Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GLEN BURNIE BANCORP | |
Entity Central Index Key | 890,066 | |
Trading Symbol | glbz | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock Shares Outstanding | 2,793,748 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 14,487 | $ 6,946 |
Interest bearing deposits with banks and federal funds sold | 2,851 | 3,676 |
Total Cash and Cash Equivalents | 17,338 | 10,622 |
Investment securities available for sale, at fair value | 90,629 | 94,607 |
Restricted equity securities, at cost | 1,440 | 1,230 |
Loans, net of deferred fees and costs | 271,020 | 265,058 |
Less: Allowance for loan losses | (2,599) | (2,484) |
Loans, net | 268,421 | 262,574 |
Real estate acquired through foreclosure | 114 | 114 |
Premises and equipment, net | 3,547 | 3,638 |
Bank owned life insurance | 9,428 | 9,328 |
Deferred tax assets, net | 2,803 | 3,160 |
Accrued interest receivable | 1,092 | 1,134 |
Accrued taxes receivable | 631 | 674 |
Prepaid expenses | 493 | 546 |
Other assets | 190 | 805 |
Total Assets | 396,126 | 388,432 |
LIABILITIES | ||
Noninterest-bearing deposits | 105,582 | 100,090 |
Interest-bearing deposits | 229,899 | 233,147 |
Total Deposits | 335,481 | 333,237 |
Short-term borrowings | 15,000 | 10,000 |
Long-term borrowings | 10,000 | 10,000 |
Defined pension liability | 374 | 369 |
Accrued expenses and other liabilities | 737 | 1,011 |
Total Liabilities | 361,592 | 354,617 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,793,748 and 2,786,855 shares as of June 30, 2017 and December 31, 2016 , respectively. | 2,794 | 2,787 |
Additional paid-in capital | 10,199 | 10,130 |
Retained earnings | 21,803 | 21,708 |
Accumulated other comprehensive (loss) | (262) | (810) |
Total Stockholders' Equity | 34,534 | 33,815 |
Total Liabilities and Stockholders' Equity | $ 396,126 | $ 388,432 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 2,793,748 | 2,786,855 |
Common stock, shares outstanding | 2,793,748 | 2,786,855 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST INCOME | ||||
Loans, including fees | $ 2,845 | $ 2,749 | $ 5,619 | $ 5,585 |
Interest and dividends on securities | 507 | 487 | 1,025 | 975 |
Deposits with banks and federal funds sold | 31 | 32 | 62 | 59 |
Total Interest Income | 3,383 | 3,268 | 6,706 | 6,619 |
INTEREST EXPENSE | ||||
Deposits | 327 | 377 | 659 | 769 |
Short-term borrowings | 84 | 167 | ||
Long term borrowings | 76 | 159 | 152 | 319 |
Total Interest Expense | 487 | 536 | 978 | 1,088 |
Net Interest Income | 2,896 | 2,732 | 5,728 | 5,531 |
Provision for loan losses | (30) | 165 | 117 | |
Net interest income after provision for loan losses | 2,926 | 2,732 | 5,563 | 5,414 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 69 | 81 | 136 | 164 |
Other fees and commissions | 167 | 171 | 328 | 330 |
Gain on securities sold | 1 | 2 | 1 | |
Income on life insurance | 51 | 53 | 100 | 107 |
Other income | 17 | 13 | 35 | 24 |
Total Noninterest Income | 305 | 318 | 601 | 626 |
NONINTEREST EXPENSE | ||||
Salary and employee benefits | 1,614 | 1,535 | 3,036 | 3,040 |
Occupancy and equipment expenses | 249 | 249 | 517 | 509 |
Legal, accounting and other professional fees | 262 | 192 | 468 | 422 |
Data processing and item processing services | 143 | 172 | 312 | 334 |
FDIC insurance costs | 64 | 77 | 124 | 154 |
Advertising and marketing related expenses | 42 | 11 | 73 | 36 |
Loan collection costs | 29 | 80 | 47 | 121 |
Telephone costs | 59 | 50 | 114 | 95 |
Other expenses | 368 | 332 | 727 | 660 |
Total Noninterest Expenses | 2,830 | 2,698 | 5,418 | 5,371 |
Income before income taxes | 401 | 352 | 746 | 669 |
Income tax expense | 63 | 44 | 92 | 78 |
NET INCOME | $ 338 | $ 308 | $ 654 | $ 591 |
Basic and diluted net income per common share (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.23 | $ 0.21 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Net income | $ 338 | $ 308 | $ 654 | $ 591 |
Net unrealized gains on securities available for sale: | ||||
Net unrealized gain on securities during the period | 507 | 663 | 549 | 1,096 |
Reclassification adjustment for gain on sales of securities included in net income | (1) | (1) | (1) | |
Other Comprehensive Income | 506 | 663 | 548 | 1,095 |
Comprehensive income | $ 844 | $ 971 | $ 1,202 | $ 1,686 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
Balances at Dec. 31, 2015 | $ 2,774 | $ 9,986 | $ 21,718 | $ (302) | $ 34,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 591 | 591 | |||
Cash dividends, $0.20 per share | (555) | (555) | |||
Dividends reinvested under dividend reinvestment plan | 6 | 83 | 89 | ||
Other comprehensive income | 1,095 | 1,095 | |||
Balances at Jun. 30, 2016 | 2,780 | 10,069 | 21,754 | 793 | 35,396 |
Balances at Dec. 31, 2016 | 2,787 | 10,130 | 21,708 | (810) | 33,815 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 654 | 654 | |||
Cash dividends, $0.20 per share | (559) | (559) | |||
Dividends reinvested under dividend reinvestment plan | 7 | 69 | 76 | ||
Other comprehensive income | 548 | 548 | |||
Balances at Jun. 30, 2017 | $ 2,794 | $ 10,199 | $ 21,803 | $ (262) | $ 34,534 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parentheticals) | 6 Months Ended |
Jun. 30, 2016$ / shares | |
Statement Of Stockholders' Equity [Abstract] | |
Cash dividends, per share | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 654 | $ 591 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion | 518 | 590 |
Provision for credit losses | 165 | 117 |
Gains on disposals of assets, net | (1) | (1) |
Income on investment in life insurance | (100) | (107) |
Changes in assets and liabilities: | ||
Decrease in ground rents | 7 | |
Decrease in accrued interest receivable | 42 | 12 |
Decrease in other assets | 729 | 89 |
Decrease in accrued interest payable | (2) | (2) |
Decrease in other liabilities | (267) | (108) |
Net cash provided by operating activities | 1,745 | 1,181 |
Cash flows from investing activities: | ||
Maturities and principal paydowns of available for sale mortgage-backed securities | 6,443 | 8,215 |
Proceeds from call/sales of other investment securities | 2,766 | 3,767 |
Purchases of available for sale mortgage-backed securities | (6,307) | |
Purchases of other available for sale investment securities | (4,659) | (8,150) |
(Purchase) sale of Federal Home Loan Bank stock | (210) | 3 |
(Increase) decrease in loans, net | (6,012) | 5,904 |
Purchases of premises and equipment | (119) | (118) |
Net cash (used) provided by investing activities | (1,791) | 3,314 |
Cash flows from financing activities: | ||
Increase in noninterest-bearing deposits, NOW accounts, money market accounts, and savings accounts, net | 5,492 | 9,084 |
Decrease in time deposits, net | (3,248) | (4,981) |
Increase in short term borrowings | 15,000 | |
Decrease in long term borrowings | (10,000) | |
Cash dividends paid | (558) | (555) |
Common stock dividends reinvested | 76 | 89 |
Net cash provided by financing activities | 6,762 | 3,637 |
Increase in cash and cash equivalents | 6,716 | 8,132 |
Cash and cash equivalents, beginning of year | 10,622 | 12,371 |
Cash and cash equivalents, end of period | 17,338 | 20,503 |
Supplementary cash flow information: | ||
Interest paid | $ 1,122 | $ 1,217 |
ORGANIZATIONAL
ORGANIZATIONAL | 6 Months Ended |
Jun. 30, 2017 | |
Organizational [Abstract] | |
ORGANIZATIONAL. | NOTE 1 – ORGANIZATIONAL Nature of Business. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 2 - BASIS OF PRESENTATION The accompanying condensed balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholders’ equity, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the unaudited consolidated financial statements have been included in the results of operations for the three and six month periods ended June 30, 2017 and 2016. Operating results for the three and six month periods ended June 30, 2017 is not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 3 - EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated by including the average dilutive common stock equivalents outstanding during the periods. Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Basic and diluted: Net income $ 338,000 $ 308,000 $ 654,000 $ 591,000 Weighted average common shares outstanding 2,792,656 2,776,546 2,791,824 2,776,053 Basic and dilutive net income per share $ 0.12 $ 0.11 $ 0.23 $ 0.21 Diluted earnings per share calculations were not required for the three and six month periods ended June 30, 2017 and 2016, since there were no options outstanding. |
LOANS AND ASSET QUALITY
LOANS AND ASSET QUALITY | 6 Months Ended |
Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
LOANS AND ASSET QUALITY | NOTE 4 – LOANS AND ASSET QUALITY Asset Quality At June 30, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 3,690 $ 49 $ - $ - $ 3,739 Commercial real estate 65,015 - - 640 65,655 Consumer and indirect 94,343 835 - 331 95,509 Residential real estate 102,816 1,699 57 2,556 107,128 $ 265,864 $ 2,583 $ 57 $ 3,527 $ 272,031 At December 31, 2016 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,679 $ - $ - $ - $ 4,679 Commercial real estate 68,775 - - 647 69,422 Consumer and indirect 82,134 992 - 456 83,582 Residential real estate 103,941 1,798 36 2,648 108,423 $ 259,529 $ 2,790 $ 36 $ 3,751 $ 266,106 The balances in the above charts have not been reduced by the allowance for loan loss and the unearned income on loans. For the period ending June 30, 2017, the allowance for loan loss is $2,599,000 and the unearned income is $1,012,000. For the period ending December 31, 2016, the allowance for loan loss is $2,484,000 and the unearned income is $1,048,000. June 30, December 31, 2017 2016 (dollars in thousands) Troubled debt restructured loans $ 302 $ 312 Non-accrual and 90 days or more and still accruing loans to gross loans 1.32 % 1.43 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 72.52 % 65.59 % At June 30, 2017 there were three troubled debt restructured loans consisting of a commercial loan of $222,000, a residential real estate loan of $47,000 and a consumer loan of $33,000. The consumer and residential real estate loans are both on nonaccrual. At June 30, 2017, there was $1,112,000 in loans outstanding, included in the current and 30-89 days past due columns in the above table, as to which known information about possible credit problems of borrowers caused management to have doubts as to the ability of such borrowers to comply with present loan repayment terms. Such loans consist of loans which were not 90 days or more past due but where the borrower is in bankruptcy or has a history of delinquency, or the loan to value ratio is considered excessive due to deterioration of the collateral or other factors. The three loans outstanding, totaling $1,112,000, are as follows: $726,000 Commercial Real Estate loan where the guarantor is in bankruptcy and the loan has an accelerated payoff since we have an assignment of rents from the property which has a very long-term national tenant; $164,000 Home Equity Line of Credit which is paying as agreed, however the borrower has defaulted on other commercial loans which have been satisfied; and a $222,000 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $222,000. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at June 30, 2017 are comprised of: Consumer loans Residential Real Estate Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at June 30, 2017 and December 31, 2016. (dollars in thousands) June 30, 2017 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,385 1,414 - 451 1,426 Commercial - - - - - Consumer 182 182 2 65 231 Installment - - - - - Home Equity - - - - - Commercial 222 222 6 222 225 Total impaired loans with specific reserves $ 1,789 1,818 8 738 1,882 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,426 2,166 7 n/a 2,478 Commercial 1,367 1,519 17 n/a 1,558 Consumer 62 62 - n/a 101 Installment 87 87 - n/a 87 Home Equity - - - n/a - Commercial 2 2 - n/a 2 Total impaired loans with no specific reserve $ 2,944 3,836 24 - 4,226 (dollars in thousands) December 31, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,393 1,422 58 252 1,442 Commercial - - - - - Consumer 128 128 - 50 167 Installment - - - - - Home Equity - - - - - Commercial 229 229 8 228 235 Total impaired loans with specific reserves $ 1,750 1,779 66 530 1,844 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,479 2,219 21 n/a 2,463 Commercial 1,413 1,565 59 n/a 1,594 Consumer 182 182 - n/a 75 Installment 193 193 - n/a - Home Equity - - - n/a - Commercial - - - n/a - Total impaired loans with no specific reserve $ 3,267 4,159 80 - 4,132 Following are tables for June 2017 and December 2016 showing the provision for each group of loans. Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Provision for credit losses (27 ) 35 211 (45 ) (9 ) 165 Recoveries - - 177 27 - 204 Loans charged off - - (251 ) (3 ) - (254 ) Balance, end of quarter $ 257 $ 294 $ 1,013 $ 1,030 $ 5 $ 2,599 Individually evaluated for impairment: Balance in allowance $ 222 $ - $ 65 $ 451 $ - $ 738 Related loan balance 222 1,367 307 1,425 - 3,321 Collectively evaluated for impairment: Balance in allowance $ 35 $ 294 $ 948 $ 579 $ 5 $ 1,861 Related loan balance 3,517 64,288 95,202 105,703 - 268,710 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 305 $ 262 $ 804 $ 1,631 $ 148 $ 3,150 Provision for credit losses (30 ) 361 431 240 (134 ) 868 Recoveries 9 - 336 34 - 379 Loans charged off - (364 ) (695 ) (854 ) - (1,913 ) Balance, end of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Individually evaluated for impairment: Balance in allowance $ 229 $ - $ 50 $ 251 $ - $ 530 Related loan balance 229 1,413 503 2,872 - 5,017 Collectively evaluated for impairment: Balance in allowance $ 56 $ 259 $ 826 $ 799 $ 14 $ 1,954 Related loan balance 4,451 68,009 83,078 105,552 - 261,090 Following is a table showing activity for non-accrual loans for the quarters ended June 30, 2017 and June 30, 2016. (Dollars in thousands) Commercial & Commercial Consumer & Residential Industrial Real Estate Indirect Real Estate Total December 31, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 Transfer into non-accrual - - 353 125 478 Transfer to REO - - - - - Loans paid down/payoffs - (7 ) (115 ) (214 ) (336 ) Loans brought to accrual status - - (112 ) - (112 ) Loans charged off - - (251 ) (3 ) (254 ) June 30, 2017 $ - $ 640 $ 331 $ 2,556 $ 3,527 December 31, 2015 $ - $ 300 $ 596 $ 2,883 3,779 Transfer into non-accrual - 840 969 1,461 3,270 Transfer to REO - (114 ) - (126 ) (240 ) Loans paid down/payoffs - (15 ) (414 ) (716 ) (1,145 ) Loans brought to accrual status - - (25 ) (135 ) (160 ) Loans charged off - (364 ) (670 ) (719 ) (1,753 ) June 30, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 Credit Quality Information The following tables represent credit exposures by creditworthiness category for the quarter ending and the year ended December 31, 2016. The use of creditworthiness categories to grade loans permits management to estimate a portion of credit risk. The Bank’s internal creditworthiness is based on experience with similarly graded credits. Loans that trend upward toward higher credit grades typically have less credit risk and loans that migrate downward typically have more credit risk. The Bank’s internal risk ratings are as follows: 1 Superior – minimal risk (normally supported by pledged deposits, United States government securities, etc.) 2 Above Average – low risk. (all of the risks associated with this credit based on each of the bank’s creditworthiness criteria are minimal) 3 Average – moderately low risk. (most of the risks associated with this credit based on each of the bank’s creditworthiness criteria are minimal) 4 Acceptable – moderate risk. (the weighted overall risk associated with this credit based on each of the bank’s creditworthiness criteria is acceptable) 5 Other Assets Especially Mentioned – moderately high risk. (possesses deficiencies which corrective action by the bank would remedy; potential watch list) 6 Substandard – (the bank is inadequately protected and there exists the distinct possibility of sustaining some loss if not corrected) 7 Doubtful – (weaknesses make collection or liquidation in full, based on currently existing facts, improbable) 8 Loss – (of little value; not warranted as a bankable asset) Loans rated 1-4 are considered “Pass” for purposes of the risk rating chart below. Risk ratings of loans by categories of loans are as follows: Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,517 $ 63,837 $ 94,194 $ 104,164 $ 265,712 Special mention - 334 848 493 1,675 Substandard 222 1,484 407 2,471 4,584 Doubtful - - 60 - 60 Loss - - - - - $ 3,739 $ 65,655 $ 95,509 $ 107,128 $ 272,031 Non-accrual - 640 331 2,556 3,527 Troubled debt restructures 222 - 33 47 302 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 33 $ 47 $ 80 Non-performing TDRs accounts - - 1 1 2 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,357 $ 64,208 $ 82,943 $ 105,225 $ 256,733 Special mention 94 3,801 276 527 4,698 Substandard 228 1,413 327 2,493 4,461 Doubtful - - 36 178 214 Loss - - - - - $ 4,679 $ 69,422 $ 83,582 $ 108,423 $ 266,106 Non-accrual - 647 456 2,648 3,751 Troubled debt restructures 228 - 36 48 312 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 36 $ 48 $ 84 Non-performing TDRs accounts - - 1 1 2 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 5 – FAIR VALUE ASC 820-10 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. Fair Value Hierarchy ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below: · Level 1 – Quoted prices in active markets for identical securities · Level 2 – Other significant observable inputs (including quoted prices in active markets for similar securities) · Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820-10. The Company’s bond holdings in the investment securities portfolio are the only asset or liability subject to fair value measurements on a recurring basis. The Bank may also be required, from time to time, to measure certain other financial and non-financial assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. At June 30, 2017, these assets include 28 loans, excluding $155,000 of consumer and indirect loans, classified as impaired, which include nonaccrual, past due 90 days or more and still accruing, and a homogeneous pool of indirect loans all considered to be impaired loans, which are valued under Level 3 inputs. Loans which are deemed to be impaired ($4.7 million of loans with $738,000 of specific reserves as of June 30, 2017) and foreclosed real estate assets are primarily valued on a nonrecurring basis at the fair values of the underlying real estate collateral. The Company is predominantly a cash flow lender with real estate serving as collateral on a majority of loans ($2.8 million of the total impaired loans as of June 30, 2017). On a quarterly basis, the Company determines such fair values through a variety of data points and mostly rely on appraisals from independent appraisers. We obtain an appraisal on properties when they become impaired and have new appraisals at least every year. Typically, these appraisals do not include an inside inspection of the property as our loan documents do not require the borrower to allow access to the property. Therefore the most significant unobservable inputs is the details of the amenities included within the property and the condition of the property. Further, we cannot always accurately assess the amount of time it takes to gain ownership of our collateral through the foreclosure process and the damage, as well as potential looting, of the property further decreasing our value. Thus, in determining the fair values we discount the current independent appraisals, with a range from 0% to 16%, based on individual circumstances. The remaining impaired loans ($1.92 million with $288,000 of specific reserves as of June 30, 2017) include mobile homes, commercial, consumer, and indirect auto loans, which are valued based on the value of the underlying collateral. The changes in the assets subject to fair value measurements are summarized below by Level: Fair (dollars in thousands) Level 1 Level 2 Level 3 Value June 30, 2017 Recurring: Securities available for sale U.S. Treasury $ - $ 1,506 $ - $ 1,506 State and Municipal - 35,710 - 35,710 Mortgaged-backed - 53,413 - 53,413 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 4,733 4,733 OREO - 114 - 114 $ - $ 90,743 $ 4,763 $ 95,506 December 31, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 1,507 $ - $ 1,507 State and Municipal - 33,845 - 33,845 Mortgaged-backed - 59,255 - 59,255 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 2,891 2,891 OREO - 114 - 114 $ - $ 94,721 $ 2,921 $ 97,642 The estimated fair values of the Company’s financial instruments at June 30, 2017 and December 31, 2016 are summarized below. The fair values of a significant portion of these financial instruments are estimates derived using present value techniques and may not be indicative of the net realizable or liquidation values. Also, the calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values. June 30, 2017 December 31, 2016 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 14,487 $ 14,487 $ 6,946 $ 6,946 Interest-bearing deposits 728 728 479 479 Federal funds sold 2,123 2,123 3,197 3,197 Investment securities 90,629 90,629 94,607 94,607 Investments in restricted stock 1,410 1,410 1,230 1,230 Ground rents 156 156 164 164 Loans, net 268,421 266,740 262,574 259,017 Cash Value of life insurance 9,428 9,428 9,328 9,328 Accrued interest receivable 1,092 1,092 1,134 1,134 Financial liabilities: Deposits 335,481 317,448 333,237 315,418 Long-term borrowings 10,000 10,165 10,000 10,257 Short-term borrowings 15,000 15,065 10,000 10,188 Dividends payable - - - - The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. (dollars in thousands) Carrying Fair June 30, 2017 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 17,338 $ 17,338 $ 17,338 $ - $ - Loans receivable, net 268,421 266,740 - - 266,740 Cash value of life insurance 9,428 9,428 - 9,428 - Financial instruments - Liabilities Deposits 335,481 317,448 217,906 99,542 - Long-term debt 10,000 10,165 - 10,165 - Short-term debt 15,000 15,065 - 15,065 - Fair values are based on quoted market prices for similar instruments or estimated using discounted cash flows. The discounts used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs and optionality of such instruments. The fair value of cash and due from banks, federal funds sold, investments in restricted stocks and accrued interest receivable are equal to the carrying amounts. The fair values of investment securities are determined using market quotations. The fair value of loans receivable is estimated using discounted cash flow analysis. The fair value of non-interest bearing deposits, interest-bearing checking, savings, and money market deposit accounts, securities sold under agreements to repurchase, and accrued interest payable are equal to the carrying amounts. The fair value of fixed-maturity time deposits is estimated using discounted cash flow analysis. The gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 are as follows: Securities available for sale: Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss U.S. Agency $ 500 $ 1 $ - $ - $ 500 $ 1 State and Municipal 7,461 178 1,398 45 8,859 223 Mortgage Backed 44,590 591 - - 44,590 591 $ 52,551 $ 770 $ 1,398 $ 45 $ 53,949 $ 815 Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary-impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain it’s investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of June 30, 2017, management had the ability and intent to hold the securities classified as available for sale for a period of time sufficient for a recovery of cost. On June 30, 2017, the Bank held 4 investment securities that were in a continuous unrealized loss position for more than 12 months. Management does not believe the securities are impaired due to reasons of credit quality. As of June 30, 2017, management believes the impairment detailed in the table above is temporary and no impairment loss has been recognized in the Company’s consolidated income statement. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 6 – RECENT ACCOUNTING PRONOUNCEMENTS The FASB has issued several exposure drafts which, if adopted, would significantly alter the Company’s (and all other financial institutions’) method of accounting for, and reporting, its financial assets and some liabilities from a historical cost method to a fair value method of accounting as well as the reported amount of net interest income. The Company has not determined the extent of the possible changes at this time. The exposure drafts are in different stages of review, approval and possible adoption. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a 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 is effective for the Company on January 1, 2018. The Company is still evaluating the potential impact on the Company’s financial statements. ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02 “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-2 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the potential impact of ASU 2016-02 on our financial statements. ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” clarifies ASU 2016-05 ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASU 2016-08 was issued to clarify certain principal versus agent considerations within the implementation guidance of ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective on January 1, 2017 and did not have a significant impact on our financial statements. ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 was issued to clarify ASC Topic 606, “Revenue from Contracts with Customers” ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” ASU No. 2016-12, “Revenue From Contracts With Customers (Topic 606) Narrow-Scope and Practical Expedients” which updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance includes narrow-scope improvements intended to address implementation issues and to provide additional practical expedients in the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” which updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate- owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material effect on the Company's consolidated financial statements. ASU 2016-16, “Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 provides guidance stating that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash.” ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the provisions of ASU No. 2017-08 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification”. ASU 2017-09 was used to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modification to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature, Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for: (a) public business entities for reporting periods for which financial statements have not yert been issued, and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuances. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company in currently in the process of evaluating the impact of ASU 2017-09 on its consolidated financial statements, but does not expect the adoption of ASU 2017-09 to have material impact on it consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying condensed balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholders’ equity, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the unaudited consolidated financial statements have been included in the results of operations for the three and six month periods ended June 30, 2017 and 2016. Operating results for the three and six month periods ended June 30, 2017 is not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The FASB has issued several exposure drafts which, if adopted, would significantly alter the Company’s (and all other financial institutions’) method of accounting for, and reporting, its financial assets and some liabilities from a historical cost method to a fair value method of accounting as well as the reported amount of net interest income. The Company has not determined the extent of the possible changes at this time. The exposure drafts are in different stages of review, approval and possible adoption. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a 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 is effective for the Company on January 1, 2018. The Company is still evaluating the potential impact on the Company’s financial statements. ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02 “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-2 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the potential impact of ASU 2016-02 on our financial statements. ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” clarifies ASU 2016-05 ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASU 2016-08 was issued to clarify certain principal versus agent considerations within the implementation guidance of ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective on January 1, 2017 and did not have a significant impact on our financial statements. ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 was issued to clarify ASC Topic 606, “Revenue from Contracts with Customers” ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” ASU No. 2016-12, “Revenue From Contracts With Customers (Topic 606) Narrow-Scope and Practical Expedients” which updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance includes narrow-scope improvements intended to address implementation issues and to provide additional practical expedients in the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” which updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate- owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material effect on the Company's consolidated financial statements. ASU 2016-16, “Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 provides guidance stating that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash.” ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the provisions of ASU No. 2017-08 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification”. ASU 2017-09 was used to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modification to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature, Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for: (a) public business entities for reporting periods for which financial statements have not yert been issued, and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuances. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company in currently in the process of evaluating the impact of ASU 2017-09 on its consolidated financial statements, but does not expect the adoption of ASU 2017-09 to have material impact on it consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Basic and diluted: Net income $ 338,000 $ 308,000 $ 654,000 $ 591,000 Weighted average common shares outstanding 2,792,656 2,776,546 2,791,824 2,776,053 Basic and dilutive net income per share $ 0.12 $ 0.11 $ 0.23 $ 0.21 |
LOANS AND ASSET QUALITY (Tables
LOANS AND ASSET QUALITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans | At June 30, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 3,690 $ 49 $ - $ - $ 3,739 Commercial real estate 65,015 - - 640 65,655 Consumer and indirect 94,343 835 - 331 95,509 Residential real estate 102,816 1,699 57 2,556 107,128 $ 265,864 $ 2,583 $ 57 $ 3,527 $ 272,031 At December 31, 2016 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,679 $ - $ - $ - $ 4,679 Commercial real estate 68,775 - - 647 69,422 Consumer and indirect 82,134 992 - 456 83,582 Residential real estate 103,941 1,798 36 2,648 108,423 $ 259,529 $ 2,790 $ 36 $ 3,751 $ 266,106 |
Schedule of allowance for loan loss and the unearned income on loans | June 30, December 31, 2017 2016 (dollars in thousands) Troubled debt restructured loans $ 302 $ 312 Non-accrual and 90 days or more and still accruing loans to gross loans 1.32 % 1.43 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 72.52 % 65.59 % |
Schedule of impaired financing receivables | (dollars in thousands) June 30, 2017 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,385 1,414 - 451 1,426 Commercial - - - - - Consumer 182 182 2 65 231 Installment - - - - - Home Equity - - - - - Commercial 222 222 6 222 225 Total impaired loans with specific reserves $ 1,789 1,818 8 738 1,882 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,426 2,166 7 n/a 2,478 Commercial 1,367 1,519 17 n/a 1,558 Consumer 62 62 - n/a 101 Installment 87 87 - n/a 87 Home Equity - - - n/a - Commercial 2 2 - n/a 2 Total impaired loans with no specific reserve $ 2,944 3,836 24 - 4,226 (dollars in thousands) December 31, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,393 1,422 58 252 1,442 Commercial - - - - - Consumer 128 128 - 50 167 Installment - - - - - Home Equity - - - - - Commercial 229 229 8 228 235 Total impaired loans with specific reserves $ 1,750 1,779 66 530 1,844 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,479 2,219 21 n/a 2,463 Commercial 1,413 1,565 59 n/a 1,594 Consumer 182 182 - n/a 75 Installment 193 193 - n/a - Home Equity - - - n/a - Commercial - - - n/a - Total impaired loans with no specific reserve $ 3,267 4,159 80 - 4,132 |
Schedule of total allowance by loan segment | Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Provision for credit losses (27 ) 35 211 (45 ) (9 ) 165 Recoveries - - 177 27 - 204 Loans charged off - - (251 ) (3 ) - (254 ) Balance, end of quarter $ 257 $ 294 $ 1,013 $ 1,030 $ 5 $ 2,599 Individually evaluated for impairment: Balance in allowance $ 222 $ - $ 65 $ 451 $ - $ 738 Related loan balance 222 1,367 307 1,425 - 3,321 Collectively evaluated for impairment: Balance in allowance $ 35 $ 294 $ 948 $ 579 $ 5 $ 1,861 Related loan balance 3,517 64,288 95,202 105,703 - 268,710 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 305 $ 262 $ 804 $ 1,631 $ 148 $ 3,150 Provision for credit losses (30 ) 361 431 240 (134 ) 868 Recoveries 9 - 336 34 - 379 Loans charged off - (364 ) (695 ) (854 ) - (1,913 ) Balance, end of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Individually evaluated for impairment: Balance in allowance $ 229 $ - $ 50 $ 251 $ - $ 530 Related loan balance 229 1,413 503 2,872 - 5,017 Collectively evaluated for impairment: Balance in allowance $ 56 $ 259 $ 826 $ 799 $ 14 $ 1,954 Related loan balance 4,451 68,009 83,078 105,552 - 261,090 |
Schedule of non accrual loans | (Dollars in thousands) Commercial & Commercial Consumer & Residential Industrial Real Estate Indirect Real Estate Total December 31, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 Transfer into non-accrual - - 353 125 478 Transfer to REO - - - - - Loans paid down/payoffs - (7 ) (115 ) (214 ) (336 ) Loans brought to accrual status - - (112 ) - (112 ) Loans charged off - - (251 ) (3 ) (254 ) June 30, 2017 $ - $ 640 $ 331 $ 2,556 $ 3,527 December 31, 2015 $ - $ 300 $ 596 $ 2,883 3,779 Transfer into non-accrual - 840 969 1,461 3,270 Transfer to REO - (114 ) - (126 ) (240 ) Loans paid down/payoffs - (15 ) (414 ) (716 ) (1,145 ) Loans brought to accrual status - - (25 ) (135 ) (160 ) Loans charged off - (364 ) (670 ) (719 ) (1,753 ) June 30, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 |
Schedule of risk ratings of loans by categories of loans | Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,517 $ 63,837 $ 94,194 $ 104,164 $ 265,712 Special mention - 334 848 493 1,675 Substandard 222 1,484 407 2,471 4,584 Doubtful - - 60 - 60 Loss - - - - - $ 3,739 $ 65,655 $ 95,509 $ 107,128 $ 272,031 Non-accrual - 640 331 2,556 3,527 Troubled debt restructures 222 - 33 47 302 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 33 $ 47 $ 80 Non-performing TDRs accounts - - 1 1 2 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,357 $ 64,208 $ 82,943 $ 105,225 $ 256,733 Special mention 94 3,801 276 527 4,698 Substandard 228 1,413 327 2,493 4,461 Doubtful - - 36 178 214 Loss - - - - - $ 4,679 $ 69,422 $ 83,582 $ 108,423 $ 266,106 Non-accrual - 647 456 2,648 3,751 Troubled debt restructures 228 - 36 48 312 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 36 $ 48 $ 84 Non-performing TDRs accounts - - 1 1 2 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of changes in asset subject to fair value measurement by Level | Fair (dollars in thousands) Level 1 Level 2 Level 3 Value June 30, 2017 Recurring: Securities available for sale U.S. Treasury $ - $ 1,506 $ - $ 1,506 State and Municipal - 35,710 - 35,710 Mortgaged-backed - 53,413 - 53,413 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 4,733 4,733 OREO - 114 - 114 $ - $ 90,743 $ 4,763 $ 95,506 December 31, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 1,507 $ - $ 1,507 State and Municipal - 33,845 - 33,845 Mortgaged-backed - 59,255 - 59,255 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 2,891 2,891 OREO - 114 - 114 $ - $ 94,721 $ 2,921 $ 97,642 |
Schedule of estimated fair values of financial instruments | June 30, 2017 December 31, 2016 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 14,487 $ 14,487 $ 6,946 $ 6,946 Interest-bearing deposits 728 728 479 479 Federal funds sold 2,123 2,123 3,197 3,197 Investment securities 90,629 90,629 94,607 94,607 Investments in restricted stock 1,410 1,410 1,230 1,230 Ground rents 156 156 164 164 Loans, net 268,421 266,740 262,574 259,017 Cash Value of life insurance 9,428 9,428 9,328 9,328 Accrued interest receivable 1,092 1,092 1,134 1,134 Financial liabilities: Deposits 335,481 317,448 333,237 315,418 Long-term borrowings 10,000 10,165 10,000 10,257 Short-term borrowings 15,000 15,065 10,000 10,188 Dividends payable - - - - |
Schedule of fair value hierarchy of financial instruments | (dollars in thousands) Carrying Fair June 30, 2017 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 17,338 $ 17,338 $ 17,338 $ - $ - Loans receivable, net 268,421 266,740 - - 266,740 Cash value of life insurance 9,428 9,428 - 9,428 - Financial instruments - Liabilities Deposits 335,481 317,448 217,906 99,542 - Long-term debt 10,000 10,165 - 10,165 - Short-term debt 15,000 15,065 - 15,065 - |
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position | Securities available for sale: Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss U.S. Agency $ 500 $ 1 $ - $ - $ 500 $ 1 State and Municipal 7,461 178 1,398 45 8,859 223 Mortgage Backed 44,590 591 - - 44,590 591 $ 52,551 $ 770 $ 1,398 $ 45 $ 53,949 $ 815 |
EARNINGS PER SHARE - Basic earn
EARNINGS PER SHARE - Basic earnings per share of common stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic and diluted: | ||||
Net income | $ 338 | $ 308 | $ 654 | $ 591 |
Weighted average common shares outstanding (in shares) | 2,792,656 | 2,776,546 | 2,791,824 | 2,776,053 |
Basic and dilutive net income per share (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.23 | $ 0.21 |
LOANS AND ASSET QUALITY - Curre
LOANS AND ASSET QUALITY - Current, past due, and non-accrual loans by categories of loans and restructured loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | $ 265,864 | $ 259,529 | ||
90 Days or More and Still Accruing | 57 | 36 | ||
Non-accrual | 3,527 | 3,751 | $ 3,751 | $ 3,779 |
Total | 272,031 | 266,106 | ||
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | 2,583 | 2,790 | ||
Commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 3,690 | 4,679 | ||
90 Days or More and Still Accruing | ||||
Non-accrual | ||||
Total | 3,739 | 4,679 | ||
Commercial and industrial | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | 49 | |||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 65,015 | 68,775 | ||
90 Days or More and Still Accruing | ||||
Non-accrual | 640 | 647 | 647 | 300 |
Total | 65,655 | 69,422 | ||
Commercial real estate | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | ||||
Consumer and indirect | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 94,343 | 82,134 | ||
90 Days or More and Still Accruing | ||||
Non-accrual | 331 | 456 | ||
Total | 95,509 | 83,582 | ||
Consumer and indirect | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | 835 | 992 | ||
Residential real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 102,816 | 103,941 | ||
90 Days or More and Still Accruing | 57 | 36 | ||
Non-accrual | 2,556 | 2,648 | $ 2,648 | $ 2,883 |
Total | 107,128 | 108,423 | ||
Residential real estate | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | $ 1,699 | $ 1,798 |
LOANS AND ASSET QUALITY - Summa
LOANS AND ASSET QUALITY - Summary of Allowance for credit losses (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Troubled debt restructured loans | $ 302 | $ 312 |
Non-accrual and 90 days or more and still accruing loans to gross loans | 1.32% | 1.43% |
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans | 72.52% | 65.59% |
LOANS AND ASSET QUALITY - Sum22
LOANS AND ASSET QUALITY - Summary of recorded investment amount and related allowance for losses of impaired loans (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Impaired loans with specific reserves: | ||
Recorded Investment | $ 1,789 | $ 1,750 |
Unpaid Principal Balance | 1,818 | 1,779 |
Interest Income Recognized | 8 | 66 |
Specific Reserve | 738 | 530 |
Average Recorded Investment | 1,882 | 1,844 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 2,944 | 3,267 |
Unpaid Principal Balance | 3,836 | 4,159 |
Interest Income Recognized | 24 | 80 |
Average Recorded Investment | 4,226 | 4,132 |
Real-estate - mortgage | Residential | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 1,385 | 1,393 |
Unpaid Principal Balance | 1,414 | 1,422 |
Interest Income Recognized | 58 | |
Specific Reserve | 451 | 252 |
Average Recorded Investment | 1,426 | 1,442 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 1,426 | 1,479 |
Unpaid Principal Balance | 2,166 | 2,219 |
Interest Income Recognized | 7 | 21 |
Average Recorded Investment | 2,478 | 2,463 |
Real-estate - mortgage | Commercial | ||
Impaired loans with specific reserves: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Interest Income Recognized | ||
Specific Reserve | ||
Average Recorded Investment | ||
Impaired loans with no specific reserve: | ||
Recorded Investment | 1,367 | 1,413 |
Unpaid Principal Balance | 1,519 | 1,565 |
Interest Income Recognized | 17 | 59 |
Average Recorded Investment | 1,558 | 1,594 |
Consumer | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 182 | 128 |
Unpaid Principal Balance | 182 | 128 |
Interest Income Recognized | 2 | |
Specific Reserve | 65 | 50 |
Average Recorded Investment | 231 | 167 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 62 | 182 |
Unpaid Principal Balance | 62 | 182 |
Interest Income Recognized | ||
Average Recorded Investment | 101 | 75 |
Installment | ||
Impaired loans with specific reserves: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Interest Income Recognized | ||
Specific Reserve | ||
Average Recorded Investment | ||
Impaired loans with no specific reserve: | ||
Recorded Investment | 87 | 193 |
Unpaid Principal Balance | 87 | 193 |
Interest Income Recognized | ||
Average Recorded Investment | 87 | |
Home Equity | ||
Impaired loans with specific reserves: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Interest Income Recognized | ||
Specific Reserve | ||
Average Recorded Investment | ||
Impaired loans with no specific reserve: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Interest Income Recognized | ||
Average Recorded Investment | ||
Commercial | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 222 | 229 |
Unpaid Principal Balance | 222 | 229 |
Interest Income Recognized | 6 | 8 |
Specific Reserve | 222 | 228 |
Average Recorded Investment | 225 | 235 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 2 | |
Unpaid Principal Balance | 2 | |
Interest Income Recognized | ||
Average Recorded Investment | $ 2 |
LOANS AND ASSET QUALITY - Total
LOANS AND ASSET QUALITY - Total Allowance by Loan Segment (Details 3) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | $ 2,484 | $ 3,150 | $ 3,150 |
Provision for credit losses | 165 | 868 | |
Recoveries | 204 | 379 | |
Loans charged off | (254) | (1,753) | (1,913) |
Balance, end of year | 2,599 | 2,484 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 738 | 530 | |
Individually evaluated for impairment, Related loan balance | 3,321 | 5,017 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 1,861 | 1,954 | |
Collectively evaluated for impairment, Related loan balance | 268,710 | 261,090 | |
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 284 | 305 | 305 |
Provision for credit losses | (27) | (30) | |
Recoveries | 9 | ||
Loans charged off | |||
Balance, end of year | 257 | 284 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 222 | 229 | |
Individually evaluated for impairment, Related loan balance | 222 | 229 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 35 | 56 | |
Collectively evaluated for impairment, Related loan balance | 3,517 | 4,451 | |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 259 | 262 | 262 |
Provision for credit losses | 35 | 361 | |
Recoveries | |||
Loans charged off | (364) | (364) | |
Balance, end of year | 294 | 259 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | |||
Individually evaluated for impairment, Related loan balance | 1,367 | 1,413 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 294 | 259 | |
Collectively evaluated for impairment, Related loan balance | 64,288 | 68,009 | |
Consumer and Indirect | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 876 | 804 | 804 |
Provision for credit losses | 211 | 431 | |
Recoveries | 177 | 336 | |
Loans charged off | (251) | (670) | (695) |
Balance, end of year | 1,013 | 876 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 65 | 50 | |
Individually evaluated for impairment, Related loan balance | 307 | 503 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 948 | 826 | |
Collectively evaluated for impairment, Related loan balance | 95,202 | 83,078 | |
Residential real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 1,051 | 1,631 | 1,631 |
Provision for credit losses | (45) | 240 | |
Recoveries | 27 | 34 | |
Loans charged off | (3) | (719) | (854) |
Balance, end of year | 1,030 | 1,051 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 451 | 251 | |
Individually evaluated for impairment, Related loan balance | 1,425 | 2,872 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 579 | 799 | |
Collectively evaluated for impairment, Related loan balance | 105,703 | 105,552 | |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 14 | $ 148 | 148 |
Provision for credit losses | (9) | (134) | |
Recoveries | |||
Loans charged off | |||
Balance, end of year | 5 | 14 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | |||
Individually evaluated for impairment, Related loan balance | |||
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 5 | 14 | |
Collectively evaluated for impairment, Related loan balance |
LOANS AND ASSET QUALITY - Non-a
LOANS AND ASSET QUALITY - Non-accrual loans (Details 4) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | $ 3,751 | $ 3,779 | $ 3,779 |
Transfer into non-accrual | 478 | 3,270 | |
Transfer to REO | (240) | ||
Loans paid down/payoffs | (336) | (1,145) | |
Loans brought to accrual status | (112) | (160) | |
Loans charged off | (254) | (1,753) | (1,913) |
Balance | 3,527 | 3,751 | 3,751 |
Commercial and industrial | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | |||
Transfer into non-accrual | |||
Transfer to REO | |||
Loans paid down/payoffs | |||
Loans brought to accrual status | |||
Loans charged off | |||
Balance | |||
Commercial real estate | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | 647 | 300 | 300 |
Transfer into non-accrual | 840 | ||
Transfer to REO | (114) | ||
Loans paid down/payoffs | (7) | (15) | |
Loans brought to accrual status | |||
Loans charged off | (364) | (364) | |
Balance | 640 | 647 | 647 |
Consumer and Indirect | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | 456 | 596 | 596 |
Transfer into non-accrual | 353 | 969 | |
Transfer to REO | |||
Loans paid down/payoffs | (115) | (414) | |
Loans brought to accrual status | (112) | (25) | |
Loans charged off | (251) | (670) | (695) |
Balance | 331 | 456 | 456 |
Residential real estate | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | 2,648 | 2,883 | 2,883 |
Transfer into non-accrual | 125 | 1,461 | |
Transfer to REO | (126) | ||
Loans paid down/payoffs | (214) | (716) | |
Loans brought to accrual status | (135) | ||
Loans charged off | (3) | (719) | (854) |
Balance | $ 2,556 | $ 2,648 | $ 2,648 |
LOANS AND ASSET QUALITY - Risk
LOANS AND ASSET QUALITY - Risk ratings of loans by categories of loans (Details 5) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)AccountLoans | Dec. 31, 2016USD ($)AccountLoans | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 272,031 | $ 266,106 | ||
Non-accrual | 3,527 | 3,751 | $ 3,751 | $ 3,779 |
Troubled debt restructures | $ 302 | $ 312 | ||
Number of TDRs accounts | Account | 3 | 3 | ||
Non-performing TDRs | Loans | 80 | 84 | ||
Non-performing TDRs accounts | Account | 2 | 2 | ||
Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 265,712 | $ 256,733 | ||
Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 1,675 | 4,698 | ||
Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 4,584 | 4,461 | ||
Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 60 | 214 | ||
Loss | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | ||||
Commercial and industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 3,739 | 4,679 | ||
Non-accrual | ||||
Troubled debt restructures | $ 222 | $ 228 | ||
Number of TDRs accounts | Account | 1 | 1 | ||
Non-performing TDRs | Loans | ||||
Non-performing TDRs accounts | Account | ||||
Commercial and industrial | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 3,517 | $ 4,357 | ||
Commercial and industrial | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 94 | |||
Commercial and industrial | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 222 | 228 | ||
Commercial and industrial | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | ||||
Commercial and industrial | Loss | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | ||||
Commercial real estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 65,655 | 69,422 | ||
Non-accrual | 640 | 647 | 647 | 300 |
Troubled debt restructures | ||||
Number of TDRs accounts | Account | ||||
Non-performing TDRs | Loans | ||||
Non-performing TDRs accounts | Account | ||||
Commercial real estate | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 63,837 | $ 64,208 | ||
Commercial real estate | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 334 | 3,801 | ||
Commercial real estate | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 1,484 | 1,413 | ||
Commercial real estate | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | ||||
Commercial real estate | Loss | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | ||||
Consumer and indirect | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 95,509 | 83,582 | ||
Non-accrual | 331 | 456 | ||
Troubled debt restructures | $ 33 | $ 36 | ||
Number of TDRs accounts | Account | 1 | 1 | ||
Non-performing TDRs | Loans | 33 | 36 | ||
Non-performing TDRs accounts | Account | 1 | 1 | ||
Consumer and indirect | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 94,194 | $ 82,943 | ||
Consumer and indirect | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 848 | 276 | ||
Consumer and indirect | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 407 | 327 | ||
Consumer and indirect | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 60 | 36 | ||
Consumer and indirect | Loss | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | ||||
Residential real estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 107,128 | 108,423 | ||
Non-accrual | 2,556 | 2,648 | $ 2,648 | $ 2,883 |
Troubled debt restructures | $ 47 | $ 48 | ||
Number of TDRs accounts | Account | 1 | 1 | ||
Non-performing TDRs | Loans | 47 | 48 | ||
Non-performing TDRs accounts | Account | 1 | 1 | ||
Residential real estate | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 104,164 | $ 105,225 | ||
Residential real estate | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 493 | 527 | ||
Residential real estate | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 2,471 | 2,493 | ||
Residential real estate | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 178 | |||
Residential real estate | Loss | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total |
LOANS AND ASSET QUALITY (Detail
LOANS AND ASSET QUALITY (Detail Textuals) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)Account | Dec. 31, 2016USD ($)Account | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Less: Allowance for loan losses | $ 2,599,000 | $ 2,484,000 |
Unearned income | $ 1,012,000 | $ 1,048,000 |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Account | 3 | 3 |
Troubled debt restructures | $ 302,000 | $ 312,000 |
Loans outstanding included in current and 30 - 89 days past due | 1,112,000 | |
Recorded Investment | 2,944,000 | 3,267,000 |
Specific Reserve | 738,000 | 530,000 |
Recorded Investment | 1,789,000 | 1,750,000 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | 222,000 | |
Recorded Investment | 2,000 | |
Specific Reserve | 222,000 | 228,000 |
Recorded Investment | 222,000 | 229,000 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 62,000 | 182,000 |
Specific Reserve | 65,000 | 50,000 |
Recorded Investment | $ 182,000 | $ 128,000 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Account | ||
Troubled debt restructures | ||
Loans outstanding included in current and 30 - 89 days past due | 726,000 | |
Specific Reserve | $ 222,000 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Account | 1 | 1 |
Troubled debt restructures | $ 222,000 | $ 228,000 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Account | 1 | 1 |
Troubled debt restructures | $ 47,000 | $ 48,000 |
Specific Reserve | $ 451,000 | |
Consumer and indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Account | 1 | 1 |
Troubled debt restructures | $ 33,000 | $ 36,000 |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | 164,000 | |
Recorded Investment | ||
Specific Reserve | ||
Recorded Investment | ||
Real-estate - mortgage | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,426,000 | 1,479,000 |
Specific Reserve | 451,000 | 252,000 |
Recorded Investment | 1,385,000 | 1,393,000 |
Real-estate - mortgage | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,367,000 | 1,413,000 |
Specific Reserve | ||
Recorded Investment |
FAIR VALUE - Changes in the ass
FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 90,629 | $ 94,607 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | ||
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 90,743 | 94,721 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 4,763 | 2,921 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 95,506 | 97,642 |
Recurring | U.S. Treasury | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring | U.S. Treasury | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,506 | 1,507 |
Recurring | U.S. Treasury | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring | U.S. Treasury | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,506 | 1,507 |
Recurring | State and Municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring | State and Municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,710 | 33,845 |
Recurring | State and Municipal | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring | State and Municipal | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,710 | 33,845 |
Recurring | Mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring | Mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 53,413 | 59,255 |
Recurring | Mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring | Mortgage-backed | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 53,413 | 59,255 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | ||
Impaired loans | ||
OREO | ||
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | ||
Impaired loans | ||
OREO | 114 | 114 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | 30 | 30 |
Impaired loans | 4,733 | 2,891 |
OREO | ||
Nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | 30 | 30 |
Impaired loans | 4,733 | 2,891 |
OREO | $ 114 | $ 114 |
FAIR VALUE - Estimated fair val
FAIR VALUE - Estimated fair values of the Company's financial instruments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets - Carrying Amount | ||
Cash and due from banks | $ 14,487 | $ 6,946 |
Interest-bearing deposits | 728 | 479 |
Federal funds sold | 2,123 | 3,197 |
Investment securities | 90,629 | 94,607 |
Investments in restricted stock | 1,410 | 1,230 |
Ground rents | 156 | 164 |
Loans, net | 268,421 | 262,574 |
Cash value of life insurance | 9,428 | 9,328 |
Accrued interest receivable | 1,092 | 1,134 |
Financial liabilities - Carrying Amount | ||
Deposits | 335,481 | 333,237 |
Long-termborrowings | 10,000 | 10,000 |
Short-term borrowings | 15,000 | 10,000 |
Dividends payable | ||
Financial assets - Fair Value | ||
Cash and due from banks | 14,487 | 6,946 |
Interest-bearing deposits | 728 | 479 |
Federal funds sold | 2,123 | 3,197 |
Investment securities | 90,629 | 94,607 |
Investments in restricted stock | 1,410 | 1,230 |
Ground rents | 156 | 164 |
Loans, net | 266,740 | 259,017 |
Cash value of life insurance | 9,428 | 9,328 |
Accrued interest receivable | 1,092 | 1,134 |
Financial liabilities - Fair Value | ||
Deposits | 317,448 | 315,418 |
Long-term borrowings | 10,165 | 10,257 |
Short-term borrowings | 15,065 | 10,188 |
Dividends payable |
FAIR VALUE - Fair value hierarc
FAIR VALUE - Fair value hierarchy of financial instruments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | $ 17,338 | $ 10,622 | $ 20,503 | $ 12,371 |
Loans receivable, net | 268,421 | 262,574 | ||
Cash value of life insurance | 9,428 | |||
Financial liabilities - Carrying Amount | ||||
Deposits | 335,481 | 333,237 | ||
Long-term debt | 10,000 | 10,000 | ||
Short-term debt | 15,000 | 10,000 | ||
Financial assets - Fair Value | ||||
Loans receivable, net | 266,740 | 259,017 | ||
Financial liabilities - Fair Value | ||||
Deposits | 317,448 | 315,418 | ||
Long-term debt | 10,165 | 10,257 | ||
Short-term debt | 15,065 | $ 10,188 | ||
Fair Value | ||||
Financial assets - Fair Value | ||||
Cash and cash equivalents | 17,338 | |||
Loans receivable, net | 266,740 | |||
Cash value of life insurance | 9,428 | |||
Financial liabilities - Fair Value | ||||
Deposits | 317,448 | |||
Long-term debt | 10,165 | |||
Short-term debt | 15,065 | |||
Level 1 | Fair Value | ||||
Financial assets - Fair Value | ||||
Cash and cash equivalents | 17,338 | |||
Loans receivable, net | ||||
Cash value of life insurance | ||||
Financial liabilities - Fair Value | ||||
Deposits | 217,906 | |||
Long-term debt | ||||
Short-term debt | ||||
Level 2 | Fair Value | ||||
Financial assets - Fair Value | ||||
Cash and cash equivalents | ||||
Loans receivable, net | ||||
Cash value of life insurance | 9,428 | |||
Financial liabilities - Fair Value | ||||
Deposits | 99,542 | |||
Long-term debt | 10,165 | |||
Short-term debt | 15,065 | |||
Level 3 | Fair Value | ||||
Financial assets - Fair Value | ||||
Cash and cash equivalents | ||||
Loans receivable, net | 266,740 | |||
Cash value of life insurance | ||||
Financial liabilities - Fair Value | ||||
Deposits | ||||
Long-term debt | ||||
Short-term debt |
FAIR VALUE - Gross unrealized l
FAIR VALUE - Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (Details 3) $ in Thousands | Jun. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | $ 52,551 |
Less than 12 months Unrealized Loss | 770 |
12 months or more Fair Value | 1,398 |
12 months or more Unrealized Loss | 45 |
Total Fair Value | 53,949 |
Total Unrealized Loss | 815 |
U.S. Agency | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | 500 |
Less than 12 months Unrealized Loss | 1 |
12 months or more Fair Value | |
12 months or more Unrealized Loss | |
Total Fair Value | 500 |
Total Unrealized Loss | 1 |
State and Municipal | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | 7,461 |
Less than 12 months Unrealized Loss | 178 |
12 months or more Fair Value | 1,398 |
12 months or more Unrealized Loss | 45 |
Total Fair Value | 8,859 |
Total Unrealized Loss | 223 |
Mortgage Backed | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | 44,590 |
Less than 12 months Unrealized Loss | 591 |
12 months or more Fair Value | |
12 months or more Unrealized Loss | |
Total Fair Value | 44,590 |
Total Unrealized Loss | $ 591 |
FAIR VALUE (Detail Textuals)
FAIR VALUE (Detail Textuals) | 6 Months Ended | |
Jun. 30, 2017USD ($)LoansSecurity | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of impaired loans classified as nonaccrual loans | Loans | 28 | |
Loans deemed to be impaired | $ 4,700,000 | |
Specific reserve amount | 738,000 | $ 530,000 |
Impaired real estate loans | $ 2,800,000 | |
Number of investment security in continuous unrealized loss position for more than 12 months | Security | 4 | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of discount rate | 0.00% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of discount rate | 16.00% | |
Consumer and indirect | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired loans includes nonaccrual, past due 90 days or more and still accruing | $ 155,000 | |
Remaining impaired loan | 1,920,000 | |
Specific reserve amount | $ 288,000 |