305 39,626 Subordinated debt 7,414 7,534 7,500 7,500 Accrued interest payable 515 515 390 390 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, 2016 and 2015. 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 (Dollars in thousands) Quoted Prices Significant in Active Markets Other Significant for Identical Assets Observable Unobservable Carrying Fair or Liabilities Inputs Inputs December 31, 2016 Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 806,741 $ 824,293 $ — $ — $ 824,293 Financial instruments - liabilities Deposits $ 935,373 $ 935,075 $ — $ 935,075 $ — Long-term debt 13,581 13,614 — 13,614 — Fair Value Measurements (Dollars in thousands) Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Carrying Fair or Liabilities Inputs Inputs December 31, 2015 Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 730,345 $ 738,773 $ — $ — $ 738,773 Financial instruments - liabilities Deposits $ 777,043 $ 777,320 $ — $ 777,320 $ — Long-term debt 40,305 39,626 — 39,626 — |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [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 certain 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 at age 55 or later, after completion of 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 at age 55 or later, after completion of 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, 2016, was $43,000. 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, 2016 and 2015, and a statement of the funded status at December 31, 2016 and 2015. (Dollars in thousands) December 31, Change in benefit obligations: 2016 2015 Benefit obligations, January 1 $ 572 $ 861 Service cost 4 13 Interest cost 23 32 Change in experience 2 (24 ) Change in assumptions 13 (4 ) Change due to plan amendment — (244 ) Benefit payments (74 ) (62 ) Benefit obligations, December 31 $ 540 $ 572 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 74 62 Benefit payments (74 ) (62 ) Fair value of plan assets, December 31 $ — $ — Funded status at year end $ (540 ) $ (572 ) 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, 2016 and 2015, is as follows: (Dollars in thousands) 2016 2015 Accrued benefit liability $ 540 $ 572 The amounts recognized in accumulated other comprehensive (loss) income consist of: (Dollars in thousands) December 31, 2016 2015 Net gain, pretax $ (31 ) $ (47 ) Net prior service cost, pretax (209 ) (244 ) The accumulated benefit obligation for health and life insurance plans was $540,000 and $572,000 at December 31, 2016 and 2015, respectively. There will be $34,898 in estimated prior service costs amortized from accumulated other comprehensive income into net periodic benefit cost during 2017. The components of net periodic postretirement (income) benefit cost for 2016, 2015 and 2014 are as follows: (Dollars in thousands) 2016 2015 2014 Service cost $ 4 $ 13 $ 13 Interest cost 23 32 38 Amortization of prior service cost (35 ) — (1 ) Net periodic postretirement (income) benefit cost $ (8 ) $ 45 $ 50 Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2016 and 2015 are as follows: Weighted-average assumptions: 2016 2015 Discount rate 4.00 % 4.25 % Rate of compensation increase 3.00 % 3.25 % Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: Weighted-average assumptions: 2016 2015 2014 Discount rate 4.25 % 4.00 % 4.75 % Rate of compensation increase 3.25 % 3.00 % 3.75 % Assumed health care cost trend rates at December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Health care cost trend rate assumed for next year 6.00 % 5.50 % 6.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.50 % 5.50 % Year that the rate reaches the ultimate trend rate 2018 2016 2016 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care Plans. At December 31, 2016, 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 $ — $ — Effect on accumulated postretirement benefit obligation 3 3 Mid Penn expects to contribute $73,000 to its life and health benefit Plans in 2017. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2017 to 12/31/2017 $ 73 1/1/2018 to 12/31/2018 64 1/1/2019 to 12/31/2019 61 1/1/2020 to 12/31/2020 56 1/1/2021 to 12/31/2021 30 1/1/2022 to 12/31/2026 156 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, 2016 and 2015 and a statement of the status at December 31, 2016 and 2015. This Plan is unfunded. (Dollars in thousands) December 31, Change in benefit obligations: 2016 2015 Benefit obligations, January 1 $ 1,150 $ 1,186 Service cost 34 33 Interest cost 46 45 Actuarial gain (13 ) (8 ) Change in assumptions (4 ) (16 ) Benefit payments (91 ) (90 ) Benefit obligations, December 31 $ 1,122 $ 1,150 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 91 90 Benefit payments (91 ) (90 ) Fair value of plan assets, December 31 $ — $ — Funded status at year end $ (1,122 ) $ (1,150 ) Amounts recognized in the consolidated balance sheet at December 31, 2016 and 2015 are as follows: (Dollars in thousands) 2016 2015 Accrued benefit liability $ 1,122 $ 1,150 Amounts recognized in accumulated other comprehensive income (loss) consist of: (Dollars in thousands) December 31, 2016 2015 Net prior service cost, pretax $ 43 $ 64 Net loss, pretax 60 77 The accumulated benefit obligation for the retirement Plan was $1,122,000 at December 31, 2016 and $1,150,000 at December 31, 2015. The estimated prior service costs that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 is $21,525. The components of net periodic retirement cost for 2016, 2015 and 2014 are as follows: (Dollars in thousands) 2016 2015 2014 Service cost $ 34 $ 33 $ 33 Interest cost 46 45 51 Amortization of prior-service cost 22 22 22 Net periodic retirement cost $ 102 $ 100 $ 106 Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2016 and 2015 are as follows: Weighted-average assumptions: 2016 2015 Discount rate 4.00 % 4.25 % Change in consumer price index 2.00 % 2.25 % Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: Weighted-average assumptions: 2016 2015 2014 Discount rate 4.25 % 4.00 % 4.75 % Change in consumer price index 2.25 % 2.25 % 2.75 % Mid Penn expects to contribute $94,000 to its retirement Plan in 2017. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2017 to 12/31/2017 $ 94 1/1/2018 to 12/31/2018 96 1/1/2019 to 12/31/2019 96 1/1/2020 to 12/31/2020 98 1/1/2021 to 12/31/2021 108 1/1/2022 to 12/31/2026 464 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 $3,834,000 and $3,764,000 at December 31, 2016 and 2015, respectively. |
Other Benefit Plans
Other Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [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 $362,000, $321,000, and $216,000 for the years ending December 31, 2016, 2015, and 2014, 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 2016, 2015, or 2014. (c) Deferred Compensation Plans The Bank has an executive deferred compensation plan, which allows executive officers 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 $143,000 at December 31, 2016 and $160,000 at December 31, 2015. The expense related to the Plan was $6,000 in 2016, $9,000 in 2015, and $6,000 in 2014. 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, 2016 and 2015, the Bank accrued a liability of approximately $606,000 and $523,000, respectively, for this Plan. The expense related to the Plan was $21,000 in 2016, $17,000 in 2015, and $16,000 in 2014. (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, 2016 and 2015, the Bank accrued a liability of approximately $254,000 and $237,000, respectively, for the Agreement. The expense related to the Agreement was $17,000 for 2016, $16,000 for 2015, and $15,000 for 2014. The Bank is the owner and beneficiary of an insurance policy on the life of the participating former executive officer, which supports the funding of the benefit obligation. The aggregate cash surrender value of this policy was approximately $1,284,000 and $1,253,000 at December 31, 2016 and 2015, respectively. (e) Split Dollar Life Insurance Arrangements At December 31, 2016 and 2015, the Bank had Split Dollar Life Insurance arrangements with two former executives for which the aggregate collateral assignment and cash surrender values are approximately $1,801,000 and $1,806,000, respectively. Mid Penn also acquired Phoenix’s Split Dollar Life Insurance arrangements in 2015 on select employees, which had aggregate cash surrender value of $3,838,000 at December 31, 2016 and $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. 2016 2015 2014 ESPP shares purchased 4,465 4,162 3,432 Average purchase price per share $ 18.520 $ 15.865 $ 15.318 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | (17) Federal Income Taxes The following temporary differences gave rise to the net deferred tax asset at December 31, 2016 and 2015. (Dollars in thousands) 2016 2015 Deferred tax assets: Allowance for loan and lease losses $ 2,442 $ 2,097 Loan fees 82 79 Deferred compensation 906 313 Benefit plans 955 586 Unrealized loss on securities 1,504 — Nonaccrual interest — 554 Business combination adjustments 720 1,166 Other 177 170 6,786 4,965 Deferred tax liabilities: Depreciation (1,175 ) (1,074 ) Bond accretion (117 ) (111 ) Goodwill and intangibles (500 ) (472 ) Unrealized gain on securities — (806 ) Prepaid expenses (312 ) (240 ) Business combination adjustments (367 ) (428 ) Other (29 ) (13 ) (2,500 ) (3,144 ) Deferred tax asset, net $ 4,286 $ 1,821 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) 2016 2015 2014 Current expense $ 2,613 $ 647 $ 1,574 Deferred (benefit) expense (336 ) 997 (112 ) Total provision for income taxes $ 2,277 $ 1,644 $ 1,462 A reconciliation of income tax at the statutory rate of 34% to Mid Penn's effective rate is as follows: (Dollars in thousands) 2016 2015 2014 Provision at the expected statutory rate $ 3,428 $ 2,779 $ 2,435 Effect of tax-exempt income (1,089 ) (1,105 ) (1,086 ) Effect of investment in life insurance (90 ) (91 ) (68 ) Nondeductible interest 41 37 42 Nondeductible merger and acquisition expense — 34 163 Other items (13 ) (10 ) (24 ) Provision for income taxes $ 2,277 $ 1,644 $ 1,462 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, 2016, 2015, or 2014. There were no amounts accrued for interest and penalties at December 31, 2016 or 2015. 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 authorities for years before 2013. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [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, 2016 and December 31, 2015, 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 was 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, 2016, $5,311,000 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, 2016, and December 31, 2015, as follows: (Dollars in thousands) Capital Adequacy To Well-Capitalized Under Prompt Minimum Capital Corrective Actual Required Action Provisions Amount Ratio Amount Ratio Amount Ratio Corporation As of December 31, 2016 Tier 1 Capital (to Average Assets) $ 70,431 6.8 % $ 41,595 4.0 % $ N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 70,431 9.1 % 34,807 4.5 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 70,431 9.1 % 46,409 6.0 % N/A N/A Total Capital (to Risk Weighted Assets) 85,148 11.0 % 61,879 8.0 % N/A N/A Bank As of December 31, 2016 Tier 1 Capital (to Average Assets) $ 77,026 7.4 % $ 41,568 4.0 % $ 51,960 5.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 77,026 10.0 % 34,781 4.5 % 50,239 6.5 % Tier 1 Capital (to Risk Weighted Assets) 77,026 10.0 % 46,374 6.0 % 61,832 8.0 % Total Capital (to Risk Weighted Assets) 84,329 10.9 % 61,832 8.0 % 77,291 10.0 % 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 % |
Concentration of Risk and Off-B
Concentration of Risk and Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2016 | |
Concentration Risks Types No Concentration Percentage [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, 2016 and 2015 for guarantees under letters of credit issued is not material. As of December 31, 2016, commitments to extend credit amounted to $201,749,000 and standby letters of credit amounted to $14,000,000. As of December 31, 2015, commitments to extend credit amounted to $157,338,000 and standby letters of credit amounted to $15,805,000. Additionally, Mid Penn has sold loans to the FHLB as part of its Mortgage Partnership Finance Program (“Program). Under the terms of the Program, there is limited recourse back to Mid Penn for loans that do not perform in accordance with the terms of the loan agreement. Each loan that is sold under the Program is “credit enhanced” such that the individual loan’s rating is raised to “BBB”, as determined by the FHLB. The Program can be terminated by either the FHLB or Mid Penn, 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. The total balance of loans sold under the Program was $9,206,000 and $5,958,000 for the years ended December 31, 2016 and 2015. 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, 2016, 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 Cumberland, Dauphin, Lancaster, Luzerne, Northumberland, and Schuylkill Counties. The Bank's highest concentrations of credit within the loan portfolio is in commercial real estate financing (48.8 %) as of December 31, 2016. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | (20) Contingencies 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, 2016 | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Common Stock | (21) Common Stock Dividend Reinvestment Plan 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. Restricted Stock Plan On June 25, 2014, the 2014 Restricted Stock Plan was registered under 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, 2016, 16,045 shares have been granted under the Plan. Mid Penn granted 7,540 shares in 2016, 5,475 shares in 2015, and 3,500 shares in 2014. In 2016, 470 of the granted shares were cancelled due to the exit of a plan participant. The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the consolidated statement of income. (Dollars in thousands) 2016 2015 2014 Compensation expense $ 53 $ 28 $ — Tax benefit (18 ) (10 ) — Net income effect $ 35 $ 18 $ — At December 31, 2016, there was $215,000 of unrecognized compensation cost related to all non-vested share-based compensation awards. This cost is expected to be recognized through July 2020. The following table presents information regarding the non-vested restricted stock for the year ended December 31, 2016. Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2016 8,100 $ 16.13 Vested (2,115 ) 16.10 Cancelled (470 ) 16.09 Granted 7,540 18.77 Non-vested at December 31, 2016 13,055 17.66 |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Class Of Stock Disclosures [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, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Statements | (23) Parent Company Statements CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2016 2015 ASSETS Cash and cash equivalents $ 780 $ 564 Equity investments 545 626 Investment in subsidiaries 77,029 76,334 Other assets 40 14 Total assets $ 78,394 $ 77,538 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt $ 7,414 $ 7,414 Other liabilities 513 56 Shareholders' equity 70,467 70,068 Total liabilities and shareholders' equity $ 78,394 $ 77,538 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) For Years Ended December 31, 2016 2015 2014 Income Dividends from subsidiaries $ 2,871 $ 5,662 $ 2,325 Other income 33 19 — Total Income 2,904 5,681 2,325 Expense Other expenses (606 ) (695 ) (716 ) Total Expense (606 ) (695 ) (716 ) Income before income tax and equity in undistributed earnings (loss) of subsidiaries 2,298 4,986 1,609 Equity in undistributed earnings of subsidiaries 5,311 1,346 4,012 Income before income tax 7,609 6,332 5,621 Income tax benefit 195 196 80 Net income 7,804 6,528 5,701 Series B preferred stock dividends and redemption premium — 473 350 Series C preferred stock dividends — 17 — Net income available to common shareholders $ 7,804 $ 6,038 $ 5,351 Comprehensive income $ 3,139 $ 6,827 $ 8,086 CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) For Years Ended December 31, 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 7,804 $ 6,528 $ 5,701 Equity in undistributed earnings of subsidiaries (5,311 ) (1,346 ) (4,012 ) Decrease (increase) in other assets 59 (14 ) 8 Increase (decrease) in other liabilities 457 (665 ) 292 Net cash provided by operating activities 3,009 4,503 1,989 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 (2,875 ) (2,175 ) (1,925 ) 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 82 66 53 Deferred financing fees paid for subordinated debt issuance — (85 ) — Subordinated debt issuance — 7,500 — Net cash used in financing activities (2,793 ) (1,544 ) (1,872 ) Net increase in cash and cash equivalents 216 10 117 Cash and cash equivalents, beginning of year 564 554 437 Cash and cash equivalents, end of year $ 780 $ 564 $ 554 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | |
Recent Accounting Pronouncements | (24) Recent Accounting Pronouncements ASU 2017-04 : The Financial Accounting Standards Board (“FASB”) issued ASU 2017-04; Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The amendments in this ASU are required for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. To simplify the subsequent measurement of goodwill, the Update eliminates Step 2 from the goodwill impairment test. An entity should now perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with it carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unity. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment, and if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. An entity should apply the amendments in this Update on a prospective basis. A public business entity should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Mid Penn elected to early adopt this ASU as it currently complies by comparing its fair value to its carrying value. The adoption of this ASU did not have a material impact on Mid Penn’s consolidated financial statements. ASU 2016-15 : The FASB issued ASU 2016-15; Classification of Certain Cash Receipts and Cash Payments The ASU clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are intended to reduce diversity in practice. • Cash payments for debt prepayment or extinguishment costs will be classified in financing activities. • Upon settlement of zero-coupon bonds and bonds with insignificant cash coupons, the portion of the payment attributable to imputed interest will be classified as an operating activity, while the portion of the payment attributable to principal will be classified as a financing activity. • Cash paid by an acquirer that isn’t soon after a business combination for the settlement of a contingent consideration liability will be separated between financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized at the acquisition date will be classified in financing activities; any excess will be classified in operating activities. Cash paid soon after the business combination will be classified in investing activities. • Cash proceeds received from the settlement of insurance claims will be classified on the basis of the related insurance coverage (that is, the nature of the loss). Cash proceeds from lump-sum settlements will be classified based on the nature of each loss included in the settlement. • Cash proceeds received from the settlement of corporate-owned life insurance (“COLI”) and BOLI policies will be classified as cash inflows from investing activities. Cash payments for premiums on COLI and BOLI may be classified as cash outflows for investing, operating, or a combination of both. • A transferor’s beneficial interest obtained in a securitization of financial assets will be disclosed as a noncash activity, and cash received from beneficial interests will be classified in investing activities. • Distributions received from equity method investees will be classified using either a cumulative earnings approach or a look- through approach as an accounting policy election. The ASU contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classify them into more than one class of cash flows (including when reasonable judgment is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. Mid Penn is currently evaluating this ASU, particularly related to cash payments for debt prepayment costs and cash proceeds received from the settlement of BOLI policies as these areas might affect Mid Penn in the future. This ASU, however, is not expected to have a material impact on Mid Penn’s consolidated financial statements because the guidance only affects the classification within the statement of cash flows, ASU 2016-13 : The FASB issued ASU 2016-13; Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. The Update has tiered effective dates, with early adoption permitted for all entities as of the fiscal year beginning after December 15, 2018. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Mid Penn is currently evaluating the details of this ASU and the impact the guidance will have on Mid Penn’s consolidated financial statements. Mid Penn expects that it is possible that the ASU will result in an increase in the allowance for credit losses resulting from the change to expected losses for the estimated life of the financial asset, including an allowance for debt securities. The amount of the increase in the allowance for credit losses resulting from the new guidance will be impacted by the portfolio composition and asset quality at the adoption date, as well as economic conditions and forecasts at the time of adoption. ASU 2016-09: The FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an “APIC pool.” The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with existing U.S. GAAP) or account for forfeitures when they occur. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Mid Penn currently provides share-based stock compensation to members of its Senior Management team who have a responsibility for its growth as disclosed in Note 21. Mid Penn expects the adoption of this ASU to have no material impact on its consolidated financial statements as the current. ASU 2016-07: The FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The ASU requires an investor to initially apply the equity method of accounting from the date it qualifies for that method, i.e., the date the investor obtains significant influence over the operating and financial policies of an investee. It also eliminates the previous requirement to retroactively adjust the investment and record a cumulative catch up for the periods that the investment had been held, but did not qualify for the equity method of accounting. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the application of the equity method. Early adoption is permitted. Mid Penn currently does not have a material volume of equity method or joint venture investments; therefore, this ASU is not expected to have a material impact on its consolidated financial statements. ASU 2016-02: The FASB issued ASU 2016-02, Leases. The new leases standard applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing U.S. GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606. Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and remeasurement of lease payments. It also contains comprehensive implementation guidance with practical examples. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Specific transition requirements apply. Mid Penn occupies certain offices under non-cancelable operating lease agreements, which currently are not reflected in its consolidated statement of condition. Mid Penn expects to recognize lease liabilities and ROU assets associated with these lease agreements; however, the extent of the impact on Mid Penn’s consolidated financial statements is currently under evaluation. 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 ASU 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 ASU allows equity investments without readily determinable fair values to be measured at cost minus impairment, with a qualitative assessment required to identify impairment. The ASU 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 ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. As of December 31, 2016, Mid Penn held $2,156,000 of equity investments (excluding restricted investments in bank stocks). Mid Penn does not expect to make significant increases in the volume of its equity investments; therefore, the adoption of this ASU is not expected to be material to Mid Penn’s 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 ASU 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. Early adoption is permitted. The amendments in this ASU should be applied prospectively to measurement-period adjustments that occur after the effective date of this ASU. Mid Penn early adopted this guidance in 2015. The adoption of this guidance was not material to the consolidated financial statements. See Note 4 “Mergers and Acquisitions” regarding business combinations. 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. In August 2015, the FASB issued ASU 2015-14, Revenue from contracts with Customers (Topic 606): Deferral of the Effective Date In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ASU 2014-09, including transition requirements for all amendments, is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. Early adoption is permitted as of the original effective date for interim and annual reporting periods in fiscal years beginning after December 15, 2016. Mid Penn’s implementation efforts include the identification of revenue within the scope of the guidance, particularly in regards to assessing collectability. Mid Penn’s review is ongoing, and it will continue to evaluate any impact as additional guidance is issued and as its internal assessment progresses. 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. Mid Penn adopted this ASU in March of 2016. The adoption of this guidance had no material impact on Mid Penn’s consolidated financial statements. |
Summary of Quarterly Consolidat
Summary of Quarterly Consolidated Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly 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 2016 and 2015. (Dollars in thousands, except per share data) 2016 Quarter Ended March 31 June 30 September 30 December 31 Interest Income $ 9,697 $ 9,859 $ 10,125 $ 10,531 Interest Expense 1,282 1,316 1,367 1,402 Net Interest Income 8,415 8,543 8,758 9,129 Provision for Loan and Lease Losses 340 395 585 550 Net Interest Income After Provision for Loan Losses 8,075 8,148 8,173 8,579 Noninterest Income 1,232 1,398 1,419 1,875 Noninterest Expense 6,982 6,931 7,165 7,740 Income Before Provision for Income Taxes 2,325 2,615 2,427 2,714 Provision for Income Taxes 520 593 526 638 Net Income Available to Common Shareholders $ 1,805 $ 2,022 $ 1,901 $ 2,076 Per Share Data: Basic Earnings Per Common Share $ 0.43 $ 0.48 $ 0.45 $ 0.49 Cash Dividends Declared 0.22 0.12 0.12 0.22 (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 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 Common Share $ 0.23 $ 0.46 $ 0.43 $ 0.35 Cash Dividends Declared 0.10 0.10 0.12 0.12 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 $1,046,000 in 2016, $325,000 in 2015, and $168,000 in 2014. Mid Penn had no held-to-maturity securities in 2016 and 2015. |
Loans Held for Sale | (e) Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are included in loans held for sale and are carried at fair value, as determined by outstanding commitments from investors. Gains and losses on sales of mortgage loans are included in the Consolidated Statements of Income in mortgage banking income. Mortgage banking income was $922,000 in 2016, $456,000 in 2015, and $313,000 in 2014. |
Loans and Allowance for Loan and Lease Losses | (f) 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. Residential loans held for sale are carried at fair value and are included in loans held for sale on the balance sheet. 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 typically 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 weakens 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 $120,000 at December 31, 2016 and $94,500 at December 31, 2015. 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 DCF, 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 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 | (g) 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. Bank premises and equipment designated as held for sale are carried at the lower of cost or market value. |
Restricted Investment in Federal Home Loan Bank Stock | (h) 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 $2,443,000 December 31, 2016 and $4,266,000 at December 31, 2015. This reduction was attributed to the decline in Mid Penn’s FHLB long term advances and its shift from a short-term borrowing to a short-term selling position in 2016. Total dividends received in 2016 and 2015 totaled $135,000 and $250,000, respectively. |
Foreclosed Assets Held for Sale | (i) 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, 2016, Mid Penn had $57,000 of residential real estate held in other real estate owned. There was $426,000 in loans for which formal foreclosure proceedings were in process at December 31, 2016. 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 | (j) 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 $144,000 and $174,000 at December 31, 2016 and 2015, respectively. Amortization expense is reflected in the Consolidated Statements of Income in other income and was $30,000, $24,000, and $36,000 for the years 2016, 2015, and 2014, respectively. Servicing rights are evaluated for impairment based upon estimated fair value as compared to unamortized book value. |
Investment in Limited Partnership | (k) 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 $321,000 at December 31, 2016 and $365,000 at December 31, 2015, 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 2016, 2015 and 2014. |
Income Taxes | (l) 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 | (m) 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 | (n) Goodwill Goodwill is the excess of the purchase price over the fair value of assets acquired in connection with past business acquisitions, including the 2015 Phoenix acquisition. 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, 2016 using a qualitative analysis. In addition, Mid Penn did not identify any impairment in 2015 or 2014 using a qualitative and quantitative analysis, respectively, in accordance with ASC 350. |
Bank Owned Life Insurance | (o) 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 has not provided deferred income taxes on the earnings from the increase in cash surrender value. Mid Penn is also party to certain Split-Dollar Life Insurance Arrangements, and in accordance with GAAP, has accrued a liability 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 | (p) Marketing and Advertising Costs Marketing and advertising costs are expensed as incurred. |
Postretirement and Other Benefit Plans | (q) Postretirement Benefit Plans Mid Penn follows the guidance in ASC Topic 715, Compensation-Retirement Benefits (r) 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 | (s) 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 | (t) Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) 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 (loss), net of tax, until they are amortized, or immediately upon curtailment. |
Restricted stock | (u) Restricted Stock Mid Penn provides members of Senior Management 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 | (v) 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 earnings per share. (Dollars in thousands, except per share data) 2016 2015 2014 Net Income $ 7,804 $ 6,528 $ 5,701 Less: Dividends on Series B preferred stock — 373 350 Redemption premium on Series B preferred stock — 100 — Dividends on Series C preferred stock — 17 — Net income available to common shareholders $ 7,804 $ 6,038 $ 5,351 Weighted average common shares outstanding 4,229,284 4,106,548 3,495,705 Basic earnings per common share $ 1.85 $ 1.47 $ 1.53 Mid Penn had no dilutive instruments outstanding during the periods ended December 31, 2016, 2015, and 2014. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic Earnings (Loss) Per Share | The following data show the amounts used in computing basic earnings per share. (Dollars in thousands, except per share data) 2016 2015 2014 Net Income $ 7,804 $ 6,528 $ 5,701 Less: Dividends on Series B preferred stock — 373 350 Redemption premium on Series B preferred stock — 100 — Dividends on Series C preferred stock — 17 — Net income available to common shareholders $ 7,804 $ 6,038 $ 5,351 Weighted average common shares outstanding 4,229,284 4,106,548 3,495,705 Basic earnings per common share $ 1.85 $ 1.47 $ 1.53 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [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 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 |
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 |
Unaudited Pro Forma Information | The following table presents unaudited 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. (Unaudited) (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 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income, Net of Taxes | The components of accumulated other comprehensive (loss) income, net of taxes, are as follows: (Dollars in thousands) Unrealized (Loss) Gain on Securities Defined Plan Liability Accumulated Other Comprehensive (Loss) Income Balance - December 31, 2016 $ (2,919 ) $ 66 $ (2,853 ) Balance - December 31, 2015 $ 1,565 $ 247 $ 1,812 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Securities Financing Transactions Disclosures [Abstract] | |
Unrealized Gain (Loss) on Investments | At December 31, 2016 and 2015, amortized cost, fair value, and unrealized gains and losses on investment securities are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available for sale securities: U.S. Treasury and U.S. government agencies $ 48,520 $ 34 $ 1,542 $ 47,012 Mortgage-backed U.S. government agencies 26,181 17 579 25,619 State and political subdivision obligations 61,079 91 2,332 58,838 Corporate debt securities 1,000 — — 1,000 Equity securities 1,268 — 112 1,156 $ 138,048 $ 142 $ 4,565 $ 133,625 (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 Corporate debt securities 2,000 80 10 2,070 Equity securities 1,271 2 33 1,240 $ 133,350 $ 2,774 $ 403 $ 135,721 |
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, 2016 and 2015. (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2016 Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Available for sale securities: U.S. Treasury and U.S. government agencies 23 $ 43,698 $ 1,542 0 $ — $ — 23 $ 43,698 $ 1,542 Mortgage-backed U.S. government agencies 18 24,321 579 0 — — 18 24,321 579 State and political subdivision obligations 108 50,582 2,332 0 — — 108 50,582 2,332 Equity securities 0 — — 2 1,056 112 2 1,056 112 Total temporarily impaired available for sale securities 149 $ 118,601 $ 4,453 2 $ 1,056 $ 112 151 $ 119,657 $ 4,565 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2015 Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized 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 Corporate debt securities 1 990 10 0 — — 1 990 10 Equity securities 0 — — 2 615 33 2 615 33 Total temporarily impaired available for sale securities 29 $ 24,049 $ 209 18 $ 9,911 $ 194 47 $ 33,960 $ 403 |
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, 2016. (Dollars in thousands) December 31, 2016 Amortized Fair Cost Value Due in 1 year or less $ 1,293 $ 1,305 Due after 1 year but within 5 years 19,656 19,471 Due after 5 years but within 10 years 66,084 63,895 Due after 10 years 23,566 22,179 110,599 106,850 Mortgage-backed securities 26,181 25,619 Equity securities 1,268 1,156 $ 138,048 $ 133,625 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [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 $196,000 and $178,000 as of December 31, 2016 and 2015, respectively, and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2016 and 2015, are noted below: (Dollars in thousands) December 31, 2016 Pass Special Mention Substandard Doubtful Total Commercial and industrial $ 170,780 $ 937 $ 801 $ — $ 172,518 Commercial real estate 437,592 1,683 7,249 — 446,524 Commercial real estate - construction 52,888 202 1,286 — 54,376 Lease financing 425 — — — 425 Residential mortgage 97,994 107 1,356 — 99,457 Home equity 37,242 142 224 — 37,608 Consumer 3,016 — — 3,016 $ 799,937 $ 3,071 $ 10,916 $ — $ 813,924 (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 — 100,665 Home equity 32,928 261 222 — 33,411 Consumer 3,917 — — — 3,917 $ 722,905 $ 6,516 $ 9,770 $ — $ 736,513 |
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class as of December 31, 2016 and 2015 are summarized as follows: December 31, 2016 December 31, 2015 (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 $ 4 $ 9 $ — $ 14 $ 49 $ — Commercial real estate: Commercial real estate 726 1,792 — 1,023 2,020 — Acquired with credit deterioration* 842 842 — 931 931 — Commercial real estate - construction: Commercial real estate - construction 618 618 — — — — Residential mortgage: Residential mortgage 848 882 — 1,329 1,434 — Acquired with credit deterioration* 389 389 — 400 400 — Home equity: Home equity 111 129 — 115 137 — With an allowance recorded: Commercial and industrial $ 56 $ 62 $ 6 $ 113 $ 128 $ 51 Commercial real estate 2,520 2,646 711 1,947 1,981 429 Commercial real estate - construction 242 242 72 — — — Residential mortgage 68 68 68 32 32 23 Home equity 29 49 1 — — — Total: Commercial and industrial $ 60 $ 71 $ 6 $ 127 $ 177 $ 51 Commercial real estate 4,088 5,280 711 3,901 4,001 429 Commercial real estate - construction 860 860 72 — — — Residential mortgage 1,305 1,339 68 1,761 1,466 23 Home equity 140 178 1 115 137 — |
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, 2016, 2015, and 2014 are summarized as follows: December 31, 2016 December 31, 2015 December 31, 2014 (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 $ 9 $ — $ 19 $ — $ 72 $ — Acquired with credit deterioration — — — 205 — — Commercial real estate: Commercial real estate 820 — 1,051 14 1,966 346 Acquired with credit deterioration 810 164 926 350 — — Commercial real estate - construction: Commercial real estate - construction 124 — — — — — Residential mortgage: Residential mortgage 821 21 816 8 541 — Acquired with credit deterioration 378 4 400 — — — Home equity: Home equity 75 — 107 — 29 — Acquired with credit deterioration — — — 3 — — With an allowance recorded: Commercial and industrial $ 59 $ — $ 123 $ — $ 93 $ — Commercial real estate 2,177 — 1,721 — 6,823 — Commercial real estate - construction 48 — — — — — Residential mortgage 14 — 25 — — — Home equity 32 — — — 76 — Total: Commercial and industrial $ 68 $ — $ 142 $ 205 $ 165 $ — Commercial real estate 3,807 164 3,698 364 8,789 346 Commercial real estate - construction 172 — — — — — Residential mortgage 1,213 25 1,241 8 541 — Home equity 107 — 107 3 105 — |
Non-accrual Loans by Classes of the Loan Portfolio | Nonaccrual loans by loan portfolio class as of December 31, 2016 and 2015 are summarized as follows: (Dollars in thousands) 2016 2015 Commercial and industrial $ 4 $ 66 Commercial real estate 2,939 2,607 Commercial real estate - construction 860 — Residential mortgage 715 1,630 Home equity 140 115 $ 4,658 $ 4,418 |
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of December 31, 2016 and 2015 are summarized as follows: (Dollars in thousands) December 31, 2016 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 $ 164 $ 12 $ 4 $ 180 $ 172,338 $ 172,518 $ — Commercial real estate: Commercial real estate 475 — 1,004 1,479 444,203 445,682 — Acquired with credit deterioration — — 59 59 783 842 59 Commercial real estate - construction: Commercial real estate - construction — 404 84 488 53,888 54,376 — Lease financing: Lease financing — — — — 425 425 — Residential mortgage: Residential mortgage 548 124 237 909 98,159 99,068 — Acquired with credit deterioration — — 238 238 151 389 — Home equity: Home equity 33 13 125 171 37,437 37,608 — Consumer: Consumer — — — — 3,016 3,016 — Total $ 1,220 $ 553 $ 1,751 $ 3,524 $ 810,400 $ 813,924 $ 59 (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 2,275 366,258 368,533 — Acquired with credit deterioration 215 518 55 788 143 931 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 98,243 100,265 — 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 $ 730,781 $ 736,513 $ 55 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | Activity in the allowance for loan and lease losses for the years ended December 31, 2016, 2015, and 2014, and the recorded investment in loans receivable as of December 31, 2016, 2015, and 2014 are as follows: (Dollars in thousands) December 31, 2016 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 $ 3,552 $ 153 $ 1 $ 534 $ 317 $ 12 $ 206 $ 6,168 Charge-offs (820 ) (216 ) — — (4 ) (25 ) (42 ) — (1,107 ) Recoveries 4 211 — — 26 — 11 — 252 Provisions 1,003 776 (9 ) — (15 ) 87 22 6 1,870 Ending balance 1,580 4,323 144 1 541 379 3 212 7,183 Ending balance: individually evaluated for impairment 6 711 72 — 68 1 — — 858 Ending balance: collectively evaluated for impairment $ 1,574 $ 3,612 $ 72 $ 1 $ 473 $ 378 $ 3 $ 212 $ 6,325 Loans receivable: Ending balance $ 172,518 $ 446,524 $ 54,376 $ 425 $ 99,457 $ 37,608 $ 3,016 $ — $ 813,924 Ending balance: individually evaluated for impairment 60 3,246 860 — 916 140 — — 5,222 Ending balance: acquired with credit deterioration — 842 — — 389 — — — 1,231 Ending balance: collectively evaluated for impairment $ 172,458 $ 442,436 $ 53,516 $ 425 $ 98,152 $ 37,468 $ 3,016 $ — $ 807,471 (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 $ 100,665 $ 33,411 $ 3,917 $ — $ 736,513 Ending balance: individually evaluated for impairment 127 2,970 — — 1,361 115 — — 4,573 Ending balance: acquired with credit deterioration — 931 — — 400 — — — 1,331 Ending balance: collectively evaluated for impairment $ 160,134 $ 365,563 $ 68,068 $ 727 $ 98,904 33,296 $ 3,917 $ — $ 730,609 (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 |
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at December 31, 2016 and 2015 are as follows: (Dollars in thousands) Pre-Modification Post-Modification December 31, 2016 Outstanding Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 40 $ 35 $ 5 Commercial real estate 4,569 4,031 2,871 Residential mortgage 759 757 639 $ 5,368 $ 4,823 $ 3,515 (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 |
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, 2016. (Dollars in thousands) Pre-Modification Post-Modification December 31, 2016 Number of Contracts Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial real estate 2 $ 934 $ 914 $ 914 Residential mortgage 1 68 68 68 3 $ 1,002 $ 982 $ 982 |
Schedule of Accretion of Purchased Impaired Loan | The following table provides activity for the accretable yield of purchased impaired loans for the year ended December 31, 2016. (Dollars in thousands) Accretable yield, January 1, 2016 $ 178 Accretable yield amortized to interest income (141 ) Reclassification from nonaccretable difference (a) 30 Accretable yield, December 31, 2016 $ 67 (a) Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio. |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | At December 31, 2016 and 2015, bank premises and equipment are as follows: (Dollars in thousands) 2016 2015 Land $ 2,315 $ 2,906 Buildings 9,517 10,789 Furniture, fixtures, and equipment 8,184 8,742 Leasehold improvements 1,432 1,212 Construction in progress 89 18 Total cost 21,537 23,667 Less accumulated depreciation (10,463 ) (9,674 ) Net book value of bank premises and equipment 11,074 13,993 Assets held for sale 1,894 — Total bank premises and equipment $ 12,968 $ 13,993 |
Schedule of Future Minimum Rental Payments of Operating Leases | The following summary reflects the future minimum rental payments by year under Mid Penn’s operating leases as of December 31, 2016, including a breakdown of the sublease rental income and future minimum payments owed to related parties. (Dollars in thousands) Lease Obligation Sublease Rental Income Net Rental Expense 2017 $ 1,121 $ 74 $ 1,047 2018 1,115 79 1,036 2019 1,116 81 1,035 2020 793 81 712 2021 582 20 562 thereafter 5,666 — 5,666 $ 10,393 $ 335 $ 10,058 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Time Deposits By Maturity Date | Time deposits at December 31, 2016, mature as follows: (Dollars in thousands) Time Deposits Less than $250,000 $250,000 or more Maturing in 2017 $ 64,993 $ 16,760 Maturing in 2018 35,238 5,360 Maturing in 2019 20,094 3,209 Maturing in 2020 20,997 950 Maturing in 2021 13,953 303 Maturing thereafter 738 — $ 156,013 $ 26,582 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Maturities Of Long Term Debt [Abstract] | |
Long-term Debt Outstanding by Maturity Date | As of December 31, 2016 and 2015, the Bank had long-term debt outstanding in the amount of $13,581,000 and $40,305,000, respectively, consisting of: (Dollars in thousands) At December 31, 2016 2015 Loans maturing in 2016 with rates ranging from 0.54% to 1.08% $ — $ 26,521 Loans maturing in 2017 at a rate of 3.03% 1,016 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% 2,504 2,703 Loan maturing in 2027 at a rate of 6.71% 61 65 $ 13,581 $ 40,305 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [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, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) U.S. Treasury and U.S. government agencies $ 47,012 $ 1,864 $ 45,148 $ — Mortgage-backed U.S. government agencies 25,619 — 25,619 — State and political subdivision obligations 58,838 — 58,838 — Corporate debt securities 1,000 — 1,000 — Equity securities 1,156 1,056 100 — $ 133,625 $ 2,920 $ 130,705 $ — 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 $ 1,861 $ 25,129 $ — Mortgage-backed U.S. government agencies 38,804 — 38,804 — State and political subdivision obligations 66,617 — 66,617 — Corporate debt securities 2,070 — 2,070 — Equity securities 1,240 1,240 — — $ 135,721 $ 3,101 $ 132,620 $ — |
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, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,404 $ — $ — $ 2,404 Foreclosed Assets Held for Sale 135 — — 135 Mortgage Servicing Rights 144 — — 144 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 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, 2016 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,404 Appraisal of collateral (a) Appraisal adjustments (b) 11% - 70% 30% Foreclosed Assets Held for Sale 135 Appraisal of collateral (a), (c) Appraisal adjustments (b) 26% - 31% 27% Mortgage Servicing Rights 144 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 365% (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 (a) Appraisal adjustments (b) 11% - 60% 30% Foreclosed Assets Held for Sale 453 Appraisal of collateral (a), (c) Appraisal adjustments (b) 17% - 27% 26% Mortgage Servicing Rights 174 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 360% (a) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (b) 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. ( c ) 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, 2016 and 2015. (Dollars in thousands) December 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 45,973 $ 45,973 $ 13,284 $ 13,284 Interest-bearing time balances with other financial institutions — — 4,317 4,317 Available for sale investment securities 133,625 133,625 135,721 135,721 Net loans and leases 806,741 824,293 730,345 738,773 Restricted investment in bank stocks 2,443 2,443 4,266 4,266 Accrued interest receivable 3,928 3,928 3,813 3,813 Mortgage servicing rights 144 144 174 174 Financial liabilities: Deposits $ 935,373 $ 935,075 $ 777,043 $ 777,320 Short-term borrowings — — 31,596 31,596 Long-term debt 13,581 13,614 40,305 39,626 Subordinated debt 7,414 7,534 7,500 7,500 Accrued interest payable 515 515 390 390 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, 2016 and 2015. 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 (Dollars in thousands) Quoted Prices Significant in Active Markets Other Significant for Identical Assets Observable Unobservable Carrying Fair or Liabilities Inputs Inputs December 31, 2016 Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 806,741 $ 824,293 $ — $ — $ 824,293 Financial instruments - liabilities Deposits $ 935,373 $ 935,075 $ — $ 935,075 $ — Long-term debt 13,581 13,614 — 13,614 — Fair Value Measurements (Dollars in thousands) Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Carrying Fair or Liabilities Inputs Inputs December 31, 2015 Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 730,345 $ 738,773 $ — $ — $ 738,773 Financial instruments - liabilities Deposits $ 777,043 $ 777,320 $ — $ 777,320 $ — Long-term debt 40,305 39,626 — 39,626 — |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, and a statement of the funded status at December 31, 2016 and 2015. (Dollars in thousands) December 31, Change in benefit obligations: 2016 2015 Benefit obligations, January 1 $ 572 $ 861 Service cost 4 13 Interest cost 23 32 Change in experience 2 (24 ) Change in assumptions 13 (4 ) Change due to plan amendment — (244 ) Benefit payments (74 ) (62 ) Benefit obligations, December 31 $ 540 $ 572 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 74 62 Benefit payments (74 ) (62 ) Fair value of plan assets, December 31 $ — $ — Funded status at year end $ (540 ) $ (572 ) |
Schedule of Amounts Recognized in Balance Sheet | The amount recognized in the consolidated balance sheet at December 31, 2016 and 2015, is as follows: (Dollars in thousands) 2016 2015 Accrued benefit liability $ 540 $ 572 |
Schedule of Amounts Recognized in Other Comprehensive (Loss) Income | The amounts recognized in accumulated other comprehensive (loss) income consist of: (Dollars in thousands) December 31, 2016 2015 Net gain, pretax $ (31 ) $ (47 ) Net prior service cost, pretax (209 ) (244 ) |
Schedule of Net Periodic (Income) Benefit Costs | The components of net periodic postretirement (income) benefit cost for 2016, 2015 and 2014 are as follows: (Dollars in thousands) 2016 2015 2014 Service cost $ 4 $ 13 $ 13 Interest cost 23 32 38 Amortization of prior service cost (35 ) — (1 ) Net periodic postretirement (income) benefit cost $ (8 ) $ 45 $ 50 |
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2016 and 2015 are as follows: Weighted-average assumptions: 2016 2015 Discount rate 4.00 % 4.25 % Rate of compensation increase 3.00 % 3.25 % Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: Weighted-average assumptions: 2016 2015 2014 Discount rate 4.25 % 4.00 % 4.75 % Rate of compensation increase 3.25 % 3.00 % 3.75 % |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Health care cost trend rate assumed for next year 6.00 % 5.50 % 6.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.50 % 5.50 % Year that the rate reaches the ultimate trend rate 2018 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, 2016, 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 $ — $ — Effect on accumulated postretirement benefit obligation 3 3 |
Schedule of Expected Benefit Payments | Mid Penn expects to contribute $73,000 to its life and health benefit Plans in 2017. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2017 to 12/31/2017 $ 73 1/1/2018 to 12/31/2018 64 1/1/2019 to 12/31/2019 61 1/1/2020 to 12/31/2020 56 1/1/2021 to 12/31/2021 30 1/1/2022 to 12/31/2026 156 |
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, 2016 and 2015 and a statement of the status at December 31, 2016 and 2015. This Plan is unfunded. (Dollars in thousands) December 31, Change in benefit obligations: 2016 2015 Benefit obligations, January 1 $ 1,150 $ 1,186 Service cost 34 33 Interest cost 46 45 Actuarial gain (13 ) (8 ) Change in assumptions (4 ) (16 ) Benefit payments (91 ) (90 ) Benefit obligations, December 31 $ 1,122 $ 1,150 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 91 90 Benefit payments (91 ) (90 ) Fair value of plan assets, December 31 $ — $ — Funded status at year end $ (1,122 ) $ (1,150 ) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheet at December 31, 2016 and 2015 are as follows: (Dollars in thousands) 2016 2015 Accrued benefit liability $ 1,122 $ 1,150 |
Schedule of Amounts Recognized in Other Comprehensive (Loss) Income | Amounts recognized in accumulated other comprehensive income (loss) consist of: (Dollars in thousands) December 31, 2016 2015 Net prior service cost, pretax $ 43 $ 64 Net loss, pretax 60 77 |
Schedule of Net Periodic (Income) Benefit Costs | The components of net periodic retirement cost for 2016, 2015 and 2014 are as follows: (Dollars in thousands) 2016 2015 2014 Service cost $ 34 $ 33 $ 33 Interest cost 46 45 51 Amortization of prior-service cost 22 22 22 Net periodic retirement cost $ 102 $ 100 $ 106 |
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2016 and 2015 are as follows: Weighted-average assumptions: 2016 2015 Discount rate 4.00 % 4.25 % Change in consumer price index 2.00 % 2.25 % Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: Weighted-average assumptions: 2016 2015 2014 Discount rate 4.25 % 4.00 % 4.75 % Change in consumer price index 2.25 % 2.25 % 2.75 % |
Schedule of Expected Benefit Payments | Mid Penn expects to contribute $94,000 to its retirement Plan in 2017. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2017 to 12/31/2017 $ 94 1/1/2018 to 12/31/2018 96 1/1/2019 to 12/31/2019 96 1/1/2020 to 12/31/2020 98 1/1/2021 to 12/31/2021 108 1/1/2022 to 12/31/2026 464 |
Other Benefit Plans (Tables)
Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |
Schedule of Employees Eligible to Participate in 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. 2016 2015 2014 ESPP shares purchased 4,465 4,162 3,432 Average purchase price per share $ 18.520 $ 15.865 $ 15.318 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Net Deferred Tax Asset | The following temporary differences gave rise to the net deferred tax asset at December 31, 2016 and 2015. (Dollars in thousands) 2016 2015 Deferred tax assets: Allowance for loan and lease losses $ 2,442 $ 2,097 Loan fees 82 79 Deferred compensation 906 313 Benefit plans 955 586 Unrealized loss on securities 1,504 — Nonaccrual interest — 554 Business combination adjustments 720 1,166 Other 177 170 6,786 4,965 Deferred tax liabilities: Depreciation (1,175 ) (1,074 ) Bond accretion (117 ) (111 ) Goodwill and intangibles (500 ) (472 ) Unrealized gain on securities — (806 ) Prepaid expenses (312 ) (240 ) Business combination adjustments (367 ) (428 ) Other (29 ) (13 ) (2,500 ) (3,144 ) Deferred tax asset, net $ 4,286 $ 1,821 |
Provision for Income Taxes | The provision for income taxes consists of the following: (Dollars in thousands) 2016 2015 2014 Current expense $ 2,613 $ 647 $ 1,574 Deferred (benefit) expense (336 ) 997 (112 ) Total provision for income taxes $ 2,277 $ 1,644 $ 1,462 |
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) 2016 2015 2014 Provision at the expected statutory rate $ 3,428 $ 2,779 $ 2,435 Effect of tax-exempt income (1,089 ) (1,105 ) (1,086 ) Effect of investment in life insurance (90 ) (91 ) (68 ) Nondeductible interest 41 37 42 Nondeductible merger and acquisition expense — 34 163 Other items (13 ) (10 ) (24 ) Provision for income taxes $ 2,277 $ 1,644 $ 1,462 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [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, 2016, and December 31, 2015, as follows: (Dollars in thousands) Capital Adequacy To Well-Capitalized Under Prompt Minimum Capital Corrective Actual Required Action Provisions Amount Ratio Amount Ratio Amount Ratio Corporation As of December 31, 2016 Tier 1 Capital (to Average Assets) $ 70,431 6.8 % $ 41,595 4.0 % $ N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 70,431 9.1 % 34,807 4.5 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 70,431 9.1 % 46,409 6.0 % N/A N/A Total Capital (to Risk Weighted Assets) 85,148 11.0 % 61,879 8.0 % N/A N/A Bank As of December 31, 2016 Tier 1 Capital (to Average Assets) $ 77,026 7.4 % $ 41,568 4.0 % $ 51,960 5.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 77,026 10.0 % 34,781 4.5 % 50,239 6.5 % Tier 1 Capital (to Risk Weighted Assets) 77,026 10.0 % 46,374 6.0 % 61,832 8.0 % Total Capital (to Risk Weighted Assets) 84,329 10.9 % 61,832 8.0 % 77,291 10.0 % 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 % |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Compensation Expense and Related Tax Benefits for Restricted Stock Awards Recognized | The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the consolidated statement of income. (Dollars in thousands) 2016 2015 2014 Compensation expense $ 53 $ 28 $ — Tax benefit (18 ) (10 ) — Net income effect $ 35 $ 18 $ — |
Schedule of Non-Vested Restricted Stock | The following table presents information regarding the non-vested restricted stock for the year ended December 31, 2016. Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2016 8,100 $ 16.13 Vested (2,115 ) 16.10 Cancelled (470 ) 16.09 Granted 7,540 18.77 Non-vested at December 31, 2016 13,055 17.66 |
Parent Company Statements (Tabl
Parent Company Statements (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2016 2015 ASSETS Cash and cash equivalents $ 780 $ 564 Equity investments 545 626 Investment in subsidiaries 77,029 76,334 Other assets 40 14 Total assets $ 78,394 $ 77,538 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt $ 7,414 $ 7,414 Other liabilities 513 56 Shareholders' equity 70,467 70,068 Total liabilities and shareholders' equity $ 78,394 $ 77,538 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) For Years Ended December 31, 2016 2015 2014 Income Dividends from subsidiaries $ 2,871 $ 5,662 $ 2,325 Other income 33 19 — Total Income 2,904 5,681 2,325 Expense Other expenses (606 ) (695 ) (716 ) Total Expense (606 ) (695 ) (716 ) Income before income tax and equity in undistributed earnings (loss) of subsidiaries 2,298 4,986 1,609 Equity in undistributed earnings of subsidiaries 5,311 1,346 4,012 Income before income tax 7,609 6,332 5,621 Income tax benefit 195 196 80 Net income 7,804 6,528 5,701 Series B preferred stock dividends and redemption premium — 473 350 Series C preferred stock dividends — 17 — Net income available to common shareholders $ 7,804 $ 6,038 $ 5,351 Comprehensive income $ 3,139 $ 6,827 $ 8,086 |
Condensed Statement of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) For Years Ended December 31, 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 7,804 $ 6,528 $ 5,701 Equity in undistributed earnings of subsidiaries (5,311 ) (1,346 ) (4,012 ) Decrease (increase) in other assets 59 (14 ) 8 Increase (decrease) in other liabilities 457 (665 ) 292 Net cash provided by operating activities 3,009 4,503 1,989 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 (2,875 ) (2,175 ) (1,925 ) 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 82 66 53 Deferred financing fees paid for subordinated debt issuance — (85 ) — Subordinated debt issuance — 7,500 — Net cash used in financing activities (2,793 ) (1,544 ) (1,872 ) Net increase in cash and cash equivalents 216 10 117 Cash and cash equivalents, beginning of year 564 554 437 Cash and cash equivalents, end of year $ 780 $ 564 $ 554 |
Summary of Quarterly Consolid51
Summary of Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Condensed Financials | The following table presents summarized quarterly financial data for 2016 and 2015. (Dollars in thousands, except per share data) 2016 Quarter Ended March 31 June 30 September 30 December 31 Interest Income $ 9,697 $ 9,859 $ 10,125 $ 10,531 Interest Expense 1,282 1,316 1,367 1,402 Net Interest Income 8,415 8,543 8,758 9,129 Provision for Loan and Lease Losses 340 395 585 550 Net Interest Income After Provision for Loan Losses 8,075 8,148 8,173 8,579 Noninterest Income 1,232 1,398 1,419 1,875 Noninterest Expense 6,982 6,931 7,165 7,740 Income Before Provision for Income Taxes 2,325 2,615 2,427 2,714 Provision for Income Taxes 520 593 526 638 Net Income Available to Common Shareholders $ 1,805 $ 2,022 $ 1,901 $ 2,076 Per Share Data: Basic Earnings Per Common Share $ 0.43 $ 0.48 $ 0.45 $ 0.49 Cash Dividends Declared 0.22 0.12 0.12 0.22 (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 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 Common Share $ 0.23 $ 0.46 $ 0.43 $ 0.35 Cash Dividends Declared 0.10 0.10 0.12 0.12 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Nature of Business (Narrative)
Nature of Business (Narrative) (Details) | Dec. 31, 2016store |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of offices | 21 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net gain on sales of investment securities | $ 1,046,000 | $ 325,000 | $ 168,000 |
Held-to-maturity Securities | 0 | 0 | |
Mortgage banking income | 922,000 | 456,000 | 313,000 |
Other securities | 304,000 | 382,000 | 155,000 |
Residential real estate held in other real estate owned | 57,000 | 358,000 | |
Foreclosure proceedings in process | 426,000 | 0 | |
Mortgage servicing rights | 144,000 | 174,000 | |
Mortgage servicing rights, amortization | 30,000 | 24,000 | 36,000 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 321,000 | 365,000 | |
Low Income Housing Tax Credit | $ 46,000 | 46,000 | 46,000 |
Core Deposit Intangible, Amortization Period | 10 years | ||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Class of warrant or right, outstanding | 0 | 0 | 0 |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Other securities | $ 135,000 | $ 250,000 | |
Restricted investments | 2,443,000 | 4,266,000 | |
Reserve for Off-balance Sheet Activities [Member] | |||
Valuation Allowances and Reserves, Balance | $ 120,000 | $ 94,500 | |
Commercial [Member] | |||
Loan Terms | 1 year | ||
Loan To Value Ratio | 80.00% | ||
Maximum [Member] | |||
Maturity of interest bearing time deposits with other financial institutions | 1 year | ||
Non-residential consumer loans charged off on contractual basis in event of bankruptcy, in period | 120 days | ||
Maximum [Member] | Building Assets [Member] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Maximum [Member] | Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | Land Improvements [Member] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
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 | ||
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% | ||
Minimum [Member] | Building Assets [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum [Member] | Land Improvements [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Minimum [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Basic Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 1,627 | $ 1,894 | $ 2,044 | $ 963 | $ 7,804 | $ 6,528 | $ 5,701 | ||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 2,076 | $ 1,901 | $ 2,022 | $ 1,805 | $ 1,408 | $ 1,802 | $ 1,952 | $ 876 | $ 7,804 | $ 6,038 | $ 5,351 |
Weighted average common shares outstanding | 4,229,284 | 4,106,548 | 3,495,705 | ||||||||
Basic earnings per common share | $ 0.49 | $ 0.45 | $ 0.48 | $ 0.43 | $ 0.35 | $ 0.43 | $ 0.46 | $ 0.23 | $ 1.85 | $ 1.47 | $ 1.53 |
Series B Preferred Stock [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dividends on preferred stock | $ 373 | $ 350 | |||||||||
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 | $ 9 | $ 4 | $ 4 | $ 17 |
Mergers and Acquisitions (Narra
Mergers and Acquisitions (Narrative) (Details) - USD ($) | Mar. 01, 2015 | Feb. 27, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 3,918,000 | $ 3,918,000 | $ 3,918,000 | $ 3,918,000 | ||||||
Net Income (Loss) Attributable to Parent | $ 1,627,000 | $ 1,894,000 | $ 2,044,000 | $ 963,000 | $ 7,804,000 | 6,528,000 | $ 5,701,000 | |||
Series C Preferred Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Preferred Stock, Shares Issued | 1,750 | |||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |||||||||
Phoenix Bancorp Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ratio of conversion of acquiree's shares to entity's shares | 3.167% | |||||||||
Per share price | $ 51.60 | $ 15.60 | ||||||||
Shares Of Acquirer Ratio Of Common Stock | 0.414% | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 723,851 | |||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 11,292,000 | |||||||||
Payments to Acquire Businesses, Gross | 2,949,000 | $ 2,949,000 | ||||||||
Business Combination, Consideration Transferred | $ 14,241,000 | |||||||||
Preferred Stock, Shares Issued | 1,750 | |||||||||
Goodwill | $ 2,902,000 | |||||||||
Business Combination, Acquired Receivables, Fair Value | 112,816,000 | |||||||||
Pro Forma Earnings | 5,811,000 | $ 5,259,000 | ||||||||
Revenues | 4,244,000 | |||||||||
Net Income (Loss) Attributable to Parent | $ 747,000 | |||||||||
Phoenix Bancorp Inc. [Member] | Acquisition-related Costs [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Pro Forma Earnings | $ 762,000 | |||||||||
Phoenix Bancorp Inc. [Member] | Core Deposits [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived Intangible Assets Acquired | $ 578,000 | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 86,000 | |||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 75,000 | |||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 65,000 | |||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 54,000 | |||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 44,000 | |||||||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 70,000 | |||||||||
Phoenix Bancorp Inc. [Member] | Series C Preferred Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Preferred Stock, Shares Issued | 1,750 | |||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 |
Mergers and Acquisitions (Alloc
Mergers and Acquisitions (Allocation of the Purchase Price) (Details) - USD ($) | Mar. 01, 2015 | Feb. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets acquired: | ||||
Goodwill | $ 3,918,000 | $ 3,918,000 | ||
Phoenix Bancorp Inc. [Member] | ||||
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 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 | |||
Equity acquired: | ||||
Preferred stock | 1,750,000 | |||
Total equity acquired and liabilities assumed | 129,466,000 | |||
Consideration paid | 14,241,000 | |||
Cash paid | 2,949,000 | $ 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, 2016 | Dec. 31, 2015 |
Net assets acquired: | |||
Goodwill | $ 3,918,000 | $ 3,918,000 | |
Phoenix Bancorp Inc. [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 | (876,000) | ||
Preferred stock | (1,750,000) | ||
Total net assets acquired | 11,339,000 | ||
Goodwill | $ 2,902,000 |
Mergers and Acquisitions (Fair
Mergers and Acquisitions (Fair Value Adjustments) (Details) - Phoenix Bancorp Inc. [Member] | Mar. 01, 2015USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Acquired Receivables, Fair Value | $ 112,816,000 |
Market rate adjustment | 270,000 |
Credit fair value adjustment on pools of homogeneous loans | (1,461,000) |
Credit fair value adjustment on impaired loans | (1,262,000) |
Fair value of purchased loans | $ 110,363,000 |
Mergers and Acquisitions (Fai60
Mergers and Acquisitions (Fair Value of Loans Acquired) (Details) - Phoenix Bancorp Inc. [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 (Unaud
Mergers and Acquisitions (Unaudited Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||||||||
Net interest income after loan loss provision | $ 8,579 | $ 8,173 | $ 8,148 | $ 8,075 | $ 7,970 | $ 7,924 | $ 8,186 | $ 6,738 | $ 32,975 | $ 30,818 | $ 24,583 |
Noninterest income | 1,875 | 1,419 | 1,398 | 1,232 | 960 | 1,085 | 1,093 | 949 | 5,924 | 4,113 | 3,284 |
Noninterest expense | $ 7,740 | $ 7,165 | $ 6,931 | $ 6,982 | $ 6,882 | $ 6,569 | $ 6,642 | $ 6,640 | $ 28,818 | 26,759 | 20,704 |
Phoenix Bancorp Inc. [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 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive (Loss) Income (Accumulated Other Comprehensive (Loss) Income, Net of Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized (Loss) Gain on Securities | $ (2,919) | $ 1,565 |
Defined Benefit Plan Liability | 66 | 247 |
Accumulated Other Comprehensive (Loss) Income | $ (2,853) | $ 1,812 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 138,048 | $ 133,350 |
Unrealized Gains | 142 | 2,774 |
Unrealized Losses | 4,565 | 403 |
Available for sale Securities, Fair Value | 133,625 | 135,721 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 48,520 | 26,316 |
Unrealized Gains | 34 | 729 |
Unrealized Losses | 1,542 | 55 |
Available for sale Securities, Fair Value | 47,012 | 26,990 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 26,181 | 38,983 |
Unrealized Gains | 17 | 49 |
Unrealized Losses | 579 | 228 |
Available for sale Securities, Fair Value | 25,619 | 38,804 |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 61,079 | 64,780 |
Unrealized Gains | 91 | 1,914 |
Unrealized Losses | 2,332 | 77 |
Available for sale Securities, Fair Value | 58,838 | 66,617 |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,000 | 2,000 |
Unrealized Gains | 80 | |
Unrealized Losses | 10 | |
Available for sale Securities, Fair Value | 1,000 | 2,070 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,268 | 1,271 |
Unrealized Gains | 2 | |
Unrealized Losses | 112 | 33 |
Available for sale Securities, Fair Value | $ 1,156 | $ 1,240 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Schedule of Investments [Line Items] | |||
Available-for-sale Securities Pledged as Collateral | $ | $ 131,469,000 | $ 130,298,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 151 | 47 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ | $ 4,565,000 | $ 403,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Depreciation Percentage | 3.82% | 1.19% | |
Available-for-sale Securities, Gross Realized Gains | $ | $ 1,927,000 | $ 325,000 | $ 168,000 |
Number of debt securities sold for gross realized gains | security | 102 | ||
Number of debt securities sold for gross realized losses | security | 56 | ||
Available-for-sale Securities, Gross Realized Losses | $ | $ 881,000 | $ 0 | $ 0 |
Debt Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 149 | 45 | |
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 2 | 2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ | $ 112,000 | $ 33,000 |
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, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Investments [Line Items] | ||
Less than 12 Months: Number of Securities | security | 149 | 29 |
Less than 12 Months: Fair Value | $ 118,601 | $ 24,049 |
Less than 12 Months: Unrealized Losses | $ 4,453 | $ 209 |
12 Months or More: Number of Securities | security | 2 | 18 |
12 Months or More: Fair Value | $ 1,056 | $ 9,911 |
12 Months or More: Unrealized Losses | $ 112 | $ 194 |
Total: Number of Securities | security | 151 | 47 |
Total: Fair Value | $ 119,657 | $ 33,960 |
Total: Unrealized Losses | $ 4,565 | $ 403 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months: Number of Securities | security | 23 | 6 |
Less than 12 Months: Fair Value | $ 43,698 | $ 6,259 |
Less than 12 Months: Unrealized Losses | $ 1,542 | $ 43 |
12 Months or More: Number of Securities | security | 0 | 2 |
12 Months or More: Fair Value | $ 1,383 | |
12 Months or More: Unrealized Losses | $ 12 | |
Total: Number of Securities | security | 23 | 8 |
Total: Fair Value | $ 43,698 | $ 7,642 |
Total: Unrealized Losses | $ 1,542 | $ 55 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months: Number of Securities | security | 18 | 13 |
Less than 12 Months: Fair Value | $ 24,321 | $ 12,759 |
Less than 12 Months: Unrealized Losses | $ 579 | $ 124 |
12 Months or More: Number of Securities | security | 0 | 11 |
12 Months or More: Fair Value | $ 6,282 | |
12 Months or More: Unrealized Losses | $ 104 | |
Total: Number of Securities | security | 18 | 24 |
Total: Fair Value | $ 24,321 | $ 19,041 |
Total: Unrealized Losses | $ 579 | $ 228 |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months: Number of Securities | security | 108 | 9 |
Less than 12 Months: Fair Value | $ 50,582 | $ 4,041 |
Less than 12 Months: Unrealized Losses | $ 2,332 | $ 32 |
12 Months or More: Number of Securities | security | 0 | 3 |
12 Months or More: Fair Value | $ 1,631 | |
12 Months or More: Unrealized Losses | $ 45 | |
Total: Number of Securities | security | 108 | 12 |
Total: Fair Value | $ 50,582 | $ 5,672 |
Total: Unrealized Losses | $ 2,332 | $ 77 |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months: Number of Securities | security | 1 | |
Less than 12 Months: Fair Value | $ 990 | |
Less than 12 Months: Unrealized Losses | $ 10 | |
12 Months or More: Number of Securities | security | 0 | |
Total: Number of Securities | security | 1 | |
Total: Fair Value | $ 990 | |
Total: Unrealized Losses | $ 10 | |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months: Number of Securities | security | 0 | 0 |
12 Months or More: Number of Securities | security | 2 | 2 |
12 Months or More: Fair Value | $ 1,056 | $ 615 |
12 Months or More: Unrealized Losses | $ 112 | $ 33 |
Total: Number of Securities | security | 2 | 2 |
Total: Fair Value | $ 1,056 | $ 615 |
Total: Unrealized Losses | $ 112 | $ 33 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, Due in 1 year or less | $ 1,293 | |
Available for sale Securities, Amortized Cost, Due after 1 year but within 5 years | 19,656 | |
Available for sale Securities, Amortized Cost, Due after 5 years but within 10 years | 66,084 | |
Available for sale Securities, Amortized Cost, Due after 10 years | 23,566 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 110,599 | |
Equity Securities, Amortized Cost | 1,268 | |
Amortized Cost | 138,048 | $ 133,350 |
Available for sale Securities, Fair Value, Due in 1 year or less | 1,305 | |
Available for sale Securities, Fair Value, Due after 1 year but within 5 years | 19,471 | |
Available for sale Securities, Fair Value, Due after 5 years but within 10 years | 63,895 | |
Available for sale Securities, Fair Value, Due after 10 years | 22,179 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 106,850 | |
Equity Securities, Fair Value | 1,156 | |
Available for sale Securities, Fair Value | 133,625 | $ 135,721 |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale Securities without a Single Maturity Date, Amortized Cost | 26,181 | |
Available for sale securities without a Single Maturity Date, Fair Value | $ 25,619 |
Loans and Allowance for Loan 67
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) | 12 Months Ended | |||||
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013Loan | Dec. 31, 2009Loan | Dec. 31, 2008Loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable Deferred Fees And Costs | $ 196,000 | $ 178,000 | ||||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 666,000 | 778,000 | $ 798,000 | |||
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | |||||
Financing Receivable, Modifications, Recorded Investment | 3,515,000 | 2,805,000 | ||||
Charge-offs associated with troubled debt restructured loans | $ 0 | 0 | ||||
Number of troubled debt restructured loans | Loan | 0 | |||||
Loans to certain executive officers, directors, and their related interests | $ 17,594,000 | 10,657,000 | ||||
Loans to certain executive officers, directors, and their related interests, new loans and advances | 14,479,000 | |||||
Loans to certain executive officers, directors, and their related interests, Repayments | 7,542,000 | |||||
Accruing [Member] | Five Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 877,000 | |||||
Accruing [Member] | Four Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 459,000 | |||||
Nonaccruing [Member] | Ten Loans With Four Relationships [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,638,000 | |||||
Nonaccruing [Member] | Two Large Relationships [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,170,000 | |||||
Nonaccruing [Member] | Nine Loans Four Related Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,346,000 | |||||
Nonaccruing [Member] | One of Four Relationships Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,370,000 | |||||
Residential Mortgage [Member] | Consumer Portfolio [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 639,000 | 555,000 | ||||
Residential Mortgage [Member] | Consumer Portfolio [Member] | Accruing [Member] | Four Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 571,000 | |||||
Residential Mortgage [Member] | Consumer Portfolio [Member] | Accruing [Member] | Three of Four Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 64,000 | |||||
Commercial Real Estate [Member] | Commercial Portfolio [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,871,000 | 2,235,000 | ||||
Commercial Real Estate [Member] | Commercial Portfolio [Member] | Accruing [Member] | Other Borrower [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 306,000 | $ 395,000 | ||||
Under Forbearance Agreement 2016 Period [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Number of forbearance agreements negotiated | Loan | 3 | 1 | 2 | 8 | 1 | |
Under Forbearance Agreement 2015 Period [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Number of forbearance agreements negotiated | Loan | 1 | 2 | 9 | 1 |
Loans and Allowance for Loan 68
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 813,924 | $ 736,513 | $ 571,533 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 799,937 | 722,905 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,071 | 6,516 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 10,916 | 9,770 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 172,518 | 160,261 | 119,010 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 446,524 | 369,464 | 297,357 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 54,376 | 68,068 | 56,076 |
Commercial Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 425 | 727 | 1,121 |
Commercial Portfolio [Member] | Pass [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 170,780 | 158,302 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 437,592 | 359,859 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 52,888 | 65,665 | |
Commercial Portfolio [Member] | Pass [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 425 | 727 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 937 | 1,289 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,683 | 2,088 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 202 | 2,403 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 801 | 670 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 7,249 | 7,517 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,286 | ||
Consumer Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 99,457 | 100,665 | 66,442 |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,016 | 3,917 | 3,021 |
Consumer Portfolio [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 37,608 | 33,411 | $ 28,506 |
Consumer Portfolio [Member] | Pass [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 97,994 | 101,507 | |
Consumer Portfolio [Member] | Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,016 | 3,917 | |
Consumer Portfolio [Member] | Pass [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 37,242 | 32,928 | |
Consumer Portfolio [Member] | Special Mention [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 107 | 475 | |
Consumer Portfolio [Member] | Special Mention [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 142 | 261 | |
Consumer Portfolio [Member] | Substandard [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,356 | 1,361 | |
Consumer Portfolio [Member] | Substandard [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 224 | $ 222 |
Loans and Allowance for Loan 69
Loans and Allowance for Loan and Lease Losses (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | $ 56 | $ 113 |
Impaired Loans with Allowance: Unpaid Principal Balance | 62 | 128 |
Impaired Loans with Allowance: Related Allowance | 6 | 51 |
Impaired Loans: Total Recorded Investment | 60 | 127 |
Impaired Loans: Total Unpaid Principal Balance | 71 | 177 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Excluded Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 4 | 14 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 9 | 49 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 2,520 | 1,947 |
Impaired Loans with Allowance: Unpaid Principal Balance | 2,646 | 1,981 |
Impaired Loans with Allowance: Related Allowance | 711 | 429 |
Impaired Loans: Total Recorded Investment | 4,088 | 3,901 |
Impaired Loans: Total Unpaid Principal Balance | 5,280 | 4,001 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 726 | 1,023 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,792 | 2,020 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 842 | 931 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 842 | 931 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 618 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 618 | |
Impaired Loans with Allowance: Recorded Investment | 242 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 242 | |
Impaired Loans with Allowance: Related Allowance | 72 | |
Impaired Loans: Total Recorded Investment | 860 | |
Impaired Loans: Total Unpaid Principal Balance | 860 | |
Consumer Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 68 | 32 |
Impaired Loans with Allowance: Unpaid Principal Balance | 68 | 32 |
Impaired Loans with Allowance: Related Allowance | 68 | 23 |
Impaired Loans: Total Recorded Investment | 1,305 | 1,761 |
Impaired Loans: Total Unpaid Principal Balance | 1,339 | 1,466 |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 848 | 1,329 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 882 | 1,434 |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 389 | 400 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 389 | 400 |
Consumer Portfolio [Member] | Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 29 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 49 | |
Impaired Loans with Allowance: Related Allowance | 1 | |
Impaired Loans: Total Recorded Investment | 140 | 115 |
Impaired Loans: Total Unpaid Principal Balance | 178 | 137 |
Consumer Portfolio [Member] | Home Equity [Member] | Excluded Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 111 | 115 |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 129 | $ 137 |
Loans and Allowance for Loan 70
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | $ 59 | $ 123 | $ 93 |
Impaired Financing Receivable, Average Recorded Investment, Total | 68 | 142 | 165 |
Impaired Financing Receivable, Interest Income Recognized, Total | 205 | ||
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 9 | 19 | 72 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Interest Income Recognized | 205 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | 2,177 | 1,721 | 6,823 |
Impaired Financing Receivable, Average Recorded Investment, Total | 3,807 | 3,698 | 8,789 |
Impaired Financing Receivable, Interest Income Recognized, Total | 164 | 364 | 346 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 820 | 1,051 | 1,966 |
Impaired Loans with No Allowance: Interest Income Recognized | 14 | 346 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 810 | 926 | |
Impaired Loans with No Allowance: Interest Income Recognized | 164 | 350 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 124 | ||
Impaired Loans with Allowance: Average Recorded Investment | 48 | ||
Impaired Financing Receivable, Average Recorded Investment, Total | 172 | ||
Consumer Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | 14 | 25 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 1,213 | 1,241 | 541 |
Impaired Financing Receivable, Interest Income Recognized, Total | 25 | 8 | |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 821 | 816 | 541 |
Impaired Loans with No Allowance: Interest Income Recognized | 21 | 8 | |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 378 | 400 | |
Impaired Loans with No Allowance: Interest Income Recognized | 4 | ||
Consumer Portfolio [Member] | Home Equity [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | 32 | 76 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 107 | 107 | 105 |
Impaired Financing Receivable, Interest Income Recognized, Total | 3 | ||
Consumer Portfolio [Member] | Home Equity [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | $ 75 | 107 | $ 29 |
Consumer Portfolio [Member] | Home Equity [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Interest Income Recognized | $ 3 |
Loans and Allowance for Loan 71
Loans and Allowance for Loan and Lease Losses (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 4,658 | $ 4,418 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 4 | 66 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,939 | 2,607 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 860 | |
Consumer Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 715 | 1,630 |
Consumer Portfolio [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 140 | $ 115 |
Loans and Allowance for Loan 72
Loans and Allowance for Loan and Lease Losses (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 3,524 | $ 5,732 | |
Financing Receivable, Recorded Investment, Current | 810,400 | 730,781 | |
Total Loans | 813,924 | 736,513 | $ 571,533 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 59 | 55 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,231 | 1,331 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,220 | 1,197 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 553 | 1,935 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,751 | 2,600 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 180 | 325 | |
Financing Receivable, Recorded Investment, Current | 172,338 | 159,936 | |
Total Loans | 172,518 | 160,261 | 119,010 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 164 | 55 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 12 | 204 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4 | 66 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 446,524 | 369,464 | 297,357 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,479 | 2,275 | |
Financing Receivable, Recorded Investment, Current | 444,203 | 366,258 | |
Total Loans | 445,682 | 368,533 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 59 | 788 | |
Financing Receivable, Recorded Investment, Current | 783 | 143 | |
Total Loans | 842 | 931 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 59 | 55 | |
Commercial Portfolio [Member] | 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] | |||
Past Due | 475 | 211 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 215 | ||
Commercial Portfolio [Member] | 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] | |||
Past Due | 608 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 518 | ||
Commercial Portfolio [Member] | 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] | |||
Past Due | 1,004 | 1,456 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 59 | 55 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 488 | ||
Financing Receivable, Recorded Investment, Current | 53,888 | 68,068 | |
Total Loans | 54,376 | 68,068 | 56,076 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 404 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 84 | ||
Commercial Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 425 | 727 | |
Total Loans | 425 | 727 | 1,121 |
Consumer Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 99,457 | 100,665 | 66,442 |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 909 | 2,022 | |
Financing Receivable, Recorded Investment, Current | 98,159 | 98,243 | |
Total Loans | 99,068 | 100,265 | |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 238 | 234 | |
Financing Receivable, Recorded Investment, Current | 151 | 166 | |
Total Loans | 389 | 400 | |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 15 | ||
Financing Receivable, Recorded Investment, Current | 3,016 | 3,902 | |
Total Loans | 3,016 | 3,917 | 3,021 |
Consumer Portfolio [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 548 | 694 | |
Consumer Portfolio [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 12 | ||
Consumer Portfolio [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10 | ||
Consumer Portfolio [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 124 | 550 | |
Consumer Portfolio [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5 | ||
Consumer Portfolio [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 237 | 778 | |
Consumer Portfolio [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 238 | 222 | |
Consumer Portfolio [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 171 | 73 | |
Financing Receivable, Recorded Investment, Current | 37,437 | 33,338 | |
Total Loans | 37,608 | 33,411 | $ 28,506 |
Consumer Portfolio [Member] | Home Equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 33 | ||
Consumer Portfolio [Member] | Home Equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 13 | 50 | |
Consumer Portfolio [Member] | Home Equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 125 | $ 23 |
Loans and Allowance for Loan 73
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | $ 6,168 | $ 6,716 | $ 6,168 | $ 6,716 | $ 6,317 | ||||||
Charge-offs | (1,107) | (1,784) | (1,328) | ||||||||
Recoveries | 252 | 171 | 110 | ||||||||
Provisions | $ 550 | $ 585 | $ 395 | 340 | $ 200 | $ 265 | $ 300 | 300 | 1,870 | 1,065 | 1,617 |
Allowance for Loan Losses, Ending Balance | 7,183 | 6,168 | 7,183 | 6,168 | 6,716 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 858 | 503 | 858 | 503 | 1,634 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 6,325 | 5,665 | 6,325 | 5,665 | 5,082 | ||||||
Loans receivables, Ending Balance | 813,924 | 736,513 | 813,924 | 736,513 | 571,533 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 5,222 | 4,573 | 5,222 | 4,573 | 10,929 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 807,471 | 730,609 | 807,471 | 730,609 | 560,604 | ||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loans receivables, Ending Balance | 1,231 | 1,331 | 1,231 | 1,331 | |||||||
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 1,393 | 1,393 | 1,393 | 1,393 | 1,187 | ||||||
Charge-offs | (820) | (130) | (62) | ||||||||
Recoveries | 4 | 12 | 13 | ||||||||
Provisions | 1,003 | 118 | 255 | ||||||||
Allowance for Loan Losses, Ending Balance | 1,580 | 1,393 | 1,580 | 1,393 | 1,393 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 6 | 51 | 6 | 51 | 137 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1,574 | 1,342 | 1,574 | 1,342 | 1,256 | ||||||
Loans receivables, Ending Balance | 172,518 | 160,261 | 172,518 | 160,261 | 119,010 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 60 | 127 | 60 | 127 | 618 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 172,458 | 160,134 | 172,458 | 160,134 | 118,392 | ||||||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 3,552 | 3,925 | 3,552 | 3,925 | 4,006 | ||||||
Charge-offs | (216) | (1,569) | (1,057) | ||||||||
Recoveries | 211 | 75 | 13 | ||||||||
Provisions | 776 | 1,121 | 963 | ||||||||
Allowance for Loan Losses, Ending Balance | 4,323 | 3,552 | 4,323 | 3,552 | 3,925 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 711 | 429 | 711 | 429 | 1,382 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3,612 | 3,123 | 3,612 | 3,123 | 2,543 | ||||||
Loans receivables, Ending Balance | 446,524 | 369,464 | 446,524 | 369,464 | 297,357 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 3,246 | 2,970 | 3,246 | 2,970 | 8,925 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 442,436 | 365,563 | 442,436 | 365,563 | 288,432 | ||||||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loans receivables, Ending Balance | 842 | 931 | 842 | 931 | |||||||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 153 | 33 | 153 | 33 | 9 | ||||||
Provisions | (9) | 120 | 24 | ||||||||
Allowance for Loan Losses, Ending Balance | 144 | 153 | 144 | 153 | 33 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 72 | 72 | |||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 72 | 153 | 72 | 153 | 33 | ||||||
Loans receivables, Ending Balance | 54,376 | 68,068 | 54,376 | 68,068 | 56,076 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 860 | 860 | |||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 53,516 | 68,068 | 53,516 | 68,068 | 56,076 | ||||||
Commercial Portfolio [Member] | Lease Financing [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 1 | 2 | 1 | 2 | |||||||
Provisions | (1) | 2 | |||||||||
Allowance for Loan Losses, Ending Balance | 1 | 1 | 1 | 1 | 2 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1 | 1 | 1 | 1 | 2 | ||||||
Loans receivables, Ending Balance | 425 | 727 | 425 | 727 | 1,121 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 425 | 727 | 425 | 727 | 1,121 | ||||||
Consumer Portfolio [Member] | Residential Mortgage [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 534 | 450 | 534 | 450 | 581 | ||||||
Charge-offs | (4) | (35) | (133) | ||||||||
Recoveries | 26 | 44 | 20 | ||||||||
Provisions | (15) | 75 | (18) | ||||||||
Allowance for Loan Losses, Ending Balance | 541 | 534 | 541 | 534 | 450 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 68 | 23 | 68 | 23 | |||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 473 | 511 | 473 | 511 | 450 | ||||||
Loans receivables, Ending Balance | 99,457 | 100,665 | 99,457 | 100,665 | 66,442 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 916 | 1,361 | 916 | 1,361 | 1,146 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 98,152 | 98,904 | 98,152 | 98,904 | 65,296 | ||||||
Consumer Portfolio [Member] | Consumer [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 12 | 35 | 12 | 35 | 72 | ||||||
Charge-offs | (42) | (14) | (33) | ||||||||
Recoveries | 11 | 11 | 63 | ||||||||
Provisions | 22 | (20) | (67) | ||||||||
Allowance for Loan Losses, Ending Balance | 3 | 12 | 3 | 12 | 35 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3 | 12 | 3 | 12 | 35 | ||||||
Loans receivables, Ending Balance | 3,016 | 3,917 | 3,016 | 3,917 | 3,021 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 3,016 | 3,917 | 3,016 | 3,917 | 3,021 | ||||||
Consumer Portfolio [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loans receivables, Ending Balance | 389 | 400 | 389 | 400 | |||||||
Consumer Portfolio [Member] | Home Equity [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 317 | 653 | 317 | 653 | 441 | ||||||
Charge-offs | (25) | (36) | (43) | ||||||||
Recoveries | 29 | 1 | |||||||||
Provisions | 87 | (329) | 254 | ||||||||
Allowance for Loan Losses, Ending Balance | 379 | 317 | 379 | 317 | 653 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 1 | 1 | 115 | ||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 378 | 317 | 378 | 317 | 538 | ||||||
Loans receivables, Ending Balance | 37,608 | 33,411 | 37,608 | 33,411 | 28,506 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 140 | 115 | 140 | 115 | 240 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 37,468 | 33,296 | 37,468 | 33,296 | 28,266 | ||||||
Unallocated [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | $ 206 | $ 225 | 206 | 225 | 21 | ||||||
Provisions | 6 | (19) | 204 | ||||||||
Allowance for Loan Losses, Ending Balance | 212 | 206 | 212 | 206 | 225 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | $ 212 | $ 206 | $ 212 | $ 206 | $ 225 |
Loans and Allowance for Loan 74
Loans and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Loancontract | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 5,368 | $ 4,407 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 4,823 | 3,879 |
Financing Receivable, Modifications, Recorded Investment | $ 3,515 | 2,805 |
Financing Receivable, Modifications, Number of Contracts | Loan | 0 | |
Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,002 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 982 | |
Financing Receivable, Modifications, Recorded Investment | $ 982 | |
Financing Receivable, Modifications, Number of Contracts | contract | 3 | |
Commercial Portfolio [Member] | Commercial and Industrial [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 | 5 | 15 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 4,569 | 3,634 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 4,031 | 3,117 |
Financing Receivable, Modifications, Recorded Investment | 2,871 | 2,235 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 934 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 914 | |
Financing Receivable, Modifications, Recorded Investment | $ 914 | |
Financing Receivable, Modifications, Number of Contracts | contract | 2 | |
Consumer Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 759 | 733 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 757 | 727 |
Financing Receivable, Modifications, Recorded Investment | 639 | $ 555 |
Consumer Portfolio [Member] | Residential Mortgage [Member] | Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 68 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 68 | |
Financing Receivable, Modifications, Recorded Investment | $ 68 | |
Financing Receivable, Modifications, Number of Contracts | contract | 1 |
Loans and Allowance for Loan 75
Loans and Allowance for Loan and Lease Losses (Schedule of Accretion of Purchased Impaired Loan) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($) | ||
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | ||
Accretable yield, beginning balance | $ 178 | |
Accretable yield amortized to interest income | (141) | |
Reclassification from nonaccretable difference | 30 | [1] |
Accretable yield, ending balance | $ 67 | |
[1] | Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio. |
Bank Premises and Equipment (Pr
Bank Premises and Equipment (Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 21,537 | $ 23,667 |
Less accumulated depreciation | (10,463) | (9,674) |
Net book value of bank premises and equipment | 11,074 | 13,993 |
Assets held for sale | 1,894 | |
Total bank premises and equipment | 12,968 | 13,993 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,315 | 2,906 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 9,517 | 10,789 |
Furniture, Fixtures, and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 8,184 | 8,742 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 1,432 | 1,212 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 89 | $ 18 |
Bank Premises and Equipment (Na
Bank Premises and Equipment (Narrative) (Details) | Jan. 20, 2017USD ($)Property | Dec. 31, 2016USD ($)Lease | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 1,658,000 | $ 1,485,000 | $ 1,235,000 | |
Asset held for sale, description | As of December 31, 2016, assets held-for-sale consisted of three full service retail banking properties. These properties were transferred from land and buildings to assets held for sale due to Mid Penn’s intent to sell them during January 2017 | |||
Gain from sale of three properties | $ (142,000) | (18,000) | ||
Lease expiration date | Dec. 31, 2035 | |||
2,017 | $ 1,121,000 | |||
2,018 | 1,115,000 | |||
2,019 | 1,116,000 | |||
2,020 | 793,000 | |||
2,021 | 582,000 | |||
thereafter | $ 5,666,000 | |||
Operating Leases Related Party [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of operating lease with related parties | Lease | 4 | |||
Operating leases, rent expense, net | $ 348,000 | $ 279,000 | $ 54,000 | |
2,017 | 346,000 | |||
2,018 | 302,000 | |||
2,019 | 304,000 | |||
2,020 | 305,000 | |||
2,021 | 213,000 | |||
thereafter | $ 2,118,000 | |||
Sublease to Unrelated Party [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Lease expiration date | Mar. 31, 2021 | |||
Number of operating lease with related parties | Lease | 2 | |||
Sublease to Unrelated Party [Member] | First Sublease Agreement [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Lease agreement start date | Apr. 1, 2016 | |||
Sublease to Unrelated Party [Member] | Second Sublease Agreement [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Lease agreement start date | Jul. 1, 2016 | |||
Subsequent Event | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of properties sale | Property | 3 | |||
Proceeds from sale of three properties | $ 2,240,000 | |||
Gain from sale of three properties | $ 346,000 | |||
Sale and lease back of properties, description | Two of the properties are being leased back by Mid Penn for a period of at least 15 years, and the respective gains on the sales of those properties will be recognized over the life of the leases. | |||
Subsequent Event | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Length of lease | 15 years | |||
Other Expense [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset held for sale, impairment charge on one of the properties | $ 142,000 |
Bank Premises and Equipment (Fu
Bank Premises and Equipment (Future Minimum Rental Payments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Property Plant And Equipment [Abstract] | |
2017 Lease obligation | $ 1,121 |
2018 Lease obligation | 1,115 |
2019 Lease obligation | 1,116 |
2020 Lease obligation | 793 |
2021 Lease obligation | 582 |
Lease obligation thereafter | 5,666 |
Lease obligation | 10,393 |
2017 Sublease rental income | 74 |
2018 Sublease rental income | 79 |
2019 Sublease rental income | 81 |
2020 Sublease rental income | 81 |
2021 Sublease rental income | 20 |
Sublease rental income | 335 |
2017 Net rental expense | 1,047 |
2018 Net rental expense | 1,036 |
2019 Net rental expense | 1,035 |
2020 Net rental expense | 712 |
2021 Net rental expense | 562 |
2021 Net rental thereafter | 5,666 |
Net rental expense | $ 10,058 |
Bank Premises and Equipment (79
Bank Premises and Equipment (Future Minimum Rental Payments) (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Rent expense in connection with leases | $ 716,000 | $ 627,000 | $ 151,000 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Time Deposits | $ 182,595,000 | $ 160,849,000 | |
Interest Expense, Time Deposits | 2,156,000 | 1,920,000 | $ 1,971,000 |
Brokered Deposits | 13,567,000 | 11,168,000 | |
Related Party Deposit Liabilities | 19,279,000 | 17,163,000 | |
Demand Deposit [Member] | |||
Demand deposit overdrafts reclassified as loans | $ 285,000 | $ 567,000 |
Deposits (Time Deposits By Matu
Deposits (Time Deposits By Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits, Total | $ 182,595 | $ 160,849 |
Time Deposits Less Than $250,000 [Member] | ||
Maturing in 2017 | 64,993 | |
Maturing in 2018 | 35,238 | |
Maturing in 2019 | 20,094 | |
Maturing in 2020 | 20,997 | |
Maturing in 2021 | 13,953 | |
Maturing thereafter | 738 | |
Time Deposits, Total | 156,013 | |
Time Deposits $250,000 or More [Member] | ||
Maturing in 2017 | 16,760 | |
Maturing in 2018 | 5,360 | |
Maturing in 2019 | 3,209 | |
Maturing in 2020 | 950 | |
Maturing in 2021 | 303 | |
Time Deposits, Total | $ 26,582 |
Short-term Borrowings (Narrativ
Short-term Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Short term borrowings | $ 31,596,000 | |
Current borrowing available | $ 404,204,000 | |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short term borrowings | 0 | $ 31,596,000 |
Short-term debt, weighted average interest rate | 0.40% | |
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, 2016 | Dec. 31, 2015 |
Maturities Of Long Term Debt [Abstract] | ||
Long-term debt outstanding | $ 13,581 | $ 40,305 |
Long-Term Debt, Aggregate Principal Amounts Due, 2017 | 1,229 | |
Long-Term Debt, Aggregate Principal Amounts Due, 2018 | 223 | |
Long-Term Debt, Aggregate Principal Amounts Due, 2019 | 10,235 | |
Long-Term Debt, Aggregate Principal Amounts Due, 2020 | 246 | |
Long-Term Debt, Aggregate Principal Amounts Due, 2021 | 258 | |
Long-Term Debt, Aggregate Principal Amounts Due, Thereafter | $ 1,390 |
Long-term Debt (Long-term Debt
Long-term Debt (Long-term Debt Outstanding by Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 13,581 | $ 40,305 |
Maturing in 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 26,521 | |
Maturing in 2016 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 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 | 1.08% | 1.08% |
Maturing in 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 1,016 | $ 1,016 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 3.03% | 3.03% |
Maturing In 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 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 outstanding | $ 2,504 | $ 2,703 |
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 outstanding | $ 61 | $ 65 |
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, 2016 | Dec. 31, 2015 |
Subordinated debt issuance | $ 7,500,000 | ||
Notes Due 2025 [Member] | Subordinated Debt [Member] | |||
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, and began on January 1, 2016. | ||
Debt instrument, maturity date | Dec. 9, 2025 | ||
Debt Instrument, Redemption, Description | 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. | ||
Notes payable to related parties | $ 1,930,000 | ||
Notes Due 2025 [Member] | Subordinated Debt [Member] | WSJ Prime Rate [Member] | |||
Debt instrument, interest rate, effective percentage | 4.00% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Fair Value Measurement (Assets
Fair Value Measurement (Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 133,625 | $ 135,721 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,920 | 3,101 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 130,705 | 132,620 |
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 | 47,012 | 26,990 |
U.S. Treasury and U.S. government agencies [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,864 | 1,861 |
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 | 45,148 | 25,129 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 25,619 | 38,804 |
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 | 25,619 | 38,804 |
State and political subdivision obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 58,838 | 66,617 |
State and political subdivision obligations [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 58,838 | 66,617 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,000 | 2,070 |
Corporate debt securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,000 | 2,070 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,156 | 1,240 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,056 | $ 1,240 |
Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 100 |
Fair Value Measurement (Fair Va
Fair Value Measurement (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,404 | $ 2,088 |
Impaired Loan [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 2,404 | 2,088 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 135 | 453 |
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 | 135 | 453 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 144 | 174 |
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 | $ 144 | $ 174 |
Fair Value Measurement (Fair 88
Fair Value Measurement (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,404 | $ 2,088 |
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments | Appraisal adjustments |
Impaired Loan [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,404 | $ 2,088 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 135 | $ 453 |
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments | Appraisal adjustments |
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 | $ 135 | $ 453 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 144 | $ 174 |
Fair Value Measurements, Valuation Techniques | Multiple of annual service fee | Multiple of annual service fee |
Fair Value Disclosure, Unobservable Input Range | Estimated prepayment speed based on rate and term | Estimated prepayment speed based on rate and term |
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 | $ 144 | $ 174 |
Minimum [Member] | Appraisal of Collateral [Member] | Impaired Loan [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 11.00% | 11.00% |
Minimum [Member] | Appraisal of Collateral [Member] | Foreclosed Assets Held for Sale [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 26.00% | 17.00% |
Minimum [Member] | Multiple of Annual Service [Member] | Mortgage Servicing Rights [Member] | Unobservable Input Estimated Prepayment Speed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Prepayment Rate | 210.00% | 210.00% |
Maximum [Member] | Appraisal of Collateral [Member] | Impaired Loan [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 70.00% | 60.00% |
Maximum [Member] | Appraisal of Collateral [Member] | Foreclosed Assets Held for Sale [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 31.00% | 27.00% |
Maximum [Member] | Multiple of Annual Service [Member] | Mortgage Servicing Rights [Member] | Unobservable Input Estimated Prepayment Speed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Prepayment Rate | 400.00% | 400.00% |
Weighted Average [Member] | Appraisal of Collateral [Member] | Impaired Loan [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Weighted Average [Member] | Appraisal of Collateral [Member] | Foreclosed Assets Held for Sale [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 27.00% | 26.00% |
Weighted Average [Member] | Multiple of Annual Service [Member] | Mortgage Servicing Rights [Member] | Unobservable Input Estimated Prepayment Speed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Prepayment Rate | 365.00% | 360.00% |
Fair Value Measurement (Fair 89
Fair Value Measurement (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale investment securities | $ 133,625 | $ 135,721 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 45,973 | 13,284 |
Interest-bearing time balances with other financial institutions | 4,317 | |
Available for sale investment securities | 133,625 | 135,721 |
Net loans and leases | 806,741 | 730,345 |
Restricted investment in bank stocks | 2,443 | 4,266 |
Accrued interest receivable | 3,928 | 3,813 |
Mortgage servicing rights | 144 | 174 |
Deposits | 935,373 | 777,043 |
Short-term borrowings | 31,596 | |
Long-term debt | 13,581 | 40,305 |
Subordinated debt | 7,414 | 7,500 |
Accrued interest payable | 515 | 390 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 45,973 | 13,284 |
Interest-bearing time balances with other financial institutions | 4,317 | |
Available for sale investment securities | 133,625 | 135,721 |
Net loans and leases | 824,293 | 738,773 |
Restricted investment in bank stocks | 2,443 | 4,266 |
Accrued interest receivable | 3,928 | 3,813 |
Mortgage servicing rights | 144 | 174 |
Deposits | 935,075 | 777,320 |
Short-term borrowings | 31,596 | |
Long-term debt | 13,614 | 39,626 |
Subordinated debt | 7,534 | 7,500 |
Accrued interest payable | $ 515 | $ 390 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | $ 935,075 | $ 777,320 |
Long-term debt | 13,614 | 39,626 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 824,293 | 738,773 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 806,741 | 730,345 |
Deposits | 935,373 | 777,043 |
Long-term debt | 13,581 | 40,305 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 824,293 | 738,773 |
Deposits | 935,075 | 777,320 |
Long-term debt | $ 13,614 | $ 39,626 |
Postretirement Benefit Plans (N
Postretirement Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Postretirement benefit health insurance reimbursable premium, maximum | $ 5,000 | |
Defined Benefit Postretirement Health Insurance [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, minimum retirement age | 55 years | |
Defined Benefit Plan, Minimum Service Period Requirement | 20 years | |
Defined benefit plan, maximum coverage period | 5 years | |
Defined Benefit Postretirement Life Insurance [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, minimum retirement age | 55 years | |
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 | |
Prior to age 65, life insurance maximum, coverage amount | $ 50,000 | |
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 | |
Life insurance minimum amount coverage | $ 5,000 | |
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 | 43,000 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,122,000 | $ 1,150,000 |
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 | 3,834,000 | 3,764,000 |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 540,000 | $ 572,000 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 34,898 |
Postretirement Benefit Plans 92
Postretirement Benefit Plans (Net Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Change in benefit obligations: | |||
Benefit obligations | $ 572 | $ 861 | |
Change in benefit obligations: Service cost | 4 | 13 | $ 13 |
Change in benefit obligations: Interest cost | 23 | 32 | 38 |
Change in benefit obligations: Change in experience | 2 | (24) | |
Change in benefit obligations: Change in assumptions | 13 | (4) | |
Change in benefit obligations: Change due to plan amendment | (244) | ||
Change in benefit obligations/fair value of plan assets: Benefit payments | (74) | (62) | |
Benefit obligations | 540 | 572 | 861 |
Change in fair value of plan assets: | |||
Change in fair value of plan assets: Employer contributions | 74 | 62 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | (74) | (62) | |
Funded status at year end | (540) | (572) | |
Director's Retirement Plan [Member] | |||
Change in benefit obligations: | |||
Benefit obligations | 1,150 | 1,186 | |
Change in benefit obligations: Service cost | 34 | 33 | 33 |
Change in benefit obligations: Interest cost | 46 | 45 | 51 |
Change in benefit obligations: Actuarial gain | (13) | (8) | |
Change in benefit obligations: Change in assumptions | (4) | (16) | |
Change in benefit obligations/fair value of plan assets: Benefit payments | (91) | (90) | |
Benefit obligations | 1,122 | 1,150 | $ 1,186 |
Change in fair value of plan assets: | |||
Change in fair value of plan assets: Employer contributions | 91 | 90 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | (91) | (90) | |
Funded status at year end | $ (1,122) | $ (1,150) |
Postretirement Benefit Plans (A
Postretirement Benefit Plans (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ 540 | $ 572 |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ 1,122 | $ 1,150 |
Postretirement Benefit Plans 94
Postretirement Benefit Plans (Amounts Recognized in Other Comprehensive (Loss) Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss (gain), pretax | $ (31) | $ (47) |
Net prior service cost, pretax | (209) | (244) |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss (gain), pretax | 60 | 77 |
Net prior service cost, pretax | $ 43 | $ 64 |
Postretirement Benefit Plans 95
Postretirement Benefit Plans (Net Periodic (Income) Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $ 4 | $ 13 | $ 13 |
Interest Cost | 23 | 32 | 38 |
Amortization of prior service cost | (35) | (1) | |
Net periodic postretirement (income) benefit cost | (8) | 45 | 50 |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 34 | 33 | 33 |
Interest Cost | 46 | 45 | 51 |
Amortization of prior service cost | 22 | 22 | 22 |
Net periodic postretirement (income) benefit cost | $ 102 | $ 100 | $ 106 |
Postretirement Benefit Plans 96
Postretirement Benefit Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.25% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.25% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.25% | 4.00% | 4.75% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.25% | 3.00% | 3.75% |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.25% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.25% | 4.00% | 4.75% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Change In Consumer Price Index | 2.00% | 2.25% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Changes In Consumer Price Index | 2.25% | 2.25% | 2.75% |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 6.00% | 5.50% | 6.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.50% | 5.50% | 5.50% |
Year that the rate reaches the ultimate trend rate | 2,018 | 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, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
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 | $ 3 |
Postretirement Benefit Plans 99
Postretirement Benefit Plans (Expected Benefit Payments) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
1/1/2017 to 12/31/2017 | $ 73,000 |
1/1/2018 to 12/31/2018 | 64,000 |
1/1/2019 to 12/31/2019 | 61,000 |
1/1/2020 to 12/31/2020 | 56,000 |
1/1/2021 to 12/31/2021 | 30,000 |
1/1/2022 to 12/31/2026 | 156,000 |
Defined contribution plan, employer discretionary contribution amount | 73,000 |
Director's Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
1/1/2017 to 12/31/2017 | 94,000 |
1/1/2018 to 12/31/2018 | 96,000 |
1/1/2019 to 12/31/2019 | 96,000 |
1/1/2020 to 12/31/2020 | 98,000 |
1/1/2021 to 12/31/2021 | 108,000 |
1/1/2022 to 12/31/2026 | 464,000 |
Defined contribution plan, employer discretionary contribution amount | $ 94,000 |
Other Benefit Plans (Narrative)
Other Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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, Recorded Liability | $ 143,000 | $ 160,000 | |
Deferred compensation arrangement with individual, compensation expense | 6,000 | 9,000 | $ 6,000 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, associated expense | 0 | 0 | 0 |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | 606,000 | 523,000 | |
Deferred compensation arrangement with individual, compensation expense | 21,000 | 17,000 | 16,000 |
Cash surrender value of bank owned life insurance | 3,834,000 | 3,764,000 | |
Salary Continuation Agreement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | 254,000 | 237,000 | |
Deferred compensation arrangement with individual, compensation expense | $ 17,000 | 16,000 | 15,000 |
Defined Benefit Plan, Maximum Coverage Period | 15 years | ||
Cash surrender value of bank owned life insurance | $ 1,284,000 | 1,253,000 | |
Split Dollar Life Insurance Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of bank owned life insurance | 1,801,000 | 1,806,000 | |
Split Dollar Life Insurance Arrangements [Member] | Phoenix Bancorp Inc. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of bank owned life insurance | 3,838,000 | 3,749,000 | |
401(k) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, associated expense | $ 362,000 | $ 321,000 | $ 216,000 |
Other Benefit Plans (Schedule o
Other Benefit Plans (Schedule of Employees Eligible to Participate in Employee Stock Purchase Plan) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
ESPP shares purchased | 4,465 | 4,162 | 3,432 |
Average purchase price per share | $ 18.520 | $ 15.865 | $ 15.318 |
Federal Income Taxes (Net Defer
Federal Income Taxes (Net Deferred Tax Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Allowance for loan and lease losses | $ 2,442 | $ 2,097 |
Deferred Tax Assets, Loan Fees | 82 | 79 |
Deferred Tax Assets, Deferred Compensation | 906 | 313 |
Deferred Tax Assets, Benefit plans | 955 | 586 |
Deferred Tax Assets, Unrealized loss on securities | 1,504 | |
Deferred Tax Assets, Nonaccrual interest | 554 | |
Deferred Tax Assets, Business combination adjustments | 720 | 1,166 |
Deferred Tax Assets, Other | 177 | 170 |
Deferred Tax Assets, Gross, Total | 6,786 | 4,965 |
Deferred Tax Liabilities, Depreciation | (1,175) | (1,074) |
Deferred Tax Liabilities, Bond accretion | (117) | (111) |
Deferred Tax Liabilities, Goodwill and intangibles | (500) | (472) |
Deferred Tax Liabilities, Unrealized gain on securities | (806) | |
Deferred Tax Liabilities, Prepaid expenses | (312) | (240) |
Deferred Tax Liabilities, Business combination adjustments | (367) | (428) |
Deferred Tax Liabilities, Other | (29) | (13) |
Deferred Tax Liabilities, Gross, Total | (2,500) | (3,144) |
Deferred tax asset, net | $ 4,286 | $ 1,821 |
Federal Income Taxes (Provision
Federal Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current expense | $ 2,613 | $ 647 | $ 1,574 | ||||||||
Deferred (benefit) expense | (336) | 997 | (112) | ||||||||
Provision for income taxes | $ 638 | $ 526 | $ 593 | $ 520 | $ 421 | $ 546 | $ 593 | $ 84 | $ 2,277 | $ 1,644 | $ 1,462 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal tax rate | 34.00% | 34.00% | 34.00% |
Unrecognized tax benefits that would affect the effective income tax rate if recognized | $ 0 | ||
Income Tax Examination, Penalties and Interest Expense | 0 | $ 0 | $ 0 |
Income Tax Examination, Penalties and Interest Accrued | $ 0 | $ 0 |
Federal Income Taxes (Schedule
Federal Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Provision at the expected statutory rate | $ 3,428 | $ 2,779 | $ 2,435 | ||||||||
Effect of tax-exempt income | (1,089) | (1,105) | (1,086) | ||||||||
Effect of investment in life insurance | (90) | (91) | (68) | ||||||||
Nondeductible interest | 41 | 37 | 42 | ||||||||
Nondeductible merger and acquisition expense | 34 | 163 | |||||||||
Other items | (13) | (10) | (24) | ||||||||
Provision for income taxes | $ 638 | $ 526 | $ 593 | $ 520 | $ 421 | $ 546 | $ 593 | $ 84 | $ 2,277 | $ 1,644 | $ 1,462 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | |
Common Equity Tier 1 Capital for Capital Adequacy (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% | |
Capital Conservation Buffer Percentage | 2.50% | |
Common Equity Tier 1 Capital Ratio with Capital Conservation Buffer | 7.00% | |
Tier 1 Capital Ratio with Capital Conservation Buffer | 8.50% | |
Total Capital Ratio with Capital Conservation Buffer | 10.50% | |
Annual Phase in Percentage of Capital Conservation Buffer | 0.625% | |
Capital Conservation Buffer Phase in Beginning Year Month | 2016-01 | |
Capital Conservation Buffer Phase in End Year Month | 2019-01 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 5,311 | |
Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital (To Average Assets) | 70,431 | $ 64,089 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 70,431 | 64,089 |
Tier 1 Capital (To Risk Weighted Assets) | 70,431 | 64,089 |
Total Capital (To Risk Weighted Assets) | $ 85,148 | $ 77,852 |
Tier 1 Capital (to Average Assets), Ratio | 6.80% | 7.30% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), ratio | 9.10% | 9.10% |
Tier 1 Capital (To Risk Weighted Assets), Ratio | 9.10% | 9.10% |
Total Capital (To Risk Weighted Assets), Ratio | 11.00% | 11.00% |
Tier 1 Capital for Capital Adequacy (To Average Assets) | $ 41,595 | $ 35,098 |
Common Equity Tier 1 Capital for Capital Adequacy (to Risk Weighted Assets) | 34,807 | 31,731 |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets) | 46,409 | 42,308 |
Total Capital for Capital Adequacy (To Risk Weighted Assets) | $ 61,879 | $ 56,410 |
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | 4.00% |
Common Equity Tier 1 Capital for Capital Adequacy (to Risk Weighted Assets), ratio | 4.50% | 4.50% |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 6.00% | 6.00% |
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) | $ 77,026 | $ 70,351 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 77,026 | 70,351 |
Tier 1 Capital (To Risk Weighted Assets) | 77,026 | 70,351 |
Total Capital (To Risk Weighted Assets) | $ 84,329 | $ 76,614 |
Tier 1 Capital (to Average Assets), Ratio | 7.40% | 7.80% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), ratio | 10.00% | 10.00% |
Tier 1 Capital (To Risk Weighted Assets), Ratio | 10.00% | 10.00% |
Total Capital (To Risk Weighted Assets), Ratio | 10.90% | 10.90% |
Tier 1 Capital for Capital Adequacy (To Average Assets) | $ 41,568 | $ 36,245 |
Common Equity Tier 1 Capital for Capital Adequacy (to Risk Weighted Assets) | 34,781 | 31,698 |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets) | 46,374 | 42,264 |
Total Capital for Capital Adequacy (To Risk Weighted Assets) | $ 61,832 | $ 56,352 |
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | 4.00% |
Common Equity Tier 1 Capital for Capital Adequacy (to Risk Weighted Assets), ratio | 4.50% | 4.50% |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 6.00% | 6.00% |
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) | $ 51,960 | $ 45,306 |
Common Equity Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | 50,239 | 45,786 |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | 61,832 | 56,352 |
Total Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | $ 77,291 | $ 70,440 |
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% | 6.50% |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets), Ratio | 8.00% | 8.00% |
Total Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets), Ratio | 10.00% | 10.00% |
Concentration of Risk and Of107
Concentration of Risk and Off-Balance Sheet Risk (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | ||
Commitments to extend credit | $ 201,749,000 | $ 157,338,000 |
Balance of loans sold under the program | $ 9,206,000 | 5,958,000 |
Concentration risk, benchmark description | 10% or more of the Bank's total net loans outstanding | |
Benchmark - Loans Receivable, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 48.80% | |
Standby Letters of Credit [Member] | ||
Concentration Risk [Line Items] | ||
Commitments to extend credit | $ 14,000,000 | $ 15,805,000 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Jun. 25, 2014 | |
Dividend Reinvestment Plan [Member] | |||||
Class of Stock [Line Items] | |||||
Shares authorized per plan | 330,750 | 330,750 | |||
2014 Restricted Stock Plan [Member] | |||||
Class of Stock [Line Items] | |||||
Shares authorized per plan | 100,000 | ||||
Shares granted, net | 16,045 | ||||
Shares granted | 7,540 | 5,475 | 3,500 | ||
Shares cancelled | 470 | ||||
Unrecognized compensation cost related to all non-vested share-based compensation awards | $ 215,000 | $ 215,000 |
Common Stock (Schedule of Compe
Common Stock (Schedule of Compensation Expense and Related Tax Benefits for Restricted Stock Awards Recognized) (Details) - 2014 Restricted Stock Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation expense | $ 53 | $ 28 |
Income tax benefit | (18) | (10) |
Net income effect | $ 35 | $ 18 |
Common Stock (Schedule of Non-V
Common Stock (Schedule of Non-Vested Restricted Stock) (Details) - 2014 Restricted Stock Plan [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares, Non-vested at January 1, 2016 | 8,100 | ||
Shares, Vested | (2,115) | ||
Shares, Cancelled | (470) | ||
Shares, Granted | 7,540 | 5,475 | 3,500 |
Shares, Non-vested at December 31, 2016 | 13,055 | 8,100 | |
Weighted-Average Grant Date Fair Value, Non-vested at January 1, 2016 | $ 16.13 | ||
Weighted-Average Grant Date Fair Value, Vested | 16.10 | ||
Weighted-Average Grant Date Fair Value, Cancelled | 16.09 | ||
Weighted-Average Grant Date Fair Value, Granted | 18.77 | ||
Weighted-Average Grant Date Fair Value, Non-vested at December 31, 2016 | $ 17.66 | $ 16.13 |
Preferred Stock (Small Business
Preferred Stock (Small Business Lending Fund) (Narrative) (Details) - USD ($) | Jan. 19, 2016 | Dec. 15, 2015 | Dec. 09, 2015 | Jan. 03, 2013 | Dec. 31, 2015 | Mar. 01, 2015 |
Phoenix Bancorp Inc. [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Issued | 1,750 | |||||
Preferred Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 7.00% | |||||
Payments for Repurchase of Redeemable Preferred Stock | $ 5,123,000 | |||||
Stock issued during period, shares, new issues | 5,000 | |||||
Proceeds from issuance of private placement | $ 5,000,000 | |||||
Preferred stock, redemption price per share | $ 1,024.67 | |||||
Preferred Stock Redemption Price Per Share Excluding Dividends Declared But Unpaid | $ 1,020 | |||||
Series C Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 1.00% | |||||
Payments for Repurchase of Redeemable Preferred Stock | $ 1,754,000 | $ 1,750,000 | ||||
Preferred Stock, Shares Issued | 1,750 | |||||
Preferred stock, liquidation preference per share | $ 1,000 | |||||
Series C Preferred Stock [Member] | Phoenix Bancorp Inc. [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Issued | 1,750 | |||||
Preferred stock, liquidation preference per share | $ 1,000 |
Parent Company Statements (Cond
Parent Company Statements (Condensed Balance Sheets) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and cash equivalents | $ 45,973,000 | $ 13,284,000 | $ 9,882,000 | $ 8,623,000 |
Investment in subsidiaries | 321,000 | 365,000 | ||
Other assets | 3,215,000 | 3,116,000 | ||
Total Assets | 1,032,599,000 | 931,638,000 | ||
Subordinated debt | 7,414,000 | 7,414,000 | ||
Other liabilities | 5,249,000 | 4,822,000 | ||
Shareholders' Equity | 70,467,000 | 70,068,000 | 59,130,000 | 52,916,000 |
Total Liabilities and Shareholders' Equity | 1,032,599,000 | 931,638,000 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 780,000 | 564,000 | $ 554,000 | $ 437,000 |
Equity investments | 545,000 | 626,000 | ||
Investment in subsidiaries | 77,029,000 | 76,334,000 | ||
Other assets | 40,000 | 14,000 | ||
Total Assets | 78,394,000 | 77,538,000 | ||
Subordinated debt | 7,414,000 | 7,414,000 | ||
Other liabilities | 513,000 | 56,000 | ||
Shareholders' Equity | 70,467,000 | 70,068,000 | ||
Total Liabilities and Shareholders' Equity | $ 78,394,000 | $ 77,538,000 |
Parent Company Statements (C113
Parent Company Statements (Condensed Statement of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other expenses | $ 4,683 | $ 4,122 | $ 3,304 | ||||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiaries | $ 2,714 | $ 2,427 | $ 2,615 | $ 2,325 | $ 2,048 | $ 2,440 | $ 2,637 | $ 1,047 | 10,081 | 8,172 | 7,163 |
Income tax benefit | 638 | 526 | 593 | 520 | 421 | 546 | 593 | 84 | 2,277 | 1,644 | 1,462 |
NET INCOME | 1,627 | 1,894 | 2,044 | 963 | 7,804 | 6,528 | 5,701 | ||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 2,076 | $ 1,901 | $ 2,022 | $ 1,805 | 1,408 | 1,802 | 1,952 | 876 | 7,804 | 6,038 | 5,351 |
Comprehensive income | 3,139 | 6,827 | 8,086 | ||||||||
Series B Preferred Stock [Member] | |||||||||||
Preferred stock dividends and redemption premium | 210 | 88 | 88 | $ 87 | 473 | 350 | |||||
Preferred stock dividends | 373 | 350 | |||||||||
Series C Preferred Stock [Member] | |||||||||||
Preferred stock dividends | $ 9 | $ 4 | $ 4 | 17 | |||||||
Parent Company [Member] | |||||||||||
Dividends from subsidiaries | 2,871 | 5,662 | 2,325 | ||||||||
Other income | 33 | 19 | |||||||||
Total Income | 2,904 | 5,681 | 2,325 | ||||||||
Other expenses | (606) | (695) | (716) | ||||||||
Total Expense | (606) | (695) | (716) | ||||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiaries | 2,298 | 4,986 | 1,609 | ||||||||
Equity in undistributed earnings (loss) of subsidiaries | 5,311 | 1,346 | 4,012 | ||||||||
Income before income tax | 7,609 | 6,332 | 5,621 | ||||||||
Income tax benefit | 195 | 196 | 80 | ||||||||
NET INCOME | 7,804 | 6,528 | 5,701 | ||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | 7,804 | 6,038 | 5,351 | ||||||||
Comprehensive income | $ 3,139 | 6,827 | 8,086 | ||||||||
Parent Company [Member] | Series B Preferred Stock [Member] | |||||||||||
Preferred stock dividends and redemption premium | 473 | $ 350 | |||||||||
Parent Company [Member] | Series C Preferred Stock [Member] | |||||||||||
Preferred stock dividends | $ 17 |
Parent Company Statements (C114
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Net income | $ 1,627,000 | $ 1,894,000 | $ 2,044,000 | $ 963,000 | $ 7,804,000 | $ 6,528,000 | $ 5,701,000 | |
Decrease (increase) in other assets | (99,000) | 333,000 | (547,000) | |||||
Increase (decrease) in other liabilities | 427,000 | (771,000) | 9,000 | |||||
Net Cash Provided By Operating Activities | 22,271,000 | 13,174,000 | 8,670,000 | |||||
Net Cash Used In Investing Activities | (86,799,000) | (38,903,000) | (41,892,000) | |||||
Dividends paid | (2,875,000) | (1,785,000) | (1,575,000) | |||||
Employee Stock Purchase Plan | 82,000 | 66,000 | 53,000 | |||||
Deferred financing fees paid for subordinated debt issuance | (85,000) | |||||||
Subordinated debt issuance | 7,500,000 | |||||||
Net Cash Provided By Financing Activities | 97,217,000 | 29,131,000 | 34,481,000 | |||||
Net increase in cash and cash equivalents | 32,689,000 | 3,402,000 | 1,259,000 | |||||
Cash and cash equivalents, beginning of year | 9,882,000 | 13,284,000 | 9,882,000 | 8,623,000 | ||||
Cash and cash equivalents, end of year | 13,284,000 | 45,973,000 | 13,284,000 | 9,882,000 | ||||
Series B Preferred Stock [Member] | ||||||||
Preferred stock redemption | (5,000,000) | |||||||
Series C Preferred Stock [Member] | ||||||||
Preferred stock redemption | $ (1,754,000) | (1,750,000) | ||||||
Parent Company [Member] | ||||||||
Net income | 7,804,000 | 6,528,000 | 5,701,000 | |||||
Equity in undistributed earnings (loss) of subsidiaries | (5,311,000) | (1,346,000) | (4,012,000) | |||||
Decrease (increase) in other assets | 59,000 | (14,000) | 8,000 | |||||
Increase (decrease) in other liabilities | 457,000 | (665,000) | 292,000 | |||||
Net Cash Provided By Operating Activities | 3,009,000 | 4,503,000 | 1,989,000 | |||||
Net cash paid for acquisition | (2,949,000) | |||||||
Net Cash Used In Investing Activities | (2,949,000) | |||||||
Dividends paid | (2,875,000) | (2,175,000) | (1,925,000) | |||||
Employee Stock Purchase Plan | 82,000 | 66,000 | 53,000 | |||||
Deferred financing fees paid for subordinated debt issuance | (85,000) | |||||||
Subordinated debt issuance | 7,500,000 | |||||||
Net Cash Provided By Financing Activities | (2,793,000) | (1,544,000) | (1,872,000) | |||||
Net increase in cash and cash equivalents | 216,000 | 10,000 | 117,000 | |||||
Cash and cash equivalents, beginning of year | $ 554,000 | 564,000 | 554,000 | 437,000 | ||||
Cash and cash equivalents, end of year | $ 564,000 | $ 780,000 | 564,000 | $ 554,000 | ||||
Parent Company [Member] | Series B Preferred Stock [Member] | ||||||||
Preferred stock redemption premium | (100,000) | |||||||
Preferred stock redemption | (5,000,000) | |||||||
Parent Company [Member] | Series C Preferred Stock [Member] | ||||||||
Preferred stock redemption | $ (1,750,000) |
Recent Accounting Pronouncem115
Recent Accounting Pronouncements (Narrative) (Details) | Dec. 31, 2016USD ($) |
Accounting Changes And Error Corrections [Abstract] | |
Equity investments (excluding restricted investments in bank stocks) | $ 2,156,000 |
Summary of Quarterly Consoli116
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Income | $ 10,531 | $ 10,125 | $ 9,859 | $ 9,697 | $ 9,349 | $ 9,339 | $ 9,644 | $ 8,158 | $ 40,212 | $ 36,490 | $ 30,627 |
Interest Expense | 1,402 | 1,367 | 1,316 | 1,282 | 1,179 | 1,150 | 1,158 | 1,120 | 5,367 | 4,607 | 4,427 |
Net Interest Income | 9,129 | 8,758 | 8,543 | 8,415 | 8,170 | 8,189 | 8,486 | 7,038 | 34,845 | 31,883 | 26,200 |
Provision for loan and lease losses | 550 | 585 | 395 | 340 | 200 | 265 | 300 | 300 | 1,870 | 1,065 | 1,617 |
Net Interest Income After Provision for Loan and Lease Losses | 8,579 | 8,173 | 8,148 | 8,075 | 7,970 | 7,924 | 8,186 | 6,738 | 32,975 | 30,818 | 24,583 |
Noninterest Income | 1,875 | 1,419 | 1,398 | 1,232 | 960 | 1,085 | 1,093 | 949 | 5,924 | 4,113 | 3,284 |
Noninterest Expense | 7,740 | 7,165 | 6,931 | 6,982 | 6,882 | 6,569 | 6,642 | 6,640 | 28,818 | 26,759 | 20,704 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,714 | 2,427 | 2,615 | 2,325 | 2,048 | 2,440 | 2,637 | 1,047 | 10,081 | 8,172 | 7,163 |
Provision for income taxes | 638 | 526 | 593 | 520 | 421 | 546 | 593 | 84 | 2,277 | 1,644 | 1,462 |
NET INCOME | 1,627 | 1,894 | 2,044 | 963 | 7,804 | 6,528 | 5,701 | ||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 2,076 | $ 1,901 | $ 2,022 | $ 1,805 | $ 1,408 | $ 1,802 | $ 1,952 | $ 876 | $ 7,804 | $ 6,038 | $ 5,351 |
Basic Earnings Per Common Share | $ 0.49 | $ 0.45 | $ 0.48 | $ 0.43 | $ 0.35 | $ 0.43 | $ 0.46 | $ 0.23 | $ 1.85 | $ 1.47 | $ 1.53 |
Cash Dividends Declared | $ 0.22 | $ 0.12 | $ 0.12 | $ 0.22 | $ 0.12 | $ 0.12 | $ 0.10 | $ 0.10 | $ 0.68 | $ 0.44 | $ 0.45 |
Series B Preferred Stock [Member] | |||||||||||
Preferred stock dividends and redemption premium | $ 210 | $ 88 | $ 88 | $ 87 | $ 473 | $ 350 | |||||
Preferred stock dividends | 373 | $ 350 | |||||||||
Series C Preferred Stock [Member] | |||||||||||
Preferred stock dividends | $ 9 | $ 4 | $ 4 | $ 17 |