Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 08, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,122,717 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 20,866 | $ 19,795 |
Interest-bearing balances with other financial institutions | 5,346 | 3,028 |
Federal funds sold | 32,963 | 691 |
Total cash and cash equivalents | 59,175 | 23,514 |
Available for sale debt securities, at fair value | 122,342 | 92,959 |
Investment securities available for sale, at fair value | 122,342 | 93,465 |
Investment securities held to maturity, at amortized cost (fair value $128,352 and $100,483) | 131,293 | 101,356 |
Loans held for sale | 1,348 | 1,040 |
Loans and leases, net of unearned interest | 1,007,138 | 910,404 |
Less: Allowance for loan and lease losses | (7,666) | (7,606) |
Net loans and leases | 999,472 | 902,798 |
Bank premises and equipment, net | 20,015 | 16,168 |
Cash surrender value of life insurance | 13,106 | 13,042 |
Restricted investment in bank stocks | 2,759 | 4,384 |
Foreclosed assets held for sale | 745 | 189 |
Accrued interest receivable | 5,079 | 4,564 |
Deferred income taxes | 3,821 | 1,888 |
Goodwill | 22,528 | 3,918 |
Core deposit and other intangibles, net | 5,126 | 434 |
Other assets | 4,408 | 3,594 |
Total Assets | 1,391,217 | 1,170,354 |
LIABILITIES & SHAREHOLDERS’ EQUITY | ||
Deposits: Noninterest-bearing demand | 195,330 | 163,714 |
Deposits: Interest-bearing demand | 355,939 | 349,241 |
Deposits: Money Market | 270,489 | 246,220 |
Deposits: Savings | 174,920 | 62,770 |
Deposits: Time | 215,745 | 201,623 |
Total Deposits | 1,212,423 | 1,023,568 |
Short-term borrowings | 34,611 | |
Long-term debt | 12,297 | 12,352 |
Subordinated debt | 17,335 | 17,338 |
Accrued interest payable | 922 | 645 |
Other liabilities | 9,116 | 6,137 |
Total Liabilities | 1,252,093 | 1,094,651 |
Shareholders' Equity: | ||
Common stock, par value $1.00; authorized 10,000,000 shares; 6,122,717 and 4,242,216 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 6,123 | 4,242 |
Additional paid-in capital | 103,382 | 40,970 |
Retained earnings | 33,525 | 32,565 |
Accumulated other comprehensive loss | (3,906) | (2,074) |
Total Shareholders’ Equity | 139,124 | 75,703 |
Total Liabilities and Shareholders' Equity | $ 1,391,217 | $ 1,170,354 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 128,352 | $ 100,483 |
Common Stock, Par Value | $ 1 | $ 1 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 6,122,717 | 4,242,216 |
Common Stock, Shares, Outstanding | 6,122,717 | 4,242,216 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
INTEREST INCOME | ||
Interest and fees on loans and leases | $ 11,337 | $ 9,702 |
Interest on interest-bearing balances | 9 | 2 |
Interest on federal funds sold | 168 | 51 |
Interest and dividends on investment securities: | ||
U.S. Treasury and government agencies | 752 | 445 |
State and political subdivision obligations, tax-exempt | 542 | 316 |
Other securities | 172 | 43 |
Total Interest Income | 12,980 | 10,559 |
INTEREST EXPENSE | ||
Interest on deposits | 1,780 | 1,204 |
Interest on short-term borrowings | 12 | |
Interest on long-term and subordinated debt | 310 | 180 |
Total Interest Expense | 2,102 | 1,384 |
Net Interest Income | 10,878 | 9,175 |
PROVISION FOR LOAN AND LEASE LOSSES | 125 | 125 |
Net Interest Income After Provision for Loan and Lease Losses | 10,753 | 9,050 |
NONINTEREST INCOME | ||
Income from fiduciary activities | 240 | 196 |
Service charges on deposits | 203 | 205 |
Net gain on sales of investment securities | 98 | 8 |
Earnings from cash surrender value of life insurance | 64 | 65 |
Mortgage banking income | 156 | 191 |
ATM debit card interchange income | 265 | 224 |
Merchant services income | 78 | 74 |
Net gain on sales of SBA loans | 257 | 284 |
Other income | 286 | 189 |
Total Noninterest Income | 1,647 | 1,436 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 5,064 | 4,230 |
Occupancy expense, net | 797 | 648 |
Equipment expense | 408 | 381 |
Pennsylvania bank shares tax expense | 171 | 170 |
FDIC Assessment | 228 | 194 |
Legal and professional fees | 224 | 177 |
Marketing and advertising expense | 189 | 107 |
Software licensing | 514 | 329 |
Telephone expense | 147 | 126 |
Loss on sale or write-down of foreclosed assets | 2 | 82 |
Intangible amortization | 248 | 29 |
Merger and acquisition expense | 1,694 | 210 |
Other expenses | 1,497 | 1,119 |
Total Noninterest Expense | 11,183 | 7,802 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,217 | 2,684 |
Provision for income taxes | 213 | 690 |
NET INCOME | $ 1,004 | $ 1,994 |
PER COMMON SHARE DATA: | ||
Basic and Diluted Earnings Per Common Share | $ 0.17 | $ 0.47 |
Cash Dividends Paid | $ 0.25 | $ 0.23 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 1,004 | $ 1,994 | |
Other comprehensive (loss) income: | |||
Unrealized (losses) gains arising during the period on available-for-sale securities, net of income tax impact of ($475) and $195, respectively | (1,788) | 379 | |
Reclassification adjustment for net gain on sales of available-for-sale securities included in net income, net of income tax impact of $20 and $3, respectively | [1] | (78) | (5) |
Change in defined benefit plans, net of income tax impact of $0 and ($1), respectively | [2] | (1) | (3) |
Total other comprehensive (loss) income | (1,867) | 371 | |
Total comprehensive (loss) income | $ (863) | $ 2,365 | |
[1] | Amounts are included in net gain on sales of investment securities on the Consolidated Statements of Income as a separate element within total noninterest income. | ||
[2] | Amounts are included in the computation of net periodic benefit cost and are included in salaries and employee benefits on the Consolidated Statements of Income as a separate element within total noninterest expense. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized (losses) gains arising during the period on available for sale securities, tax | $ (475) | $ 195 |
Reclassification adjustment for net gain on sales of available for sale securities included in net income, tax | 20 | 3 |
Change in defined benefit plans, tax | $ 0 | $ (1) |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2016 | $ 70,467 | $ 4,233 | $ 40,688 | $ 28,399 | $ (2,853) |
Net income | 1,994 | 1,994 | |||
Total other comprehensive loss, net of taxes | 371 | 371 | |||
Employee Stock Purchase Plan | 27 | 1 | 26 | ||
Common stock dividends | (551) | (551) | |||
Restricted stock activity | 19 | 19 | |||
Balance at Mar. 31, 2017 | 72,327 | 4,234 | 40,733 | 29,842 | (2,482) |
Balance at Dec. 31, 2017 | 75,703 | 4,242 | 40,970 | 32,565 | (2,074) |
Impact of adoption of new accounting standard (ASU 2016-01 [Member]) at Dec. 31, 2017 | (9) | (44) | 35 | ||
Balance at Dec. 31, 2017 | 75,694 | 4,242 | 40,970 | 32,521 | (2,039) |
Net income | 1,004 | 1,004 | |||
Total other comprehensive loss, net of taxes | (1,867) | (1,867) | |||
Common stock issued to Scottdale shareholders | 64,181 | 1,879 | 62,302 | ||
Employee Stock Purchase Plan | 24 | 1 | 23 | ||
Director Stock Purchase Plan | 30 | 1 | 29 | ||
Restricted stock activity | 58 | 58 | |||
Balance at Mar. 31, 2018 | $ 139,124 | $ 6,123 | $ 103,382 | $ 33,525 | $ (3,906) |
Consolidated Statements of Cha8
Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock issued during period, shares, Scottdale shareholders | 1,878,827 | |
Stock issued during period shares, Director Stock Purchase Plans | 938 | |
Common Stock [Member] | ||
Stock issued during period, shares, Employee Stock Purchase Plans | 736 | 1,264 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net Income | $ 1,004 | $ 1,994 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 125 | 125 |
Depreciation | 423 | 363 |
Amortization of intangibles | 248 | 29 |
Net amortization (accretion) of security discounts/premiums | 199 | (1,554) |
Gain on sales of investment securities | (98) | (8) |
Earnings on cash surrender value of life insurance | (64) | (65) |
Mortgage loans originated for sale | (10,152) | (11,076) |
Proceeds from sales of mortgage loans originated for sale | 10,000 | 11,191 |
Gain on sale of mortgage loans | (156) | (191) |
SBA loans originated for sale | (3,114) | (3,795) |
Proceeds from sales of SBA loans originated for sale | 3,371 | 4,079 |
Gain on sale of SBA loans | (257) | (284) |
Loss on disposal of property, plant, and equipment | 26 | |
Loss on sale or write-down of foreclosed assets | 2 | 82 |
Stock compensation expense | 58 | 19 |
Deferred income tax benefit | (826) | (43) |
Decrease in accrued interest receivable | 474 | 27 |
(Increase) decrease in other assets | (52) | 256 |
Increase in accrued interest payable | 261 | 106 |
Increase in other liabilities | 1,437 | 1,914 |
Net Cash Provided By Operating Activities | 2,883 | 3,195 |
Investing Activities: | ||
Proceeds from the sale of available-for-sale securities | 97,218 | 17,931 |
Proceeds from the maturity or call of available-for-sale securities | 5,806 | 1,107 |
Purchases of available-for-sale securities | (20,708) | (3,538) |
Proceeds from the maturity or call of held-to-maturity securities | 2,346 | |
Purchases of held-to-maturity securities | (32,396) | (48,926) |
Net cash received from acquisition | 65,025 | |
Redemptions (purchases) of restricted investment in bank stock | 1,722 | (32) |
Net increase in loans and leases | (26,814) | (19,984) |
Proceeds from the sale of bank premises and equipment held for sale | 2,201 | |
Purchases of bank premises and equipment | (2,774) | (770) |
Proceeds from the sale of foreclosed assets | 154 | 15 |
Net Cash Provided by (Used In) Investing Activities | 89,579 | (51,996) |
Financing Activities: | ||
Net (decrease) increase in deposits | (21,126) | 36,514 |
Net decrease in short-term borrowings | (34,611) | |
Common stock dividends paid | (1,060) | (551) |
Long-term debt repayment | (58) | (55) |
Net Cash (Used In) Provided By Financing Activities | (56,801) | 35,935 |
Net increase (decrease) in cash and cash equivalents | 35,661 | (12,866) |
Cash and cash equivalents, beginning of period | 23,514 | 45,973 |
Cash and cash equivalents, end of period | 59,175 | 33,107 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 1,825 | 1,278 |
Supplemental Noncash Disclosures: | ||
Loan transfers to foreclosed assets held for sale | 701 | |
Assets Acquired: | ||
Securities | 114,039 | |
Loans | 70,686 | |
Restricted stock | 97 | |
Property and equipment | 1,496 | |
Foreclosed assets | 11 | |
Deferred income taxes | 621 | |
Accrued interest receivable | 989 | |
Core deposit intangible | 4,940 | |
Other assets | 266 | |
Assets acquired | 193,145 | |
Liabilities Assumed: | ||
Deposits | 209,981 | |
Accrued interest payable | 16 | |
Other liabilities | 2,602 | |
Liabilities assumed | 212,599 | |
Employee [Member] | ||
Financing Activities: | ||
Stock Purchase Plan | 24 | $ 27 |
Director [Member] | ||
Financing Activities: | ||
Stock Purchase Plan | $ 30 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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. (the “Company”) and its wholly-owned subsidiary, Mid Penn Bank (the “Bank”). All material intercompany accounts and transactions have been eliminated in consolidation. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Mid Penn believes the information presented is not misleading and the disclosures are adequate. For comparative purposes, the March 31, 2017 and December 31, 2017 balances have been reclassified, when, and if necessary, to conform to the 2018 presentation. Such reclassifications had no impact on net income. The results of operations for interim periods are not necessarily indicative of operating results expected for the full year. In the opinion of management, all adjustments necessary for fair presentation of the periods presented have been reflected in the accompanying consolidated financial statements. All such adjustments are of a normal, recurring nature. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. On January 8, 2018, Mid Penn completed its acquisition of The Scottdale Bank & Trust Company (“Scottdale”), a Pennsylvania bank and trust company, through the merger of Scottdale with and into Mid Penn Bank pursuant to that certain previously announced Agreement and Plan of Merger, dated as of March 29, 2017, among Mid Penn, Mid Penn Bank and Scottdale. Refer to Note 2, Merger On January 16, 2018, Mid Penn entered into an Agreement and Plan of Merger with First Priority Financial Corp. (“First Priority”) pursuant to which First Priority will merge with and into Mid Penn (the “Merger”), with Mid Penn being the surviving corporation in the Merger. Refer to Note 13, Agreement and Plan of Merger Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2018, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
Merger
Merger | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Merger | (2) Merger On January 8, 2018, The Scottdale Bank & Trust Company, (“Scottdale”) merged with and into Mid Penn Bank, with Mid Penn Bank continuing as the surviving entity. Pursuant to the Merger Agreement, each share of Scottdale common stock issued and outstanding immediately prior to January 8, 2018 converted into the right to receive (i) $1,166 in cash without interest or (ii) 38.88 shares of Mid Penn common stock. As a result, Mid Penn issued 1,878,827 shares of Mid Penn common stock with an acquisition date fair value of approximately $64,181,000, based on the closing stock price of Mid Penn’s common stock on January 8, 2018 of $34.16, and cash of $2,792,000. Including an insignificant amount of cash paid in lieu of fractional shares, the fair value of total consideration paid was $66,973,000. The assets and liabilities of Scottdale were recorded on the consolidated balance sheet of the Company at their estimated fair value as of January 8, 2018, and their results of operations have been included in the consolidated income statement of the Company since such date. Scottdale has been fully integrated into Mid Penn, therefore the amount of revenue and earnings of Scottdale included in the consolidated income statement since the acquisition date is impracticable to provide. Included in the purchase price was goodwill of $18,610,000 and a core deposit intangible of $4,940,000. The core deposit intangible will be amortized over a ten-year period using a sum of the years’ digits basis. The goodwill will not be amortized, but will be measured annually for impairment or more frequently if circumstances require. Core deposit intangible amortization expense related to the Scottdale acquisition for the five years beginning 2018 through 2022 is estimated to be $898,000, $808,000, $719,000, $629,000, and $539,000 per year, respectively, and $1,347,000 in total for the five years after 2022. The allocation of the purchase price is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 67,817 Investment securities 114,039 Restricted stock 97 Loans 70,686 Goodwill 18,610 Core deposit intangible 4,940 Premises and equipment 1,496 Foreclosed assets 11 Deferred income taxes 621 Accrued interest receivable 989 Other assets 266 Total assets acquired 279,572 Liabilities assumed: Deposits 209,981 Accrued interest payable 16 Other liabilities 2,602 Total liabilities assumed 212,599 Consideration paid $ 66,973 Cash paid $ 2,792 Fair value of common stock issued 64,181 Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (Dollars in thousands) Total purchase price $ 66,973 Net assets acquired: Cash and cash equivalents 67,817 Investment securities 114,039 Restricted stock 97 Loans 70,686 Core deposit intangible 4,940 Premises and equipment 1,496 Foreclosed assets 11 Deferred income taxes 621 Accrued interest receivable 989 Other assets 266 Deposits (209,981 ) Accrued interest payable (16 ) Other liabilities (2,602 ) 48,363 Goodwill $ 18,610 In general, factors contributing to goodwill recognized as a result of the Scottdale acquisition include expected cost savings from combined operations, opportunities to expand into several new markets, and growth and profitability potential from the repositioning of short-term investments into higher-yielding loans. The goodwill acquired as a result of the Scottdale acquisition is not tax deductible. The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $70,686,000. 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 January 8, 2018 $ 71,809 Market rate adjustment 601 Credit fair value adjustment on pools of homogeneous loans (1,078 ) Credit fair value adjustment on impaired loans (646 ) Fair value of purchased loans at January 8, 2018 $ 70,686 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the contractual 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 loan inception to the acquisition date. The credit adjustment on impaired loans is derived in accordance with ASC 310-30-30 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 Scottdale impaired loan portfolio as of January 8, 2018 is as follows: (Dollars in thousands) Contractually required principal and interest at acquisition $ 2,587 Contractual cash flows not expected to be collected (nonaccretable discount) (1,010 ) Expected cash flows at acquisition 1,577 Interest component of expected cash flows (accretable discount) (305 ) Fair value of acquired loans $ 1,272 The following table presents pro forma information as if the merger between Mid Penn and Scottdale had been completed on January 1, 2017. The pro forma information does not necessarily reflect the results of operations that would have occurred had Mid Penn merged with Scottdale at the beginning of 2017. The supplemental pro forma earnings for 2018 reflect actual first quarter earnings, as the amount of Scottdale related income for eight days is immaterial, adjusted to exclude $1,273,000 of merger related costs incurred for the Scottdale acquisition. The results for the three months ended March 31, 2017 were adjusted to include the $1,273,000 of merger related costs. 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. (Dollars in thousands, except per share data) Three Months Ended March 31, 2018 2017 Net interest income after loan loss provision $ 10,753 $ 10,498 Noninterest income 1,647 1,585 Noninterest expense 9,910 10,346 Net income 2,054 1,268 Net income per common share 0.34 0.21 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Securities Financing Transactions Disclosures [Abstract] | |
Investment Securities | ( 3 ) 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, pledging requirements, and other factors related to effective portfolio management. Securities to be held to maturity are carried at amortized cost. For available-for-sale debt securities, realized gains and losses on dispositions are based on the net proceeds and the amortized cost of the securities sold, using the specific identification method. Unrealized gains and losses on debt securities are based on the difference between the amortized cost and fair value of each security as of the respective reporting date. Unrealized gains and losses are credited or charged to other comprehensive income, whereas realized gains and losses flow through Mid Penn’s consolidated statements of income for the respective period. 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. Mid Penn had no securities considered by management to be other-than-temporarily impaired as of March 31, 2018, December 31, 2017, or March 31, 2017, and did not record any securities impairment charges in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be other-than-temporarily impaired as the unrealized losses were deemed to relate to changes in interest rates, and not erosion of credit quality. Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value within other assets on the balance sheet, with realized and unrealized gains and losses reported in other expense on the income statement. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value within investment securities available-for-sale on the balance sheet, with unrealized gains and losses reported as a separate component of accumulated other comprehensive loss, net of tax. Equity securities without readily determinable fair values are recorded at cost less any impairment. The amortized cost, fair value, and unrealized gains and losses on investment securities at March 31, 2018 and December 31, 2017 are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018 Available-for-sale debt securities: U.S. Treasury and U.S. government agencies $ 40,604 $ 3 $ 2,082 $ 38,525 Mortgage-backed U.S. government agencies 45,710 6 1,077 44,639 State and political subdivision obligations 38,222 34 1,941 36,315 Corporate debt securities 2,848 15 — 2,863 Total available-for-sale debt securities 127,384 58 5,100 122,342 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 10,984 — 174 10,810 Mortgage-backed U.S. government agencies 69,901 18 1,345 68,575 State and political subdivision obligations 50,408 36 1,477 48,967 Corporate debt securities — — — — Total held-to-maturity debt securities 131,293 54 2,996 128,352 Total $ 258,677 $ 112 $ 8,096 $ 250,694 (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017 Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 40,125 $ — $ 1,395 $ 38,730 Mortgage-backed U.S. government agencies 26,398 2 569 25,831 State and political subdivision obligations 27,775 7 739 27,043 Corporate debt securities 1,350 5 — 1,355 Total available-for-sale debt securities 95,648 14 2,703 92,959 Available-for-sale equity securities: Equity securities 550 — 44 506 Total available-for-sale equity securities 550 — 44 506 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 10,984 — 90 10,894 Mortgage-backed U.S. government agencies 53,472 — 523 52,949 State and political subdivision obligations 36,900 41 301 36,640 Corporate debt securities — — — — Total held-to-maturity debt securities 101,356 41 914 100,483 Total $ 197,554 $ 55 $ 3,661 $ 193,948 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. Please refer to Note (5) – Fair Value Measurement, for more information on the fair value of investment securities. Equity securities consist of Community Reinvestment Act funds and, as of March 31, 2018 and December 31, 2017, Mid Penn had $496,000 and $506,000 respectively in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive loss, net of tax. At December 31, 2017, net unrealized gains of $44,000 had been recognized in accumulated other comprehensive loss. On January 1, 2018, these unrealized gains and losses were reclassified out of accumulated other comprehensive loss and into retained earnings and subsequent changes in fair value are now recognized in net income. No equity securities were sold during the three months ended March 31, 2018. Investment securities having a fair value of $146,897,000 at March 31, 2018 and $141,465,000 at December 31, 2017 were pledged to secure public deposits and certain other borrowings. Gross realized gains and losses on sales of available-for-sale debt securities for the three months ended March 31, 2018 and 2017 are shown in the table below. (Dollars in thousands) Three Months Ended March 31, 2018 2017 Realized gains $ 100 $ 123 Realized losses (2 ) (115 ) Net gains $ 98 $ 8 The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized March 31, 2018 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale debt securities: U.S. Treasury and U.S. government agencies 3 $ 4,925 $ 267 18 $ 33,110 $ 1,815 21 $ 38,035 $ 2,082 Mortgage-backed U.S. government agencies 13 20,127 258 15 19,597 819 28 39,724 1,077 State and political subdivision obligations 14 8,049 338 41 18,521 1,603 55 26,570 1,941 Total temporarily impaired available-for-sale debt securities 30 33,101 863 74 71,228 4,237 104 104,329 5,100 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 3 8,822 161 1 1,988 13 4 10,810 174 Mortgage-backed U.S. government agencies 37 55,999 1,299 2 2,065 46 39 58,064 1,345 State and political subdivision obligations 103 40,903 1,477 0 - - 103 40,903 1,477 Total temporarily impaired held-to-maturity debt securities 143 105,724 2,937 3 4,053 59 146 109,777 2,996 Total 173 $ 138,825 $ 3,800 77 $ 75,281 $ 4,296 250 $ 214,106 $ 8,096 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized December 31, 2017 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies 3 $ 5,008 $ 184 18 $ 33,722 $ 1,211 21 $ 38,730 $ 1,395 Mortgage-backed U.S. government agencies 4 5,267 75 15 20,497 494 19 25,764 569 State and political subdivision obligations 11 6,144 102 40 19,091 637 51 25,235 739 Corporate debt securities 0 — — 0 — — 0 — — Equity securities 0 — — 1 506 44 1 506 44 Total temporarily impaired available-for-sale securities 18 $ 16,419 $ 361 74 $ 73,816 $ 2,386 92 $ 90,235 $ 2,747 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 0 — — 4 10,894 90 4 10,894 90 Mortgage-backed U.S. government agencies 0 — — 35 52,949 523 35 52,949 523 State and political subdivision obligations 0 — — 77 29,976 301 77 29,976 301 Corporate debt securities 0 — — 0 — — 0 — — Equity securities 0 — — 0 — — 0 — — Total temporarily impaired held to maturity securities 0 — — 116 93,819 914 116 93,819 914 Total 18 $ 16,419 $ 361 190 $ 167,635 $ 3,300 208 $ 184,054 $ 3,661 Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such additional evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than amortized 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 securities issued by 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 were primarily caused by the movement of interest rates and not due to an erosion of credit quality of the underlying issuers. At both March 31, 2018 and December 31, 2017, the majority of the unrealized losses on both available-for-sale securities and held-to-maturity securities in an unrealized loss position were attributed to obligations of state and political subdivisions, U.S. Treasury and agency securities, and mortgage-backed U.S. government agencies. The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of March 31, 2018. (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair March 31, 2018 Cost Value Cost Value Due in 1 year or less $ 10,428 $ 10,453 $ 2,001 $ 1,988 Due after 1 year but within 5 years 12,758 12,414 10,025 9,859 Due after 5 years but within 10 years 48,223 45,478 46,560 45,162 Due after 10 years 10,265 9,358 2,806 2,768 81,674 77,703 61,392 59,777 Mortgage-backed securities 45,710 44,639 69,901 68,575 $ 127,384 $ 122,342 $ 131,293 $ 128,352 |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2018 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Loans and Allowance for Loan and Lease Losses | (4 ) Loans and Allowance for Loan and Lease Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans, 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 generally 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 past due 90 days or more 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, is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Nonaccrual loans may be 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, at least nine consecutive 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 percent 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 percent 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 percent loan to value level. Residential mortgage loans generally do not include prepayment penalties. In underwriting residential mortgage loans, the Bank evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Most properties securing real estate loans made by Mid Penn are appraised by independent fee appraisers. The Bank generally requires borrowers to obtain title insurance and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Bank generally contain a “due on sale” clause allowing the Bank to declare the unpaid principal balance due and payable upon the sale of the security property. The Bank underwrites residential mortgage loans to the standards established by the secondary mortgage market, i.e., Fannie Mae, Ginnie Mae, Freddie Mac, or Pennsylvania Housing Finance Agency standards, with the intention of selling the majority of residential mortgages originated into the secondary market. In the event that the facts and circumstances surrounding a residential mortgage application do not meet all underwriting conditions of the secondary mortgage market, the Bank will evaluate the failed conditions and evaluate the potential risk of holding the residential mortgage in the Bank’s portfolio rather than rejecting the loan request. In the event that the loan is held in the Bank’s portfolio, the interest rate on the residential mortgage would be increased to compensate for the added portfolio risk. Consumer, including home equity Mid Penn offers a variety of secured consumer loans, including home equity, automobile, and deposit secured loans. In addition, the Bank offers other secured and unsecured consumer loans. Most consumer loans are originated in Mid Penn’s primary market and surrounding areas. The largest component of Mid Penn’s consumer loan portfolio consists of fixed rate home equity loans and variable rate home equity lines of credit. Substantially all home equity loans and lines of credit are secured by junior lien mortgages on principal residences. The Bank will lend amounts, which, together with all prior liens, typically may be up to 85 percent 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 (“allowance”) consists of (i) the allowance for loan and lease losses, and (ii) 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. The reserve for unfunded lending commitments was $107,000 at March 31, 2018 and $105,000 at December 31, 2017. The allowance 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, 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 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 is maintained at a level considered by management to be adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures (including underwriting standards), changes in the mix and volume of loans originated, the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, shifting industry or portfolio concentrations, and other relevant factors. 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. The unallocated component of the allowance for loan and lease losses covers several considerations that are not specifically measureable through either the specific and general components. For example, we believe that we could face increasing credit risks and uncertainties, not yet reflected in recent historical losses or qualitative factor assessments, associated with unpredictable changes in economic growth or business conditions in our markets or for certain industries in which we have commercial loan borrowers, or unanticipated stresses to the values of real estate held as collateral. Any or all of these additional issues can adversely affect our borrowers’ ability to timely repay their loans. 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 discounted cash flow 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 charging off a residential mortgage loan begins when a loan becomes delinquent for 90 days and is 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 well-secured or otherwise not probable for 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 following 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 following 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. 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 nine 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 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 ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans acquired through business combinations that 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. The classes of the loan portfolio, summarized by the pass rating (net of deferred fees and costs of $515,000 as of March 31, 2018 and $464,000 as of December 31, 2017), and the classified ratings of special mention and substandard within Mid Penn’s internal risk rating system as of March 31, 2018 and December 31, 2017, are as follows: (Dollars in thousands) Special March 31, 2018 Pass Mention Substandard Total Commercial and industrial $ 192,713 $ 793 $ 5,277 $ 198,783 Commercial real estate 548,118 1,532 11,126 560,776 Commercial real estate - construction 73,092 177 487 73,756 Lease financing 194 — — 194 Residential mortgage 122,185 153 1,355 123,693 Home equity 44,794 100 271 45,165 Consumer 4,771 — — 4,771 $ 985,867 $ 2,755 $ 18,516 $ 1,007,138 (Dollars in thousands) Special December 31, 2017 Pass Mention Substandard Total Commercial and industrial $ 182,168 $ 453 $ 5,412 $ 188,033 Commercial real estate 505,397 1,435 8,180 515,012 Commercial real estate - construction 61,667 182 487 62,336 Lease financing 229 — — 229 Residential mortgage 97,814 157 1,062 99,033 Home equity 41,479 105 309 41,893 Consumer 3,868 — — 3,868 $ 892,622 $ 2,332 $ 15,450 $ 910,404 Mid Penn had no loans classified as doubtful as of March 31, 2018 and December 31, 2017. Impaired loans by loan portfolio class as of March 31, 2018 and December 31, 2017 are summarized as follows: March 31, 2018 December 31, 2017 (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 $ — $ 12 $ — $ — $ 13 $ — Commercial real estate 3,588 4,233 — 3,424 4,056 — Commercial real estate - construction — — — — — — Lease financing — — — — — — Residential mortgage 669 790 — 760 877 — Home equity 183 294 — 260 295 — Consumer — — — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ 23 $ 23 $ — $ — $ — $ — Commercial real estate 1,443 1,443 — 555 555 — Commercial real estate - construction — — — — — — Lease financing — — — — — — Residential mortgage 689 689 — 306 306 — Home equity — — — — — — Consumer — — — — — — With an allowance recorded: Commercial and industrial $ 4,374 $ 4,460 $ 265 $ 4,434 $ 4,460 $ 136 Commercial real estate 1,389 1,577 281 1,423 1,589 293 Commercial real estate - construction 487 492 93 487 492 100 Lease financing — — — — — — Residential mortgage — — — — — — Home equity — — — — — — Consumer — — — — — — Total Impaired Loans: Commercial and industrial $ 4,397 $ 4,495 $ 265 $ 4,434 $ 4,473 $ 136 Commercial real estate 6,420 7,253 281 5,402 6,200 293 Commercial real estate - construction 487 492 93 487 492 100 Lease financing — — — — — — Residential mortgage 1,358 1,479 — 1,066 1,183 — Home equity 183 294 — 260 295 — The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2018 and 2017 are summarized as follows: Three Months Ended March 31, 2018 March 31, 2017 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ - $ - $ 2 $ - Commercial real estate 3,506 - 403 279 Commercial real estate - construction - - 617 - Lease financing - - - - Residential mortgage 714 - 864 11 Home equity 222 - 122 2 Consumer - - - - With no related allowance recorded and acquired with credit deterioration: Commercial and industrial 17 - - - Commercial real estate 936 - 831 - Commercial real estate - construction - - - - Lease financing - - - - Residential mortgage 443 - 373 - Home equity - - - - Consumer - - - - With an allowance recorded: Commercial and industrial $ 4,404 $ - $ 35 $ - Commercial real estate 1,406 - 2,676 - Commercial real estate - construction 487 - 241 - Lease financing - - - - Residential mortgage - - 67 - Home equity - - - - Consumer - - - - Total Impaired Loans: Commercial and industrial $ 4,421 $ - $ 37 $ - Commercial real estate 5,848 - 3,910 279 Commercial real estate - construction 487 - 858 - Lease financing - - - - Residential mortgage 1,157 - 1,304 11 Home equity 222 - 122 2 Nonaccrual loans by loan portfolio class as of March 31, 2018 and December 31, 2017 are summarized as follows: (Dollars in thousands) March 31, 2018 December 31, 2017 Commercial and industrial $ 4,397 $ 4,434 Commercial real estate 5,914 4,902 Commercial real estate - construction 487 487 Residential mortgage 1,352 492 Home equity 183 260 $ 12,333 $ 10,575 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. As of March 31, 2018 and December 31, 2017 Mid Penn had no accruing loans past due greater than 90 days. The classes of the loan portfolio summarized by the past due status as of March 31, 2018 and December 31, 2017 are summarized as follows: (Dollars in thousands) 30-59 60-89 Greater Days Past Days Past than 90 Total Past March 31, 2018 Due Due Days Due Current Total Loans Commercial and industrial $ 4,378 $ - $ - $ 4,378 $ 194,382 $ 198,760 Commercial real estate 544 - 960 1,504 557,829 559,333 Commercial real estate - construction - - 487 487 73,269 73,756 Lease financing - - - - 194 194 Residential mortgage 458 12 651 1,121 121,883 123,004 Home equity 201 - 174 375 44,790 45,165 Consumer 6 9 - 15 4,756 4,771 Loans acquired with credit deterioration: Commercial and industrial - - 23 23 - 23 Commercial real estate 506 - 909 1,415 28 1,443 Commercial real estate - construction - - - - - - Lease financing - - - - - - Residential mortgage 183 - 389 572 117 689 Home equity - - - - - - Consumer - - - - - - Total $ 6,276 $ 21 $ 3,593 $ 9,890 $ 997,248 $ 1,007,138 (Dollars in thousands) 30-59 60-89 Greater Days Past Days Past than 90 Total Past December 31, 2017 Due Due Days Due Current Total Loans Commercial and industrial $ 4,439 $ 16 $ - $ 4,455 $ 183,578 $ 188,033 Commercial real estate - - 3,669 3,669 510,788 514,457 Commercial real estate - construction - - 487 487 61,849 62,336 Lease financing - - - - 229 229 Residential mortgage 310 467 177 954 97,773 98,727 Home equity 54 98 250 402 41,491 41,893 Consumer 3 - - 3 3,865 3,868 Loans acquired with credit deterioration: Commercial and industrial - - - - - - Commercial real estate 500 - 55 555 - 555 Commercial real estate - construction - - - - - - Lease financing - - - - - - Residential mortgage - 31 193 224 82 306 Home equity - - - - - - Consumer - - - - - - Total $ 5,306 $ 612 $ 4,831 $ 10,749 $ 899,655 $ 910,404 The following tables summarize the allowance and recorded investments in loans receivable. (Dollars in thousands) As of, and for the three months ended, March 31, 2018 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, January 1, 2018 $ 1,795 $ 4,435 $ 178 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (5 ) 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. Inputs to valuation techniques refer to the assumptions that market participants would use in measuring the fair value of an 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. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement or disclosure. 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 three months ended March 31, 2018 or 2017. The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels. Fair value measurements at March 31, 2018 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2018 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 38,525 $ - $ 38,525 $ - Mortgage-backed U.S. government agencies 44,639 - 44,639 - State and political subdivision obligations 36,315 - 36,315 - Corporate debt securities 2,863 - 2,863 - Total $ 122,342 $ - $ 122,342 $ - Fair value measurements at December 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2017 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 38,730 $ - $ 38,730 $ - Mortgage-backed U.S. government agencies 25,831 - 25,831 - State and political subdivision obligations 27,043 - 27,043 - Corporate debt securities 1,355 - 1,355 Equity securities 506 506 - - Total $ 93,465 $ 506 $ 92,959 $ - 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 March 31, 2018 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2018 (Level 1) (Level 2) (Level 3) Impaired Loans $ 5,917 $ - $ - $ 5,917 Foreclosed Assets Held for Sale - - - - Mortgage Servicing Rights 116 - - 116 Fair value measurements at December 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2017 (Level 1) (Level 2) (Level 3) Impaired Loans $ 6,090 $ - $ - $ 6,090 Foreclosed Assets Held for Sale - - - - Mortgage Servicing Rights 126 - - 126 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 March 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 5,917 Appraisal of collateral (a) Appraisal adjustments (b) 6% - 63% 24% Foreclosed Assets Held for Sale - Appraisal of collateral (a), (c) Appraisal adjustments (b) 0% - 0% 0% Mortgage Servicing Rights 116 Multiple of annual service fee Estimated prepayment speed based on rate and term 70% - 100% 99% (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 6,090 Appraisal of collateral (a) Appraisal adjustments (b) 6% - 51% 28% Foreclosed Assets Held for Sale - Appraisal of collateral (a), (c) Appraisal adjustments (b) 0% - 0% 0% Mortgage Servicing Rights 126 Multiple of annual service fee Estimated prepayment speed based on rate and term 70% - 100% 98% (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. Mid Penn uses the following methodologies and assumptions 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. Held-to-Maturity Securities: The fair values of held-to-maturity securities are based on a market approach using observable inputs such as benchmark yields and securities, reported trades, issuer spreads, current bids and offers, monthly payment information and collateral performance. Loans Held for Sale: The fair values of mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Impaired Loans (included in “Net Loans and Leases” in the following tables): Mid Penn’s rating system assumes any loans classified as substandard and nonaccrual to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allowance allocation or not, are considered collateral dependent. It is Mid Penn’s policy to obtain updated third party valuations on all impaired loans collateralized by real estate within 30 days of the credit being classified as 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 for loan loss 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, either in a positive or negative way, due to the passage of time or some other change in one or more valuation inputs. Collateral values for impaired loans will be reassessed by management at least every 12 months for possible revaluation by an independent third party. Loans: For March 31, 2018, loan fair values are estimated using an exit price approach, which incorporates discounts for credit risk and prepayment risk and considers the value indicated by current market expectations in the estimated fair value of the loan portfolio. Loan fair values as of December 31, 2017 were calculated using the entrance price approach. Under this approach, variable rate loans that reprice frequently and which entail no significant changes in credit risk had a fair value approximating carrying value. The fair value of other loans was 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: Certain assets included in foreclosed assets held for sale are carried at fair value and accordingly is presented as measured on a non-recurring basis. Values are estimated using Level 3 inputs, based on appraisals that consider the sales prices of property in the proximate vicinity. Accrued Interest Receivable and Payable: The carrying amount of accrued interest receivable and payable approximates their fair values. Restricted Investment in Bank Stocks: The carrying amount of required and restricted investment in correspondent bank stock approximates fair value, and considers the limited marketability of such securities. Mortgage Servicing Rights: The fair value of servicing rights is based on the present value of estimated future cash flows on pools of mortgages stratified by rate and maturity date. Deposits: The fair value for demand deposits (e.g., interest and noninterest checking, savings, and money market deposit accounts) is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair value for fixed-rate certificates of deposit was estimated using a discounted cash flow calculation by combining all fixed-rate certificates into a pool with a weighted average yield and a weighted average maturity for the pool and comparing the pool with interest rates currently being offered on a similar maturity. Short-term Borrowings: Because of time to maturity, the estimated fair value of short-term borrowings approximates the book value. Long-term and Subordinated Debt: The estimated fair values of long-term 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 creditworthiness 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 March 31, 2018 and December 31, 2017. (Dollars in thousands) March 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 59,175 $ 59,175 $ 23,514 $ 23,514 Available-for-sale investment securities 122,342 122,342 93,465 93,465 Held-to-maturity investment securities 131,293 128,352 101,356 100,483 Loans held for sale 1,348 1,348 1,040 1,040 Net loans and leases 999,472 1,010,774 902,798 917,081 Restricted investment in bank stocks 2,759 2,759 4,384 4,384 Accrued interest receivable 5,079 5,079 4,564 4,564 Mortgage servicing rights 116 116 126 126 Financial liabilities: Deposits $ 1,212,423 $ 1,212,434 $ 1,023,568 $ 1,026,830 Short-term borrowings - - 34,611 34,611 Long-term debt 12,297 11,986 12,352 11,692 Subordinated debt 17,335 17,264 17,338 17,358 Accrued interest payable 922 922 645 645 Off-balance sheet financial instruments: Commitments to extend credit $ - $ - $ - $ - Financial standby letters of credit - - - - The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of March 31, 2018 and December 31, 2017. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, loans held for sale, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs and mortgage servicing rights, which are Level 3 Inputs, these instruments are Level 2 Inputs. These tables exclude financial instruments for which the carrying amount approximates fair value, not previously disclosed. Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs March 31, 2018 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 131,293 $ 128,352 $ - $ 128,352 $ - Net loans and leases 999,472 1,010,774 - - 1,010,774 Financial instruments - liabilities Deposits $ 1,212,423 $ 1,212,434 $ - $ 1,212,434 $ - Long-term debt 12,297 11,986 - 11,986 - Subordinated debt 17,335 17,264 - 17,264 - Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs December 31, 2017 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 101,356 $ 100,483 $ - $ 100,483 $ - Net loans and leases 902,798 917,081 - - 917,081 Financial instruments - liabilities Deposits $ 1,023,568 $ 1,026,830 $ - $ 1,026,830 $ - Long-term debt 12,352 11,692 - 11,692 - Subordinated debt 17,338 17,358 17,358 |
Guarantees and Commitments
Guarantees and Commitments | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees and Commitments | ( 6 ) Guarantees and Commitments In the normal course of business, Mid Penn makes various commitments and incurs certain contingent liabilities which are not reflected in the accompanying consolidated financial statements. The commitments include various guarantees and commitments to extend credit. 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. Mid Penn evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit and financial guarantees written are conditional commitments to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Mid Penn had $17,803,000 and $20,496,000 standby letters of credit outstanding as of March 31, 2018 and December 31, 2017, respectively. Mid Penn does not anticipate any losses because of these transactions. The amount of the liability as of March 31, 2018 and December 31, 2017 for payment under standby letters of credit issued was not material. |
Subordinated Debt
Subordinated Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | (7 ) Subordinated Debt Subordinated Debt Issued December 2017 On December 19, 2017, Mid Penn entered into agreements with investors to purchase $10,000,000 aggregate principal amount of its Subordinated Notes due 2028 (the “2017 Notes”). The 2017 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The offering closed in December 2017. The 2017 Notes will bear interest at a rate of 5.25% 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 5.0%. Interest will be payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018, for the first five years after issuance and will be payable quarterly in arrears thereafter on January 15, April 15, July 15, and October 15. The 2017 Notes will mature on January 1, 2028 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 21, 2022, and prior to January 1, 2028. Additionally, Mid Penn may redeem the 2017 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 2017 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2017 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 the event of a redemption described in the previous sentence, Mid Penn will redeem the 2017 Notes at 100% of the principal amount of the 2017 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the 2017 Notes may not accelerate the maturity of the 2017 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or Mid Penn Bank, its principal banking subsidiary. Subordinated Debt Issued December 2015 On December 9, 2015, Mid Penn sold $7,500,000 aggregate principal amount of Subordinated Debt (the “2015 Notes”) due 2025. The 2015 Notes are treated as Tier 2 capital for regulatory capital purposes. The 2015 Holders of the 2015 Notes may not accelerate the maturity of the 2015 Notes, except upon Mid Penn’s or Mid Penn Bank’s bankruptcy, insolvency, liquidation, receivership or similar event. ASC Subtopic 835-30, Simplifying the Presentation of Debt Issuance Costs |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Defined Benefit Plans | ( 8 ) Defined Benefit Plans Mid Penn has an unfunded noncontributory defined benefit retirement plan for directors. The plan provides defined benefits based on years of service. Mid Penn also sponsors a defined benefit health care plan that provides post-retirement medical benefits and life insurance to qualifying full-time employees. These health care and life insurance plans are noncontributory. Also, as a result of the acquisition of Scottdale on January 8, 2018, Mid Penn has assumed a noncontributory defined benefit pension plan covering certain former employees of Scottdale. A December 31 measurement date for the plans is used. The components of net periodic benefit costs from these defined benefit plans are as follows: Three Months Ended March 31, (Dollars in thousands) Pension Benefits Other Benefits 2018 2017 2018 2017 Service cost $ 9 $ 9 $ 1 $ 1 Interest cost 9 11 4 5 Amortization (accretion) of prior service cost 4 3 (5 ) (6 ) Net periodic benefit cost $ 22 $ 23 $ - $ - |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ( 9 ) Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, are as follows: (Dollars in thousands) Unrealized Loss on Securities Defined Benefit Plans Accumulated Other Comprehensive Loss Balance - March 31, 2018 $ (3,990 ) $ 84 $ (3,906 ) Balance - December 31, 2017 $ (2,159 ) $ 85 $ (2,074 ) |
Restricted Common Stock
Restricted Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Restricted Common Stock | (10 ) Restricted Common Stock On May 6, 2014, Mid Penn shareholders approved the 2014 Restricted Stock Plan (the “Plan”), which authorizes the issuance of awards that shall not exceed, in the aggregate, 100,000 shares of common stock. Awards under the Plan are limited to employees and directors of the Company and the Bank selected by the Compensation Committee of the Board of Directors, to advance the best interest of Mid Penn and its shareholders. 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 March 31, 2018, a total of 26,485 restricted shares were granted under the Plan, with 6,986 of the granted shares being vested, while the remaining 19,499 granted shares remain unvested. The Plan grants and vestings resulted in $58,000 in compensation expense for the three months ended March 31, 2018, while $19,000 of expense was recorded for the three months ended March 31, 2017. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | (1 1 ) Revenue Recognition Mid Penn recognizes revenues when earned based upon (i) contractual terms as transactions occur, or (ii) as related services are provided and collectability is reasonably assured. The largest source of revenue for Mid Penn is interest income, which is primarily recognized on an accrual basis according to a written contract, such as loan and lease agreements or investment securities contracts. Mid Penn earns noninterest income through a variety of financial and transactional services such as trust and wealth management services, deposit account transaction fees, ATM debit card fees, and mortgage banking fees. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses. On January 1, 2018, Mid Penn adopted FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU establishes principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods and services to customers. ASU 2014-09 applies primarily to transactional-based non-interest income revenue streams and excludes mortgage banking income, earnings from cash surrender value of life insurance, and gains on SBA loans. Mid Penn’s non-interest income revenue streams of income from fiduciary activities, service charges on deposits, ATM debit charge interchange income, merchant service fees and components of other income are in-scope of Topic 606. Within these various non-interest income streams, Mid Penn enters into business contracts with customers to perform a variety of services. These services include but not limited to (i) agreed-upon tasks (e.g. initiating a wire transfer or trust and investment management services), (ii) service of standing ready to provide goods and services (e.g. letter of credit arrangements), and (iii) arranging for another party to transfer goods or services to a customer (e.g. check order fees). Typically, contracts are approved in writing, but can also be approved in accordance with other customary business practices. The majority of the performance obligations at Mid Penn are distinct and are satisfied at a point in time and typically the transaction prices are fixed and are documented in either a fee schedule, such as non-sufficient funds fees or wire fees, or calculated as a percentage of assets under management for trust and wealth management income streams. The transaction price is not recognized in revenue until the service has occurred, or monthly in arrears for assets under management. Mid Penn does not exercise significant judgements in the recognition of income, as typically income is not recognized until the performance obligation has been satisfied. Mid Penn has not recognized any assets from the costs to obtain or fulfill a contract with customers for revenue streams that fall within the guidance of Topic 606. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | (1 2 ) Earnings per Common Share Earnings per share are computed by dividing net income 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 common share. The computations of basic earnings per common share follow: (Dollars in thousands, except per share data) Three Months Ended March 31, 2018 2017 Net income $ 1,004 $ 1,994 Weighted average common shares outstanding 5,974,949 4,233,308 Basic and diluted earnings per common share $ 0.17 $ 0.47 The increase in the weighted average shares outstanding at March 31, 2018 was impacted by the issuance of 1,878,827 shares of Mid Penn common stock on January 8, 2018 in connection with the Scottdale acquisition. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | |
Recent Accounting Pronouncements | (1 3 ) Recent Accounting Pronouncements ASU 2017-07 : The FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The ASU requires that an employer disaggregate the service cost component from the other components of net benefit cost. Service cost must be presented in the same line item(s) as other employee compensation costs. These costs are generally included within income from continuing operations, but in some cases may be eligible for capitalization, if certain criteria are met. All other components of net benefit cost must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. These generally include interest cost, actual return on plan assets, amortization of prior service cost included in accumulated other comprehensive income, and gains or losses from changes in the value of the projected benefit obligation or plan assets. If a separate line item is used to present the other components of net benefit cost, it must be appropriately described. If a separate line item is not used, an entity must disclose the line item(s) in the income statement that includes the other components of net benefit cost. The ASU clarifies that these costs are not eligible for capitalization. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those years. For other entities, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted as of the beginning of an annual period. Mid Penn adopted this ASU in the first quarter of 2018. Mid Penn discloses the service cost component of net benefit cost in Note 8, Defined Benefit Plans ASU 2017-05 : The FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The ASU was issued to clarify the scope of Subtopic 610-20 and to add guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, U.S. GAAP contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. Moving forward, the new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. Specifically, it clarifies the scope of Subtopic 610-20 by defining the term “in substance nonfinancial asset”. If substantially all of the fair value of the assets (recognized and unrecognized) promised to a counterparty in a contract is concentrated in nonfinancial assets, a financial asset in the same arrangement would still be considered part of an in substance nonfinancial asset. Also, nonfinancial assets may include nonfinancial assets contained within a legal entity that is transferred to a counterparty (e.g., through transfer of ownership interest). It clarifies also that derecognition of a business is not within the scope of Subtopic 610-20, but rather, is governed by Topic 810. In addition, the ASU indicates an entity should identify each distinct nonfinancial asset (e.g., real estate and inventory) or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. Finally, the ASU adds guidance on accounting for partial sales of nonfinancial assets. It requires an entity to derecognize a distinct nonfinancial asset or distinct in substance nonfinancial asset in a partial sale transaction when two criteria are met: 1) the entity does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Topic 810, and 2) the entity transfers control of the asset in accordance with Topic 606. The effective date and transition requirements for the ASU are the same as the effective date and transition requirements of Topic 606, and must be applied at the same date that Topic 606 is initially applied. That is, the amendments are effective for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those periods, and for nonpublic entities for annual reporting periods beginning after December 15, 2018, and interim periods within annual reporting periods beginning after December 15, 2019. Consistent with Topic 606, early adoption is permitted, but no earlier than annual reporting periods beginning after December 15, 2016 for all entities. Mid Penn adopted this ASU in the first quarter of 2018. The adoption did not have a material impact on its consolidated financial statements as Mid Penn typically does not engage in partial sale transactions. 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. Mid Penn adopted the amendments in the first quarter of 2018. As a result of the adoption of this standard, there were no changes required to cash flow presentation and no impact on Mid Penn’s operating results. Mid Penn will continue to monitor for transactions that may be impacted by this standard, 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. 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 may 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 change in the allowance for credit losses, if any, 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 2016-02: 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 re-measurement 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 as required by the ASU; however, the extent of the prospective impact on Mid Penn’s consolidated financial statements and the materiality will be dependent upon the extent and type of lease arrangements involving Mid Penn at the time of the adoption of this standard. 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 financial assets and liabilities based on form and measurement category. In addition, for liabilities measured at 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, and was adopted by Mid Penn effective January 1, 2018. The adoption resulted in a one-time cumulative-effect adjustment on January 1, 2018 that decreased retained earnings by $44,000, increased accumulated other comprehensive loss by $35,000, and decreased the deferred tax asset by $9,000. The impact on net income as a result of the adoption of this standard was immaterial for the period ending March 31, 2018. Additionally, the adoption of this ASU resulted in the refinement of our loan fair value calculation to comply with the exit price measurement requirement. The adoption of the the exit price measurement requirement portion of this ASU did not have a material impact on Mid Penn’s fair value disclosures. In February 2018, the FASB issued ASU 2018-03, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, 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. 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. Mid Penn adopted the standard effective January 1, 2018. Through our assessment, we identified certain non-interest income financial statement revenue streams that met the criteria of this Standard and worked through the five step assessment process for each revenue stream within the scope of the Standard. Mid Penn has concluded that the adoption of the Standard using the modified retrospective approach will have no financial statement impact as the current financial statement line items within the scope of this Standard are in compliance with the new guidance. As a result of the adoption of this standard, additional qualitative disclosures related to revenue recognition can be found in Note 11, Revenue Recognition |
Agreement and Plan of Merger
Agreement and Plan of Merger | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Agreement and Plan of Merger | (1 4 ) Agreement and Plan of Merger On January 16, 2018, Mid Penn entered into an Agreement and Plan of Merger (the “Merger Agreement”) with First Priority Financial Corp. (“First Priority”) pursuant to which First Priority will merge with and into Mid Penn (the “Merger”), with Mid Penn being the surviving corporation in the Merger. The acquisition will expand Mid Penn’s footprint into southeastern Pennsylvania, including Chester, Berks, Montgomery, and Bucks counties. On a pro forma basis, the combined company will have over $2 billion in total assets. Under the terms of the Merger Agreement, shareholders of First Priority will receive 0.3481 shares of Mid Penn common stock for each share of First Priority common stock they own. Subject to customary closing conditions including regulatory and shareholder approvals, it is expected that the Merger will be completed in the third quarter of 2018. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Mid Penn recognizes revenues when earned based upon (i) contractual terms as transactions occur, or (ii) as related services are provided and collectability is reasonably assured. The largest source of revenue for Mid Penn is interest income, which is primarily recognized on an accrual basis according to a written contract, such as loan and lease agreements or investment securities contracts. Mid Penn earns noninterest income through a variety of financial and transactional services such as trust and wealth management services, deposit account transaction fees, ATM debit card fees, and mortgage banking fees. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses. On January 1, 2018, Mid Penn adopted FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU establishes principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods and services to customers. ASU 2014-09 applies primarily to transactional-based non-interest income revenue streams and excludes mortgage banking income, earnings from cash surrender value of life insurance, and gains on SBA loans. Mid Penn’s non-interest income revenue streams of income from fiduciary activities, service charges on deposits, ATM debit charge interchange income, merchant service fees and components of other income are in-scope of Topic 606. Within these various non-interest income streams, Mid Penn enters into business contracts with customers to perform a variety of services. These services include but not limited to (i) agreed-upon tasks (e.g. initiating a wire transfer or trust and investment management services), (ii) service of standing ready to provide goods and services (e.g. letter of credit arrangements), and (iii) arranging for another party to transfer goods or services to a customer (e.g. check order fees). Typically, contracts are approved in writing, but can also be approved in accordance with other customary business practices. The majority of the performance obligations at Mid Penn are distinct and are satisfied at a point in time and typically the transaction prices are fixed and are documented in either a fee schedule, such as non-sufficient funds fees or wire fees, or calculated as a percentage of assets under management for trust and wealth management income streams. The transaction price is not recognized in revenue until the service has occurred, or monthly in arrears for assets under management. Mid Penn does not exercise significant judgements in the recognition of income, as typically income is not recognized until the performance obligation has been satisfied. Mid Penn has not recognized any assets from the costs to obtain or fulfill a contract with customers for revenue streams that fall within the guidance of Topic 606. |
Merger (Tables)
Merger (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 67,817 Investment securities 114,039 Restricted stock 97 Loans 70,686 Goodwill 18,610 Core deposit intangible 4,940 Premises and equipment 1,496 Foreclosed assets 11 Deferred income taxes 621 Accrued interest receivable 989 Other assets 266 Total assets acquired 279,572 Liabilities assumed: Deposits 209,981 Accrued interest payable 16 Other liabilities 2,602 Total liabilities assumed 212,599 Consideration paid $ 66,973 Cash paid $ 2,792 Fair value of common stock issued 64,181 |
Summary of the Preliminary Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities and equity assumed. (Dollars in thousands) Total purchase price $ 66,973 Net assets acquired: Cash and cash equivalents 67,817 Investment securities 114,039 Restricted stock 97 Loans 70,686 Core deposit intangible 4,940 Premises and equipment 1,496 Foreclosed assets 11 Deferred income taxes 621 Accrued interest receivable 989 Other assets 266 Deposits (209,981 ) Accrued interest payable (16 ) Other liabilities (2,602 ) 48,363 Goodwill $ 18,610 |
Fair Value Adjustments Made to the Amortized Cost Basis, Presented at the Fair Value of Loans Acquired | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at January 8, 2018 $ 71,809 Market rate adjustment 601 Credit fair value adjustment on pools of homogeneous loans (1,078 ) Credit fair value adjustment on impaired loans (646 ) Fair value of purchased loans at January 8, 2018 $ 70,686 |
Fair Value of the Loans Acquired | The information about the acquired Scottdale impaired loan portfolio as of January 8, 2018 is as follows: (Dollars in thousands) Contractually required principal and interest at acquisition $ 2,587 Contractual cash flows not expected to be collected (nonaccretable discount) (1,010 ) Expected cash flows at acquisition 1,577 Interest component of expected cash flows (accretable discount) (305 ) Fair value of acquired loans $ 1,272 |
Pro Forma Information | The following table presents pro forma information as if the merger between Mid Penn and Scottdale had been completed on January 1, 2017. (Dollars in thousands, except per share data) Three Months Ended March 31, 2018 2017 Net interest income after loan loss provision $ 10,753 $ 10,498 Noninterest income 1,647 1,585 Noninterest expense 9,910 10,346 Net income 2,054 1,268 Net income per common share 0.34 0.21 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Securities Financing Transactions Disclosures [Abstract] | |
Unrealized Gain (Loss) on Investments | The amortized cost, fair value, and unrealized gains and losses on investment securities at March 31, 2018 and December 31, 2017 are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018 Available-for-sale debt securities: U.S. Treasury and U.S. government agencies $ 40,604 $ 3 $ 2,082 $ 38,525 Mortgage-backed U.S. government agencies 45,710 6 1,077 44,639 State and political subdivision obligations 38,222 34 1,941 36,315 Corporate debt securities 2,848 15 — 2,863 Total available-for-sale debt securities 127,384 58 5,100 122,342 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 10,984 — 174 10,810 Mortgage-backed U.S. government agencies 69,901 18 1,345 68,575 State and political subdivision obligations 50,408 36 1,477 48,967 Corporate debt securities — — — — Total held-to-maturity debt securities 131,293 54 2,996 128,352 Total $ 258,677 $ 112 $ 8,096 $ 250,694 (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017 Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 40,125 $ — $ 1,395 $ 38,730 Mortgage-backed U.S. government agencies 26,398 2 569 25,831 State and political subdivision obligations 27,775 7 739 27,043 Corporate debt securities 1,350 5 — 1,355 Total available-for-sale debt securities 95,648 14 2,703 92,959 Available-for-sale equity securities: Equity securities 550 — 44 506 Total available-for-sale equity securities 550 — 44 506 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 10,984 — 90 10,894 Mortgage-backed U.S. government agencies 53,472 — 523 52,949 State and political subdivision obligations 36,900 41 301 36,640 Corporate debt securities — — — — Total held-to-maturity debt securities 101,356 41 914 100,483 Total $ 197,554 $ 55 $ 3,661 $ 193,948 |
Schedule of Gross Realized Gains (Losses) on Sales of Available-For-Sale Securities | Gross realized gains and losses on sales of available-for-sale debt securities for the three months ended March 31, 2018 and 2017 are shown in the table below. (Dollars in thousands) Three Months Ended March 31, 2018 2017 Realized gains $ 100 $ 123 Realized losses (2 ) (115 ) Net gains $ 98 $ 8 |
Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position | The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized March 31, 2018 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale debt securities: U.S. Treasury and U.S. government agencies 3 $ 4,925 $ 267 18 $ 33,110 $ 1,815 21 $ 38,035 $ 2,082 Mortgage-backed U.S. government agencies 13 20,127 258 15 19,597 819 28 39,724 1,077 State and political subdivision obligations 14 8,049 338 41 18,521 1,603 55 26,570 1,941 Total temporarily impaired available-for-sale debt securities 30 33,101 863 74 71,228 4,237 104 104,329 5,100 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 3 8,822 161 1 1,988 13 4 10,810 174 Mortgage-backed U.S. government agencies 37 55,999 1,299 2 2,065 46 39 58,064 1,345 State and political subdivision obligations 103 40,903 1,477 0 - - 103 40,903 1,477 Total temporarily impaired held-to-maturity debt securities 143 105,724 2,937 3 4,053 59 146 109,777 2,996 Total 173 $ 138,825 $ 3,800 77 $ 75,281 $ 4,296 250 $ 214,106 $ 8,096 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized December 31, 2017 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies 3 $ 5,008 $ 184 18 $ 33,722 $ 1,211 21 $ 38,730 $ 1,395 Mortgage-backed U.S. government agencies 4 5,267 75 15 20,497 494 19 25,764 569 State and political subdivision obligations 11 6,144 102 40 19,091 637 51 25,235 739 Corporate debt securities 0 — — 0 — — 0 — — Equity securities 0 — — 1 506 44 1 506 44 Total temporarily impaired available-for-sale securities 18 $ 16,419 $ 361 74 $ 73,816 $ 2,386 92 $ 90,235 $ 2,747 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 0 — — 4 10,894 90 4 10,894 90 Mortgage-backed U.S. government agencies 0 — — 35 52,949 523 35 52,949 523 State and political subdivision obligations 0 — — 77 29,976 301 77 29,976 301 Corporate debt securities 0 — — 0 — — 0 — — Equity securities 0 — — 0 — — 0 — — Total temporarily impaired held to maturity securities 0 — — 116 93,819 914 116 93,819 914 Total 18 $ 16,419 $ 361 190 $ 167,635 $ 3,300 208 $ 184,054 $ 3,661 |
Investments Classified by Contractual Maturity Date | The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of March 31, 2018. (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair March 31, 2018 Cost Value Cost Value Due in 1 year or less $ 10,428 $ 10,453 $ 2,001 $ 1,988 Due after 1 year but within 5 years 12,758 12,414 10,025 9,859 Due after 5 years but within 10 years 48,223 45,478 46,560 45,162 Due after 10 years 10,265 9,358 2,806 2,768 81,674 77,703 61,392 59,777 Mortgage-backed securities 45,710 44,639 69,901 68,575 $ 127,384 $ 122,342 $ 131,293 $ 128,352 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 pass rating (net of deferred fees and costs of $515,000 as of March 31, 2018 and $464,000 as of December 31, 2017), and the classified ratings of special mention and substandard within Mid Penn’s internal risk rating system as of March 31, 2018 and December 31, 2017, are as follows: (Dollars in thousands) Special March 31, 2018 Pass Mention Substandard Total Commercial and industrial $ 192,713 $ 793 $ 5,277 $ 198,783 Commercial real estate 548,118 1,532 11,126 560,776 Commercial real estate - construction 73,092 177 487 73,756 Lease financing 194 — — 194 Residential mortgage 122,185 153 1,355 123,693 Home equity 44,794 100 271 45,165 Consumer 4,771 — — 4,771 $ 985,867 $ 2,755 $ 18,516 $ 1,007,138 (Dollars in thousands) Special December 31, 2017 Pass Mention Substandard Total Commercial and industrial $ 182,168 $ 453 $ 5,412 $ 188,033 Commercial real estate 505,397 1,435 8,180 515,012 Commercial real estate - construction 61,667 182 487 62,336 Lease financing 229 — — 229 Residential mortgage 97,814 157 1,062 99,033 Home equity 41,479 105 309 41,893 Consumer 3,868 — — 3,868 $ 892,622 $ 2,332 $ 15,450 $ 910,404 |
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class as of March 31, 2018 and December 31, 2017 are summarized as follows: March 31, 2018 December 31, 2017 (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 $ — $ 12 $ — $ — $ 13 $ — Commercial real estate 3,588 4,233 — 3,424 4,056 — Commercial real estate - construction — — — — — — Lease financing — — — — — — Residential mortgage 669 790 — 760 877 — Home equity 183 294 — 260 295 — Consumer — — — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ 23 $ 23 $ — $ — $ — $ — Commercial real estate 1,443 1,443 — 555 555 — Commercial real estate - construction — — — — — — Lease financing — — — — — — Residential mortgage 689 689 — 306 306 — Home equity — — — — — — Consumer — — — — — — With an allowance recorded: Commercial and industrial $ 4,374 $ 4,460 $ 265 $ 4,434 $ 4,460 $ 136 Commercial real estate 1,389 1,577 281 1,423 1,589 293 Commercial real estate - construction 487 492 93 487 492 100 Lease financing — — — — — — Residential mortgage — — — — — — Home equity — — — — — — Consumer — — — — — — Total Impaired Loans: Commercial and industrial $ 4,397 $ 4,495 $ 265 $ 4,434 $ 4,473 $ 136 Commercial real estate 6,420 7,253 281 5,402 6,200 293 Commercial real estate - construction 487 492 93 487 492 100 Lease financing — — — — — — Residential mortgage 1,358 1,479 — 1,066 1,183 — Home equity 183 294 — 260 295 — |
Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class | The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2018 and 2017 are summarized as follows: Three Months Ended March 31, 2018 March 31, 2017 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ - $ - $ 2 $ - Commercial real estate 3,506 - 403 279 Commercial real estate - construction - - 617 - Lease financing - - - - Residential mortgage 714 - 864 11 Home equity 222 - 122 2 Consumer - - - - With no related allowance recorded and acquired with credit deterioration: Commercial and industrial 17 - - - Commercial real estate 936 - 831 - Commercial real estate - construction - - - - Lease financing - - - - Residential mortgage 443 - 373 - Home equity - - - - Consumer - - - - With an allowance recorded: Commercial and industrial $ 4,404 $ - $ 35 $ - Commercial real estate 1,406 - 2,676 - Commercial real estate - construction 487 - 241 - Lease financing - - - - Residential mortgage - - 67 - Home equity - - - - Consumer - - - - Total Impaired Loans: Commercial and industrial $ 4,421 $ - $ 37 $ - Commercial real estate 5,848 - 3,910 279 Commercial real estate - construction 487 - 858 - Lease financing - - - - Residential mortgage 1,157 - 1,304 11 Home equity 222 - 122 2 |
Non-accrual Loans by Classes of the Loan Portfolio | Nonaccrual loans by loan portfolio class as of March 31, 2018 and December 31, 2017 are summarized as follows: (Dollars in thousands) March 31, 2018 December 31, 2017 Commercial and industrial $ 4,397 $ 4,434 Commercial real estate 5,914 4,902 Commercial real estate - construction 487 487 Residential mortgage 1,352 492 Home equity 183 260 $ 12,333 $ 10,575 |
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of March 31, 2018 and December 31, 2017 are summarized as follows: (Dollars in thousands) 30-59 60-89 Greater Days Past Days Past than 90 Total Past March 31, 2018 Due Due Days Due Current Total Loans Commercial and industrial $ 4,378 $ - $ - $ 4,378 $ 194,382 $ 198,760 Commercial real estate 544 - 960 1,504 557,829 559,333 Commercial real estate - construction - - 487 487 73,269 73,756 Lease financing - - - - 194 194 Residential mortgage 458 12 651 1,121 121,883 123,004 Home equity 201 - 174 375 44,790 45,165 Consumer 6 9 - 15 4,756 4,771 Loans acquired with credit deterioration: Commercial and industrial - - 23 23 - 23 Commercial real estate 506 - 909 1,415 28 1,443 Commercial real estate - construction - - - - - - Lease financing - - - - - - Residential mortgage 183 - 389 572 117 689 Home equity - - - - - - Consumer - - - - - - Total $ 6,276 $ 21 $ 3,593 $ 9,890 $ 997,248 $ 1,007,138 (Dollars in thousands) 30-59 60-89 Greater Days Past Days Past than 90 Total Past December 31, 2017 Due Due Days Due Current Total Loans Commercial and industrial $ 4,439 $ 16 $ - $ 4,455 $ 183,578 $ 188,033 Commercial real estate - - 3,669 3,669 510,788 514,457 Commercial real estate - construction - - 487 487 61,849 62,336 Lease financing - - - - 229 229 Residential mortgage 310 467 177 954 97,773 98,727 Home equity 54 98 250 402 41,491 41,893 Consumer 3 - - 3 3,865 3,868 Loans acquired with credit deterioration: Commercial and industrial - - - - - - Commercial real estate 500 - 55 555 - 555 Commercial real estate - construction - - - - - - Lease financing - - - - - - Residential mortgage - 31 193 224 82 306 Home equity - - - - - - Consumer - - - - - - Total $ 5,306 $ 612 $ 4,831 $ 10,749 $ 899,655 $ 910,404 |
Allowance and Recorded Investment in Financing Receivables | The following tables summarize the allowance and recorded investments in loans receivable. (Dollars in thousands) As of, and for the three months ended, March 31, 2018 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, January 1, 2018 $ 1,795 $ 4,435 $ 178 $ - $ 428 $ 423 $ 3 $ 344 $ 7,606 Charge-offs - - - - (2 ) (76 ) (6 ) - (84 ) Recoveries - 17 - - - - 2 - 19 Provisions 182 201 5 - 26 44 5 (338 ) 125 Ending balance, March 31, 2018 1,977 4,653 183 - 452 391 4 6 7,666 Ending balance: individually evaluated for impairment 265 281 93 - - - - - 639 Ending balance: collectively evaluated for impairment $ 1,712 $ 4,372 $ 90 $ - $ 452 $ 391 $ 4 $ 6 $ 7,027 Loans receivables: Ending balance $ 198,783 $ 560,776 $ 73,756 $ 194 $ 123,693 $ 45,165 $ 4,771 $ - $ 1,007,138 Ending balance: individually evaluated for impairment 4,374 4,977 487 - 669 183 - - 10,690 Ending balance: acquired with credit deterioration 23 1,443 - - 689 - - - 2,155 Ending balance: collectively evaluated for impairment $ 194,386 $ 554,356 $ 73,269 $ 194 $ 122,335 $ 44,982 $ 4,771 $ - $ 994,293 (Dollars in thousands) December 31, 2017 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: Ending balance $ 1,795 $ 4,435 $ 178 $ - $ 428 $ 423 $ 3 $ 344 $ 7,606 Ending balance: individually evaluated for impairment 136 293 100 - - - - - 529 Ending balance: collectively evaluated for impairment $ 1,659 $ 4,142 $ 78 $ - $ 428 $ 423 $ 3 $ 344 $ 7,077 Loans receivable: Ending balance $ 188,033 $ 515,012 $ 62,336 $ 229 $ 99,033 $ 41,893 $ 3,868 $ - $ 910,404 Ending balance: individually evaluated for impairment 4,434 4,847 487 - 760 260 - - 10,788 Ending balance: acquired with credit deterioration - 555 - - 306 - - - 861 Ending balance: collectively evaluated for impairment $ 183,599 $ 509,610 $ 61,849 $ 229 $ 97,967 $ 41,633 $ 3,868 $ - $ 898,755 (Dollars in thousands) As of, and for the three months ended, March 31, 2017 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, January 1, 2017 $ 1,580 $ 4,323 $ 144 $ 1 $ 541 $ 379 $ 3 $ 212 $ 7,183 Charge-offs (12 ) - - - (18 ) - (6 ) - (36 ) Recoveries 4 340 - - 1 - 3 - 348 Provisions 58 52 (43 ) - 8 (15 ) 3 62 125 Ending balance, March 31, 2017 1,630 4,715 101 1 532 364 3 274 7,620 Ending balance: individually evaluated for impairment 35 957 32 - 67 - - - 1,091 Ending balance: collectively evaluated for impairment $ 1,595 $ 3,758 $ 69 $ 1 $ 465 $ 364 $ 3 $ 274 $ 6,529 Loans receivables: Ending balance $ 176,319 $ 464,077 $ 52,875 $ 358 $ 99,288 $ 38,538 $ 2,765 $ - $ 834,220 Ending balance: individually evaluated for impairment 72 3,220 855 - 946 103 - - 5,196 Ending balance: acquired with credit deterioration - 788 - - 332 - - - 1,120 Ending balance: collectively evaluated for impairment $ 176,247 $ 460,069 $ 52,020 $ 358 $ 98,010 $ 38,435 $ 2,765 $ - $ 827,904 |
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at March 31, 2018 and December 31, 2017 are as follows: (Dollars in thousands) Pre-Modification Post-Modification March 31, 2018 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 4,110 $ 4,460 $ 4,374 Commercial real estate 5,735 5,581 4,535 Residential mortgage 677 675 534 Home equity 14 14 3 $ 10,536 $ 10,730 $ 9,446 (Dollars in thousands) Pre-Modification Post-Modification December 31, 2017 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 4,110 $ 4,460 $ 4,434 Commercial real estate 5,735 5,581 4,593 Residential mortgage 691 689 544 $ 10,536 $ 10,730 $ 9,571 |
Schedule of Accretion of Purchased Impaired Loan | The following tables provide activity for the accretable yield of acquired impaired loans from both the Phoenix and Scottdale acquisitions for the three months ended March 31, 2018. (Dollars in thousands) Accretable yield, January 1, 2018 $ 67 Acquisition of impaired loans 305 Accretable yield amortized to interest income (36 ) Reclassification from nonaccretable difference (a) - Accretable yield, March 31, 2018 $ 336 (a) Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2018 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 38,525 $ - $ 38,525 $ - Mortgage-backed U.S. government agencies 44,639 - 44,639 - State and political subdivision obligations 36,315 - 36,315 - Corporate debt securities 2,863 - 2,863 - Total $ 122,342 $ - $ 122,342 $ - Fair value measurements at December 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2017 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 38,730 $ - $ 38,730 $ - Mortgage-backed U.S. government agencies 25,831 - 25,831 - State and political subdivision obligations 27,043 - 27,043 - Corporate debt securities 1,355 - 1,355 Equity securities 506 506 - - Total $ 93,465 $ 506 $ 92,959 $ - |
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 March 31, 2018 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2018 (Level 1) (Level 2) (Level 3) Impaired Loans $ 5,917 $ - $ - $ 5,917 Foreclosed Assets Held for Sale - - - - Mortgage Servicing Rights 116 - - 116 Fair value measurements at December 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2017 (Level 1) (Level 2) (Level 3) Impaired Loans $ 6,090 $ - $ - $ 6,090 Foreclosed Assets Held for Sale - - - - Mortgage Servicing Rights 126 - - 126 |
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 March 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 5,917 Appraisal of collateral (a) Appraisal adjustments (b) 6% - 63% 24% Foreclosed Assets Held for Sale - Appraisal of collateral (a), (c) Appraisal adjustments (b) 0% - 0% 0% Mortgage Servicing Rights 116 Multiple of annual service fee Estimated prepayment speed based on rate and term 70% - 100% 99% (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 6,090 Appraisal of collateral (a) Appraisal adjustments (b) 6% - 51% 28% Foreclosed Assets Held for Sale - Appraisal of collateral (a), (c) Appraisal adjustments (b) 0% - 0% 0% Mortgage Servicing Rights 126 Multiple of annual service fee Estimated prepayment speed based on rate and term 70% - 100% 98% (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 March 31, 2018 and December 31, 2017. (Dollars in thousands) March 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 59,175 $ 59,175 $ 23,514 $ 23,514 Available-for-sale investment securities 122,342 122,342 93,465 93,465 Held-to-maturity investment securities 131,293 128,352 101,356 100,483 Loans held for sale 1,348 1,348 1,040 1,040 Net loans and leases 999,472 1,010,774 902,798 917,081 Restricted investment in bank stocks 2,759 2,759 4,384 4,384 Accrued interest receivable 5,079 5,079 4,564 4,564 Mortgage servicing rights 116 116 126 126 Financial liabilities: Deposits $ 1,212,423 $ 1,212,434 $ 1,023,568 $ 1,026,830 Short-term borrowings - - 34,611 34,611 Long-term debt 12,297 11,986 12,352 11,692 Subordinated debt 17,335 17,264 17,338 17,358 Accrued interest payable 922 922 645 645 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 tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of March 31, 2018 and December 31, 2017. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, loans held for sale, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs and mortgage servicing rights, which are Level 3 Inputs, these instruments are Level 2 Inputs. These tables exclude financial instruments for which the carrying amount approximates fair value, not previously disclosed. Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs March 31, 2018 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 131,293 $ 128,352 $ - $ 128,352 $ - Net loans and leases 999,472 1,010,774 - - 1,010,774 Financial instruments - liabilities Deposits $ 1,212,423 $ 1,212,434 $ - $ 1,212,434 $ - Long-term debt 12,297 11,986 - 11,986 - Subordinated debt 17,335 17,264 - 17,264 - Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs December 31, 2017 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 101,356 $ 100,483 $ - $ 100,483 $ - Net loans and leases 902,798 917,081 - - 917,081 Financial instruments - liabilities Deposits $ 1,023,568 $ 1,026,830 $ - $ 1,026,830 $ - Long-term debt 12,352 11,692 - 11,692 - Subordinated debt 17,338 17,358 17,358 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit costs from these defined benefit plans are as follows: Three Months Ended March 31, (Dollars in thousands) Pension Benefits Other Benefits 2018 2017 2018 2017 Service cost $ 9 $ 9 $ 1 $ 1 Interest cost 9 11 4 5 Amortization (accretion) of prior service cost 4 3 (5 ) (6 ) Net periodic benefit cost $ 22 $ 23 $ - $ - |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Taxes | The components of accumulated other comprehensive loss, net of taxes, are as follows: (Dollars in thousands) Unrealized Loss on Securities Defined Benefit Plans Accumulated Other Comprehensive Loss Balance - March 31, 2018 $ (3,990 ) $ 84 $ (3,906 ) Balance - December 31, 2017 $ (2,159 ) $ 85 $ (2,074 ) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic Earnings (Loss) Per Share | The computations of basic earnings per common share follow: (Dollars in thousands, except per share data) Three Months Ended March 31, 2018 2017 Net income $ 1,004 $ 1,994 Weighted average common shares outstanding 5,974,949 4,233,308 Basic and diluted earnings per common share $ 0.17 $ 0.47 |
Merger (Narrative) (Details)
Merger (Narrative) (Details) - USD ($) | Jan. 08, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 07, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 22,528,000 | $ 3,918,000 | |||
Scottdale Bank and Trust Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition | Jan. 8, 2018 | ||||
Per share price | $ 34.16 | $ 1,166 | |||
Ratio of conversion of acquiree's shares to entity's shares | 38.88% | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,878,827 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 64,181,000 | ||||
Payments to Acquire Businesses, Gross | 2,792,000 | ||||
Business Combination, Consideration Transferred | 66,973,000 | ||||
Goodwill | 18,610,000 | ||||
Finite-lived Intangible Assets Acquired | $ 4,940,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 898,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 808,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 719,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 629,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 539,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 1,347,000 | ||||
Fair value of purchased loans | $ 70,686,000 | ||||
Pro Forma Earnings | 2,054,000 | $ 1,268,000 | |||
Scottdale Bank and Trust Company [Member] | Excluded Acquisition-related Costs [Member] | |||||
Business Acquisition [Line Items] | |||||
Pro Forma Earnings | $ 1,273,000 | ||||
Scottdale Bank and Trust Company [Member] | Acquisition-related Costs [Member] | |||||
Business Acquisition [Line Items] | |||||
Pro Forma Earnings | $ 1,273,000 |
Merger (Allocation of the Purch
Merger (Allocation of the Purchase Price) (Details) - USD ($) | Jan. 08, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets acquired: | |||
Goodwill | $ 22,528,000 | $ 3,918,000 | |
Scottdale Bank and Trust Company [Member] | |||
Assets acquired: | |||
Cash and cash equivalents | $ 67,817,000 | ||
Investment securities | 114,039,000 | ||
Restricted stock | 97,000 | ||
Loans | 70,686,000 | ||
Goodwill | 18,610,000 | ||
Core deposit intangible | 4,940,000 | ||
Premises and equipment | 1,496,000 | ||
Foreclosed assets | 11,000 | ||
Deferred income taxes | 621,000 | ||
Accrued interest receivable | 989,000 | ||
Other assets | 266,000 | ||
Total assets acquired | 279,572,000 | ||
Liabilities assumed: | |||
Deposits | 209,981,000 | ||
Accrued interest payable | 16,000 | ||
Other liabilities | 2,602,000 | ||
Total liabilities assumed | 212,599,000 | ||
Consideration paid | 66,973,000 | ||
Cash paid | 2,792,000 | ||
Fair value of common stock issued | $ 64,181,000 |
Merger (Preliminary Estimated F
Merger (Preliminary Estimated Fair Value of Assets Acquired) (Details) - USD ($) | Jan. 08, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Net assets acquired: | |||
Goodwill | $ 22,528,000 | $ 3,918,000 | |
Scottdale Bank and Trust Company [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 66,973,000 | ||
Net assets acquired: | |||
Cash and cash equivalents | 67,817,000 | ||
Investment securities | 114,039,000 | ||
Restricted stock | 97,000 | ||
Loans | 70,686,000 | ||
Core deposit intangible | 4,940,000 | ||
Premises and equipment | 1,496,000 | ||
Foreclosed assets | 11,000 | ||
Deferred income taxes | 621,000 | ||
Accrued interest receivable | 989,000 | ||
Other assets | 266,000 | ||
Deposits | (209,981,000) | ||
Accrued interest payable | (16,000) | ||
Other liabilities | (2,602,000) | ||
Total net assets acquired | 48,363,000 | ||
Goodwill | $ 18,610,000 |
Merger (Fair Value Adjustments)
Merger (Fair Value Adjustments) (Details) - Scottdale Bank and Trust Company [Member] | Jan. 08, 2018USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at January 8, 2018 | $ 71,809,000 |
Market rate adjustment | 601,000 |
Credit fair value adjustment on pools of homogeneous loans | (1,078,000) |
Credit fair value adjustment on impaired loans | (646,000) |
Fair value of purchased loans at January 8, 2018 | $ 70,686,000 |
Merger (Fair Value of Loans Acq
Merger (Fair Value of Loans Acquired) (Details) - Scottdale Bank and Trust Company [Member] $ in Thousands | Jan. 08, 2018USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 2,587 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (1,010) |
Expected cash flows at acquisition | 1,577 |
Interest component of expected cash flows (accretable discount) | (305) |
Fair value of acquired loans | $ 1,272 |
Merger (Pro Forma Information)
Merger (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net interest income after loan loss provision | $ 10,753 | $ 9,050 |
Noninterest income | 1,647 | 1,436 |
Noninterest expense | 11,183 | 7,802 |
Scottdale Bank and Trust Company [Member] | ||
Business Acquisition [Line Items] | ||
Net interest income after loan loss provision | 10,753 | 10,498 |
Noninterest income | 1,647 | 1,585 |
Noninterest expense | 9,910 | 10,346 |
Net income | $ 2,054 | $ 1,268 |
Net income per common share | $ 0.34 | $ 0.21 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Gain (Loss) on Investments) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | $ 127,384,000 | $ 95,648,000 |
Available-for-sale debt securities, Unrealized Gains | 58,000 | 14,000 |
Available-for-sale debt securities, Unrealized Losses | 5,100,000 | 2,703,000 |
Available for sale debt securities, Fair Value | 122,342,000 | 92,959,000 |
Held-to-maturity debt securities, Amortized Cost | 131,293,000 | 101,356,000 |
Held-to-maturity debt securities, Unrealized Gains | 54,000 | 41,000 |
Held-to-maturity debt securities, Unrealized Losses | 2,996,000 | 914,000 |
Held-to-maturity debt securities, Fair Value | 128,352,000 | 100,483,000 |
Available-for-sale securities and Held-to-maturity debt securities, Amortized Cost | 258,677,000 | 197,554,000 |
Available-for-sale securities and Held-to-maturity debt securities, Unrealized Gains | 112,000 | 55,000 |
Available-for-sale securities and Held-to-maturity debt securities, Unrealized Losses | 8,096,000 | 3,661,000 |
Available-for-sale securities and Held-to-maturity debt securities, Fair Value | 250,694,000 | 193,948,000 |
Available-for-sale equity securities, Amortized Cost | 550,000 | |
Available-for-sale equity securities, Unrealized Losses | 44,000 | |
Available for sale equity securities, Fair Value | 496,000 | 506,000 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 40,604,000 | 40,125,000 |
Available-for-sale debt securities, Unrealized Gains | 3,000 | |
Available-for-sale debt securities, Unrealized Losses | 2,082,000 | 1,395,000 |
Available for sale debt securities, Fair Value | 38,525,000 | 38,730,000 |
Held-to-maturity debt securities, Amortized Cost | 10,984,000 | 10,984,000 |
Held-to-maturity debt securities, Unrealized Losses | 174,000 | 90,000 |
Held-to-maturity debt securities, Fair Value | 10,810,000 | 10,894,000 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 45,710,000 | 26,398,000 |
Available-for-sale debt securities, Unrealized Gains | 6,000 | 2,000 |
Available-for-sale debt securities, Unrealized Losses | 1,077,000 | 569,000 |
Available for sale debt securities, Fair Value | 44,639,000 | 25,831,000 |
Held-to-maturity debt securities, Amortized Cost | 69,901,000 | 53,472,000 |
Held-to-maturity debt securities, Unrealized Gains | 18,000 | |
Held-to-maturity debt securities, Unrealized Losses | 1,345,000 | 523,000 |
Held-to-maturity debt securities, Fair Value | 68,575,000 | 52,949,000 |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 38,222,000 | 27,775,000 |
Available-for-sale debt securities, Unrealized Gains | 34,000 | 7,000 |
Available-for-sale debt securities, Unrealized Losses | 1,941,000 | 739,000 |
Available for sale debt securities, Fair Value | 36,315,000 | 27,043,000 |
Held-to-maturity debt securities, Amortized Cost | 50,408,000 | 36,900,000 |
Held-to-maturity debt securities, Unrealized Gains | 36,000 | 41,000 |
Held-to-maturity debt securities, Unrealized Losses | 1,477,000 | 301,000 |
Held-to-maturity debt securities, Fair Value | 48,967,000 | 36,640,000 |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 2,848,000 | 1,350,000 |
Available-for-sale debt securities, Unrealized Gains | 15,000 | 5,000 |
Available for sale debt securities, Fair Value | $ 2,863,000 | 1,355,000 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale equity securities, Amortized Cost | 550,000 | |
Available-for-sale equity securities, Unrealized Losses | 44,000 | |
Available for sale equity securities, Fair Value | $ 506,000 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | ||
Equity securities, fair value | $ 496,000 | $ 506,000 |
Equity securities sold | 0 | |
Available-for-sale Securities Pledged as Collateral | $ 146,897,000 | 141,465,000 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Equity securities, fair value | 506,000 | |
Accumulated Other Comprehensive Loss [Member] | Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Net unrealized gains recongized | $ 44,000,000 |
Investment Securities (Schedule
Investment Securities (Schedule of Gross Realized Gains (Losses) on Sales of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Securities Financing Transactions Disclosures [Abstract] | ||
Realized gains | $ 100 | $ 123 |
Realized losses | (2) | (115) |
Net gains | $ 98 | $ 8 |
Investment Securities (Schedu41
Investment Securities (Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 30 | 18 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 33,101 | $ 16,419 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 863 | $ 361 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 74 | 74 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 71,228 | $ 73,816 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 4,237 | $ 2,386 |
Available-for-sale securities, Total: Number of Securities | security | 104 | 92 |
Available-for-sale securities, Total: Fair Value | $ 104,329 | $ 90,235 |
Available-for-sale securities, Total: Unrealized Losses | $ 5,100 | $ 2,747 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 143 | 0 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 105,724 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 2,937 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 3 | 116 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 4,053 | $ 93,819 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 59 | $ 914 |
Held-to-maturity securities, Total: Number of Securities | security | 146 | 116 |
Held-to-maturity securities, Total: Fair Value | $ 109,777 | $ 93,819 |
Held-to-maturity securities, Total: Unrealized Losses | $ 2,996 | $ 914 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 173 | 18 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Fair Value | $ 138,825 | $ 16,419 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 3,800 | $ 361 |
Available-for-sale securities and Held-to-maturity securities,, 12 Months or More: Number of Securities | security | 77 | 190 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Fair Value | $ 75,281 | $ 167,635 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 4,296 | $ 3,300 |
Available-for-sale securities and Held-to-maturity securities, Total: Number of Securities | security | 250 | 208 |
Available-for-sale securities and Held-to-maturity securities, Total: Fair Value | $ 214,106 | $ 184,054 |
Available-for-sale securities and Held-to-maturity securities, Total: Unrealized Losses | $ 8,096 | $ 3,661 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 3 | 3 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 4,925 | $ 5,008 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 267 | $ 184 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 18 | 18 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 33,110 | $ 33,722 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 1,815 | $ 1,211 |
Available-for-sale securities, Total: Number of Securities | security | 21 | 21 |
Available-for-sale securities, Total: Fair Value | $ 38,035 | $ 38,730 |
Available-for-sale securities, Total: Unrealized Losses | $ 2,082 | $ 1,395 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 3 | 0 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 8,822 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 161 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 1 | 4 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 1,988 | $ 10,894 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 13 | $ 90 |
Held-to-maturity securities, Total: Number of Securities | security | 4 | 4 |
Held-to-maturity securities, Total: Fair Value | $ 10,810 | $ 10,894 |
Held-to-maturity securities, Total: Unrealized Losses | $ 174 | $ 90 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 13 | 4 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 20,127 | $ 5,267 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 258 | $ 75 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 15 | 15 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 19,597 | $ 20,497 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 819 | $ 494 |
Available-for-sale securities, Total: Number of Securities | security | 28 | 19 |
Available-for-sale securities, Total: Fair Value | $ 39,724 | $ 25,764 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,077 | $ 569 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 37 | 0 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 55,999 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 1,299 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 2 | 35 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 2,065 | $ 52,949 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 46 | $ 523 |
Held-to-maturity securities, Total: Number of Securities | security | 39 | 35 |
Held-to-maturity securities, Total: Fair Value | $ 58,064 | $ 52,949 |
Held-to-maturity securities, Total: Unrealized Losses | $ 1,345 | $ 523 |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 14 | 11 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 8,049 | $ 6,144 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 338 | $ 102 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 41 | 40 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 18,521 | $ 19,091 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 1,603 | $ 637 |
Available-for-sale securities, Total: Number of Securities | security | 55 | 51 |
Available-for-sale securities, Total: Fair Value | $ 26,570 | $ 25,235 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,941 | $ 739 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 103 | 0 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 40,903 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 1,477 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | 77 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 29,976 | |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 301 | |
Held-to-maturity securities, Total: Number of Securities | security | 103 | 77 |
Held-to-maturity securities, Total: Fair Value | $ 40,903 | $ 29,976 |
Held-to-maturity securities, Total: Unrealized Losses | $ 1,477 | $ 301 |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | |
Available-for-sale securities, Total: Number of Securities | security | 0 | |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 0 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | |
Held-to-maturity securities, Total: Number of Securities | security | 0 | |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 1 | |
Available-for-sale securities, 12 Months or More: Fair Value | $ 506 | |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 44 | |
Available-for-sale securities, Total: Number of Securities | security | 1 | |
Available-for-sale securities, Total: Fair Value | $ 506 | |
Available-for-sale securities, Total: Unrealized Losses | $ 44 | |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 0 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | |
Held-to-maturity securities, Total: Number of Securities | security | 0 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, Due in 1 year or less | $ 10,428 | |
Available for sale Securities, Amortized Cost, Due after 1 year but within 5 years | 12,758 | |
Available for sale Securities, Amortized Cost, Due after 5 years but within 10 years | 48,223 | |
Available for sale Securities, Amortized Cost, Due after 10 years | 10,265 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 81,674 | |
Available-for-sale securities, Amortized Cost | 127,384 | |
Available for sale Securities, Fair Value, Due in 1 year or less | 10,453 | |
Available for sale Securities, Fair Value, Due after 1 year but within 5 years | 12,414 | |
Available for sale Securities, Fair Value, Due after 5 years but within 10 years | 45,478 | |
Available for sale Securities, Fair Value, Due after 10 years | 9,358 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 77,703 | |
Available for sale Securities, Fair Value | 122,342 | $ 92,959 |
Held-to-maturity, Due in 1 year or less, Amortized Cost | 2,001 | |
Held-to-maturity, Due after 1 year through 5 years, Amortized Cost | 10,025 | |
Held-to-maturity, Due after 5 years through 10 years, Amortized Cost | 46,560 | |
Held-to-maturity, Due after 10 years, Amortized Cost | 2,806 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 61,392 | |
Held-to-maturity debt securities, Amortized Cost | 131,293 | 101,356 |
Held-to-maturity, Due in 1 year or less, Fair Value | 1,988 | |
Held-to-maturity, Due after 1 year through 5, Fair Value | 9,859 | |
Held-to-maturity, Due after 5 years through 10 years, Fair Value | 45,162 | |
Held-to-maturity, Due after 10 years, Fair Value | 2,768 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value | 59,777 | |
Held-to-maturity, Fair Value | 128,352 | $ 100,483 |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale Securities without a Single Maturity Date, Amortized Cost | 45,710 | |
Available for sale securities without a Single Maturity Date, Fair Value | 44,639 | |
Held-to-maturity without Single Maturity Date, Amortized Cost | 69,901 | |
Held-to-maturity without Single Maturity Date, Fair Value | $ 68,575 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Contractual payment of principal or interest past due period for discontinuing accrual of interest | 90 days | ||
Financing Receivable Deferred Fees And Costs | $ 515,000 | $ 464,000 | |
Past Due | 9,890,000 | 10,749,000 | |
Financing Receivable, Modifications, Recorded Investment | 9,446,000 | 9,571,000 | |
Charge-offs associated with troubled debt restructured loans | $ 0 | $ 0 | $ 66,000 |
Number of troubled debt restructured loans, defaulted | Loan | 0 | 0 | 0 |
Number of troubled debt restructured loans | Loan | 0 | 0 | |
Other Real Estate | $ 734,000 | $ 42,000 | |
Number of consumer mortgage loans foreclosure proceedings in process | Loan | 5 | ||
Loans for which formal foreclosure proceedings are in process | $ 415,000 | 308,000 | |
Home Equity Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 3,000 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Past Due | 3,593,000 | 4,831,000 | |
Accruing [Member] | Four Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 544,000 | ||
Accruing [Member] | One Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 490,000 | ||
Accruing [Member] | Home Equity Loan [Member] | Other Borrower | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 4,000 | ||
Accruing [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Past Due | 0 | 0 | |
Nonaccruing [Member] | Fifteen Loans With Five Relationships [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 8,909,000 | ||
Nonaccruing [Member] | Two Large Relationships [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 7,224,000 | 7,284,000 | |
Nonaccruing [Member] | Fifteen Loans With Seven Relationships [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | 9,027,000 | ||
Reserve for Off-balance Sheet Activities [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Valuation Allowances and Reserves, Balance | $ 107,000 | 105,000 | |
Maximum [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Non-residential consumer loans charged off on contractual basis in event of bankruptcy, in period | 120 days | ||
Maximum [Member] | Home equity lines of credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loan Terms | 20 years | ||
Loan To Value Ratio | 85.00% | ||
Maximum [Member] | Home Equity Lines Of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loan Terms | 5 years | ||
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loan Terms | 1 year | ||
Loan To Value Ratio | 80.00% | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | $ 534,000 | 544,000 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Accruing [Member] | Four Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | $ 537,000 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Accruing [Member] | Three Unrelated Borrowers | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | $ 540,000 | ||
Residential Portfolio [Member] | Maximum [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loan Terms | 30 years | ||
Loan To Value Ratio | 100.00% | ||
Loan To Value Ratio, Exposure After Private Mortgage Insurance | 85.00% |
Loans and Allowance for Loan 44
Loans and Allowance for Loan and Lease Losses (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 1,007,138 | $ 910,404 | $ 834,220 |
Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 45,165 | 41,893 | 38,538 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 985,867 | 892,622 | |
Pass [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 44,794 | 41,479 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 2,755 | 2,332 | |
Special Mention [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 100 | 105 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 18,516 | 15,450 | |
Substandard [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 271 | 309 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 198,783 | 188,033 | 176,319 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 560,776 | 515,012 | 464,077 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 73,756 | 62,336 | 52,875 |
Commercial Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 194 | 229 | 358 |
Commercial Portfolio [Member] | Pass [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 192,713 | 182,168 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 548,118 | 505,397 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 73,092 | 61,667 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 793 | 453 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,532 | 1,435 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 177 | 182 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 5,277 | 5,412 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 11,126 | 8,180 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 487 | 487 | |
Finance Leases Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 194 | 229 | |
Finance Leases Portfolio [Member] | Pass [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 194 | 229 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 123,693 | 99,033 | 99,288 |
Residential Portfolio [Member] | Pass [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 122,185 | 97,814 | |
Residential Portfolio [Member] | Special Mention [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 153 | 157 | |
Residential Portfolio [Member] | Substandard [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,355 | 1,062 | |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 4,771 | 3,868 | $ 2,765 |
Consumer Portfolio [Member] | Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 4,771 | $ 3,868 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan and Lease Losses (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | $ 183 | $ 260 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 294 | 295 |
Impaired Loans: Total Recorded Investment | 183 | 260 |
Impaired Loans: Total Unpaid Principal Balance | 294 | 295 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Unpaid Principal Balance | 12 | 13 |
Impaired Loans with Allowance: Recorded Investment | 4,374 | 4,434 |
Impaired Loans with Allowance: Unpaid Principal Balance | 4,460 | 4,460 |
Impaired Loans with Allowance: Related Allowance | 265 | 136 |
Impaired Loans: Total Recorded Investment | 4,397 | 4,434 |
Impaired Loans: Total Unpaid Principal Balance | 4,495 | 4,473 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 23 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 23 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 3,588 | 3,424 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 4,233 | 4,056 |
Impaired Loans with Allowance: Recorded Investment | 1,389 | 1,423 |
Impaired Loans with Allowance: Unpaid Principal Balance | 1,577 | 1,589 |
Impaired Loans with Allowance: Related Allowance | 281 | 293 |
Impaired Loans: Total Recorded Investment | 6,420 | 5,402 |
Impaired Loans: Total Unpaid Principal Balance | 7,253 | 6,200 |
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 | 1,443 | 555 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,443 | 555 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 487 | 487 |
Impaired Loans with Allowance: Unpaid Principal Balance | 492 | 492 |
Impaired Loans with Allowance: Related Allowance | 93 | 100 |
Impaired Loans: Total Recorded Investment | 487 | 487 |
Impaired Loans: Total Unpaid Principal Balance | 492 | 492 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 669 | 760 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 790 | 877 |
Impaired Loans: Total Recorded Investment | 1,358 | 1,066 |
Impaired Loans: Total Unpaid Principal Balance | 1,479 | 1,183 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 689 | 306 |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 689 | $ 306 |
Loans and Allowance for Loan 46
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | $ 222 | $ 122 |
Impaired Loans with No Allowance: Interest Income Recognized | 2 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 222 | 122 |
Impaired Financing Receivable, Interest Income Recognized, Total | 2 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 2 | |
Impaired Loans with Allowance: Average Recorded Investment | 4,404 | 35 |
Impaired Financing Receivable, Average Recorded Investment, Total | 4,421 | 37 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 17 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 617 | |
Impaired Loans with Allowance: Average Recorded Investment | 487 | 241 |
Impaired Financing Receivable, Average Recorded Investment, Total | 487 | 858 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 3,506 | 403 |
Impaired Loans with No Allowance: Interest Income Recognized | 279 | |
Impaired Loans with Allowance: Average Recorded Investment | 1,406 | 2,676 |
Impaired Financing Receivable, Average Recorded Investment, Total | 5,848 | 3,910 |
Impaired Financing Receivable, Interest Income Recognized, Total | 279 | |
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 | 936 | 831 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 714 | 864 |
Impaired Loans with No Allowance: Interest Income Recognized | 11 | |
Impaired Loans with Allowance: Average Recorded Investment | 67 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 1,157 | 1,304 |
Impaired Financing Receivable, Interest Income Recognized, Total | 11 | |
Residential 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 | $ 443 | $ 373 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan and Lease Losses (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 12,333 | $ 10,575 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 183 | 260 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,397 | 4,434 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 5,914 | 4,902 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 487 | 487 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 1,352 | $ 492 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan and Lease Losses (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 9,890 | $ 10,749 | |
Financing Receivable, Recorded Investment, Current | 997,248 | 899,655 | |
Total Loans | 1,007,138 | 910,404 | $ 834,220 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 2,155 | 861 | 1,120 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6,276 | 5,306 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 21 | 612 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,593 | 4,831 | |
Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 45,165 | 41,893 | 38,538 |
Home Equity [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 375 | 402 | |
Financing Receivable, Recorded Investment, Current | 44,790 | 41,491 | |
Total Loans | 45,165 | 41,893 | |
Home Equity [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 | 201 | 54 | |
Home Equity [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 | 98 | ||
Home Equity [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 | 174 | 250 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 198,783 | 188,033 | 176,319 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,378 | 4,455 | |
Financing Receivable, Recorded Investment, Current | 194,382 | 183,578 | |
Total Loans | 198,760 | 188,033 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 23 | ||
Total Loans | 23 | ||
Commercial Portfolio [Member] | Commercial and Industrial [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 | 4,378 | 4,439 | |
Commercial Portfolio [Member] | Commercial and Industrial [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 | 16 | ||
Commercial Portfolio [Member] | Commercial and Industrial [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 | 23 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 560,776 | 515,012 | 464,077 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,504 | 3,669 | |
Financing Receivable, Recorded Investment, Current | 557,829 | 510,788 | |
Total Loans | 559,333 | 514,457 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,415 | 555 | |
Financing Receivable, Recorded Investment, Current | 28 | ||
Total Loans | 1,443 | 555 | 788 |
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 | 544 | ||
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 | 506 | 500 | |
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 | 960 | 3,669 | |
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 | 909 | 55 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 73,756 | 62,336 | 52,875 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 487 | 487 | |
Financing Receivable, Recorded Investment, Current | 73,269 | 61,849 | |
Total Loans | 73,756 | 62,336 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [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 | 487 | 487 | |
Commercial Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 194 | 229 | 358 |
Commercial Portfolio [Member] | Lease Financing [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 194 | 229 | |
Total Loans | 194 | 229 | |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 4,771 | 3,868 | 2,765 |
Consumer Portfolio [Member] | Consumer [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 15 | 3 | |
Financing Receivable, Recorded Investment, Current | 4,756 | 3,865 | |
Total Loans | 4,771 | 3,868 | |
Consumer Portfolio [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6 | 3 | |
Consumer Portfolio [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 9 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 123,693 | 99,033 | 99,288 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,121 | 954 | |
Financing Receivable, Recorded Investment, Current | 121,883 | 97,773 | |
Total Loans | 123,004 | 98,727 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 572 | 224 | |
Financing Receivable, Recorded Investment, Current | 117 | 82 | |
Total Loans | 689 | 306 | $ 332 |
Residential 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 | 458 | 310 | |
Residential 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 | 183 | ||
Residential 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 | 12 | 467 | |
Residential Portfolio [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 31 | ||
Residential 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 | 651 | 177 | |
Residential 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 | $ 389 | $ 193 |
Loans and Allowance for Loan 49
Loans and Allowance for Loan and Lease Losses (Allowance And Recorded Investment In Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | $ 7,606 | $ 7,183 | |
Charge-offs | (84) | (36) | |
Recoveries | 19 | 348 | |
Provisions | 125 | 125 | |
Allowance for Loan Losses, Ending Balance | 7,666 | 7,620 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 639 | 1,091 | $ 529 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 7,027 | 6,529 | 7,077 |
Loans receivables, Ending Balance | 1,007,138 | 834,220 | 910,404 |
Loans receivables: Ending balance: individually evaluated for impairment | 10,690 | 5,196 | 10,788 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 994,293 | 827,904 | 898,755 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivables, Ending Balance | 2,155 | 1,120 | 861 |
Home Equity [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 423 | 379 | |
Charge-offs | (76) | ||
Provisions | 44 | (15) | |
Allowance for Loan Losses, Ending Balance | 391 | 364 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 391 | 364 | 423 |
Loans receivables, Ending Balance | 45,165 | 38,538 | 41,893 |
Loans receivables: Ending balance: individually evaluated for impairment | 183 | 103 | 260 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 44,982 | 38,435 | 41,633 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 1,795 | 1,580 | |
Charge-offs | (12) | ||
Recoveries | 4 | ||
Provisions | 182 | 58 | |
Allowance for Loan Losses, Ending Balance | 1,977 | 1,630 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 265 | 35 | 136 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1,712 | 1,595 | 1,659 |
Loans receivables, Ending Balance | 198,783 | 176,319 | 188,033 |
Loans receivables: Ending balance: individually evaluated for impairment | 4,374 | 72 | 4,434 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 194,386 | 176,247 | 183,599 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivables, Ending Balance | 23 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 4,435 | 4,323 | |
Recoveries | 17 | 340 | |
Provisions | 201 | 52 | |
Allowance for Loan Losses, Ending Balance | 4,653 | 4,715 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 281 | 957 | 293 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 4,372 | 3,758 | 4,142 |
Loans receivables, Ending Balance | 560,776 | 464,077 | 515,012 |
Loans receivables: Ending balance: individually evaluated for impairment | 4,977 | 3,220 | 4,847 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 554,356 | 460,069 | 509,610 |
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 | 1,443 | 788 | 555 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 178 | 144 | |
Provisions | 5 | (43) | |
Allowance for Loan Losses, Ending Balance | 183 | 101 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 93 | 32 | 100 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 90 | 69 | 78 |
Loans receivables, Ending Balance | 73,756 | 52,875 | 62,336 |
Loans receivables: Ending balance: individually evaluated for impairment | 487 | 855 | 487 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 73,269 | 52,020 | 61,849 |
Commercial Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 1 | ||
Allowance for Loan Losses, Ending Balance | 1 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1 | ||
Loans receivables, Ending Balance | 194 | 358 | 229 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 194 | 358 | 229 |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 428 | 541 | |
Charge-offs | (2) | (18) | |
Recoveries | 1 | ||
Provisions | 26 | 8 | |
Allowance for Loan Losses, Ending Balance | 452 | 532 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 67 | ||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 452 | 465 | 428 |
Loans receivables, Ending Balance | 123,693 | 99,288 | 99,033 |
Loans receivables: Ending balance: individually evaluated for impairment | 669 | 946 | 760 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 122,335 | 98,010 | 97,967 |
Residential Portfolio [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivables, Ending Balance | 689 | 332 | 306 |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 3 | 3 | |
Charge-offs | (6) | (6) | |
Recoveries | 2 | 3 | |
Provisions | 5 | 3 | |
Allowance for Loan Losses, Ending Balance | 4 | 3 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 4 | 3 | 3 |
Loans receivables, Ending Balance | 4,771 | 2,765 | 3,868 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 4,771 | 2,765 | 3,868 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 344 | 212 | |
Provisions | (338) | 62 | |
Allowance for Loan Losses, Ending Balance | 6 | 274 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | $ 6 | $ 274 | $ 344 |
Loans and Allowance for Loan 50
Loans and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 10,536,000 | $ 10,536,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 10,730,000 | 10,730,000 |
Financing Receivable, Modifications, Recorded Investment | 9,446,000 | 9,571,000 |
Home Equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 14,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 14,000 | |
Financing Receivable, Modifications, Recorded Investment | 3,000 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 4,110,000 | 4,110,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 4,460,000 | 4,460,000 |
Financing Receivable, Modifications, Recorded Investment | 4,374,000 | 4,434,000 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 5,735,000 | 5,735,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 5,581,000 | 5,581,000 |
Financing Receivable, Modifications, Recorded Investment | 4,535,000 | 4,593,000 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 677,000 | 691,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 675,000 | 689,000 |
Financing Receivable, Modifications, Recorded Investment | $ 534,000 | $ 544,000 |
Loans and Allowance for Loan 51
Loans and Allowance for Loan and Lease Losses (Schedule of Accretion of Purchased Impaired Loan) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Accretable yield, beginning balance | $ 67 |
Acquisition of impaired loans | 305 |
Accretable yield amortized to interest income | (36) |
Accretable yield, ending balance | $ 336 |
Fair Value Measurement (Assets
Fair Value Measurement (Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 122,342 | $ 93,465 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 506 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 122,342 | 92,959 |
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 | 38,525 | 38,730 |
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 | 38,525 | 38,730 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 44,639 | 25,831 |
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 | 44,639 | 25,831 |
State and political subdivision obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 36,315 | 27,043 |
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 | 36,315 | 27,043 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,863 | 1,355 |
Corporate debt securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 2,863 | 1,355 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 506 | |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 506 |
Fair Value Measurement (Fair Va
Fair Value Measurement (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 5,917 | $ 6,090 |
Impaired Loan [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,917 | 6,090 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 116 | 126 |
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 | $ 116 | $ 126 |
Fair Value Measurement (Fair 54
Fair Value Measurement (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 5,917 | $ 6,090 |
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 | $ 5,917 | $ 6,090 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments | Appraisal adjustments |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 116 | $ 126 |
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 | $ 116 | $ 126 |
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 | 6.00% | 6.00% |
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 | 0.00% | 0.00% |
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 | 70.00% | 70.00% |
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 | 63.00% | 51.00% |
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 | 0.00% | 0.00% |
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 | 100.00% | 100.00% |
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 | 24.00% | 28.00% |
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 | 0.00% | 0.00% |
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 | 99.00% | 98.00% |
Fair Value Measurement (Fair 55
Fair Value Measurement (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale investment securities | $ 122,342 | $ 93,465 |
Held-to-maturity investment securities | 128,352 | 100,483 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 59,175 | 23,514 |
Available-for-sale investment securities | 122,342 | 93,465 |
Held-to-maturity investment securities | 131,293 | 101,356 |
Loans held for sale | 1,348 | 1,040 |
Net loans and leases | 999,472 | 902,798 |
Restricted investment in bank stocks | 2,759 | 4,384 |
Accrued interest receivable | 5,079 | 4,564 |
Mortgage servicing rights | 116 | 126 |
Deposits | 1,212,423 | 1,023,568 |
Short-term borrowings | 34,611 | |
Long-term debt | 12,297 | 12,352 |
Subordinated debt | 17,335 | 17,338 |
Accrued interest payable | 922 | 645 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 59,175 | 23,514 |
Available-for-sale investment securities | 122,342 | 93,465 |
Held-to-maturity investment securities | 128,352 | 100,483 |
Loans held for sale | 1,348 | 1,040 |
Net loans and leases | 1,010,774 | 917,081 |
Restricted investment in bank stocks | 2,759 | 4,384 |
Accrued interest receivable | 5,079 | 4,564 |
Mortgage servicing rights | 116 | 126 |
Deposits | 1,212,434 | 1,026,830 |
Short-term borrowings | 34,611 | |
Long-term debt | 11,986 | 11,692 |
Subordinated debt | 17,264 | 17,358 |
Accrued interest payable | $ 922 | $ 645 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | $ 128,352 | $ 100,483 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | 128,352 | 100,483 |
Deposits | 1,212,434 | 1,026,830 |
Long-term debt | 11,986 | 11,692 |
Subordinated debt | 17,264 | 17,358 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 1,010,774 | 917,081 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | 131,293 | 101,356 |
Net loans and leases | 999,472 | 902,798 |
Deposits | 1,212,423 | 1,023,568 |
Long-term debt | 12,297 | 12,352 |
Subordinated debt | 17,335 | 17,338 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | 128,352 | 100,483 |
Net loans and leases | 1,010,774 | 917,081 |
Deposits | 1,212,434 | 1,026,830 |
Long-term debt | 11,986 | 11,692 |
Subordinated debt | $ 17,264 | $ 17,358 |
Guarantees and Commitments (Nar
Guarantees and Commitments (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financial Standby Letters of Credit [Member] | ||
Commitments, Contingencies and Guarantees [Line Items] | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 17,803,000 | $ 20,496,000 |
Subordinated Debt (Narrative) (
Subordinated Debt (Narrative) (Details) - Subordinated Debt [Member] - USD ($) | Dec. 19, 2017 | Dec. 09, 2015 | Mar. 31, 2018 | Dec. 31, 2017 |
Subordinated Notes Due 2028 [Member] | ||||
Subordinated debt issuance | $ 10,000,000 | |||
Debt instrument, interest rate, effective percentage | 5.25% | |||
Debt Instrument, Description of Variable Rate Basis | The 2017 Notes will bear interest at a rate of 5.25% 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 5.0%. | |||
Debt Instrument, Payment Terms | Interest will be payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018, for the first five years after issuance and will be payable quarterly in arrears thereafter on January 15, April 15, July 15, and October 15. | |||
Debt instrument, maturity date | Jan. 1, 2028 | |||
Debt Instrument, Redemption, Description | The 2017 Notes will mature on January 1, 2028 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 21, 2022, and prior to January 1, 2028. Additionally, Mid Penn may redeem the 2017 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 2017 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2017 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 the event of a redemption described in the previous sentence, Mid Penn will redeem the 2017 Notes at 100% of the principal amount of the 2017 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |||
Unamortized debt issuance cost | $ 165,000 | $ 162,000 | ||
Subordinated Notes Due 2028 [Member] | WSJ Prime Rate [Member] | ||||
Debt instrument, interest rate, effective percentage | 5.00% | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Subordinated Notes Due 2025 [Member] | ||||
Subordinated debt issuance | $ 7,500,000 | |||
Debt instrument, interest rate, effective percentage | 5.15% | |||
Debt Instrument, Description of Variable Rate Basis | 2015 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 time be less than 4.0%. | |||
Debt Instrument, Payment Terms | Interest will be payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. | |||
Debt instrument, maturity date | Dec. 9, 2025 | |||
Debt Instrument, Redemption, Description | The 2015 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 2015 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 2015 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2015 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 2015 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |||
Unamortized debt issuance cost | $ 165,000 | $ 162,000 | ||
Subordinated Notes Due 2025 [Member] | WSJ Prime Rate [Member] | ||||
Debt instrument, interest rate, effective percentage | 4.00% | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Defined Benefit Plans (Net Peri
Defined Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 9 | $ 9 |
Interest cost | 9 | 11 |
Amortization (accretion) of prior service cost | 4 | 3 |
Net periodic benefit cost | 22 | 23 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 4 | 5 |
Amortization (accretion) of prior service cost | $ (5) | $ (6) |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss, Net of Taxes) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized Loss on Securities | $ (3,990) | $ (2,159) |
Defined Benefit Plans | 84 | 85 |
Accumulated Other Comprehensive Loss | $ (3,906) | $ (2,074) |
Restricted Common Stock (Detail
Restricted Common Stock (Details) - 2014 Restricted Stock Plan [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | May 06, 2014 | |
Class of Stock [Line Items] | |||
Shares authorized per plan | 100,000 | ||
Shares granted | 26,485 | ||
Allocated share-based compensation expense | $ 58,000 | $ 19,000 | |
Restricted shares vested during period | 6,986 | ||
Granted shares unvested | 19,499 |
Earnings per Common Share (Basi
Earnings per Common Share (Basic Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 1,004 | $ 1,994 |
Weighted average common shares outstanding | 5,974,949 | 4,233,308 |
Basic and diluted earnings per common share | $ 0.17 | $ 0.47 |
Earnings per Common Share (Ba63
Earnings per Common Share (Basic Earnings (Loss) Per Share) (Narrative) (Details) - shares | Jan. 08, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Earnings Per Share Basic [Line Items] | |||
Issuance of common stock in connection with acquisition | 1,878,827 | ||
Class of warrant or right, outstanding | 0 | 0 | |
Scottdale Acquisition [Member] | |||
Earnings Per Share Basic [Line Items] | |||
Issuance of common stock in connection with acquisition | 1,878,827 |
Recent Accounting Pronounceme64
Recent Accounting Pronouncements (Narrative) (Details) - ASU 2016-01 [Member] $ in Thousands | Dec. 31, 2017USD ($) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
One-time cumulative-effect adjustment based upon adoption | $ (9) |
Deferred Tax Assets [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
One-time cumulative-effect adjustment based upon adoption | (9) |
Retained Earnings [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
One-time cumulative-effect adjustment based upon adoption | (44) |
Accumulated Other Comprehensive Loss [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
One-time cumulative-effect adjustment based upon adoption | $ 35 |
Agreement and Plan of Merger (N
Agreement and Plan of Merger (Narrative) (Details) - First Priority Financial Corp. [Member] $ in Billions | Jan. 16, 2018USD ($) |
Business Acquisition [Line Items] | |
Plan of merger agreement, date | Jan. 16, 2018 |
Business acquisition, proforma assets | $ 2 |
Shares of acquirer ratio of common stock | 34.81% |