Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GLEN BURNIE BANCORP | |
Entity Central Index Key | 890,066 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock Shares Outstanding | 2,801,149 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 4,371 | $ 3,195 |
Interest-bearing deposits in other financial institutions | 7,126 | 7,427 |
Cash and cash equivalents | 11,497 | 10,622 |
Investment securities available for sale, at fair value | 89,903 | 94,607 |
Restricted equity securities, at cost | 1,228 | 1,230 |
Loans, net of deferred fees and costs | 271,463 | 265,058 |
Less: Allowance for loan losses | (2,623) | (2,484) |
Loans, net | 268,840 | 262,574 |
Real estate acquired through foreclosure | 114 | 114 |
Premises and equipment, at cost, less accumulated depreciation | 3,451 | 3,638 |
Bank owned life insurance | 9,479 | 9,328 |
Deferred tax assets, net | 2,847 | 3,160 |
Accrued interest receivable | 1,140 | 1,134 |
Accrued taxes receivable | 638 | 674 |
Prepaid expenses | 512 | 546 |
Other assets | 235 | 814 |
Total Assets | 389,884 | 388,441 |
LIABILITIES | ||
Noninterest-bearing | 104,571 | 100,099 |
Interest-bearing | 229,534 | 233,147 |
Total Deposits | 334,105 | 333,246 |
Short-term borrowings | 20,000 | 10,000 |
Long-term borrowings | 10,000 | |
Defined pension liability | 328 | 369 |
Accrued interest payable on deposits | 815 | 1,011 |
Total liabilities | 355,248 | 354,626 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,797,477 and 2,786,855 shares as of September 30, 2017 and December 31, 2016 , respectively. | 2,797 | 2,787 |
Additional paid-in capital | 10,233 | 10,130 |
Retained earnings | 21,935 | 21,708 |
Accumulated other comprehensive loss, net of taxes | (329) | (810) |
Total Stockholders' Equity | 34,636 | 33,815 |
Total Liabilities and Stockholders' Equity | $ 389,884 | $ 388,441 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 2,797,477 | 2,786,855 |
Common stock, shares outstanding | 2,797,477 | 2,786,855 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME | ||||
Loans, including fees | $ 2,883 | $ 2,795 | $ 8,503 | $ 8,380 |
Interest and dividends on securities | 498 | 492 | 1,523 | 1,467 |
Federal funds sold | 53 | 31 | 115 | 91 |
Total interest income | 3,434 | 3,318 | 10,141 | 9,938 |
INTEREST EXPENSE | ||||
Deposits | 324 | 364 | 984 | 1,133 |
Short-term borrowings | 142 | 309 | ||
Long-term borrowings | 33 | 162 | 185 | 481 |
Total interest expense | 499 | 526 | 1,478 | 1,614 |
Net interest income | 2,935 | 2,792 | 8,663 | 8,324 |
Provision for credit losses | 78 | 116 | 243 | 233 |
Net interest income after provision for credit losses | 2,857 | 2,676 | 8,420 | 8,091 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 72 | 83 | 208 | 247 |
Other fees and commissions | 245 | 191 | 573 | 521 |
Gains on investment securities, net | 1 | 1 | ||
Income on life insurance | 51 | 54 | 151 | 161 |
Other income | 12 | 2 | 12 | |
Total other income | 368 | 340 | 935 | 942 |
NONINTEREST EXPENSE | ||||
Salaries and wages | 1,579 | 1,743 | 4,615 | 4,782 |
Legal, accounting and other professional fees | 180 | 173 | 648 | 595 |
Data processing and item processing services | 130 | 184 | 442 | 519 |
FDIC insurance costs | 64 | 79 | 188 | 232 |
Advertising and marketing related expenses | 38 | 12 | 110 | 49 |
Loan collection costs | 25 | 37 | 73 | 158 |
Telephone costs | 98 | 50 | 212 | 145 |
Occupancy | 382 | 272 | 865 | 801 |
Other expenses | 217 | 406 | 944 | 1,023 |
Total other expenses | 2,713 | 2,956 | 8,097 | 8,304 |
Income before income taxes | 512 | 60 | 1,258 | 729 |
Income tax expense/benefit | 101 | (55) | 194 | 23 |
NET INCOME | $ 411 | $ 115 | $ 1,064 | $ 706 |
Basic and diluted earnings per share of common stock (in dollars per share) | $ 0.15 | $ 0.04 | $ 0.38 | $ 0.25 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income | $ 411 | $ 115 | $ 1,064 | $ 706 |
Net unrealized gains on securities available for sale: | ||||
Net unrealized (loss) gain on securities during the period | (67) | (304) | 482 | 793 |
Reclassification adjustment for gain on sales of securities included in net income | (1) | (1) | ||
Total other comprehensive (loss) income | (67) | (304) | 481 | 792 |
Comprehensive income (loss) | $ 344 | $ (189) | $ 1,545 | $ 1,498 |
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 | $ 2,773 | $ 9,986 | $ 21,718 | $ (301) | $ 34,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 706 | 706 | |||
Cash dividends, $.30 per share | (833) | (833) | |||
Dividends reinvested under dividend reinvestment plan | 10 | 111 | 121 | ||
Other comprehensive income, net of tax | 791 | 791 | |||
Balances at Sep. 30, 2016 | 2,783 | 10,097 | 21,591 | 490 | 34,961 |
Balances at Dec. 31, 2016 | 2,787 | 10,130 | 21,708 | (810) | 33,815 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,064 | 1,064 | |||
Cash dividends, $.30 per share | (837) | (837) | |||
Dividends reinvested under dividend reinvestment plan | 10 | 103 | 113 | ||
Other comprehensive income, net of tax | 481 | 481 | |||
Balances at Sep. 30, 2017 | $ 2,797 | $ 10,233 | $ 21,935 | $ (329) | $ 34,636 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parentheticals) | 12 Months Ended |
Dec. 31, 2016$ / shares | |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | |
Cash dividends, per share | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 1,064 | $ 706 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation, amortization, and accretion | 793 | 902 |
Provision for credit losses | 243 | 233 |
Gains on disposals of assets, net | (1) | (2) |
Provision on losses of other real estate owned | 36 | |
Income on investment in life insurance | (151) | (161) |
Changes in assets and liabilities: | ||
Decrease in ground rents | 7 | |
(Increase) decrease in accrued interest receivable | (6) | 21 |
Decrease in other assets | 955 | 82 |
(Decrease) increase in accrued interest payable | 74 | (5) |
Increase (decrease) in other liabilities | (311) | 313 |
Net cash provided by operating activities | 2,667 | 2,125 |
Cash flows from investing activities: | ||
Maturities and principal paydowns of available for sale mortgage-backed securities | 9,603 | 13,524 |
Proceeds from sales of available for sale debt securities | 3,010 | 3,767 |
Purchases of available for sale mortgage-backed securities | (8,187) | |
Purchases of other available for sale investment securities | (7,868) | (8,150) |
Sale of FHLB stock | 2 | 3 |
(Increase) decrease in loans, net | (6,509) | 1,498 |
Proceeds from sales of other real estate | 166 | |
Purchases of premises and equipment | (165) | (207) |
Net cash provided (used) by investing activities | (1,927) | 2,414 |
Cash flows from financing activities: | ||
Increase in noninterest-bearing deposits, NOW accounts, money market accounts, and savings accounts, net | 8,022 | 9,396 |
(Decrease) increase in time deposits, net | (7,163) | (8,918) |
Increase in short term borrowings | 10,000 | |
Decrease in long term borrowings | (10,000) | |
Cash dividends paid | (837) | (833) |
Common stock dividends reinvested | 113 | 121 |
Net cash (used) provided by financing activities | 135 | (234) |
Increase in cash and cash equivalents | 875 | 4,305 |
Cash and cash equivalents, beginning of year | 10,622 | 12,371 |
Cash and cash equivalents, end of year | 11,497 | 16,676 |
Supplementary cash flow information: | ||
Interest paid on deposits and borrowings | 499 | 526 |
Income Taxes Paid | $ 73 | $ 80 |
ORGANIZATIONAL
ORGANIZATIONAL | 9 Months Ended |
Sep. 30, 2017 | |
ORGANIZATIONAL | |
ORGANIZATIONAL. | NOTE 1 – ORGANIZATIONAL Nature of Business. Glen Burnie Bancorp is a bank holding company organized in 1990 under the laws of the State of Maryland. Glen Burnie Bancorp owns all the outstanding shares of capital stock of The Bank of Glen Burnie, a commercial bank organized in 1949 under the laws of the State of Maryland, serving northern Anne Arundel County and surrounding areas from its main office and branch in Glen Burnie, Maryland, and branch offices in Odenton, Riviera Beach, Crownsville, Severn (two locations), Linthicum and Severna Park, Maryland. The Bank is engaged in the commercial and retail banking business as authorized by the banking statues of the State of Maryland, including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. Commercial lending consists of both secured and unsecured loans. The Bank also originates automobile loans through arrangements with local automobile dealers. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION The consolidated financial statements include the accounts of Glen Burnie Bancorp and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at September 30, 2017 and December 31, 2016, the results of operations for the three- and nine-month periods ended September 30, 2017 and 2016, and the statements of cash flows for the nine-month periods ended September 30, 2017 and 2016. The operating results of the three-month and nine-month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017 or any future interim period. The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 29, 2017. The unaudited consolidated financial statements for September 30, 2017 and 2016, the condensed consolidated balance sheet at December 31, 2016, and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Reclassifications Certain items in the unaudited 2016 consolidated financial statements have been reclassified to conform to the 2017 classifications. The reclassifications had no effect on previously reported results of operations or retained earnings. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses (the “allowance”); the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and real estate acquired through foreclosure; and the estimate of expected cash flows for loans acquired with deteriorated credit quality. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE | |
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. Diluted earnings per share calculations were not required for the three- and nine-month periods ended September 30, 2017 and 2016, since there were no options outstanding. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic: Net income $ 411,000 $ 115,000 $ 1,064,000 $ 706,000 Weighted average common shares outstanding 2,796,099 2,782,923 2,792,544 2,781,371 Basic net income per share $ 0.15 $ 0.04 $ 0.38 $ 0.25 |
LOANS AND ASSET QUALITY
LOANS AND ASSET QUALITY | 9 Months Ended |
Sep. 30, 2017 | |
LOANS AND ASSET QUALITY | |
LOANS AND ASSET QUALITY | NOTE 4 – LOANS AND ASSET QUALITY Asset Quality . The following tables set forth the amount of the Bank’s current, past due, and non-accrual loans by categories of loans and restructured loans, at the dates indicated. At September 30, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 3,989 $ 8 $ — $ 48 $ 4,045 Commercial real estate 68,267 — — 499 68,766 Consumer and indirect 94,578 1,085 — 385 96,048 Residential real estate 100,256 326 71 2,934 103,587 $ 267,090 $ 1,419 $ 71 $ 3,866 $ 272,446 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 September 30, 2017, the allowance for loan loss is $2.6 million and the unearned income is $983,000. For the period ending December 31, 2016, the allowance for loan loss is $2,484,000 and the unearned income is $1,048,000. September 30, December 31, 2017 2016 (dollars in thousands) Troubled debt restructured loans $ 299 $ 312 Non-accrual and 90 days or more and still accruing loans to gross loans 1.46 % 1.43 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 66.10 % 65.59 % At September 30, 2017 there were three troubled debt restructured loans consisting of a commercial loan of $219,500, a residential real estate loan of $46,692 and a consumer loan of $32,696. The consumer and residential real estate loans are both on nonaccrual. At September 30, 2017, there was $1,088,970 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 $1,088,0970 are as follows: $706,974 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; $162,496 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 $219,500 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $219,500. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at September 30, 2017 are comprised of: Consumer loans – Three loans to three borrowers in the amount of $174,589 with a specific reserve of $57,797 established for the loans. Residential Real Estate – Two loans to two borrowers in the amount of $1,344,654, secured by residential property with a specific reserve of $532,378 established for the loans. Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at September 30, 2017 and December 31, 2016. (dollars in thousands) Average Recorded Principal Income Specific Recorded September 30, 2017 Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,345 $ 1,374 $ — $ 532 $ 1,364 Commercial — — — — — Consumer 175 175 4 58 230 Installment — — — — — Home Equity — — — — — Commercial 219 219 8 220 224 Total impaired loans with specific reserves $ 1,739 $ 1,768 $ 12 $ 810 $ 1,818 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,203 $ 2,011 $ 13 n/a $ 2,377 Commercial 1,312 1,312 29 n/a 1,244 Consumer 108 108 — n/a 104 Installment 146 146 — n/a 130 Home Equity — — — n/a — Commercial 529 529 — n/a 531 Total impaired loans with no specific reserve $ 3,298 $ 4,106 $ 42 — $ 4,386 (dollars in thousands) Unpaid Interest Average Recorded Principal Income Specific Recorded December 31, 2016 Investment Balance Recognized Reserve Investment 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 September 2017 and December 2016 showing the provision for each group of loans. Commercial Consumer September 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 (37) 4 246 44 (14) 243 Recoveries — 14 212 27 — 253 Loans charged off — — (354) (3) — (357) Balance, end of year $ 247 $ 277 $ 980 $ 1,119 $ — $ 2,623 Individually evaluated for impairment: Balance in allowance $ 220 $ — $ 58 $ 532 $ — $ 810 Related loan balance 220 — 175 1,345 — 1,740 Collectively evaluated for impairment: Balance in allowance $ 27 $ 277 $ 922 $ 587 $ — $ 1,813 Related loan balance 3,824 68,766 95,873 102,242 — 270,705 Commercial Consumer December 31, 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 $ 252 $ — $ 531 Related loan balance 229 1,413 503 2,872 — 5,017 Collectively evaluated for impairment: Balance in allowance $ 56 $ 259 $ 826 $ 799 $ 13 $ 1,953 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 September 30, 2017 and September 30, 2016. Commercial Consumer and Commercial and Residential Industrial Real Estate Indirect Real Estate Totals December 31, 2016 Balance — 647 456 2,648 3,751 Transfers into non-accrual 48 — 586 605 1,239 Transfers to OREO — — — — — Loans paid down/payoffs — (16) (144) (316) (476) Loans returned to accrual status — (132) (159) — (291) Loans charged off — — (354) (3) (357) September 30, 2017 48 499 385 2,934 3,866 December 31, 2015 — 300 831 2,575 3,706 Transfers into non-accrual — 325 759 103 1,187 Transfers to OREO — — — — — Loans paid down/payoffs — (10) (482) (354) (846) Loans returned to accrual status — — (177) (135) (312) Loans charged off — — (524) (854) (1,378) September 30, 2016 — 615 407 1,335 2,357 Credit Quality Information The following tables represent credit exposures by creditworthiness category for the quarter ending September 30, 2017 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: September 30, 2017 Commercial Consumer and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,825 $ 67,124 $ 94,619 $ 100,210 $ 265,778 Special mention — 437 834 479 1,750 Substandard 219 1,122 514 2,898 4,753 Doubtful — 83 82 — 165 Loss — — — — — $ 4,044 $ 68,766 $ 96,049 $ 103,587 $ 272,446 Non-accrual 48 499 385 2,934 3,866 Troubled debt restructures 219 — 33 47 299 Number of TDRs accounts 1 — 1 1 3 Non-performing TDRs — — 33 47 80 Number of non-performing TDR accounts — — 1 1 2 December 31, 2016 Commercial Consumer 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 Number of non-performing TDR accounts — — 1 1 2 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE. | |
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 September 30, 2017, these assets include 29 loans, excluding $226,000 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 ($5.0 million of loans with $810,000 of specific reserves as of September 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 ($3.8 million of the total impaired loans as of September 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 ($1.2 million with $292,000 of specific reserves as of September 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 September 30, 2017 Recurring: Securities available for sale U.S. Treasury $ — $ 1,504 $ — $ 1,504 Agency — 1,992 — 1,992 State and Municipal — 36,835 — 36,835 Mortgaged-backed — 49,572 — 49,572 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 4,227 4,227 OREO — 114 — 114 $ — $ 90,017 $ 4,257 $ 94,274 December 31, 2016 Recurring: Securities available for sale U.S. Treasury $ — $ 1,507 $ — $ 1,507 Agency — — — — 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 September 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. September 30, 2017 December 31, 2016 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 4,371 $ 4,371 $ 3,195 $ 3,195 Interest-bearing deposits in other financial institutions 7,117 7,117 4,230 4,230 Federal funds sold 9 9 3,197 3,197 Investment securities available for sale 89,903 89,903 94,607 94,607 Investments in restricted stock 30 30 1,230 1,230 Ground rents 156 156 164 164 Loans, less allowance for credit losses 268,840 266,254 262,574 259,017 Accrued interest receivable 1,140 1,140 1,134 1,134 Cash value of life insurance 9,479 9,479 9,328 9,328 Financial liabilities: Deposits 334,105 316,619 333,246 315,418 Long-term borrowings — — 10,000 10,257 Short-term borrowings 20,000 20,917 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 September 30, 2017 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 11,497 $ 11,497 $ 11,497 — $ — Loans receivable, net 268,840 266,254 — — 266,254 Cash value of life insurance 9,479 9,479 — 9,479 — Financial instruments - Liabilities Deposits 334,105 316,619 219,478 97,141 — Long-term debt — — — — — Short-term debt 20,000 20,917 — 20,917 — 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 September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) U.S. Treasury $ 499 $ 1 $ — $ — $ 499 $ 1 Agency 1,992 7 848 12 2,840 19 State and Municipal 5,133 62 4,862 167 9,995 229 Mortgage Backed 33,466 422 9,446 232 42,912 654 $ 41,090 $ 492 $ 15,156 $ 411 $ 56,246 $ 903 December 31, 2016 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) U.S. Treasury $ — $ — $ — $ — $ — $ — Agency — — 986 16 986 16 State and Municipal 19,200 580 — — 19,200 580 Mortgage Backed 43,094 575 9,603 277 52,697 852 $ 62,294 $ 1,155 $ 10,589 $ 293 $ 72,883 $ 1,448 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 September 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 September 30, 2017, the Bank held 30 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 September 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 | 9 Months Ended |
Sep. 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 2016‑1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016‑1 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. 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.” ASU 2016‑05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016‑05 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. 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.” The effective date and transition of ASU 2016‑08 is the same as the effective date and transition of ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) , as discussed above. The Company is currently evaluating the potential impact of ASU 2016‑08 on our financial statements. 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” related to (i) identifying performance obligations; and (ii) the licensing implementation guidance. The effective date and transition of ASU 2016‑10 is the same as the effective date and transition of ASU 2014‑09, “Revenue from Contracts with Customers (Topic 606),” as discussed above. The Company is currently evaluating the potential impact of ASU 2016‑10 on our financial statements. 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. ASU 2017‑09, “Compensation-Stock Compensation (Topic 718): Scope of Modification”. ASU 2017‑09 was issued 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 modifications 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 a 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 yet been issued, and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuance. ASU 2017‑09 should be applied prospectively to an award modified on or after the adoption date. The Company is 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) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain items in the unaudited 2016 consolidated financial statements have been reclassified to conform to the 2017 classifications. The reclassifications had no effect on previously reported results of operations or retained earnings. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses (the “allowance”); the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and real estate acquired through foreclosure; and the estimate of expected cash flows for loans acquired with deteriorated credit quality. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE | |
Schedule of earnings per common share | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic: Net income $ 411,000 $ 115,000 $ 1,064,000 $ 706,000 Weighted average common shares outstanding 2,796,099 2,782,923 2,792,544 2,781,371 Basic net income per share $ 0.15 $ 0.04 $ 0.38 $ 0.25 |
LOANS AND ASSET QUALITY (Tables
LOANS AND ASSET QUALITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
LOANS AND ASSET QUALITY | |
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans | At September 30, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 3,989 $ 8 $ — $ 48 $ 4,045 Commercial real estate 68,267 — — 499 68,766 Consumer and indirect 94,578 1,085 — 385 96,048 Residential real estate 100,256 326 71 2,934 103,587 $ 267,090 $ 1,419 $ 71 $ 3,866 $ 272,446 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 | September 30, December 31, 2017 2016 (dollars in thousands) Troubled debt restructured loans $ 299 $ 312 Non-accrual and 90 days or more and still accruing loans to gross loans 1.46 % 1.43 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 66.10 % 65.59 % |
Schedule of impaired financing receivables | (dollars in thousands) Average Recorded Principal Income Specific Recorded September 30, 2017 Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,345 $ 1,374 $ — $ 532 $ 1,364 Commercial — — — — — Consumer 175 175 4 58 230 Installment — — — — — Home Equity — — — — — Commercial 219 219 8 220 224 Total impaired loans with specific reserves $ 1,739 $ 1,768 $ 12 $ 810 $ 1,818 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,203 $ 2,011 $ 13 n/a $ 2,377 Commercial 1,312 1,312 29 n/a 1,244 Consumer 108 108 — n/a 104 Installment 146 146 — n/a 130 Home Equity — — — n/a — Commercial 529 529 — n/a 531 Total impaired loans with no specific reserve $ 3,298 $ 4,106 $ 42 — $ 4,386 (dollars in thousands) Unpaid Interest Average Recorded Principal Income Specific Recorded December 31, 2016 Investment Balance Recognized Reserve Investment 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 September 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 (37) 4 246 44 (14) 243 Recoveries — 14 212 27 — 253 Loans charged off — — (354) (3) — (357) Balance, end of year $ 247 $ 277 $ 980 $ 1,119 $ — $ 2,623 Individually evaluated for impairment: Balance in allowance $ 220 $ — $ 58 $ 532 $ — $ 810 Related loan balance 220 — 175 1,345 — 1,740 Collectively evaluated for impairment: Balance in allowance $ 27 $ 277 $ 922 $ 587 $ — $ 1,813 Related loan balance 3,824 68,766 95,873 102,242 — 270,705 Commercial Consumer December 31, 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 $ 252 $ — $ 531 Related loan balance 229 1,413 503 2,872 — 5,017 Collectively evaluated for impairment: Balance in allowance $ 56 $ 259 $ 826 $ 799 $ 13 $ 1,953 Related loan balance 4,451 68,009 83,078 105,552 — 261,090 |
Schedule of non accrual loans | Commercial Consumer and Commercial and Residential Industrial Real Estate Indirect Real Estate Totals December 31, 2016 Balance — 647 456 2,648 3,751 Transfers into non-accrual 48 — 586 605 1,239 Transfers to OREO — — — — — Loans paid down/payoffs — (16) (144) (316) (476) Loans returned to accrual status — (132) (159) — (291) Loans charged off — — (354) (3) (357) September 30, 2017 48 499 385 2,934 3,866 December 31, 2015 — 300 831 2,575 3,706 Transfers into non-accrual — 325 759 103 1,187 Transfers to OREO — — — — — Loans paid down/payoffs — (10) (482) (354) (846) Loans returned to accrual status — — (177) (135) (312) Loans charged off — — (524) (854) (1,378) September 30, 2016 — 615 407 1,335 2,357 |
Schedule of risk ratings of loans by categories of loans | September 30, 2017 Commercial Consumer and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,825 $ 67,124 $ 94,619 $ 100,210 $ 265,778 Special mention — 437 834 479 1,750 Substandard 219 1,122 514 2,898 4,753 Doubtful — 83 82 — 165 Loss — — — — — $ 4,044 $ 68,766 $ 96,049 $ 103,587 $ 272,446 Non-accrual 48 499 385 2,934 3,866 Troubled debt restructures 219 — 33 47 299 Number of TDRs accounts 1 — 1 1 3 Non-performing TDRs — — 33 47 80 Number of non-performing TDR accounts — — 1 1 2 December 31, 2016 Commercial Consumer 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 Number of non-performing TDR accounts — — 1 1 2 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE. | |
Schedule of changes in asset subject to fair value measurement by Level | Fair (dollars in thousands) Level 1 Level 2 Level 3 Value September 30, 2017 Recurring: Securities available for sale U.S. Treasury $ — $ 1,504 $ — $ 1,504 Agency — 1,992 — 1,992 State and Municipal — 36,835 — 36,835 Mortgaged-backed — 49,572 — 49,572 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 4,227 4,227 OREO — 114 — 114 $ — $ 90,017 $ 4,257 $ 94,274 December 31, 2016 Recurring: Securities available for sale U.S. Treasury $ — $ 1,507 $ — $ 1,507 Agency — — — — 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 | September 30, 2017 December 31, 2016 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 4,371 $ 4,371 $ 3,195 $ 3,195 Interest-bearing deposits in other financial institutions 7,117 7,117 4,230 4,230 Federal funds sold 9 9 3,197 3,197 Investment securities available for sale 89,903 89,903 94,607 94,607 Investments in restricted stock 30 30 1,230 1,230 Ground rents 156 156 164 164 Loans, less allowance for credit losses 268,840 266,254 262,574 259,017 Accrued interest receivable 1,140 1,140 1,134 1,134 Cash value of life insurance 9,479 9,479 9,328 9,328 Financial liabilities: Deposits 334,105 316,619 333,246 315,418 Long-term borrowings — — 10,000 10,257 Short-term borrowings 20,000 20,917 10,000 10,188 Dividends payable — — — — |
Schedule of fair value hierarchy of financial instruments | (dollars in thousands) Carrying Fair September 30, 2017 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 11,497 $ 11,497 $ 11,497 — $ — Loans receivable, net 268,840 266,254 — — 266,254 Cash value of life insurance 9,479 9,479 — 9,479 — Financial instruments - Liabilities Deposits 334,105 316,619 219,478 97,141 — Long-term debt — — — — — Short-term debt 20,000 20,917 — 20,917 — |
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position | 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 September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) U.S. Treasury $ 499 $ 1 $ — $ — $ 499 $ 1 Agency 1,992 7 848 12 2,840 19 State and Municipal 5,133 62 4,862 167 9,995 229 Mortgage Backed 33,466 422 9,446 232 42,912 654 $ 41,090 $ 492 $ 15,156 $ 411 $ 56,246 $ 903 December 31, 2016 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) U.S. Treasury $ — $ — $ — $ — $ — $ — Agency — — 986 16 986 16 State and Municipal 19,200 580 — — 19,200 580 Mortgage Backed 43,094 575 9,603 277 52,697 852 $ 62,294 $ 1,155 $ 10,589 $ 293 $ 72,883 $ 1,448 |
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic and diluted: | ||||
Net income | $ 411 | $ 115 | $ 1,064 | $ 706 |
Weighted average common shares outstanding (in shares) | 2,796,099 | 2,782,923 | 2,792,544 | 2,781,371 |
Basic net income per share (in dollars per share) | $ 0.15 | $ 0.04 | $ 0.38 | $ 0.25 |
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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | $ 267,090 | $ 259,529 | ||
Past Due | 2,790 | |||
90 Days or More and Still Accruing | 71 | 36 | ||
Non-accrual | 3,866 | 3,751 | $ 2,357 | $ 3,706 |
Total | 272,446 | 266,106 | ||
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | 1,419 | |||
Commercial and Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 3,989 | 4,679 | ||
Non-accrual | 48 | |||
Total | 4,045 | 4,679 | ||
Commercial and Industrial | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | 8 | |||
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 68,267 | 68,775 | ||
Non-accrual | 499 | 647 | 615 | 300 |
Total | 68,766 | 69,422 | ||
Consumer and indirect | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 94,578 | 82,134 | ||
Past Due | 992 | |||
Non-accrual | 385 | 456 | ||
Total | 96,048 | 83,582 | ||
Consumer and indirect | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | 1,085 | |||
Residential Real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 100,256 | 103,941 | ||
Past Due | 1,798 | |||
90 Days or More and Still Accruing | 71 | 36 | ||
Non-accrual | 2,934 | 2,648 | $ 1,335 | $ 2,575 |
Total | 103,587 | $ 108,423 | ||
Residential Real estate | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past Due | $ 326 |
LOANS AND ASSET QUALITY - Summa
LOANS AND ASSET QUALITY - Summary of Allowance for credit losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
LOANS AND ASSET QUALITY | ||
Troubled debt restructured loans | $ 299 | $ 312 |
Non-accrual and 90 days or more and still accruing loans to gross loans | 1.46% | 1.43% |
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans | 66.10% | 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) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)borrowerloan | Dec. 31, 2016USD ($) | |
Impaired loans with specific reserves: | ||
Recorded Investment | $ 1,739,000 | $ 1,750,000 |
Principal Balance | 1,768,000 | 1,779,000 |
Income Recognized | 12,000 | 66,000 |
Specific Reserve | 810,000 | 530,000 |
Recorded Investment | 1,818,000 | 1,844,000 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 3,298,000 | 3,267,000 |
Principal Balance | 4,106,000 | 4,159,000 |
Income Recognized | 42,000 | 80,000 |
Recorded Investment | 4,386,000 | 4,132,000 |
Commercial Real Estate. | ||
Impaired loans with specific reserves: | ||
Specific Reserve | 219,500 | |
Real-estate - mortgage | Residential | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 1,344,654 | 1,393,000 |
Principal Balance | 1,374,000 | 1,422,000 |
Income Recognized | 58,000 | |
Specific Reserve | 532,378 | 252,000 |
Recorded Investment | 1,364,000 | 1,442,000 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 1,203,000 | 1,479,000 |
Principal Balance | 2,011,000 | 2,219,000 |
Income Recognized | 13,000 | 21,000 |
Recorded Investment | 2,377,000 | 2,463,000 |
Real-estate - mortgage | Commercial Real Estate. | ||
Impaired loans with no specific reserve: | ||
Recorded Investment | 1,312,000 | 1,413,000 |
Principal Balance | 1,312,000 | 1,565,000 |
Income Recognized | 29,000 | 59,000 |
Recorded Investment | $ 1,244,000 | 1,594,000 |
Consumer and Indirect | ||
Financing Receivable, Impaired [Line Items] | ||
Number of loans | loan | 3 | |
Number of borrowers | borrower | 3 | |
Impaired loans with specific reserves: | ||
Recorded Investment | $ 174,589 | 128,000 |
Principal Balance | 175,000 | 128,000 |
Income Recognized | 4,000 | |
Specific Reserve | 57,797 | 50,000 |
Recorded Investment | 230,000 | 167,000 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 108,000 | 182,000 |
Principal Balance | 108,000 | 182,000 |
Recorded Investment | 104,000 | 75,000 |
Installment | ||
Impaired loans with no specific reserve: | ||
Recorded Investment | 146,000 | 193,000 |
Principal Balance | 146,000 | 193,000 |
Recorded Investment | 130,000 | |
Commercial | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 219,000 | 229,000 |
Principal Balance | 219,000 | 229,000 |
Income Recognized | 8,000 | 8,000 |
Specific Reserve | 220,000 | 228,000 |
Recorded Investment | 224,000 | $ 235,000 |
Impaired loans with no specific reserve: | ||
Recorded Investment | 529,000 | |
Principal Balance | 529,000 | |
Recorded Investment | $ 531,000 |
LOANS AND ASSET QUALITY - Total
LOANS AND ASSET QUALITY - Total Allowance by Loan Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 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 | 243 | 868 | |
Recoveries | 253 | 379 | |
Loans charged off | (357) | (1,378) | (1,913) |
Balance, end of year | 2,623 | 2,484 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 810 | 531 | |
Individually evaluated for impairment, Related loan balance | 1,740 | 5,017 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 1,813 | 1,953 | |
Collectively evaluated for impairment, Related loan balance | 270,705 | 261,090 | |
Commercial and Industrial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 284 | 305 | 305 |
Provision for credit losses | (37) | (30) | |
Recoveries | 9 | ||
Balance, end of year | 247 | 284 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 220 | 229 | |
Individually evaluated for impairment, Related loan balance | 220 | 229 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 27 | 56 | |
Collectively evaluated for impairment, Related loan balance | 3,824 | 4,451 | |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 259 | 262 | 262 |
Provision for credit losses | 4 | 361 | |
Recoveries | 14 | ||
Loans charged off | (364) | ||
Balance, end of year | 277 | 259 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Related loan balance | 1,413 | ||
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 277 | 259 | |
Collectively evaluated for impairment, Related loan balance | 68,766 | 68,009 | |
Consumer and Indirect | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 876 | 804 | 804 |
Provision for credit losses | 246 | 431 | |
Recoveries | 212 | 336 | |
Loans charged off | (354) | (524) | (695) |
Balance, end of year | 980 | 876 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 58 | 50 | |
Individually evaluated for impairment, Related loan balance | 175 | 503 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 922 | 826 | |
Collectively evaluated for impairment, Related loan balance | 95,873 | 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 | 44 | 240 | |
Recoveries | 27 | 34 | |
Loans charged off | (3) | (854) | (854) |
Balance, end of year | 1,119 | 1,051 | |
Individually evaluated for impairment: | |||
Individually evaluated for impairment, Balance in allowance | 532 | 252 | |
Individually evaluated for impairment, Related loan balance | 1,345 | 2,872 | |
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | 587 | 799 | |
Collectively evaluated for impairment, Related loan balance | 102,242 | 105,552 | |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of year | 14 | $ 148 | 148 |
Provision for credit losses | $ (14) | (134) | |
Balance, end of year | 14 | ||
Collectively evaluated for impairment: | |||
Collectively evaluated for impairment, Balance in allowance | $ 13 |
LOANS AND ASSET QUALITY - Non-a
LOANS AND ASSET QUALITY - Non-accrual loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | $ 3,751 | $ 3,706 | $ 3,706 |
Transfer into non-accrual | 1,239 | 1,187 | |
Loans paid down/payoffs | (476) | (846) | |
Loans brought to accrual status | (291) | (312) | |
Loans charged off | (357) | (1,378) | (1,913) |
Balance | 3,866 | 2,357 | 3,751 |
Commercial and Industrial | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Transfer into non-accrual | 48 | ||
Balance | 48 | ||
Commercial Real Estate | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | 647 | 300 | 300 |
Transfer into non-accrual | 325 | ||
Loans paid down/payoffs | (16) | (10) | |
Loans brought to accrual status | (132) | ||
Loans charged off | (364) | ||
Balance | 499 | 615 | 647 |
Consumer and Indirect | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | 456 | 831 | 831 |
Transfer into non-accrual | 586 | 759 | |
Loans paid down/payoffs | (144) | (482) | |
Loans brought to accrual status | (159) | (177) | |
Loans charged off | (354) | (524) | (695) |
Balance | 385 | 407 | 456 |
Residential Real estate | |||
Financing Receivable Nonaccrual Status [Roll Forward] | |||
Balance | 2,648 | 2,575 | 2,575 |
Transfer into non-accrual | 605 | 103 | |
Loans paid down/payoffs | (316) | (354) | |
Loans brought to accrual status | (135) | ||
Loans charged off | (3) | (854) | (854) |
Balance | $ 2,934 | $ 1,335 | $ 2,648 |
LOANS AND ASSET QUALITY - Risk
LOANS AND ASSET QUALITY - Risk ratings of loans by categories of loans (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)item | Dec. 31, 2016USD ($)item | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 272,446,000 | $ 266,106,000 | ||
Non-accrual | 3,866,000 | 3,751,000 | $ 2,357,000 | $ 3,706,000 |
Troubled debt restructures | $ 299,000 | $ 312,000 | ||
Number of TDRs accounts | item | 3 | 3 | ||
Non-performing TDRs | item | 84 | |||
Number of non-performing TDRs accounts | item | 2 | |||
Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 265,778,000 | $ 256,733,000 | ||
Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 1,750,000 | 4,698,000 | ||
Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 4,753,000 | 4,461,000 | ||
Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 165,000 | 214,000 | ||
Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 4,044,000 | 4,679,000 | ||
Non-accrual | 48,000 | |||
Troubled debt restructures | $ 219,500 | $ 228,000 | ||
Number of TDRs accounts | item | 1,000 | 1 | ||
Commercial and Industrial | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 3,825,000 | $ 4,357,000 | ||
Commercial and Industrial | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 94,000 | |||
Commercial and Industrial | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 219,000 | 228,000 | ||
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 68,766,000 | 69,422,000 | ||
Non-accrual | 499,000 | 647,000 | 615,000 | 300,000 |
Commercial Real Estate | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 67,124,000 | 64,208,000 | ||
Commercial Real Estate | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 437,000 | 3,801,000 | ||
Commercial Real Estate | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 1,122,000 | 1,413,000 | ||
Commercial Real Estate | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 83,000 | |||
Consumer and indirect | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 83,582,000 | |||
Non-accrual | 385,000 | 456,000 | ||
Troubled debt restructures | 32,696 | $ 36,000 | ||
Number of TDRs accounts | item | 1 | |||
Non-performing TDRs | item | 36 | |||
Number of non-performing TDRs accounts | item | 1 | |||
Consumer and indirect | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 82,943,000 | |||
Consumer and indirect | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 276,000 | |||
Consumer and indirect | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 327,000 | |||
Consumer and indirect | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 36,000 | |||
Residential Real estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 103,587,000 | 108,423,000 | ||
Non-accrual | 2,934,000 | 2,648,000 | 1,335,000 | 2,575,000 |
Troubled debt restructures | $ 46,692 | $ 48,000 | ||
Number of TDRs accounts | item | 1,000 | 1 | ||
Non-performing TDRs | item | 47,000 | 48 | ||
Number of non-performing TDRs accounts | item | 1,000 | 1 | ||
Residential Real estate | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 100,210,000 | $ 105,225,000 | ||
Residential Real estate | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 479,000 | 527,000 | ||
Residential Real estate | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 2,898,000 | 2,493,000 | ||
Residential Real estate | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 178,000 | |||
Consumer and Indirect | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 96,049,000 | |||
Non-accrual | $ 385,000 | $ 456,000 | $ 407,000 | $ 831,000 |
Number of TDRs accounts | item | 1,000 | |||
Non-performing TDRs | item | 33,000 | |||
Number of non-performing TDRs accounts | item | 1,000 | |||
Consumer and Indirect | Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 94,619,000 | |||
Consumer and Indirect | Special mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 834,000 | |||
Consumer and Indirect | Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | 514,000 | |||
Consumer and Indirect | Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total | $ 82,000 |
LOANS AND ASSET QUALITY (Detail
LOANS AND ASSET QUALITY (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)item | Dec. 31, 2016USD ($)item | |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | item | 3 | 3 |
Troubled debt restructures | $ 299,000 | $ 312,000 |
Loans outstanding included in current and 30 - 89 days past due | 1,088,970 | |
Recorded Investment | 3,298,000 | 3,267,000 |
Specific Reserve | 810,000 | 530,000 |
Recorded Investment | 1,739,000 | 1,750,000 |
Unearned income | 983,000 | 1,048,000 |
Allowance for loan losses | 2,623,000 | 2,484,000 |
Commercial Real Estate. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Specific Reserve | 219,500 | |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | 219,500 | |
Recorded Investment | 529,000 | |
Specific Reserve | 220,000 | 228,000 |
Recorded Investment | $ 219,000 | 229,000 |
Consumer and Indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | item | 1,000 | |
Recorded Investment | $ 108,000 | 182,000 |
Specific Reserve | 57,797 | 50,000 |
Recorded Investment | 174,589 | $ 128,000 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | $ 706,974 | |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | item | 1,000 | 1 |
Troubled debt restructures | $ 219,500 | $ 228,000 |
Residential Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | item | 1,000 | 1 |
Troubled debt restructures | $ 46,692 | $ 48,000 |
Consumer and indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | item | 1 | |
Troubled debt restructures | 32,696 | $ 36,000 |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | 162,496 | |
Real-estate - mortgage | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,203,000 | 1,479,000 |
Specific Reserve | 532,378 | 252,000 |
Recorded Investment | 1,344,654 | 1,393,000 |
Real-estate - mortgage | Commercial Real Estate. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | $ 1,312,000 | $ 1,413,000 |
FAIR VALUE - Changes in the ass
FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 89,903 | $ 94,607 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 94,274 | 97,642 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 90,017 | 94,721 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 4,257 | 2,921 |
Recurring | US Treasury | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,504 | 1,507 |
Recurring | US Treasury | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,504 | 1,507 |
Recurring | Agency | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,992 | |
Recurring | Agency | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,992 | |
Recurring | State and municipal | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 36,835 | 33,845 |
Recurring | State and municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 36,835 | 33,845 |
Recurring | Mortgage-backed | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 49,572 | 59,255 |
Recurring | Mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 49,572 | 59,255 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | 30 | 30 |
Impaired loans | 4,227 | 2,891 |
OREO | 114 | 114 |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | 114 | 114 |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | 30 | 30 |
Impaired loans | $ 4,227 | $ 2,891 |
FAIR VALUE - Estimated fair val
FAIR VALUE - Estimated fair values of the Company's financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets - Carrying Amount | ||
Cash and due from banks | $ 4,371 | $ 3,195 |
Interest-bearing deposits | 7,117 | 4,230 |
Federal funds sold | 9 | 3,197 |
Investment securities | 89,903 | 94,607 |
Investments in restricted stock | 30 | 1,230 |
Ground rents | 156 | 164 |
Loans, net | 268,840 | 262,574 |
Accrued interest receivable | 1,140 | 1,134 |
Cash value of life insurance | 9,479 | 9,328 |
Financial liabilities - Carrying Amount | ||
Deposits | 334,105 | 333,246 |
Long-term borrowings | 10,000 | |
Short-term borrowings | 20,000 | 10,000 |
Financial assets - Fair Value | ||
Cash and due from banks | 4,371 | 3,195 |
Interest-bearing deposits | 7,117 | 4,230 |
Federal funds sold | 9 | 3,197 |
Investment securities | 89,903 | 94,607 |
Investments in restricted stock | 30 | 1,230 |
Ground rents | 156 | 164 |
Loans, net | 266,254 | 259,017 |
Accrued interest receivable | 1,140 | 1,134 |
Cash value of life insurance | 9,479 | 9,328 |
Financial liabilities - Fair Value | ||
Deposits | 316,619 | 315,418 |
Long-term borrowings | 10,257 | |
Short-term borrowings | $ 20,917 | $ 10,188 |
FAIR VALUE - Fair value hierarc
FAIR VALUE - Fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | $ 11,497 | $ 10,622 | $ 16,676 | $ 12,371 |
Loans receivable, net | 268,840 | 262,574 | ||
Cash value of life insurance | 9,479 | |||
Financial liabilities - Carrying Amount | ||||
Deposits | 334,105 | 333,246 | ||
Long-term debt | 10,000 | |||
Short-term debt | 20,000 | 10,000 | ||
Financial assets - Fair Value | ||||
Loans receivable, net | 266,254 | 259,017 | ||
Financial liabilities - Fair Value | ||||
Deposits | 316,619 | 315,418 | ||
Long-term debt | 10,257 | |||
Short-term debt | 20,917 | $ 10,188 | ||
Fair Value | ||||
Financial assets - Fair Value | ||||
Cash and cash equivalents | 9,479 | |||
Loans receivable, net | 266,254 | |||
Cash value of life insurance | 11,497 | |||
Financial liabilities - Fair Value | ||||
Deposits | 20,917 | |||
Short-term debt | 316,619 | |||
Fair Value | Level 1 | ||||
Financial assets - Fair Value | ||||
Cash value of life insurance | 11,497 | |||
Financial liabilities - Fair Value | ||||
Short-term debt | 219,478 | |||
Fair Value | Level 2 | ||||
Financial assets - Fair Value | ||||
Cash and cash equivalents | 9,479 | |||
Financial liabilities - Fair Value | ||||
Deposits | 20,917 | |||
Short-term debt | 97,141 | |||
Fair Value | Level 3 | ||||
Financial assets - Fair Value | ||||
Loans receivable, net | $ 266,254 |
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) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | $ 41,090 | $ 62,294 |
Less than 12 months Unrealized Loss | 492 | 1,155 |
12 months or more Fair Value | 15,156 | 10,589 |
12 months or more Unrealized Loss | 411 | 293 |
Total Fair Value | 56,246 | 72,883 |
Total Unrealized Loss | 903 | 1,448 |
US Treasury | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 499 | |
Less than 12 months Unrealized Loss | 1 | |
Total Fair Value | 499 | |
Total Unrealized Loss | 1 | |
Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 1,992 | |
Less than 12 months Unrealized Loss | 7 | |
12 months or more Fair Value | 848 | 986 |
12 months or more Unrealized Loss | 12 | 16 |
Total Fair Value | 2,840 | 986 |
Total Unrealized Loss | 19 | 16 |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 5,133 | 19,200 |
Less than 12 months Unrealized Loss | 62 | 580 |
12 months or more Fair Value | 4,862 | |
12 months or more Unrealized Loss | 167 | |
Total Fair Value | 9,995 | 19,200 |
Total Unrealized Loss | 229 | 580 |
Mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 33,466 | 43,094 |
Less than 12 months Unrealized Loss | 422 | 575 |
12 months or more Fair Value | 9,446 | 9,603 |
12 months or more Unrealized Loss | 232 | 277 |
Total Fair Value | 42,912 | 52,697 |
Total Unrealized Loss | $ 654 | $ 852 |
FAIR VALUE (Details)
FAIR VALUE (Details) | 9 Months Ended | |
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans deemed to be impaired | $ 5,000,000 | |
Specific reserve amount | 810,000 | $ 530,000 |
Impaired real estate loans | $ 3,800,000 | |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of discount rate | 0.00% | |
Maximum [Member] | ||
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] | ||
Number of impaired loans classified as nonaccrual loans | loan | 29 | |
Impaired loans includes nonaccrual, past due 90 days or more and still accruing | $ 226,000 | |
Remaining impaired loan | 1,200,000 | |
Specific reserve amount | $ 292,000 |