Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 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 | 2,783,111 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 9,003 | $ 7,493 |
Interest-bearing deposits in other financial institutions | 825 | 2,308 |
Federal funds sold | 6,848 | 2,570 |
Cash and cash equivalents | 16,676 | 12,371 |
Investment securities available for sale, at fair value | 98,532 | 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 (September 30: $2,315; December 31: $3,150) | 257,779 | 259,637 |
Premises and equipment, at cost, less accumulated depreciation | 3,291 | 3,369 |
Other real estate owned | 74 | |
Cash value of life insurance | 9,519 | 9,358 |
Other assets | 5,125 | 5,748 |
Total assets | 392,152 | 390,580 |
Liabilities: | ||
Deposits | 335,669 | 335,191 |
Long-term borrowings | 20,000 | 20,000 |
Other liabilities | 1,522 | 1,213 |
Total liabilities | 357,191 | 356,404 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding: September 30: 2,783,111 shares; December 31: 2,773,361 shares | 2,783 | 2,773 |
Surplus | 10,097 | 9,986 |
Retained earnings | 21,591 | 21,718 |
Accumulated other comprehensive income (loss), net of taxes | 490 | (301) |
Total stockholders' equity | 34,961 | 34,176 |
Total liabilities and stockholders' equity | $ 392,152 | $ 390,580 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for credit losses (in dollars) | $ 2,315 | $ 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 | 2,783,111 | 2,773,361 |
Common stock, shares outstanding | 2,783,111 | 2,773,361 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income on: | ||||
Loans, including fees | $ 2,795 | $ 2,894 | $ 8,380 | $ 8,701 |
U.S. Treasury and U.S. Government agency securities | 256 | 211 | 792 | 636 |
State and municipal securities | 236 | 260 | 675 | 836 |
Other | 31 | 31 | 91 | 77 |
Total interest income | 3,318 | 3,396 | 9,938 | 10,250 |
Interest expense on: | ||||
Deposits | 364 | 427 | 1,133 | 1,336 |
Long-term borrowings | 162 | 161 | 481 | 479 |
Total interest expense | 526 | 588 | 1,614 | 1,815 |
Net interest income | 2,792 | 2,808 | 8,324 | 8,435 |
Provision for credit losses | 116 | 985 | 233 | 1,285 |
Net interest income after provision for credit losses | 2,676 | 1,823 | 8,091 | 7,150 |
Other income: | ||||
Service charges on deposit accounts | 83 | 113 | 247 | 320 |
Other fees and commissions | 191 | 234 | 521 | 585 |
Other non-interest income | 21 | 61 | 44 | 501 |
Income on life insurance | 54 | 55 | 161 | 164 |
Gains on investment securities | 200 | 1 | 669 | |
Total other income | 349 | 663 | 974 | 2,239 |
Other expenses: | ||||
Salaries and employee benefits | 1,743 | 1,552 | 4,782 | 4,895 |
Occupancy | 184 | 190 | 562 | 595 |
Other expenses | 1,038 | 913 | 2,992 | 2,853 |
Total other expenses | 2,965 | 2,655 | 8,336 | 8,343 |
Income before income taxes | 60 | (169) | 729 | 1,046 |
Income tax (benefit) expense | (55) | (177) | 23 | 140 |
Net income | $ 115 | $ 8 | $ 706 | $ 906 |
Basic and diluted earnings per share of common stock (in dollars per share) | $ 0.04 | $ 0 | $ 0.25 | $ 0.33 |
Weighted average shares of common stock outstanding (in shares) | 2,782,923 | 2,770,897 | 2,781,371 | 2,770,644 |
Dividends declared per share of common stock (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.20 | $ 0.27 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Net income | $ 115 | $ 8 | $ 706 | $ 906 |
Unrealized (losses) gains on securities: | ||||
Unrealized holding (losses) gains arising during the period | (304) | 655 | 793 | 221 |
Reclassification adjustment for gains included in net income | (120) | (1) | (403) | |
Comprehensive (losses) income | $ (189) | $ 543 | $ 1,498 | $ 724 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 706 | $ 906 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion | 902 | 920 |
Provision for credit losses | 233 | 1,285 |
Gains on disposals of assets, net | (2) | (703) |
Provision on losses of other real estate owned | 36 | |
Income on investment in life insurance | (161) | (165) |
Changes in assets and liabilities: | ||
Decrease (increase) in other assets | 103 | (372) |
Increase (decrease) in other liabilities | 309 | (320) |
Net cash provided by operating activities | 2,126 | 1,551 |
Cash flows from investing activities: | ||
Maturities and proceeds of available for sale mortgage-backed securities | 13,524 | 15,463 |
Proceeds from maturities and sales of other investment securities | 3,767 | 22,454 |
Purchases of investment securities | (16,337) | (44,131) |
Sale of Federal Home Loan Bank stock | 3 | 125 |
Decrease in loans, net | 1,498 | 7,396 |
Proceeds from sale of other real estate | 166 | 79 |
Purchases of premises and equipment | (207) | (293) |
Net cash provided by investing activities | 2,414 | 1,093 |
Cash flows from financing activities: | ||
Increase in deposits, net | 477 | 1,430 |
Dividends paid | (833) | (915) |
Common stock dividends reinvested | 121 | 118 |
Net cash (used) provided by financing activities | (235) | 633 |
Increase in cash and cash equivalents | 4,305 | 3,277 |
Cash and cash equivalents, beginning of year | 12,371 | 13,280 |
Cash and cash equivalents, end of period | $ 16,676 | $ 16,557 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016 and 2015. Operating results for the nine months ended September 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 | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Basic and diluted: Net income $ 115,000 $ 8,000 $ 706,000 $ 906,000 Weighted average common shares outstanding 2,782,923 2,770,897 2,781,371 2,770,644 Basic and dilutive net income per share $ 0.04 $ 0.00 $ 0.25 $ 0.33 Diluted earnings per share calculations were not required for the three and nine months ended September 30, 2016 and 2015, since there were no options outstanding. |
LOANS AND ASSET QUALITY
LOANS AND ASSET QUALITY | 9 Months Ended |
Sep. 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 September 30, 2016 90 Days or (Dollars in Thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,745 $ - $ - $ - $ 4,745 Commercial real estate 63,917 - - 615 64,532 Consumer and indirect 78,875 892 - 408 80,175 Residential real estate 109,433 712 170 1,335 111,650 $ 256,970 $ 1,604 $ 170 $ 2,358 $ 261,102 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 September 30, 2016, the allowance for loan loss is $2,315,000 and the unearned income is $1,008,000. 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 September 30, December 31, 2016 2015 (Dollars in Thousands) Troubled debt restructured loans $ 318 $ 290 Non-accrual and 90 days or more and still accruing loans to gross loans 0.97 % 1.45 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 91.57 % 82.14 % At September 30, 2016 there were three troubled debt restructured loans consisting of a commercial loan of $232,000, a residential real estate loan of $49,000 and a consumer loan of $37,000. 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 September 30, 2016, there was $1,185,000 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 $1,185,000, are as follows: $786,000 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; $167,000 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 $232,000 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $232,000. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at September 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 September 30, 2016 and December 31, 2015. (Dollars in thousands) September 30, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 79 79 - 18 111 Commercial 290 290 - 109 303 Consumer 134 134 - 54 167 Installment - - - - - Home Equity - - - - - Commercial 232 232 8 232 236 Total impaired loans with specific reserves $ 735 735 8 413 817 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,538 2,318 16 n/a 2,482 Commercial 1,111 1,111 28 n/a 1,136 Consumer 139 139 - n/a 174 Installment 135 135 - n/a 135 Home Equity - - - n/a - Commercial 2 2 - n/a 3 Total impaired loans with no specific reserve $ 2,925 3,705 44 - 3,930 (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 September 30, 2016 and Commercial and Residential (Dollars in Thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,438 $ 58,772 $ 78,531 $ 108,704 $ 250,445 Special mention 75 4,359 1,148 1,538 7,120 Substandard 232 1,401 414 1,223 3,270 Doubtful - - 82 185 267 Loss - - - - - $ 4,745 $ 64,532 $ 80,175 $ 111,650 $ 261,102 Non-accrual - 615 408 1,335 2,358 Troubled debt restructures 232 - 37 49 318 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 | 9 Months Ended |
Sep. 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 September 30, 2016, these assets include 25 loans, excluding $408,000 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 ($3.7 million of loans with $413,000 of specific reserves as of September 30, 2016) 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 ($3.0 million of the total impaired loans as of September 30, 2016). 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 ($641,000 with $286,000 of specific reserves as of September 30, 2016) 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 Level 1 Level 2 Level 3 Value September 30, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 3,028,230 $ - $ 3,028,230 State and Municipal - 33,545,006 - 33,545,006 Mortgaged-backed - 61,958,555 - 61,958,555 Non-recurring: Maryland Financial Bank stock - - 30,000 30,000 Impaired loans - - 3,658,727 3,658,727 OREO - - - - $ - $ 98,531,791 $ 3,688,727 $ 102,220,518 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 September 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. September 30, 2016 December 31, 2015 (In Thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 9,003 $ 9,003 $ 7,493 $ 7,493 Interest-bearing deposits 825 825 2,308 2,308 Federal funds sold 6,848 6,848 2,570 2,570 Investment securities 98,532 98,532 98,790 98,790 Investments in restricted stock 1,200 1,200 1,203 1,203 Ground rents 164 164 164 164 Loans, net 257,779 258,623 259,637 252,239 Cash Value of life insurance 9,519 9,519 9,358 9,358 Accrued interest receivable 1,100 1,100 1,121 1,121 Financial liabilities: Deposits 335,669 326,125 335,191 307,924 Long-term borrowings 20,000 20,630 20,000 20,688 Dividends payable - - - - Accrued interest payable 35 35 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 September 30, 2016 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 16,675,962 $ 16,675,962 $ 16,675,962 $ - $ - Loans receivable, net 257,778,938 258,623,000 - - 258,623,000 Cash value of life insurance 9,518,791 9,518,791 - 9,518,791 - Financial instruments - Liabilities Deposits 335,668,874 326,125,000 217,284,000 108,841,000 - Long-term debt 20,000,000 20,630,000 - 20,630,000 - 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 September 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 5,373 71 503 2 5,876 73 Corporate Trust Preferred - - - - Mortgage Backed 6,155 47 8,622 76 14,777 123 $ 11,528 $ 118 $ 9,125 $ 78 $ 20,653 $ 196 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, 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 September 30, 2016, the Bank held 16 investment securities having continuous unrealized loss positions for more than 12 months. Management has determined that all unrealized losses are either due to increases in market interest rates over the yields available at the time the underlying securities were purchased, current call features that are nearing, and the effect the sub-prime market has had on all mortgage-backed securities. The Bank has no mortgage-backed securities collateralized by sub-prime mortgages. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Except as noted above, as of September 30, 2016, management believes the impairments detailed in the table above are temporary and no impairment loss has been recognized in the Company’s consolidated income statement. 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 September 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 | 9 Months Ended |
Sep. 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” In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
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” In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Basic and diluted: Net income $ 115,000 $ 8,000 $ 706,000 $ 906,000 Weighted average common shares outstanding 2,782,923 2,770,897 2,781,371 2,770,644 Basic and dilutive net income per share $ 0.04 $ 0.00 $ 0.25 $ 0.33 |
LOANS AND ASSET QUALITY (Tables
LOANS AND ASSET QUALITY (Tables) | 9 Months Ended |
Sep. 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 September 30, 2016 90 Days or (Dollars in Thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,745 $ - $ - $ - $ 4,745 Commercial real estate 63,917 - - 615 64,532 Consumer and indirect 78,875 892 - 408 80,175 Residential real estate 109,433 712 170 1,335 111,650 $ 256,970 $ 1,604 $ 170 $ 2,358 $ 261,102 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 September 30, December 31, 2016 2015 (Dollars in Thousands) Troubled debt restructured loans $ 318 $ 290 Non-accrual and 90 days or more and still accruing loans to gross loans 0.97 % 1.45 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 91.57 % 82.14 % |
Schedule of impaired financing receivables | (Dollars in thousands) September 30, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 79 79 - 18 111 Commercial 290 290 - 109 303 Consumer 134 134 - 54 167 Installment - - - - - Home Equity - - - - - Commercial 232 232 8 232 236 Total impaired loans with specific reserves $ 735 735 8 413 817 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,538 2,318 16 n/a 2,482 Commercial 1,111 1,111 28 n/a 1,136 Consumer 139 139 - n/a 174 Installment 135 135 - n/a 135 Home Equity - - - n/a - Commercial 2 2 - n/a 3 Total impaired loans with no specific reserve $ 2,925 3,705 44 - 3,930 (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 September 30, 2016 and Commercial and Residential (Dollars in Thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,438 $ 58,772 $ 78,531 $ 108,704 $ 250,445 Special mention 75 4,359 1,148 1,538 7,120 Substandard 232 1,401 414 1,223 3,270 Doubtful - - 82 185 267 Loss - - - - - $ 4,745 $ 64,532 $ 80,175 $ 111,650 $ 261,102 Non-accrual - 615 408 1,335 2,358 Troubled debt restructures 232 - 37 49 318 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) | 9 Months Ended |
Sep. 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 September 30, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 3,028,230 $ - $ 3,028,230 State and Municipal - 33,545,006 - 33,545,006 Mortgaged-backed - 61,958,555 - 61,958,555 Non-recurring: Maryland Financial Bank stock - - 30,000 30,000 Impaired loans - - 3,658,727 3,658,727 OREO - - - - $ - $ 98,531,791 $ 3,688,727 $ 102,220,518 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 | September 30, 2016 December 31, 2015 (In Thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 9,003 $ 9,003 $ 7,493 $ 7,493 Interest-bearing deposits 825 825 2,308 2,308 Federal funds sold 6,848 6,848 2,570 2,570 Investment securities 98,532 98,532 98,790 98,790 Investments in restricted stock 1,200 1,200 1,203 1,203 Ground rents 164 164 164 164 Loans, net 257,779 258,623 259,637 252,239 Cash Value of life insurance 9,519 9,519 9,358 9,358 Accrued interest receivable 1,100 1,100 1,121 1,121 Financial liabilities: Deposits 335,669 326,125 335,191 307,924 Long-term borrowings 20,000 20,630 20,000 20,688 Dividends payable - - - - Accrued interest payable 35 35 40 40 |
Schedule of fair value hierarchy of financial instruments | Carrying Fair September 30, 2016 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 16,675,962 $ 16,675,962 $ 16,675,962 $ - $ - Loans receivable, net 257,778,938 258,623,000 - - 258,623,000 Cash value of life insurance 9,518,791 9,518,791 - 9,518,791 - Financial instruments - Liabilities Deposits 335,668,874 326,125,000 217,284,000 108,841,000 - Long-term debt 20,000,000 20,630,000 - 20,630,000 - |
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 5,373 71 503 2 5,876 73 Corporate Trust Preferred - - - - Mortgage Backed 6,155 47 8,622 76 14,777 123 $ 11,528 $ 118 $ 9,125 $ 78 $ 20,653 $ 196 |
Schedule of rollforward of the cumulative other-than-temporary credit losses recognized in earnings for debt securities | At At September 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic and diluted: | ||||
Net income | $ 115 | $ 8 | $ 706 | $ 906 |
Weighted average common shares outstanding (in shares) | 2,782,923 | 2,770,897 | 2,781,371 | 2,770,644 |
Basic and dilutive net income per share (in dollars per share) | $ 0.04 | $ 0 | $ 0.25 | $ 0.33 |
LOANS AND ASSET QUALITY (Detail
LOANS AND ASSET QUALITY (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 256,970 | $ 258,093 |
90 Days or More and Still Accruing | 170 | 55 |
Nonaccrual | 2,358 | 3,780 |
Total | 261,102 | 263,858 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,604 | 1,930 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,745 | 4,540 |
90 Days or More and Still Accruing | ||
Nonaccrual | ||
Total | 4,745 | 4,540 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 63,917 | 64,270 |
90 Days or More and Still Accruing | ||
Nonaccrual | 615 | |
Total | 64,532 | 64,272 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2 | |
Consumer and indirect | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 78,875 | 73,568 |
90 Days or More and Still Accruing | 16 | |
Nonaccrual | 408 | 597 |
Total | 80,175 | 75,303 |
Consumer and indirect | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 892 | 1,122 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 109,433 | 115,715 |
90 Days or More and Still Accruing | 170 | 39 |
Nonaccrual | 1,335 | 3,183 |
Total | 111,650 | 119,743 |
Residential real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 712 | $ 806 |
LOANS AND ASSET QUALITY (Deta18
LOANS AND ASSET QUALITY (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Troubled debt restructured loans | $ 318 | $ 290 |
Non-accrual and 90 days or more and still accruing loans to gross loans | 0.97% | 1.45% |
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans | 91.57% | 82.14% |
LOANS AND ASSET QUALITY (Deta19
LOANS AND ASSET QUALITY (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Impaired loans with specific reserves: | ||
Recorded Investment | $ 735 | $ 2,496 |
Unpaid Principal Balance | 735 | 2,496 |
Interest Income Recognized | 8 | 67 |
Specific Reserve | 413 | 1,104 |
Average Recorded Investment | 817 | 2,552 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 2,925 | 2,631 |
Unpaid Principal Balance | 3,705 | 2,848 |
Interest Income Recognized | 44 | 54 |
Average Recorded Investment | 3,930 | 2,500 |
Real-estate - mortgage | Residential | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 79 | 1,809 |
Unpaid Principal Balance | 79 | 1,809 |
Interest Income Recognized | 57 | |
Specific Reserve | 18 | 697 |
Average Recorded Investment | 111 | 1,820 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 1,538 | 983 |
Unpaid Principal Balance | 2,318 | 1,116 |
Interest Income Recognized | 16 | 14 |
Average Recorded Investment | 2,482 | 1,171 |
Real-estate - mortgage | Commercial | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 290 | 300 |
Unpaid Principal Balance | 290 | 300 |
Interest Income Recognized | ||
Specific Reserve | 109 | 101 |
Average Recorded Investment | 303 | 315 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 1,111 | 843 |
Unpaid Principal Balance | 1,111 | 843 |
Interest Income Recognized | 28 | 38 |
Average Recorded Investment | 1,136 | 876 |
Consumer | ||
Impaired loans with specific reserves: | ||
Recorded Investment | 134 | 146 |
Unpaid Principal Balance | 134 | 146 |
Interest Income Recognized | ||
Specific Reserve | 54 | 65 |
Average Recorded Investment | 167 | 170 |
Impaired Loans With No Specific Reserves [Abstract] | ||
Recorded Investment | 139 | 365 |
Unpaid Principal Balance | 139 | 449 |
Interest Income Recognized | 2 | |
Average Recorded Investment | 174 | 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 | 135 | 440 |
Unpaid Principal Balance | 135 | 440 |
Interest Income Recognized | ||
Average Recorded Investment | 135 | |
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 | 232 | 241 |
Unpaid Principal Balance | 232 | 241 |
Interest Income Recognized | 8 | 10 |
Specific Reserve | 232 | 241 |
Average Recorded Investment | 236 | 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)ContractAccount | Dec. 31, 2015USD ($)ContractAccount | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 261,102 | $ 263,858 |
Nonaccrual | 2,358 | 3,780 |
Troubled debt restructures | $ 318 | $ 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 | $ 250,445 | $ 252,157 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,120 | 6,782 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,270 | 4,222 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 267 | 697 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,745 | 4,540 |
Nonaccrual | ||
Troubled debt restructures | $ 232 | $ 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 | $ 4,438 | $ 3,879 |
Commercial and industrial | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 75 | 168 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 232 | 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 | 64,532 | 64,272 |
Nonaccrual | 615 | |
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 | $ 58,772 | $ 58,706 |
Commercial real estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,359 | 4,422 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,401 | 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 | 80,175 | 75,303 |
Nonaccrual | 408 | 597 |
Troubled debt restructures | $ 37 | |
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 | $ 78,531 | $ 72,976 |
Consumer and indirect | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,148 | 1,653 |
Consumer and indirect | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 414 | 509 |
Consumer and indirect | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 82 | 165 |
Consumer and indirect | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | ||
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 111,650 | 119,743 |
Nonaccrual | 1,335 | 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 | $ 108,704 | $ 116,596 |
Residential real estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,538 | 539 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,223 | 2,076 |
Residential real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 185 | 532 |
Residential real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total |
LOANS AND ASSET QUALITY (Deta21
LOANS AND ASSET QUALITY (Detail Textuals) | 9 Months Ended | 12 Months Ended |
Sep. 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) | $ 2,315,000 | $ 3,150,000 |
Unearned income | $ 1,008,000 | $ 1,071,000 |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 3 | 2 |
Troubled debt restructures | $ 318,000 | $ 290,000 |
Loans outstanding included in current and 30 - 89 days past due | 1,185,000 | |
Recorded Investment | 2,925,000 | 2,631,000 |
Specific Reserve | 413,000 | 1,104,000 |
Recorded Investment | 735,000 | 2,496,000 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Troubled debt restructures | 232,000 | 241,000 |
Loans outstanding included in current and 30 - 89 days past due | 232,000 | |
Recorded Investment | 2,000 | |
Specific Reserve | 232,000 | 241,000 |
Recorded Investment | 232,000 | 241,000 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Troubled debt restructures | 37,000 | |
Recorded Investment | 139,000 | 365,000 |
Specific Reserve | 54,000 | 65,000 |
Recorded Investment | $ 134,000 | $ 146,000 |
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 | $ 786,000 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 1 | 1 |
Troubled debt restructures | $ 232,000 | $ 241,000 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 1 | 1 |
Troubled debt restructures | $ 49,000 | $ 49,000 |
Consumer and indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of TDRs contracts | Contract | 1 | |
Troubled debt restructures | $ 37,000 | |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans outstanding included in current and 30 - 89 days past due | 167,000 | |
Recorded Investment | ||
Specific Reserve | ||
Recorded Investment | ||
Real-estate - mortgage | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,538,000 | 983,000 |
Specific Reserve | 18,000 | 697,000 |
Recorded Investment | 79,000 | 1,809,000 |
Real-estate - mortgage | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment | 1,111,000 | 843,000 |
Specific Reserve | 109,000 | 101,000 |
Recorded Investment | $ 290,000 | $ 300,000 |
FAIR VALUE - Changes in the ass
FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 98,532,000 | $ 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 | 98,531,791 | 98,864,410 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 3,688,727 | 4,053,092 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 102,220,518 | 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 | 3,028,230 | 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 | 3,028,230 | 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 | 33,545,006 | 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 | 33,545,006 | 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 | 61,958,555 | 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 | 61,958,555 | 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 | 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 | 3,658,727 | 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 | 3,658,727 | 4,023,092 |
OREO | $ 74,400 |
FAIR VALUE - Estimated fair val
FAIR VALUE - Estimated fair values of the Company's financial instruments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets - Carrying Amount | ||
Cash and due from banks | $ 9,003 | $ 7,493 |
Interest-bearing deposits | 825 | 2,308 |
Federal funds sold | 6,848 | 2,570 |
Investment securities | 98,532 | 98,790 |
Investments in restricted stock | 1,200 | 1,203 |
Ground rents | 164 | 164 |
Loans, net | 257,779 | 259,637 |
Cash value of life insurance | 9,519 | 9,358 |
Accrued interest receivable | 1,100 | 1,121 |
Financial liabilities - Carrying Amount | ||
Deposits | 335,669 | 335,191 |
Long-term borrowings | 20,000 | 20,000 |
Dividends payable | ||
Accrued interest payable | 35 | 40 |
Financial assets - Fair Value | ||
Cash and due from banks | 9,003 | 7,493 |
Interest-bearing deposits | 825 | 2,308 |
Federal funds sold | 6,848 | 2,570 |
Investment securities | 98,532 | 98,790 |
Investments in restricted stock | 1,200 | 1,203 |
Ground rents | 164 | 164 |
Loans, net | 258,623 | 252,239 |
Cash value of life insurance | 9,519 | 9,358 |
Accrued interest receivable | 1,100 | 1,121 |
Financial liabilities - Fair Value | ||
Deposits | 326,125 | 307,924 |
Long-term borrowings | 20,630 | 20,688 |
Dividends payable | ||
Accrued interest payable | $ 35 | $ 40 |
FAIR VALUE (Details 2)
FAIR VALUE (Details 2) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | $ 16,676,000 | $ 12,371,000 | $ 16,557,000 | $ 13,280,000 |
Loans receivable, net | 257,779,000 | 259,637,000 | ||
Cash value of life insurance | 9,518,791 | |||
Financial liabilities - Carrying Amount | ||||
Deposits | 335,669,000 | 335,191,000 | ||
Long-term debt | 20,000,000 | |||
Financial assets - Fair Value | ||||
Cash and cash equivalents | 16,675,962 | |||
Loans receivable, net | 258,623,000 | 252,239,000 | ||
Cash value of life insurance | 9,518,791 | |||
Financial liabilities - Fair Value | ||||
Deposits | 326,125,000 | 307,924,000 | ||
Long-term debt | 20,630,000 | $ 20,688,000 | ||
Level 1 | Fair Value | ||||
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | 16,675,962 | |||
Loans receivable, net | ||||
Cash value of life insurance | ||||
Financial liabilities - Carrying Amount | ||||
Deposits | 217,284,000 | |||
Long-term debt | ||||
Level 2 | Fair Value | ||||
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | ||||
Loans receivable, net | ||||
Cash value of life insurance | 9,518,791 | |||
Financial liabilities - Carrying Amount | ||||
Deposits | 108,841,000 | |||
Long-term debt | 20,630,000 | |||
Level 3 | Fair Value | ||||
Financial assets - Carrying Amount | ||||
Cash and cash equivalents | ||||
Loans receivable, net | 258,623,000 | |||
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 | Sep. 30, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 months Fair Value | $ 11,528 |
Less than 12 months Unrealized Loss | 118 |
12 months or more Fair Value | 9,125 |
12 months or more Unrealized Loss | 78 |
Total Fair Value | 20,653 |
Total Unrealized Loss | 196 |
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 | 5,373 |
Less than 12 months Unrealized Loss | 71 |
12 months or more Fair Value | 503 |
12 months or more Unrealized Loss | 2 |
Total Fair Value | 5,876 |
Total Unrealized Loss | 73 |
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 | 6,155 |
Less than 12 months Unrealized Loss | 47 |
12 months or more Fair Value | 8,622 |
12 months or more Unrealized Loss | 76 |
Total Fair Value | 14,777 |
Total Unrealized Loss | $ 123 |
FAIR VALUE - Cumulative other-t
FAIR VALUE - Cumulative other-than-temporary credit losses (Details 4) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 30, 2016USD ($)Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of impaired loans classified as nonaccrual loans | Loans | 25 |
Loans deemed to be impaired | $ 3,700,000 |
Impaired real estate loans | $ 3,000,000 |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of discount rate | 0.00% |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of discount rate | 16.00% |
Consumer and indirect | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired loans includes nonaccrual, past due 90 days or more and still accruing | $ 408,000 |
Remaining impaired loan | 641,000 |
Specific reserve amount | $ 286,000 |