Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 18, 2016 | |
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 | 2,780,025 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 6,481 | $ 7,493 |
Interest-bearing deposits in other financial institutions | 2,671 | 2,308 |
Federal funds sold | 11,352 | 2,570 |
Cash and cash equivalents | 20,504 | 12,371 |
Investment securities available for sale, at fair value | 102,681 | 98,790 |
Federal Home Loan Bank stock, at cost | 1,200 | 1,203 |
Maryland Financial Bank stock | 30 | 30 |
Loans, less allowance for credit losses (June 30: $2,291; December 31: $3,150) | 253,490 | 259,637 |
Premises and equipment, at cost, less accumulated depreciation | 3,292 | 3,369 |
Other real estate owned | 201 | 74 |
Cash value of life insurance | 9,465 | 9,358 |
Other assets | 4,931 | 5,748 |
Total assets | 395,794 | 390,580 |
Liabilities: | ||
Deposits | 339,295 | 335,191 |
Long-term borrowings | 20,000 | 20,000 |
Other liabilities | 1,103 | 1,213 |
Total liabilities | 360,398 | 356,404 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding: June 30: 2,780,025 shares; December 31: 2,773,361 shares | 2,780 | 2,773 |
Surplus | 10,069 | 9,986 |
Retained earnings | 21,754 | 21,718 |
Accumulated other comprehensive income (loss), net of taxes | 793 | (301) |
Total stockholders' equity | 35,396 | 34,176 |
Total liabilities and stockholders' equity | $ 395,794 | $ 390,580 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for credit losses (in dollars) | $ 2,291 | $ 3,150 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 2,780,025 | 2,773,361 |
Common stock, shares outstanding | 2,780,025 | 2,773,361 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income on: | ||||
Loans, including fees | $ 2,750 | $ 2,864 | $ 5,585 | $ 5,807 |
U.S. Treasury and U.S. Government agency securities | 261 | 215 | 536 | 425 |
State and municipal securities | 226 | 274 | 439 | 576 |
Other | 32 | 21 | 60 | 46 |
Total interest income | 3,269 | 3,374 | 6,620 | 6,854 |
Interest expense on: | ||||
Deposits | 377 | 447 | 769 | 909 |
Long-term borrowings | 159 | 160 | 319 | 318 |
Total interest expense | 536 | 607 | 1,088 | 1,227 |
Net interest income | 2,733 | 2,767 | 5,532 | 5,627 |
Provision for credit losses | 150 | 117 | 300 | |
Net interest income after provision for credit losses | 2,733 | 2,617 | 5,415 | 5,327 |
Other income: | ||||
Service charges on deposit accounts | 81 | 102 | 164 | 207 |
Other fees and commissions | 171 | 181 | 330 | 351 |
Other non-interest income | 11 | 430 | 23 | 440 |
Income on life insurance | 54 | 55 | 107 | 109 |
Gains on investment securities | 270 | 1 | 469 | |
Total other income | 317 | 1,038 | 625 | 1,576 |
Other expenses: | ||||
Salaries and employee benefits | 1,534 | 1,675 | 3,039 | 3,343 |
Occupancy | 180 | 191 | 378 | 405 |
Other expenses | 984 | 1,003 | 1,954 | 1,940 |
Total other expenses | 2,698 | 2,869 | 5,371 | 5,688 |
Income before income taxes | 352 | 786 | 669 | 1,215 |
Income tax expense | 44 | 268 | 78 | 317 |
Net income | $ 308 | $ 518 | $ 591 | $ 898 |
Basic and diluted earnings per share of common stock (in dollars per share) | $ 0.11 | $ 0.19 | $ 0.21 | $ 0.32 |
Weighted average shares of common stock outstanding (in shares) | 2,776,546 | 2,767,521 | 2,776,053 | 2,767,331 |
Dividends declared per share of common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Net income | $ 308 | $ 518 | $ 591 | $ 898 |
Unrealized gains on securities: | ||||
Unrealized holding gains (losses) arising during the period | 663 | (720) | 1,096 | (435) |
Reclassification adjustment for gains included in net income | (163) | (1) | (282) | |
Comprehensive income (losses) | $ 971 | $ (365) | $ 1,686 | $ 181 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 591 | $ 898 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion | 590 | 508 |
Provision for credit losses | 117 | 300 |
Gains on disposals of assets, net | (1) | (847) |
Income on investment in life insurance | (107) | (109) |
Changes in assets and liabilities: | ||
Decrease in other assets | 101 | 25 |
Decrease in other liabilities | (110) | (493) |
Net cash provided by operating activities | 1,181 | 282 |
Cash flows from investing activities: | ||
Maturities and proceeds of available for sale mortgage-backed securities | 8,215 | 7,078 |
Proceeds from maturities and sales of other investment securities | 3,767 | 14,304 |
Purchases of investment securities | (14,457) | (41,910) |
Sale of Federal Home Loan Bank stock | 3 | 125 |
Decrease in loans, net | 5,904 | 7,890 |
Proceeds from sale of premises and equpment | 378 | |
Purchases of premises and equipment | (118) | (301) |
Net cash provided (used) by investing activities | 3,314 | (12,436) |
Cash flows from financing activities: | ||
Increase in deposits, net | 4,103 | 9,726 |
Dividends paid | (555) | (552) |
Common stock dividends reinvested | 90 | 79 |
Net cash provided by financing activities | 3,638 | 9,253 |
Increase (decrease) in cash and cash equivalents | 8,133 | (2,901) |
Cash and cash equivalents, beginning of year | 12,371 | 13,280 |
Cash and cash equivalents, end of period | $ 20,504 | $ 10,379 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The accompanying condensed balance sheet as of December 31, 2015, 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 six months ended June 30, 2016 and 2015. Operating results for the six months ended June 30, 2016 is not necessarily indicative of the results that may be expected for the year ending December 31, 2016. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 2 - 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, 2016 2015 2016 2015 Basic and diluted: Net income $ 308,000 $ 518,000 $ 591,000 $ 898,000 Weighted average common shares outstanding 2,776,546 2,767,521 2,776,053 2,767,331 Basic and dilutive net income per share $ 0.11 $ 0.19 $ 0.21 $ 0.32 Diluted earnings per share calculations were not required for the six months ended June 30, 2016 and 2015, since there were no options outstanding. |
LOANS AND ASSET QUALITY
LOANS AND ASSET QUALITY | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
LOANS AND ASSET QUALITY | NOTE 3 – LOANS AND ASSET QUALITY Asset Quality At June 30, 2016 90 Days or (Dollars in Thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,509 $ - $ - $ - $ 4,509 Commercial real estate 62,139 - - 618 62,757 Consumer and indirect 76,210 1,164 - 389 77,763 Residential real estate 109,630 315 177 1,658 111,780 $ 252,488 $ 1,479 $ 177 $ 2,665 $ 256,809 At December 31, 2015 90 Days or (Dollars in Thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,540 $ - $ - $ - $ 4,540 Commercial real estate 64,270 2 - - 64,272 Consumer and indirect 73,568 1,122 16 597 75,303 Residential real estate 115,715 806 39 3,183 119,743 $ 258,093 $ 1,930 $ 55 $ 3,780 $ 263,858 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, 2016, the allowance for loan loss is $2,291,000 and the unearned income is $1,028,000. For the period ending December 31, 2015, the allowance for loan loss is $3,150,000 and the unearned income is $1,071,000. At At June 30, December 31, 2016 2015 (Dollars in Thousands) Troubled debt restructured loans $ 322 $ 290 Non-accrual and 90 days or more and still accruing loans to gross loans 1.11 % 1.45 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 80.61 % 82.14 % At June 30, 2016 there were three troubled debt restructured loans consisting of a commercial loan of $235,000, a residential real estate loan of $49,000 and a consumer loan of $38,000. The consumer loan was restructured during the quarter ended June 30, 2016 and is currently on nonaccrual. The commercial loan had a troubled debt restructured balance of $241,000 and the residential real estate loan had a balance of $49,000 at December 31, 2015. At June 30, 2016, there was $1,206,000 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 $1,206,000, are as follows: $803,000 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; $168,000 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 $235,000 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $235,000. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at June 30, 2016 are comprised of: Consumer loans Commercial Real Estate 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, 2016 and December 31, 2015. (Dollars in thousands) June 30, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 49 49 - 12 50 Commercial 292 292 - 92 303 Consumer 136 136 - 56 168 Installment - - - - - Home Equity - - - - - Commercial 235 235 5 235 237 Total impaired loans with specific reserves $ 712 712 5 395 758 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,896 2,863 11 n/a 2,874 Commercial 1,129 1,129 23 n/a 1,145 Consumer 38 38 - n/a 72 Installment 288 288 - n/a 288 Home Equity - - - n/a - Commercial 2 2 - n/a 3 Total impaired loans with no specific reserve $ 3,353 4,320 34 - 4,382 (Dollars in thousands) December 31, 2015 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,809 1,809 57 697 1,820 Commercial 300 300 - 101 315 Consumer 146 146 - 65 170 Installment - - - - - Home Equity - - - - - Commercial 241 241 10 241 247 Total impaired loans with specific reserves $ 2,496 2,496 67 1,104 2,552 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 983 1,116 14 n/a 1,171 Commercial 843 843 38 n/a 876 Consumer 365 449 2 n/a 453 Installment 440 440 - n/a - Home Equity - - - n/a - Commercial - - - n/a - Total impaired loans with no specific reserve $ 2,631 2,848 54 - 2,500 Credit Quality Information The following tables represent credit exposures by creditworthiness category for the quarter ending and the year ended December 31, 2015. 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, 2016 and Commercial and Residential (Dollars in Thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,198 $ 57,462 $ 75,570 $ 109,815 $ 247,045 Special mention 77 3,874 1,362 507 5,820 Substandard 234 1,421 667 1,458 3,780 Doubtful - - 164 - 164 Loss - - - - - $ 4,509 $ 62,757 $ 77,763 $ 111,780 $ 256,809 Non-accrual - 618 389 1,658 2,665 Troubled debt restructures 235 - 38 49 322 Number of TDRs contracts 1 - 1 1 3 Non-performing TDRs - - - - - Number of TDR accounts - - - - - Commercial Consumer December 31, 2015 and Commercial and Residential (Dollars in Thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,879 $ 58,706 $ 72,976 $ 116,596 $ 252,157 Special mention 168 4,422 1,653 539 6,782 Substandard 493 1,144 509 2,076 4,222 Doubtful - - 165 532 697 Loss - - - - - $ 4,540 $ 64,272 $ 75,303 $ 119,743 $ 263,858 Non-accrual - - 597 3,183 3,780 Troubled debt restructures 241 - - 49 290 Number of TDRs contracts 1 - - 1 2 Non-performing TDRs - - - - - Number of TDR accounts - - - - - |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 4 – 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. At June 30, 2016, these assets include The changes in the assets subject to fair value measurements are summarized below by Level: Fair Level 1 Level 2 Level 3 Value June 30, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 3,999,186 $ - $ 3,999,186 State and Municipal - 32,893,048 - 32,893,048 Mortgaged-backed - 65,788,336 - 65,788,336 Non-recurring: Maryland Financial Bank stock - - 30,000 30,000 Impaired loans - - 3,670,238 3,670,238 OREO 200,605 - 200,605 $ - $ 102,881,175 $ 3,700,238 $ 106,581,413 December 31, 2015 Recurring: Securities available for sale U.S. Treasury $ - $ 2,991,485 $ - $ 2,991,485 State and Municipal - 29,996,099 - 29,996,099 Mortgaged-backed - 65,802,426 - 65,802,426 Non-recurring: Maryland Financial Bank stock - - 30,000 30,000 Impaired loans - - 4,023,092 4,023,092 OREO - 74,400 - 74,400 $ - $ 98,864,410 $ 4,053,092 $ 102,917,502 The estimated fair values of the Company’s financial instruments at June 30, 2016 and December 31, 2015 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, 2016 December 31, 2015 (In Thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 6,481 $ 6,481 $ 7,493 $ 7,493 Interest-bearing deposits 2,671 2,671 2,308 2,308 Federal funds sold 11,352 11,352 2,570 2,570 Investment securities 102,681 102,681 98,790 98,790 Investments in restricted stock 1,200 1,200 1,203 1,203 Ground rents 164 164 164 164 Loans, net 253,490 255,895 259,637 252,239 Cash Value of life insurance 9,465 9,465 9,358 9,358 Accrued interest receivable 1,133 1,133 1,121 1,121 Financial liabilities: Deposits 339,295 331,141 335,191 307,924 Long-term borrowings 20,000 20,818 20,000 20,688 Dividends payable - - - - Accrued interest payable 38 38 40 40 The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. Carrying Fair June 30, 2016 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 20,504,113 $ 20,504,113 $ 20,504,113 $ - $ - Loans receivable, net 253,489,999 255,895,000 - - 255,895,000 Cash value of life insurance 9,464,684 9,464,684 - 9,464,684 - Financial instruments - Liabilities Deposits 339,294,987 331,141,000 217,945,000 113,196,000 - Long-term debt 20,000,000 20,818,000 - 20,818,000 - 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, 2016 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 Obligations of U.S. Govt Agencies $ - $ - $ - $ - $ - $ - State and Municipal 2,970 22 506 4 3,476 26 Corporate Trust Preferred - - - - Mortgage Backed 5,742 49 9,309 78 15,051 127 $ 8,712 $ 71 $ 9,815 $ 82 $ 18,527 $ 153 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, 2016, 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, 2016, the Bank held 16 A rollforward of the cumulative other-than-temporary credit losses recognized in earnings for all debt securities for which a portion of an other-than-temporary loss is recognized in accumulated other comprehensive loss is as follows: At At June 30, December 31, 2016 2015 (Dollars in Thousands) Estimated credit losses, beginning of year $ - $ 3,262 Sales of securities with previous OTTI recognized (3,262 ) Credit losses - no previous OTTI recognized - - Credit losses - previous OTTI recognized - - Estimated credit losses, end of period $ - $ - |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 5 – 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. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." Compensation - Stock Compensation In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860).” In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs ” In May 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” In May 2015, the FASB issued ASU 2015-09, “Financial Services-Insurance: Disclosures About Short-Duration Contracts.” In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers—Deferral of the Effective Date” In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. In January 2016, the FASB issued ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” In March 2016, the FASB issued ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” clarifies ASU 2016-05 In March 2016, the FASB issued ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASC Topic 606, “Revenue from Contracts with Customers” ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” In May 2016, the FASB issued ASU No. 2016-12, “Revenue From Contracts With Customers (Topic 606) Narrow-Scope and Practical Expedients” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 5 – 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. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." Compensation - Stock Compensation In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860).” In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs ” In May 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” In May 2015, the FASB issued ASU 2015-09, “Financial Services-Insurance: Disclosures About Short-Duration Contracts.” In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers—Deferral of the Effective Date” In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. In January 2016, the FASB issued ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” In March 2016, the FASB issued ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” clarifies ASU 2016-05 In March 2016, the FASB issued ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASC Topic 606, “Revenue from Contracts with Customers” ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” In May 2016, the FASB issued ASU No. 2016-12, “Revenue From Contracts With Customers (Topic 606) Narrow-Scope and Practical Expedients” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic and diluted: Net income $ 308,000 $ 518,000 $ 591,000 $ 898,000 Weighted average common shares outstanding 2,776,546 2,767,521 2,776,053 2,767,331 Basic and dilutive net income per share $ 0.11 $ 0.19 $ 0.21 $ 0.32 |
LOANS AND ASSET QUALITY (Tables
LOANS AND ASSET QUALITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 90 Days or (Dollars in Thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,509 $ - $ - $ - $ 4,509 Commercial real estate 62,139 - - 618 62,757 Consumer and indirect 76,210 1,164 - 389 77,763 Residential real estate 109,630 315 177 1,658 111,780 $ 252,488 $ 1,479 $ 177 $ 2,665 $ 256,809 At December 31, 2015 90 Days or (Dollars in Thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,540 $ - $ - $ - $ 4,540 Commercial real estate 64,270 2 - - 64,272 Consumer and indirect 73,568 1,122 16 597 75,303 Residential real estate 115,715 806 39 3,183 119,743 $ 258,093 $ 1,930 $ 55 $ 3,780 $ 263,858 |
Schedule of allowance for loan loss and the unearned income on loans | At At June 30, December 31, 2016 2015 (Dollars in Thousands) Troubled debt restructured loans $ 322 $ 290 Non-accrual and 90 days or more and still accruing loans to gross loans 1.11 % 1.45 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 80.61 % 82.14 % |
Schedule of impaired financing receivables | (Dollars in thousands) June 30, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 49 49 - 12 50 Commercial 292 292 - 92 303 Consumer 136 136 - 56 168 Installment - - - - - Home Equity - - - - - Commercial 235 235 5 235 237 Total impaired loans with specific reserves $ 712 712 5 395 758 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,896 2,863 11 n/a 2,874 Commercial 1,129 1,129 23 n/a 1,145 Consumer 38 38 - n/a 72 Installment 288 288 - n/a 288 Home Equity - - - n/a - Commercial 2 2 - n/a 3 Total impaired loans with no specific reserve $ 3,353 4,320 34 - 4,382 (Dollars in thousands) December 31, 2015 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,809 1,809 57 697 1,820 Commercial 300 300 - 101 315 Consumer 146 146 - 65 170 Installment - - - - - Home Equity - - - - - Commercial 241 241 10 241 247 Total impaired loans with specific reserves $ 2,496 2,496 67 1,104 2,552 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 983 1,116 14 n/a 1,171 Commercial 843 843 38 n/a 876 Consumer 365 449 2 n/a 453 Installment 440 440 - n/a - Home Equity - - - n/a - Commercial - - - n/a - Total impaired loans with no specific reserve $ 2,631 2,848 54 - 2,500 |
Schedule of risk ratings of loans by categories of loans | Commercial Consumer June 30, 2016 and Commercial and Residential (Dollars in Thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,198 $ 57,462 $ 75,570 $ 109,815 $ 247,045 Special mention 77 3,874 1,362 507 5,820 Substandard 234 1,421 667 1,458 3,780 Doubtful - - 164 - 164 Loss - - - - - $ 4,509 $ 62,757 $ 77,763 $ 111,780 $ 256,809 Non-accrual - 618 389 1,658 2,665 Troubled debt restructures 235 - 38 49 322 Number of TDRs contracts 1 - 1 1 3 Non-performing TDRs - - - - - Number of TDR accounts - - - - - Commercial Consumer December 31, 2015 and Commercial and Residential (Dollars in Thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,879 $ 58,706 $ 72,976 $ 116,596 $ 252,157 Special mention 168 4,422 1,653 539 6,782 Substandard 493 1,144 509 2,076 4,222 Doubtful - - 165 532 697 Loss - - - - - $ 4,540 $ 64,272 $ 75,303 $ 119,743 $ 263,858 Non-accrual - - 597 3,183 3,780 Troubled debt restructures 241 - - 49 290 Number of TDRs contracts 1 - - 1 2 Non-performing TDRs - - - - - Number of TDR accounts - - - - - |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of changes in asset subject to fair value measurement by Level | Fair Level 1 Level 2 Level 3 Value June 30, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 3,999,186 $ - $ 3,999,186 State and Municipal - 32,893,048 - 32,893,048 Mortgaged-backed - 65,788,336 - 65,788,336 Non-recurring: Maryland Financial Bank stock - - 30,000 30,000 Impaired loans - - 3,670,238 3,670,238 OREO 200,605 - 200,605 $ - $ 102,881,175 $ 3,700,238 $ 106,581,413 December 31, 2015 Recurring: Securities available for sale U.S. Treasury $ - $ 2,991,485 $ - $ 2,991,485 State and Municipal - 29,996,099 - 29,996,099 Mortgaged-backed - 65,802,426 - 65,802,426 Non-recurring: Maryland Financial Bank stock - - 30,000 30,000 Impaired loans - - 4,023,092 4,023,092 OREO - 74,400 - 74,400 $ - $ 98,864,410 $ 4,053,092 $ 102,917,502 |
Schedule of estimated fair values of financial instruments | June 30, 2016 December 31, 2015 (In Thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 6,481 $ 6,481 $ 7,493 $ 7,493 Interest-bearing deposits 2,671 2,671 2,308 2,308 Federal funds sold 11,352 11,352 2,570 2,570 Investment securities 102,681 102,681 98,790 98,790 Investments in restricted stock 1,200 1,200 1,203 1,203 Ground rents 164 164 164 164 Loans, net 253,490 255,895 259,637 252,239 Cash Value of life insurance 9,465 9,465 9,358 9,358 Accrued interest receivable 1,133 1,133 1,121 1,121 Financial liabilities: Deposits 339,295 331,141 335,191 307,924 Long-term borrowings 20,000 20,818 20,000 20,688 Dividends payable - - - - Accrued interest payable 38 38 40 40 |
Schedule of fair value hierarchy of financial instruments | Carrying Fair June 30, 2016 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 20,504,113 $ 20,504,113 $ 20,504,113 $ - $ - Loans receivable, net 253,489,999 255,895,000 - - 255,895,000 Cash value of life insurance 9,464,684 9,464,684 - 9,464,684 - Financial instruments - Liabilities Deposits 339,294,987 331,141,000 217,945,000 113,196,000 - Long-term debt 20,000,000 20,818,000 - 20,818,000 - |
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 Obligations of U.S. Govt Agencies $ - $ - $ - $ - $ - $ - State and Municipal 2,970 22 506 4 3,476 26 Corporate Trust Preferred - - - - Mortgage Backed 5,742 49 9,309 78 15,051 127 $ 8,712 $ 71 $ 9,815 $ 82 $ 18,527 $ 153 |
Schedule of rollforward of the cumulative other-than-temporary credit losses recognized in earnings for debt securities | At At June 30, December 31, 2016 2015 (Dollars in Thousands) Estimated credit losses, beginning of year $ - $ 3,262 Sales of securities with previous OTTI recognized (3,262 ) Credit losses - no previous OTTI recognized - - Credit losses - previous OTTI recognized - - Estimated credit losses, end of period $ - $ - |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic and diluted: | ||||
Net income | $ 308 | $ 518 | $ 591 | $ 898 |
Weighted average common shares outstanding (in shares) | 2,776,546 | 2,767,521 | 2,776,053 | 2,767,331 |
Basic and dilutive net income per share (in dollars per share) | $ 0.11 | $ 0.19 | $ 0.21 | $ 0.32 |
LOANS AND ASSET QUALITY (Detail
LOANS AND ASSET QUALITY (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 252,488 | $ 258,093 |
90 Days or More and Still Accruing | 177 | 55 |
Nonaccrual | 2,665 | 3,780 |
Total | 256,809 | 263,858 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,479 | 1,930 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,509 | 4,540 |
90 Days or More and Still Accruing | ||
Nonaccrual | ||
Total | 4,509 | 4,540 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 62,139 | 64,270 |
90 Days or More and Still Accruing | ||
Nonaccrual | 618 | |
Total | 62,757 | 64,272 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2 | |
Consumer and indirect | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 76,210 | 73,568 |
90 Days or More and Still Accruing | 16 | |
Nonaccrual | 389 | 597 |
Total | 77,763 | 75,303 |
Consumer and indirect | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,164 | 1,122 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 109,630 | 115,715 |
90 Days or More and Still Accruing | 177 | 39 |
Nonaccrual | 1,658 | 3,183 |
Total | 111,780 | 119,743 |
Residential real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 315 | $ 806 |
LOANS AND ASSET QUALITY (Deta18
LOANS AND ASSET QUALITY (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Troubled debt restructured loans | $ 322 | $ 290 |
Non-accrual and 90 days or more and still accruing loans to gross loans | 1.11% | 1.45% |
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans | 80.61% | 82.14% |
LOANS AND ASSET QUALITY (Deta19
LOANS AND ASSET QUALITY (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Impaired loans with specific reserves: | ||
Recorded Investment | $ 712 | $ 2,496 |
Unpaid Principal Balance | 712 | 2,496 |
Interest Income Recognized | 5 | 67 |
Specific Reserve | 395 | 1,104 |
Average Recorded Investment | 758 | 2,552 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 3,353 | 2,631 |
Unpaid Principal Balance | 4,320 | 2,848 |
Interest Income Recognized | 34 | 54 |
Average Recorded Investment | 4,382 | 2,500 |
Real-estate - mortgage | Residential | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 49 | 1,809 |
Unpaid Principal Balance | 49 | 1,809 |
Interest Income Recognized | 57 | |
Specific Reserve | 12 | 697 |
Average Recorded Investment | 50 | 1,820 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 1,896 | 983 |
Unpaid Principal Balance | 2,863 | 1,116 |
Interest Income Recognized | 11 | 14 |
Average Recorded Investment | 2,874 | 1,171 |
Real-estate - mortgage | Commercial | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 292 | 300 |
Unpaid Principal Balance | 292 | 300 |
Interest Income Recognized | ||
Specific Reserve | 92 | 101 |
Average Recorded Investment | 303 | 315 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 1,129 | 843 |
Unpaid Principal Balance | 1,129 | 843 |
Interest Income Recognized | 23 | 38 |
Average Recorded Investment | 1,145 | 876 |
Consumer | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 136 | 146 |
Unpaid Principal Balance | 136 | 146 |
Interest Income Recognized | ||
Specific Reserve | 56 | 65 |
Average Recorded Investment | 168 | 170 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 38 | 365 |
Unpaid Principal Balance | 38 | 449 |
Interest Income Recognized | 2 | |
Average Recorded Investment | 72 | 453 |
Installment | ||
Impaired loans with specific reserves: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Interest Income Recognized | ||
Specific Reserve | ||
Average Recorded Investment | ||
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 288 | 440 |
Unpaid Principal Balance | 288 | 440 |
Interest Income Recognized | ||
Average Recorded Investment | 288 | |
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 Reserves [Abstract] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Interest Income Recognized | ||
Average Recorded Investment | ||
Commercial | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 235 | 241 |
Unpaid Principal Balance | 235 | 241 |
Interest Income Recognized | 5 | 10 |
Specific Reserve | 235 | 241 |
Average Recorded Investment | 237 | 247 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 2 | |
Unpaid Principal Balance | 2 | |
Interest Income Recognized | ||
Average Recorded Investment | $ 3 |
LOANS AND ASSET QUALITY (Deta20
LOANS AND ASSET QUALITY (Details 3) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)ContractAccount | Dec. 31, 2015USD ($)ContractAccount | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 256,809 | $ 263,858 |
Nonaccrual | 2,665 | 3,780 |
Troubled debt restructures | $ 322 | $ 290 |
Number of TDRs contracts | Contract | 3 | 2 |
Non-performing TDRs | Contract | ||
Number of TDR accounts | Account | ||
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 247,045 | $ 252,157 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,820 | 6,782 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,780 | 4,222 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 164 | 697 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,509 | 4,540 |
Nonaccrual | ||
Troubled debt restructures | $ 235 | $ 241 |
Number of TDRs contracts | Contract | 1 | 1 |
Non-performing TDRs | Contract | ||
Number of TDR accounts | Account | ||
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 4,198 | $ 3,879 |
Commercial and industrial | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 77 | 168 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 234 | 493 |
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 | 62,757 | 64,272 |
Nonaccrual | 618 | |
Troubled debt restructures | ||
Number of TDRs contracts | Contract | ||
Non-performing TDRs | Contract | ||
Number of TDR accounts | Account | ||
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 57,462 | $ 58,706 |
Commercial real estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,874 | 4,422 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,421 | 1,144 |
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 | 77,763 | 75,303 |
Nonaccrual | 389 | 597 |
Troubled debt restructures | $ 38 | |
Number of TDRs contracts | Contract | 1 | |
Non-performing TDRs | Contract | ||
Number of TDR accounts | Account | ||
Consumer and indirect | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 75,570 | $ 72,976 |
Consumer and indirect | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,362 | 1,653 |
Consumer and indirect | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 667 | 509 |
Consumer and indirect | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 164 | 165 |
Consumer and indirect | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 111,780 | 119,743 |
Nonaccrual | 1,658 | 3,183 |
Troubled debt restructures | $ 49 | $ 49 |
Number of TDRs contracts | Contract | 1 | 1 |
Non-performing TDRs | Contract | ||
Number of TDR accounts | Account | ||
Residential real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 109,815 | $ 116,596 |
Residential real estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 507 | 539 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,458 | 2,076 |
Residential real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 532 | |
Residential real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total |
LOANS AND ASSET QUALITY (Deta21
LOANS AND ASSET QUALITY (Detail Textuals) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Loans, allowance for credit losses (in dollars) | $ 2,291 | $ 3,150 |
Unearned income | $ 1,028 | $ 1,071 |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 3 | 2 |
Troubled debt restructures | $ 322 | $ 290 |
Loans outstanding included in current and 30 - 89 days past due | 1,206 | |
Recorded Investment | 3,353 | 2,631 |
Specific Reserve | 395 | 1,104 |
Recorded Investment | $ 712 | $ 2,496 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 1 | 1 |
Troubled debt restructures | $ 235 | $ 241 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 1 | 1 |
Troubled debt restructures | $ 49 | $ 49 |
Consumer and indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 1 | |
Troubled debt restructures | $ 38 | |
Specific Reserve | $ 57 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | ||
Troubled debt restructures | ||
Loans outstanding included in current and 30 - 89 days past due | 803 | |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | 168 | |
Recorded Investment | ||
Specific Reserve | ||
Recorded Investment | ||
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Troubled debt restructures | 235 | 241 |
Loans outstanding included in current and 30 - 89 days past due | 235 | |
Recorded Investment | 2 | |
Specific Reserve | 235 | 241 |
Recorded Investment | 235 | 241 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 38 | 365 |
Specific Reserve | 56 | 65 |
Recorded Investment | 136 | 146 |
Real-estate - mortgage | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,896 | 983 |
Specific Reserve | 12 | 697 |
Recorded Investment | 49 | 1,809 |
Real-estate - mortgage | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,129 | 843 |
Specific Reserve | 92 | 101 |
Recorded Investment | $ 292 | $ 300 |
FAIR VALUE - Changes in the ass
FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 102,681,000 | $ 98,790,000 |
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 | 102,881,175 | 98,864,410 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 3,700,238 | 4,053,092 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 106,581,413 | 102,917,502 |
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 | 3,999,186 | 2,991,485 |
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 | 3,999,186 | 2,991,485 |
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 | 32,893,048 | 29,996,099 |
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 | 32,893,048 | 29,996,099 |
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 | 65,788,336 | 65,802,426 |
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 | 65,788,336 | 65,802,426 |
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 | 200,605 | 74,400 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | 30,000 | 30,000 |
Impaired loans | 3,670,238 | 4,023,092 |
OREO | ||
Nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maryland Financial Bank stock | 30,000 | 30,000 |
Impaired loans | 3,670,238 | 4,023,092 |
OREO | $ 200,605 | $ 74,400 |
FAIR VALUE - Estimated fair val
FAIR VALUE - Estimated fair values of the Company's financial instruments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets - Carrying Amount | ||
Cash and due from banks | $ 6,481 | $ 7,493 |
Interest-bearing deposits | 2,671 | 2,308 |
Federal funds sold | 11,352 | 2,570 |
Investment securities | 102,681 | 98,790 |
Investments in restricted stock | 1,200 | 1,203 |
Ground rents | 164 | 164 |
Loans, net | 253,490 | 259,637 |
Cash value of life insurance | 9,465 | 9,358 |
Accrued interest receivable | 1,133 | 1,121 |
Financial liabilities - Carrying Amount | ||
Deposits | 339,295 | 335,191 |
Long-term borrowings | 20,000 | 20,000 |
Dividends payable | ||
Accrued interest payable | 38 | 40 |
Financial assets - Fair Value | ||
Cash and due from banks | 6,481 | 7,493 |
Interest-bearing deposits | 2,671 | 2,308 |
Federal funds sold | 11,352 | 2,570 |
Investment securities | 102,681 | 98,790 |
Investments in restricted stock | 1,200 | 1,203 |
Ground rents | 164 | 164 |
Loans, net | 255,895 | 252,239 |
Cash value of life insurance | 9,465 | 9,358 |
Accrued interest receivable | 1,133 | 1,121 |
Financial liabilities - Fair Value | ||
Deposits | 331,141 | 307,924 |
Long-term borrowings | 20,818 | 20,688 |
Dividends payable | ||
Accrued interest payable | $ 38 | $ 40 |
FAIR VALUE (Details 2)
FAIR VALUE (Details 2) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | $ 20,504,000 | $ 12,371,000 | $ 10,379,000 | $ 13,280,000 |
Loans receivable, net | 253,490,000 | 259,637,000 | ||
Cash value of life insurance | 9,464,684 | |||
Financial liabilities - Carrying Amount | ||||
Deposits | 339,295,000 | 335,191,000 | ||
Long-term debt | 20,000,000 | |||
Financial assets - Fair Value | ||||
Cash and cash equivalents | 20,504,113 | |||
Loans receivable, net | 255,895,000 | 252,239,000 | ||
Cash value of life insurance | 9,464,684 | |||
Financial liabilities - Fair Value | ||||
Deposits | 331,141,000 | 307,924,000 | ||
Long-term debt | 20,818,000 | $ 20,688,000 | ||
Level 1 | Fair Value | ||||
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | 20,504,113 | |||
Loans receivable, net | ||||
Cash value of life insurance | ||||
Financial liabilities - Carrying Amount | ||||
Deposits | 217,945,000 | |||
Long-term debt | ||||
Level 2 | Fair Value | ||||
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | ||||
Loans receivable, net | ||||
Cash value of life insurance | 9,464,684 | |||
Financial liabilities - Carrying Amount | ||||
Deposits | 113,196,000 | |||
Long-term debt | 20,818,000 | |||
Level 3 | Fair Value | ||||
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | ||||
Loans receivable, net | 255,895,000 | |||
Cash value of life insurance | ||||
Financial liabilities - Carrying Amount | ||||
Deposits | ||||
Long-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, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | $ 8,712 |
Less than 12 months Unrealized Loss | 71 |
12 months or more Fair Value | 9,815 |
12 months or more Unrealized Loss | 82 |
Total Fair Value | 18,527 |
Total Unrealized Loss | 153 |
Obligations of U.S. Govt Agencies | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | |
Less than 12 months Unrealized Loss | |
12 months or more Fair Value | |
12 months or more Unrealized Loss | |
Total Fair Value | |
Total Unrealized Loss | |
State and Municipal | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | 2,970 |
Less than 12 months Unrealized Loss | 22 |
12 months or more Fair Value | 506 |
12 months or more Unrealized Loss | 4 |
Total Fair Value | 3,476 |
Total Unrealized Loss | 26 |
Corporate Trust Preferred | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | |
12 months or more Unrealized Loss | |
Total Fair Value | |
Total Unrealized Loss | |
Mortgage Backed | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | 5,742 |
Less than 12 months Unrealized Loss | 49 |
12 months or more Fair Value | 9,309 |
12 months or more Unrealized Loss | 78 |
Total Fair Value | 15,051 |
Total Unrealized Loss | $ 127 |
FAIR VALUE - Cumulative other-t
FAIR VALUE - Cumulative other-than-temporary credit losses (Details 4) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Estimated credit losses, beginning of year | $ 3,262 | |
Sales of securities with previous OTTI recognized | (3,262) | |
Credit losses - no previous OTTI recognized | ||
Credit losses - previous OTTI recognized | ||
Estimated credit losses, end of period |
FAIR VALUE (Detail Textuals)
FAIR VALUE (Detail Textuals) | 6 Months Ended | |
Jun. 30, 2016USD ($)LoansSecurity | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of impaired loans classified as nonaccrual loans | Loans | 26 | |
Loans deemed to be impaired | $ 4,100,000 | |
Specific Reserve | 395,000 | $ 1,104,000 |
Total impaired loan | $ 3,700,000 | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of discount rate | 16.00% | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of discount rate | 0.00% | |
Consumer and indirect | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired loans includes nonaccrual, past due 90 days or more and still accruing | $ 288,000 | |
Loans deemed to be impaired | 463,000 | |
Specific Reserve | $ 57,000 | |
Investment securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of securities continuous unrealized loss position more than twelve months | Security | 16 |