Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | ROYAL BANCSHARES OF PENNSYLVANIA INC | |
Entity Central Index Key | 922,487 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,016 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Class A - Common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,880,024 | |
Class B - Common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,924,629 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 10,753 | $ 10,394 |
Interest bearing deposits | 17,638 | 15,026 |
Total cash and cash equivalents | 28,391 | 25,420 |
Investment securities available for sale (“AFS”), at fair value | 168,321 | 224,067 |
Other investment, at cost | 2,250 | 2,250 |
Federal Home Loan Bank ("FHLB") stock | 3,018 | 2,545 |
Loans and leases ("LHFI") | 575,818 | 499,103 |
Less allowance for loan and lease losses | 10,254 | 9,689 |
Net loans and leases | 565,564 | 489,414 |
Company owned life insurance | 20,458 | 19,899 |
Accrued interest receivable | 3,770 | 4,149 |
Other real estate owned ("OREO"), net | 7,236 | 7,435 |
Premises and equipment, net | 4,714 | 3,959 |
Other assets | 7,646 | 9,145 |
Total assets | 811,368 | 788,283 |
Deposits | ||
Non-interest bearing | 90,709 | 83,529 |
Interest bearing | 501,530 | 494,363 |
Total deposits | 592,239 | 577,892 |
Short-term borrowings | 15,000 | 9,000 |
Long-term borrowings | 85,000 | 81,970 |
Subordinated debentures | 25,774 | 25,774 |
Accrued interest payable | 2,240 | 709 |
Other liabilities | 21,313 | 20,640 |
Total liabilities | 741,566 | 715,985 |
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Preferred stock, Series A perpetual, $1,000 liquidation value per share, 500,000 shares authorized, 12,205 and 18,856 shares outstanding at September 30, 2016 and December 31, 2015 | 12,205 | 18,856 |
Additional paid in capital | 106,975 | 110,494 |
Accumulated deficit | (98,634) | (104,879) |
Accumulated other comprehensive loss | (2,916) | (3,919) |
Treasury stock - at cost, shares of Class A, 356,072 and 375,333 at September 30, 2016 and December 31, 2015 respectively | (4,979) | (5,249) |
Total Royal Bancshares of Pennsylvania, Inc. shareholders’ equity | 69,300 | 71,904 |
Noncontrolling interest | 502 | 394 |
Total equity | 69,802 | 72,298 |
Total liabilities and shareholders' equity | 811,368 | 788,283 |
Class A - Common stock | ||
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Common stock | 56,457 | 56,408 |
Total equity | 56,457 | 56,408 |
Class B - Common stock | ||
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Common stock | 192 | 193 |
Total equity | $ 192 | $ 193 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Preferred stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares outstanding (in shares) | 12,205 | 18,856 |
Class A - Common stock | ||
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 28,228,389 | 28,204,182 |
Common Stock, Shares, Outstanding | 28,228,389 | 28,204,182 |
Treasury stock, shares (in shares) | 356,072 | 375,333 |
Class B - Common stock | ||
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares issued (in shares) | 1,924,629 | 1,928,289 |
Common Stock, Shares, Outstanding | 1,924,629 | 1,928,289 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Income | ||||
Loans and leases, including fees | $ 7,346 | $ 6,456 | $ 21,168 | $ 17,878 |
Investment securities | 1,099 | 1,334 | 3,639 | 4,250 |
Deposits in banks | 15 | 8 | 48 | 21 |
Total Interest Income | 8,460 | 7,798 | 24,855 | 22,149 |
Interest Expense | ||||
Deposits | 1,086 | 968 | 3,193 | 2,796 |
Short-term borrowings | 53 | 5 | 85 | 5 |
Long-term borrowings | 763 | 663 | 2,111 | 1,997 |
Total Interest Expense | 1,902 | 1,636 | 5,389 | 4,798 |
Net Interest Income | 6,558 | 6,162 | 19,466 | 17,351 |
Provision (credit) for loan and lease losses | 578 | (216) | 987 | (1,382) |
Net Interest Income after Provision (Credit) for Loan and Lease Losses | 5,980 | 6,378 | 18,479 | 18,733 |
Non-interest Income | ||||
Service charges and fees | 396 | 298 | 989 | 832 |
Net gains on sales of loans and leases | 71 | 0 | 71 | 0 |
Income from company owned life insurance | 192 | 124 | 847 | 372 |
Net gains on the sale of AFS investment securities | 280 | 80 | 1,382 | 652 |
Total other-than-temporary impairment on AFS investment securities | (35) | 0 | (181) | 0 |
Other income | 285 | 75 | 361 | 205 |
Total Non-interest Income | 1,189 | 577 | 3,469 | 2,061 |
Non-interest Expense | ||||
Employee salaries and benefits | 2,710 | 2,655 | 8,036 | 7,825 |
Loss Contingency, Loss in Period | (200) | 0 | (200) | 0 |
Occupancy and equipment | 705 | 736 | 2,093 | 2,212 |
Professional and legal fees | 415 | 380 | 1,321 | 1,314 |
Net OREO expenses | 256 | 263 | 469 | 371 |
Pennsylvania shares tax expense | 154 | 113 | 393 | 338 |
FDIC and state assessments | 111 | 158 | 455 | 533 |
Communications and data processing | 257 | 214 | 748 | 607 |
(Credit) provision for credit losses on off-balance sheet credit exposures | (65) | (68) | (236) | 282 |
Directors' fees | 95 | 114 | 335 | 349 |
Marketing and advertising | 65 | 38 | 209 | 185 |
Insurance | 87 | 78 | 270 | 244 |
Loan collection expenses | 21 | 138 | 128 | 273 |
Other operating expenses | 390 | 423 | 1,247 | 1,175 |
Total Non-interest Expense | 5,001 | 5,242 | 15,268 | 15,708 |
Income Before Tax Expense | 2,168 | 1,713 | 6,680 | 5,086 |
Income Tax Expense | 25 | 0 | 85 | 0 |
Net Income | 2,143 | 1,713 | 6,595 | 5,086 |
Less Net Income (Loss) Attributable to Noncontrolling Interest | 113 | 179 | 342 | 500 |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | 2,030 | 1,534 | 6,253 | 4,586 |
Less Preferred Stock Series A Accumulated Dividend and Accretion | 342 | 434 | 1,014 | 1,287 |
Net Income Available to Common Shareholders | $ 1,688 | $ 1,100 | $ 5,239 | $ 3,299 |
Per Common Share Data | ||||
Net Income - Basic and Diluted | $ 0.06 | $ 0.04 | $ 0.17 | $ 0.11 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Statements of Consolidated Comprehensive Income - (unaudited) [Abstract] | |||||
Net income | $ 2,143 | $ 1,713 | $ 6,595 | $ 5,086 | |
Unrealized gains (losses) on investment securities: | |||||
Unrealized holding gains (losses) arising during period, net of tax effect | (877) | 1,190 | 2,342 | 1,320 | |
Less adjustment for impaired investments, net of tax (1) | [1] | (23) | 0 | (119) | 0 |
Less reclassification adjustment for gains realized in net income, net of tax (2) | [2] | 185 | 52 | 912 | 430 |
Unrealized gains (losses) on investment securities, net of tax | (1,039) | 1,138 | 1,549 | 890 | |
Unrecognized benefit obligation expense: | |||||
Reclassification adjustment for amortization (3) | [3] | (78) | (17) | (232) | (51) |
Unrecognized benefit obligation, net of tax | (78) | (17) | (232) | (51) | |
Unrealized loss on derivative instrument, net of tax effect | 131 | (282) | (314) | (467) | |
Other comprehensive income (loss) | (986) | 839 | 1,003 | 372 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | 1,157 | 2,552 | 7,598 | 5,458 | |
Less net income (loss) attributable to noncontrolling interest | 113 | 179 | 342 | 500 | |
Comprehensive income (loss) attributable to Royal Bancshares of Pennsylvania, Inc. | $ 1,044 | $ 2,373 | $ 7,256 | $ 4,958 | |
[1] | Gross amounts are included in total other-than-temporary impairment on AFS investment securities on the Consolidated Statements of Income in total non-interest income; amounts in the above table are net of $12 thousand and $62 thousand in taxes for the three and nine months ended September 30, 2016. See Note 15. Comprehensive Income. | ||||
[2] | Gross amounts are included in net gains on the sale of AFS investment securities on the Consolidated Statements of Income in total non-interest income; amounts in the above table are net of $95 thousand and $470 thousand in taxes for the three and nine months ended September 30, 2016 and $28 thousand and $222 thousand for the three and nine months ended September 30, 2015. See Note 15. Comprehensive Income. | ||||
[3] | Gross amounts are included in salaries and benefits on the Consolidated Statements of Income in non-interest expense. |
Statements of Consolidated Com6
Statements of Consolidated Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statements of Consolidated Comprehensive Income - (unaudited) [Abstract] | ||||
Adjustment for impaired investments, Taxes | $ 12 | $ 62 | ||
Reclassification adjustment for gains realized in net income, Taxes | $ 95 | $ 28 | $ 470 | $ 222 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock Series A [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Class A - Common stock | Class B - Common stock | Total |
Balance at Dec. 31, 2014 | $ 18,856 | $ 110,697 | $ (115,864) | $ (2,492) | $ (5,571) | $ 387 | $ 56,400 | $ 193 | $ 62,606 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 4,586 | 500 | 5,086 | ||||||
Other comprehensive income, net of reclassifications and taxes | 372 | 372 | |||||||
Distributions to non controlling interests | (411) | (411) | |||||||
Treasury shares issued for compensation | (252) | 288 | 36 | ||||||
Stock option expense | 57 | 57 | |||||||
Balance at Sep. 30, 2015 | 18,856 | 110,502 | (111,278) | (2,120) | (5,283) | 476 | 56,400 | 193 | 67,746 |
Balance at Dec. 31, 2015 | 18,856 | 110,494 | (104,879) | (3,919) | (5,249) | 394 | $ 56,408 | $ 193 | 72,298 |
Balance (in shares) at Dec. 31, 2015 | 28,204,182 | 1,928,289 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 0 | 0 | 6,253 | 0 | 0 | 342 | $ 0 | $ 0 | 6,595 |
Other comprehensive income, net of reclassifications and taxes | 0 | 0 | 0 | 1,003 | 0 | 0 | 0 | 0 | 1,003 |
Distributions to non controlling interests | 0 | 0 | 0 | 0 | 0 | (234) | 0 | 0 | (234) |
Common stock conversion from Class B to Class A | (8) | $ 9 | $ (1) | ||||||
Common stock conversion from Class B to Class A (in shares) | 4,000 | (3,000) | |||||||
Repurchase of preferred stock | (6,651) | (3,341) | 0 | 0 | 0 | 0 | $ 0 | $ 0 | (9,992) |
Treasury shares issued for compensation | 0 | (231) | 0 | 0 | 270 | 0 | 0 | 0 | 39 |
Stock options exercised | 0 | (11) | 0 | 0 | 0 | 0 | $ 40 | 0 | $ 29 |
Stock options exercised (in shares) | 20,000 | 20,000 | |||||||
Stock option expense | 0 | 64 | 0 | 0 | 0 | 0 | $ 0 | 0 | $ 64 |
Balance at Sep. 30, 2016 | $ 12,205 | $ 106,975 | $ (98,634) | $ (2,916) | $ (4,979) | $ 502 | $ 56,457 | $ 192 | $ 69,802 |
Balance (in shares) at Sep. 30, 2016 | 28,228,389 | 1,924,629 |
Consolidated Statement of Chan8
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2016 | |
Redemption of preferred stock (in shares) | 6,651 | |
Stock options exercised (in shares) | 20,000 | |
Treasury Stock [Member] | ||
Treasury shares issued for compensation (in shares) | 16,382 | 19,261 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 6,595 | $ 5,086 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 394 | 459 |
Stock compensation expense | 64 | 57 |
Provision (credit) for loan and lease losses | 987 | (1,382) |
(Credit) provision for credit losses on off-balance sheet credit exposures | (236) | 282 |
Impairment charge for OREO | 143 | 659 |
Net amortization of premiums on AFS investment securities | 1,123 | 1,164 |
Net gains on sales of loans and leases | (71) | 0 |
Net accretion of net deferred fees on loans | (439) | (471) |
Net gains on sales of OREO | (7) | (769) |
Net gains on sales of investment securities | (1,382) | (652) |
Income from company owned life insurance | (847) | (372) |
Other-than-temporary impairment on AFS investment securities | 181 | 0 |
Changes in assets and liabilities: | ||
Decrease in accrued interest receivable | 379 | 934 |
Increase in other assets | (533) | (225) |
Increase in accrued interest payable | (1,531) | (1,442) |
Increase in other liabilities | (909) | (497) |
Net cash provided by operating activities | 8,791 | 6,709 |
Cash flows from investing activities: | ||
Proceeds from maturities, calls and paydowns of AFS investment securities | 47,659 | 28,084 |
Proceeds from sales of AFS investment securities | 36,427 | 33,653 |
Purchase of AFS investment securities | (25,687) | (41,134) |
(Purchase) redemption of Federal Home Loan Bank stock | (473) | 77 |
Proceeds from sales of loans and leases | 2,036 | 0 |
Net increase in loans | (79,484) | (59,106) |
Additions to OREO | 243 | 418 |
Proceeds from Life Insurance Policies | 748 | 0 |
Purchase of premises and equipment | (1,149) | (460) |
Proceeds from sales of OREO | 1,127 | 4,436 |
Net cash provided by investing activities | (19,039) | (34,868) |
Cash flows from financing activities: | ||
Net (decrease) increase in demand and NOW accounts | (18,083) | 19,915 |
Net increase in money market and savings accounts | 21,779 | 18,079 |
Net increase (decrease) in certificates of deposit | 10,651 | (14,655) |
Net increase in short-term borrowings | 6,000 | 9,000 |
Repayments of long-term borrowings | (11,970) | (10,342) |
Proceeds from long-term borrowings | 15,000 | 0 |
Distributions to noncontrolling interest | (234) | (411) |
Issuance of Treasury Stock | 39 | 0 |
Repurchase of preferred stock | (9,992) | 0 |
Proceeds from stock options exercised | 29 | 0 |
Net cash used in financing activities | 13,219 | 21,586 |
Net increase (decrease) in cash and cash equivalents | 2,971 | (6,573) |
Cash and cash equivalents at the beginning of the period | 25,420 | 30,790 |
Cash and cash equivalents at the end of the period | 28,391 | 24,217 |
Supplemental Disclosure | ||
Income Taxes Paid | 85 | 0 |
Interest paid | 3,858 | 3,356 |
Transfers from loans to OREO | 821 | 3,968 |
Transfers from OREO to loans | $ 0 | $ 995 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Operations Royal Bancshares of Pennsylvania, Inc. (“Royal Bancshares”, the “Company”, “We” or “Our”), through its wholly-owned subsidiary Royal Bank America (“Royal Bank”) offers a full range of banking services to individual and corporate customers primarily located in the Mid-Atlantic states. Royal Bank competes with other banking and financial institutions in certain markets, including financial institutions with resources substantially greater than its own. Commercial banks, savings banks, savings and loan associations, credit unions, and brokerage firms actively compete for savings and time deposits and for various types of loans. Such institutions, as well as consumer finance and insurance companies, may be considered competitors of Royal Bank with respect to one or more of the services it renders. Basis of Financial Presentation The accompanying unaudited consolidated financial statements include the accounts of Royal Bancshares of Pennsylvania, Inc. and its wholly-owned subsidiaries, Royal Investments of Delaware, Inc., including Royal Investments of Delaware, Inc.’s wholly owned subsidiary, Royal Preferred, LLC, and Royal Bank, including Royal Bank’s subsidiaries, Royal Real Estate of Pennsylvania, Inc., Royal Investments America, LLC, RBA Property LLC, Narberth Property Acquisition LLC, Rio Marina LLC, and Royal Tax Lien Services, LLC (“RTL”). Royal Bank also has an 80% and 60% ownership interest in Crusader Servicing Corporation (“CSC”) and Royal Bank America Leasing, LP, respectively. The two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). These consolidated financial statements reflect the historical information of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Applications of the principles in our preparation of the consolidated financial statements in conformity with U.S. GAAP require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from those estimates. The interim financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to present a fair statement of the results for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain items in the 2015 consolidated financial statements and accompanying notes have been reclassified to conform to the current year’s presentation format. There was no effect on net income for the periods presented herein as a result of the reclassification. Accounting Policies Recently Adopted and Pending Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 14-09”), which establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for public entities for annual periods beginning after December 15, 2016, including interim periods therein. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. In August 2015, the FASB Issued ASU 2015-14 which deferred the effective date to December 31, 2017 and the initial application date (e.g. January 1, 2018.) We do not believe ASU 2014-09 will have a material effect on its financial statements. In June 2014, the FASB issued ASU No. 2014-12 , Compensation – Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in ASU 2014-12 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption was permitted. Entities may apply the amendments in this ASU either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 did not have a significant impact on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. ASU 2016-01 also clarifies that an entity should assess the need for a valuation allowance on a deferred tax asset related to unrealized losses of investments in debt instruments recognized in OCI in combination with the entity’s other deferred tax assets. Prior to this guidance, the alternative approach used in practice evaluated the need for a valuation allowance for a deferred tax asset related to unrealized losses on debt instruments recognized in other comprehensive income separately from other deferred tax assets. This alternative approach will no longer be acceptable. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not believe ASU 2016-01 will have a material effect on our financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases” (“ASU 2016-02”). From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessees. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in ASU 2016-05 clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments in this ASU 2016-05 are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. An entity has an option to apply the amendments in ASU 2016-05 on either a prospective basis or a modified retrospective basis. Early adoption is permitted, including adoption in an interim period. We do not believe ASU 2016-05 will have a material effect on our financial statements. In March 2016, FASB issued Accounting Standards Update No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). FASB is issuing ASU 2016-09 as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU 2016-09 involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in ASU 2016-09 are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We do not believe ASU 2016-09 will have a material effect on our financial statements. In June 2016, FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in ASU 2016-13 replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in ASU 2016-13 affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. There is diversity in practice in applying the incurred loss methodology, which means that before transition some entities may be more aligned, under current GAAP, than others to the new measure of expected credit losses. The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (PCD assets) that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Interest income for PCD assets should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. The amendments in ASU 2016-13 require that credit losses be presented as an allowance rather than as a writedown. This approach is an improvement to current GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current GAAP prohibits reflecting those improvements in current period earnings. For public business entities that are SEC filers, the amendments in ASU 2016-13 are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. All entities may adopt the amendments in ASU 2016-13 earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of ASU 2016-13. Amounts previously recognized in accumulated other comprehensive income as of the date of adoption that relate to improvements in cash flows expected to be collected should continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption should be recorded in earnings when received. We are currently evaluating the impact of the amendments in ASU 2016-13 on our consolidated financial statements. In August 2016, FASB issued Accounting Standards Update No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. T he following eight specific cash flow issues are addressed in ASU 2016-15: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (“COLI”s) (including bank-owned life insurance policies (“BOLI”s)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. For public business entities, the amendments in this ASU 2016-15 are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in ASU 2016-15 should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We do not believe ASU 2016-05 will have a material effect on our financial statements. |
Regulatory Matters and Signific
Regulatory Matters and Significant Risks or Uncertainties | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Matters and Significant Risks or Uncertainties [Abstract] | |
Regulatory Matters and Significant Risks or Uncertainties | Note 2. Regulatory Matters and Significant Risks or Uncertainties Federal Reserve Agreement In March 2010, we agreed to enter into a written agreement (the “Federal Reserve Agreement”) with the Federal Reserve Bank of Philadelphia (the “Federal Reserve Bank”). In July 2013, the Board of Governors of the Federal Reserve System terminated the enforcement action under the Federal Reserve Agreement, and it was replaced with an informal non-public agreement, a memorandum of understanding (“MOU”), with the Federal Reserve Bank, effective July 17, 2013. Included in this MOU are certain continued reporting requirements and a requirement that we receive the prior approval of the Federal Reserve Bank and the Director of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System prior to declaring or paying any dividends on our capital stock, making interest payments related to our outstanding trust preferred securities or subordinate securities, incurring or guaranteeing certain debt with an original maturity date greater than one year, and purchasing or redeeming any shares of stock. The MOU will remain in effect until stayed, modified, terminated or suspended in writing by the Federal Reserve Bank. During the first nine months of 2016, we requested and received approval to repurchase 6,651 shares of our Series A preferred stock. As disclosed in our Current Report on Form 8-K filed on October 7, 2016, we received regulatory approval to repurchase or redeem the remaining 12,205 shares. We intend to retire all of the remaining shares of Series A preferred stock outstanding as a result of receipt of such approvals, including purchases in privately negotiated transactions or in accordance with the redemption provisions of the Series A preferred stock. Dividend and Interest Restrictions Due to the MOU, our ability to obtain lines of credit, to receive attractive collateral treatment from funding sources, and to pursue all attractive funding alternatives in this current low interest rate environment could be impacted and thereby limit liquidity alternatives. On August 13, 2009, the Company’s Board suspended the regular quarterly cash dividends on the Series A Preferred Stock. We made the decision to suspend the preferred cash dividends in order to support the liquidity position of Royal Bank. The dividend in arrears on the outstanding shares of Series A preferred stock is approximately $7.1 million and includes additional dividends on arrearages . As disclosed above, we intend to retire all of the remaining shares of the Series A Preferred stock by the end of 2016, which will eliminate future dividends. Under the MOU, we may not declare or pay any dividends on our capital stock or make interest payments related to our outstanding trust preferred securities or subordinate securities without the prior written approval of the Federal Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. During the first three quarters of 2016, we received approval from the Federal Reserve Bank and paid the respective quarterly interest payments on the trust preferred securities in March, June, and September 2016. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3. Investment Securities The carrying value and fair value of investment securities available-for-sale (“AFS”) at September 30, 2016 and December 31, 2015 are as follows: As of September 30, 2016 Gross Gross Amortized unrealized unrealized (In thousands) cost gains losses Fair value U.S. government agencies $ $ $ — $ Mortgage-backed securities-residential — Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency — Corporate bonds — Municipal bonds Other securities — — Common stocks — — Total available for sale $ $ $ $ As of December 31, 2015 Gross Gross Amortized unrealized unrealized (In thousands) cost gains losses Fair value U.S. government agencies $ $ — $ $ Mortgage-backed securities-residential Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency Corporate bonds — Municipal bonds Other securities — Common stocks — — Total available for sale $ $ $ $ The amortized cost and fair value of investment securities at September 30, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of September 30, 2016 Amortized (In thousands) cost Fair value Within 1 year $ — $ — After 1 but within 5 years After 5 but within 10 years After 10 years Mortgage-backed securities-residential Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency Total available for sale debt securities No contractual maturity Total available for sale securities $ $ Proceeds from the sales of AFS investments during the three and nine months ended September 30, 2016 were $25.7 million and $36.4 million. Proceeds from the sales of AFS investments during the three and nine months ended September 30, 2015 were $9.2 million and $33.7 million, respectively. The following table summarizes gross realized gains and losses on the sale of securities recognized in earnings in the periods indicated: For the three months ended For the nine months ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Gross realized gains $ $ $ $ Gross realized losses — Net realized gains $ $ $ $ The tables below indicate the length of time individual AFS securities have been in a continuous unrealized loss position at September 30, 2016 and December 31, 2015: September 30, 2016 Less than 12 months 12 months or longer Total Gross Number Gross Number Gross Number unrealized of unrealized of unrealized of (In thousands) Fair value losses positions Fair value losses positions Fair value losses positions Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies $ $ $ $ $ $ Municipal bonds Total available for sale $ $ $ $ $ $ December 31, 2015 Less than 12 months 12 months or longer Total Gross Number Gross Number Gross Number unrealized of unrealized of unrealized of (In thousands) Fair value losses positions Fair value losses positions Fair value losses positions U.S. government agencies $ $ $ $ $ $ Mortgage-backed securities-residential Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency — — — Municipal bonds — — — Total available for sale $ $ $ $ $ $ We evaluate declines in the fair value of securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis. We assess whether OTTI is present when the fair value of a security is less than its amortized cost. Under ASC Topic 320, OTTI is considered to have occurred with respect to debt securities (1) if an entity intends to sell the security; (2) if it is more likely than not an entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. During the first three quarters of 2016, we recorded impairment charges of $181 thousand on two private equity funds as a result of analyses performed on recent financial information. We did not record OTTI charges to earnings during the first three quarters of 2015. There were no credit-related impairment losses on debt securities held at September 30, 2016 and September 30, 2015 for which a portion of OTTI was recognized in other comprehensive income. For all debt security types discussed below the fair value is based on prices provided by brokers and safekeeping custodians. U.S. government issued or sponsored collateralized mortgage obligations (“Agency CMOs”): As of September 30, 2016, we had 11 Agency CMOs with a fair value of $32.9 million and gross unrealized losses of $469 thousand. Three of the Agency CMOs have been in an unrealized loss position for twelve months or longer and the remaining eight Agency CMOs have been in an unrealized loss position for less than twelve months. The unrealized loss is attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on its assessment of these factors, management believes that the unrealized losses on these debt securities are a function of changes in investment spreads and interest rate movements and not as a result of changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. We do not intend to sell these securities before recovery of their cost basis and have not determined that it is not more likely than not that we will be required to sell these securities before recovery of their cost basis. Therefore, management has determined that these securities are not other-than-temporarily impaired at September 30, 2016. Municipal bonds: As of September 30, 2016 we had four municipal bonds with a fair value $3.3 million and gross unrealized losses of $55 thousand. Two of the municipal bonds have been in an unrealized loss position for less than twelve months and two bonds have been in an unrealized loss position for twelve months or longer at September 30, 2016. Because we do not intend to sell the bonds and it is not more likely than not that we will be required to sell the bonds before recovery of their amortized cost basis, which may be maturity, we do not consider the bonds to be other-than-temporarily impaired at September 30, 2016. We will continue to monitor these investments to determine if the discounted cash flow analysis, continued negative trends, market valuations, or credit defaults result in impairment that is other than temporary. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2016 | |
Loans and Leases [Abstract] | |
Loans and Leases | Note 4. Loans and Leases Major classifications of loans are as follows: September 30, December 31, (In thousands) 2016 2015 Commercial real estate $ $ Construction and land development Commercial and industrial Multi-family Residential real estate Leases Tax certificates Consumer Total loans, net of unearned income $ $ We use a nine point grading risk classification system commonly used in the financial services industry as the credit quality indicator. The first four classifications are rated Pass. The riskier classifications include Pass-Watch, Special Mention, Substandard, Doubtful and Loss. The risk rating is related to the underlying credit quality and probability of default. These risk ratings are used in the calculation of the allowance for loan and lease losses. · Pass: includes credits that demonstrate a low probability of default; · Pass-watch: a classification which includes currently performing credits that are beginning to demonstrate above average risk through declining earnings, strained cash flows, increased leverage and/or weakening market fundamentals. This class may also include new loan originations which warrant approval but may contain certain risks that require closer than usual monitoring and supervision, such as construction loans; · Special mention: includes credits that have potential weaknesses that if left uncorrected could weaken the credit or result in inadequate protection of our position at some future date. While potentially weak, credits in this classification are marginally acceptable and loss of principal or interest is not anticipated; · Substandard accrual: includes credits that exhibit a well-defined weakness which currently jeopardizes the repayment of debt and liquidation of collateral even though they are currently performing. These credits are characterized by the distinct possibility that we may incur a loss in the future if these weaknesses are not corrected; · Non-accrual (substandard non-accrual, doubtful, loss): includes credits that demonstrate serious problems to the point that it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. All loans are assigned an initial loan risk rating by the Underwriting and Credit Administration Officer (“UCAO”). The initial loan risk rating is approved by another member of executive management or by the appropriate loan committee approving the loan request. From time to time, and at the general direction of any of the various loan committees, the ratings may be changed based on the findings of that committee. Items considered in assigning ratings include the financial strength of the borrower and/or guarantors, the type of collateral, the collateral lien position, the type of loan and loan structure, any potential risk inherent in the specific loan type, higher than normal monitoring of the loan or any other factor deemed appropriate by any of the various committees for changing the rating of the loan. Any such change in rating is reflected in the minutes of that committee. The following tables present risk ratings for each loan portfolio classification at September 30, 2016 and December 31, 2015. As of September 30, 2016 (In thousands) Pass Pass-Watch Special Mention Substandard Non-accrual Total Commercial real estate $ $ $ $ — $ $ Construction and land development — — Commercial and industrial Multi-family — — — Residential real estate — — Leases — Tax certificates — — — Consumer — — — Total loans, net of unearned income $ $ $ $ $ $ As of December 31, 2015 (In thousands) Pass Pass-Watch Special Mention Substandard Non-accrual Total Commercial real estate $ $ $ $ — $ $ Construction and land development — — Commercial and industrial Multi-family — — — Residential real estate — — — Leases — Tax certificates — — — Consumer — — — Total loans, net of unearned income $ $ $ $ $ $ The following tables present an aging analysis of past due payments for each loan portfolio classification at September 30, 2016 and December 31, 2015. As of September 30, 2016 30-59 Days 60-89 Days Accruing (In thousands) Past Due Past Due 90+ Days Non-accrual Current Total Commercial real estate $ — $ — $ — $ $ $ Construction and land development — — — Commercial and industrial — Multi-family — — — — Residential real estate — Leases — Tax certificates — — — Consumer — — — — Total loans, net of unearned income $ $ $ — $ $ $ As of December 31, 2015 30-59 Days 60-89 Days Accruing (In thousands) Past Due Past Due 90+ Days Non-accrual Current Total Commercial real estate $ $ — $ — $ $ $ Construction and land development — — Commercial and industrial — Multi-family — — — — Residential real estate — Leases — Tax certificates — — — Consumer — — — — Total loans, net of unearned income $ $ $ — $ $ $ If interest had accrued on non-accrual loans, such income would have been approximately $135 thousand and $450 thousand for the three and nine months ended September 30, 2016 and $142 thousand and $539 thousand for the three and nine months ended September 30, 2015, respectively. Impaired Loans Total cash collected on impaired loans during the September 30, 2016 and 2015 was $1.4 million and $5.9 million respectively, of which $1.3 million and $4.8 million was credited to the principal balance outstanding on such loans, respectively. Interest income recognized on a cash basis on impaired loans and leases was $0 and $97 thousand for the three months ended September 30, 2016 and 2015, respectively and $0 and $232 thousand for the nine months ended September 30, 2016 and 2015, respectively. Troubled Debt Restructurings (“TDRs”) The following table details our TDRs that are on an accrual status and non-accrual status at September 30, 2016 and December 31, 2015. As of September 30, 2016 Non- Number of Accrual Accrual (In thousands) loans Status Status Total TDRs Commercial real estate $ $ — $ Construction and land development — Commercial and industrial Residential real estate — Total $ $ $ As of December 31, 2015 Non- Number of Accrual Accrual (In thousands) loans Status Status Total TDRs Commercial real estate $ $ — $ Construction and land development — Commercial and industrial — Residential real estate — Total $ $ $ At September 30, 2016, there were no TDRs modified within the past 12 months, for which there was a payment default. We did not classify any loan modifications as TDRs during the first three quarters of 2016 and 2015. We may obtain physical possession of real estate collateralizing residential mortgage loans or home equity loans through or in lieu of, foreclosure. As of September 30, 2016, we have a foreclosed residential real estate property with a carrying value of $28 thousand as a result of physical possession. In addition, as of September 30, 2016, we had residential mortgage loans with a carrying value of $317 thousand collateralized by residential real estate property for which formal foreclosure proceedings were in process. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2016 | |
Allowance for Loan and Lease Losses [Abstract] | |
Allowance for Loan and Lease Losses | Note 5. Allowance for Loan and Lease Losses The following tables present the detail of the allowance and the loan portfolio disaggregated by loan portfolio classification as of September 30, 2016, December 31, 2015, and September 30, 2015. Allowance for Loan and Lease Losses As of and for the three months ended September 30, 2016 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ — $ Charge-offs — — — — — — Recoveries — — (Credit) provision — Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: related to loans individually evaluated for impairment $ — $ — $ — $ — $ $ $ — $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Allowance for Loan and Lease Losses As of and for the nine months ended September 30, 2016 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ — $ Charge-offs — — — — Recoveries — — (Credit) provision — Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: related to loans individually evaluated for impairment $ — $ — $ — $ — $ $ $ — $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loans Evaluated for Impairment As of September 30, 2016 Construction Commercial and land Commercial Multi- Residential Tax real estate development and industrial family real estate Leases certificates Consumer Unallocated Total (In thousands) Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ $ — $ $ $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Allowance for Loan and Lease Losses and Loans Evaluated for Impairment As of and for the year ended December 31, 2015 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs — — — — Recoveries — — — (Credit) provision Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: related to loans individually evaluated for impairment $ $ — $ $ — $ $ $ — $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loan Balances Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ $ — $ $ $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Allowance for Loan and Lease Losses As of and for the three months ended September 30, 2015 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs — — — — — — — Recoveries — — — — — Provision (credit) Ending balance $ $ $ $ $ $ $ $ $ $ Ending balance: related to loans individually evaluated for impairment $ — $ $ — $ — $ $ $ $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Allowance for Loan and Lease Losses As of and for the nine months ended September 30, 2015 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs — — — — Recoveries — — — Provision (credit) Ending balance $ $ $ $ $ $ $ $ $ $ Ending balance: related to loans individually evaluated for impairment $ — $ $ — $ — $ $ $ $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Loans Evaluated for Impairment As of September 30, 2015 Construction Commercial and land Commercial Multi- Residential Tax real estate development and industrial family real estate Leases certificates Consumer Unallocated Total (In thousands) Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ $ — $ $ $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ The following tables detail the loans that were evaluated for impairment by loan classification at September 30, 2016 and December 31, 2015. At September 30, 2016 Unpaid principal Recorded Related (In thousands) balance investment allowance With no related allowance recorded: Commercial real estate $ $ $ — Construction and land development — Commercial and industrial — Residential real estate — Tax certificates — Total: $ $ $ — With an allowance recorded: Residential real estate $ $ $ Leasing Total: $ $ $ At and for the year ended December 31, 2015 Unpaid Average Interest principal Recorded Related recorded income (In thousands) balance investment allowance investment recognized With no related allowance recorded: Commercial real estate $ $ $ — $ $ Construction and land development — — Commercial and industrial — Tax certificates — — Total: $ $ $ — $ $ With an allowance recorded: Commercial real estate $ $ $ $ $ — Construction and land development — — — — Commercial and industrial — Residential real estate — Leases — Tax certificates — — — — Total: $ $ $ $ $ — The following tables present the average recorded investment in impaired loans and the related interest income recognized for the three and nine months ended September 30, 2016 and 2015. For the three months ended September 30, 2016 For the nine months ended September 30, 2016 Average Interest Interest income Average Interest Interest income recorded income recognized recorded income recognized (In thousands) investment recognized cash basis investment recognized cash basis Commercial real estate $ $ — $ — $ $ — $ — Construction and land development — — — — Commercial and industrial — — Residential real estate — — — — Leasing — — — — Tax certificates — — — — Total: $ $ $ — $ $ $ — For the three months ended September 30, 2015 For the nine months ended September 30, 2015 Average Interest Interest income Average Interest Interest income recorded income recognized recorded income recognized (In thousands) investment recognized cash basis investment recognized cash basis Commercial real estate $ $ $ $ $ $ Construction and land development — — — — Commercial and industrial — — Residential real estate — — — — Leasing — — — — Tax certificates — — — — Total: $ $ $ $ $ $ |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2016 | |
Other Real Estate Owned [Abstract] | |
Other real estate owned | Note 6. Other Real Estate Owned At September 30, 2016, OREO was comprised of two real estate properties acquired through, or in lieu of foreclosure in settlement of loans and 47 real estate properties acquired through foreclosure related to tax liens. Set forth below are tables which detail the changes in OREO from January 1, 2016 to September 30, 2016 and January 1, 2015 to December 31, 2015. For the nine months ended September 30, 2016 (In thousands) Loans Tax Liens Total Beginning balance $ $ $ Net proceeds from sales Net gains on sales Transfers in Cash additions — Impairment charge — Ending balance $ $ $ For the year ended December 31, 2015 (In thousands) Loans Tax Liens Total Beginning balance $ $ $ Net proceeds from sales Net gain on sales Transfers in Cash additions — Transfer to loans — Impairment charge Ending balance $ $ $ At September 30, 2016, OREO was comprised of $215 thousand in land, $7.0 million in tax liens, and $28 thousand in residential real estate related to a single family home. The properties acquired through the tax lien portfolio were primarily located in New Jersey. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Deposits | Note 7. Deposits Our deposit composition as of September 30, 2016 and December 31, 2015 is presented below: September 30, December 31, (In thousands) 2016 2015 Non-interest bearing checking $ $ NOW Interest-bearing brokered deposits — Money Market Savings Time deposits ($250 and over) Time deposits (less than $250) Total deposits $ $ |
Borrowings and Subordinated Deb
Borrowings and Subordinated Debentures | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings and Subordinated Debentures | |
Borrowings and Subordinated Debentures | Note 8. Borrowings and Subordinated Debentures 1. Advances from the Federal Home Loan Bank As of September 30, 2016, Royal Bank had $283.3 million of available borrowing capacity at the FHLB, which is based on qualifying collateral. Total advances from the FHLB were $65.0 million at September 30, 2016 and $54.0 million at December 31, 2015. The advances and the line of credit are collateralized by FHLB stock, government agency securities mortgage-backed securities, and a blanket lien on certain real estate loans. As of September 30, 2016, investment securities with a market value of $13.2 million were pledged as collateral to the FHLB for the borrowings. Presented below are the Company’s FHLB borrowings allocated by the year in which they mature with their corresponding weighted average rates: As of As of September 30, 2016 December 31, 2015 (Dollars in thousands) Amount Rate Amount Rate Advances maturing in 2016 $ % $ % 2017 % % 2018 % % 2021 % — — % Total FHLB borrowings $ $ 2. Other borrowings We had a note payable with PNC Bank (“PNC”) in the amount of $2.0 million at December 31, 2015. The note was paid on its maturity date of August 25, 2016. The interest rate was a variable rate equal to one month LIBOR + 15 basis points and adjusted monthly. At September 30, 2016 and December 31, 2015, we had additional borrowings of $35.0 million from PNC which will mature on January 7, 2018. These borrowings have a weighted average interest rate of 3.65%. The note payable and the borrowings are secured by government agency securities and mortgage-backed securities. Royal Bank has an additional $20.0 million in lines of credit with two local financial institutions, of which $0 was outstanding at September 30, 2016 and December 31, 2015, respectively. 3. Subordinated debentures We have outstanding $25.8 million of Trust Preferred Securities issued through two Delaware trust affiliates, Royal Bancshares Capital Trust I (“Trust I”) and Royal Bancshares Capital Trust II (“Trust II”) (collectively, the “Trusts”). We issued an aggregate principal amount of $12.9 million of floating rate junior subordinated debt securities to Trust I and an aggregate principal amount of $12.9 million of fixed/floating rate junior subordinated debt securities to Trust II. Both debt securities bear an interest rate of 3.00% at September 30, 2016, and reset quarterly at 3-month LIBOR plus 2.15%. Each of Trust I and Trust II issued an aggregate principal amount of $12.5 million of capital securities initially bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to an unaffiliated investment vehicle and issued to the Company an aggregate principal amount of $387 thousand of common securities bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust. We have fully and unconditionally guaranteed all of the obligations of the Trusts, including any distributions and payments on liquidation or redemption of the capital securities. Under the MOU as described in “Note 2 — Regulatory Matters and Significant Risks or Uncertainties” to the Consolidated Financial Statements, the Company and its non-bank subsidiaries may not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Federal Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. We received approval and paid the required interest payments in March, June, and September of 2016. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY | Note 9. Derivative Instruments and Hedging Activity In the fourth quarter of 2014, we entered into a forward-starting interest rate swap agreement to hedge the risk of variability in cash flows attributable to changes in the 3 month LIBOR rate. This particular hedging objective was to reduce the interest rate risk associated with our forecasted issuances of 3 month fixed rate debt arising from a rollover strategy of an FHLB advance, which matured in June 2016. We have and will continue to rollover the FHLB advance through the swap expiration of June 2021. This derivative was used as part of the asset/liability management process, is linked to a specific liability and has a high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. The derivative was designated as a cash flow hedge with the change in fair value recorded as an adjustment through other comprehensive income (loss) until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. The effects of the derivative instrument on the Consolidated Financial Statements at September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and 2015 were as follows: As of September 30, 2016 Notional Contract Balance Sheet Expiration (In thousands) Amount Fair Value Location Date Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ $ Other liabilities June 24, 2021 Total: $ $ As of December 31, 2015 Notional Contract Balance Sheet Expiration (In thousands) Amount Fair Value Location Date Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ $ Other liabilities June 24, 2021 Total: $ $ For the three months ended September 30, 2016 Amount of Gain Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the nine months ended September 30, 2016 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the year ended December 31, 2015 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the three months ended September 30, 2015 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the nine months ended September 30, 2015 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — |
Commitments, Contingencies, and
Commitments, Contingencies, and Concentrations | 9 Months Ended |
Sep. 30, 2016 | |
Commitments, Contingencies, and Concentrations [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 10. Commitments, Contingencies, and Concentrations We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments. The contract amounts are as follows: September 30, December 31, (In thousands) 2016 2015 Financial instruments whose contract amounts represent credit risk: Open-end lines of credit $ $ Commitments to extend credit Standby letters of credit and financial guarantees written In March 2016, we commenced renovations on our 3-story building in Narberth, Pennsylvania. It is the site of Royal Bank’s main branch location. The branch will remain open during construction. We expect the project to be completed later this year for an approximate cost of $1.4 million. It is our intention to lease the second and third floors as a revenue source. Legal Proceedings From time to time, we are a party to routine legal proceedings within the normal course of business. Such routine legal proceedings in the aggregate are believed by management to be immaterial to our financial condition or results of operations. |
Shareholders_ Equity
Shareholders’ Equity | 9 Months Ended |
Sep. 30, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 11. Shareholders’ Equity 1. Preferred Stock On February 20, 2009, as part of the Capital Purchase Program (“CPP”) established by the U.S. Department of the Treasury (“Treasury”), we issued to Treasury 30,407 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, without par value per share (the “Series A preferred stock”), and a liquidation preference of $1,000 per share. In conjunction with the purchase of the Series A preferred stock, Treasury received a warrant to purchase 1,104,370 shares of our Class A common stock. The aggregate purchase price for the Series A preferred stock and warrant was $30.4 million in cash. The Series A preferred stock qualifies as Tier 1 capital and originally paid cumulative dividends at a rate of 5% per annum. In February 2014, the cumulative dividend rate on the Series A Preferred Stock increased to 9% per annum. The Series A preferred stock may generally be redeemed by us at any time following consultation with our primary banking regulators. The warrant issued to Treasury has a 10-year term and is immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments, equal to $4.13 per share of the common stock. As a result of the shareholders’ rights offering in 2014, the number of warrants to purchase the Company’s Class A common stock adjusted to 1,368,040 and the warrant exercise price decreased to $3.33 per share of the common stock. In the second quarter of 2014, we received approval from the Federal Reserve Bank to bid up to $14.0 million, which was raised in a private placement, to purchase shares of the Series A preferred stock in an auction of such shares conducted by the Treasury. The Series A preferred stock was priced in the auction at $1,207.11 per share for all 30,407 shares of Series A preferred stock outstanding. We were allocated 11,551 shares of Series A preferred stock for repurchase at the clearing price of $1,207.11. During the first nine months of 2016, we received approval from the Federal Reserve Bank to repurchase 6,651 shares of the outstanding Series A preferred stock for $10.0 million or a weighted average price of $1,502.39 per share. We utilized existing cash on-hand to complete the repurchase, and after taking into consideration the repurchase price, we eliminated approximately $260 thousand in dividends in arrears. As disclosed previously, we have received regulatory approval to repurchase or redeem the remaining 12,205 shares. We intend to retire all of the remaining shares of Series A preferred stock outstanding as a result of receipt of such approvals, including purchases in privately negotiated transactions or in accordance with the redemption provisions of the Series A preferred stock. 2. Common Stock Our Class A common stock trades on the NASDAQ Global Market under the symbol RBPAA. There is no market for our Class B common stock. The Class B shares may not be transferred in any manner except to the holder’s immediate family. Class B shares may be converted to Class A shares at the rate of 1.15 to 1. Shareholders are entitled to one vote for each Class A share and ten votes for each Class B share held. Holders of either class of common stock are entitled to conversion equivalent per share dividends when declared. 3. Payment of Dividends Under the Pennsylvania Business Corporation Law, the Company may pay dividends only if it is solvent and would not be rendered insolvent by the dividend payment. There are also restrictions set forth in the Pennsylvania Banking Code of 1965 (the “Code”) and in the Federal Deposit Insurance Act (“FDIA”) affecting the payment of dividends to the Company by Royal Bank. Under the Code, no dividends may be paid by a bank except from “accumulated net earnings” (generally retained earnings). In addition, dividends paid by Royal Bank to the Company would be prohibited if the effect thereof would cause Royal Bank’s capital to be reduced below applicable minimum capital requirements. On August 13, 2009, the Company’s Board suspended the regular quarterly cash dividends on the Series A preferred stock. The Company’s Board took this action in consultation with the Federal Reserve Bank of Philadelphia as required by regulatory policy guidance. In February 2014, the preferred cumulative dividend rate prospectively increased to 9% per annum. As of September 30, 2016, the Series A preferred stock dividend in arrears, which includes additional dividends on arrearages, was approximately $7.1 million and has not been recognized in the consolidated financial statements. In the event we declared the preferred dividend in arrears our capital ratios would be negatively affected; however, they would remain above the required minimum ratios. Under the Federal Reserve Bank MOU as described in “Note 2 — Regulatory Matters and Significant Risks or Uncertainties” to the Consolidated Financial Statements, the Company may not declare or pay any dividends without the prior written approval of the Federal Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. As mentioned previously, we intend to retire all of the remaining shares of the Series A Preferred stock by the end of 2016, thus eliminating future dividends. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Note 12. Regulatory Capital Requirements The Company and Royal Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Royal Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. In July 2013, the federal bank regulatory agencies adopted final rules to revise the agencies’ capital adequacy guidelines and prompt corrective action rules, which were designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. The July 2013 final rules generally implement higher minimum capital requirements, add a new common equity tier 1 capital requirement, and establish criteria that instruments must meet to be considered common equity tier 1 capital, additional tier 1 capital or tier 2 capital. The new minimum capital to risk-adjusted assets requirements are a common equity tier 1 capital ratio of 4.5% (6.5% to be considered “well capitalized”) and a tier 1 capital ratio of 6.0%, increased from 4.0% (and increased from 6.0% to 8.0% to be considered “well capitalized”); the total capital ratio remains at 8.0% under the new rules (10.0% to be considered “well capitalized”). Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The new minimum capital requirements were effective on January 1, 2015. The capital conservation buffer requirements phase in over a three-year period beginning January 1, 2016. Effective January 1, 2019 the capital conservation buffer will effectively raise the minimum required common equity tier 1 capital ratio to 7.0%, the tier 1 capital ratio to 8.5%, and the total capital to 10.0%. Management believes that as of September 30, 2016, the Company and Royal Bank would meet all capital adequacy requirements under the Basel III rules on a fully phased in basis as if all such requirements were currently in effect. As of September 30, 2016, the Company and Royal Bank satisfied the criteria for a well-capitalized institution. In connection with a prior bank regulatory examination, the FDIC concluded, based upon its interpretation of the Call Report instructions and under regulatory accounting principles (“RAP”), that income from Royal Bank’s tax lien business should be recognized on a cash basis, not an accrual basis. Royal Bank’s current accrual method is in accordance with U.S. GAAP. Royal Bank disagrees with the FDIC’s conclusion and filed the Call Report for September 30, 2016 and the previous 24 quarters in accordance with U.S. GAAP. The change in the method of revenue recognition for the tax lien business for regulatory accounting purposes affects Royal Bank’s and the Company’s capital ratios as shown below. The resolution of this matter will be decided by additional joint regulatory agency guidance which includes the Federal Reserve Bank, the FDIC, and the OCC. The table below sets forth Royal Bank’s capital ratios under RAP based on the FDIC’s interpretation of the Call Report instructions: At September 30, 2016 To be well capitalized For capital under prompt corrective Actual adequacy purposes action provision (Dollars in thousands) Amount Ratio Amount Ratio* Amount Ratio Total capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to average assets, leverage) $ % $ % $ % Common equity Tier 1 (to risk-weighted assets) $ % $ % $ % *Ratios related to risk-weighted assets include the capital conservation buffer of 0.625%. The tables below reflect the adjustments to the net income as well as the capital ratios for Royal Bank under U.S. GAAP: For the nine months ended (In thousands) September 30, 2016 RAP net income $ Tax lien adjustment, net of noncontrolling interest U.S. GAAP net income $ At September 30, 2016 As reported As adjusted under RAP for U.S. GAAP Total capital (to risk-weighted assets) % % Tier 1 capital (to risk-weighted assets) % % Tier 1 capital (to average assets, leverage) % % Common equity Tier 1 (to risk-weighted assets) % % The tables below reflect the Company’s capital ratios: At September 30, 2016 To be well capitalized For capital under the Federal Actual adequacy purposes Reserve's regulations (Dollars in thousands) Amount Ratio Amount Ratio* Amount Ratio Total capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to average assets, leverage) $ % $ % N/A N/A Common equity Tier 1 (to risk-weighted assets) $ % $ % N/A N/A *Ratios related to risk-weighted assets include capital conservation buffer of 0.625%. The Company has filed the Consolidated Financial Statements for Bank Holding Companies-FR Y-9C (“FR Y-9C”) as of September 30, 2016 consistent with U.S. GAAP and the FR Y-9C instructions. In the event that a similar adjustment for RAP purposes would be required by the Federal Reserve on the holding company level, the adjusted ratios are shown in the table below. For the nine months ended (In thousands) September 30, 2016 U.S. GAAP net income $ Tax lien adjustment, net of noncontrolling interest RAP net income $ At September 30, 2016 As reported As adjusted under U.S. GAAP for RAP Total capital (to risk-weighted assets) % % Tier 1 capital (to risk-weighted assets) % % Tier 1 capital (to average assets, leverage) % % Common equity Tier 1 (to risk-weighted assets) % % |
Pension Plan
Pension Plan | 9 Months Ended |
Sep. 30, 2016 | |
Pension Plan [Abstract] | |
Pension Plan | Note 13. Pension Plan We have a noncontributory nonqualified defined benefit pension plan (“Pension Plan”) covering certain eligible employees. Our Pension Plan provides retirement benefits under pension trust agreements. The benefits are based on years of service and the employee’s compensation during the highest three consecutive years during the last 10 years of employment. Net periodic defined benefit pension expense for the three and nine months ended September 30, 2016 and 2015 included the following components: For the three months ended For the nine months ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Amortization of prior service cost — — Amortization of actuarial loss Net periodic benefit cost $ $ $ $ We plan to fund a substantial portion of the pension plan obligations through existing Company owned life insurance policies. The cash surrender value for these policies was approximately $4.4 million and $3.8 million as of September 30, 2016 and December 31, 2015, respectively. The accumulated benefit obligation was $15.1 million as of September 30, 2016 compared to $14.9 million at December 31, 2015. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Income (Loss) Per Common Share [Abstract] | |
Earnings per common share | Note 14. Earnings Per Common Share We follow the provisions of FASB ASC Topic 260, “Earnings per Share” (“ASC Topic 260”). Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. We have two classes of common stock currently outstanding. The classes are A and B, of which one share of Class B is convertible into 1.15 shares of Class A. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock using the if-converted method. For the three and nine months ended September 30, 2016 and 2015, 68,139 and 101,655 options to purchase shares of common stock, respectively, were anti-dilutive in the computation of diluted EPS, as the exercise price exceeded average market price in each of those periods. Additionally, warrants to purchase 1,368,040 shares of Class A common stock were also anti-dilutive. Basic and diluted EPS are calculated as follows: For the three months ended September 30, 2016 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS Income available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ For the three months ended September 30, 2015 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS ncome available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ For the nine months ended September 30, 2016 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS Income available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ For the nine months ended September 30, 2015 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS Income available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 15. Comprehensive Income FASB ASC Topic 220, “Comprehensive Income” (“ASC Topic 220”), requires the reporting of all changes in equity during the reporting period except investments from and distributions to shareholders. Net income is a component of comprehensive income (loss) with all other components referred to in the aggregate as other comprehensive income. Unrealized gains and losses on AFS securities is an example of another comprehensive income (loss) component. For the nine months ended September 30, 2016 Tax Before tax expense Net of tax (In thousands) amount (benefit) amount Unrealized gains on investment securities: Unrealized holding gains arising during period $ $ $ Less adjustment for impaired investments Less reclassification adjustment for gains realized in net income Unrealized gains on investment securities Unrecognized benefit obligation expense: Reclassification adjustment for amortization — Unrecognized benefit obligation — Unrealized loss on derivative instrument Other comprehensive income, net $ $ $ For the nine months ended September 30, 2015 Tax Before tax expense Net of tax (In thousands) amount (benefit) amount Unrealized gains on investment securities: Unrealized holding gains arising during period $ $ $ Less reclassification adjustment for gains realized in net income Unrealized gains on investment securities Unrecognized benefit obligation expense: Reclassification adjustment for amortization — Unrecognized benefit obligation — Unrealized loss on derivative instrument Other comprehensive income, net $ $ $ The other components of accumulated other comprehensive loss included in shareholders’ equity at September 30, 2016 and December 31, 2015 are as follows: September 30, December 31, (In thousands) 2016 2015 Unrecognized benefit obligation $ $ Unrealized gains on AFS investments Unrealized loss on derivative instrument Accumulated other comprehensive loss $ $ |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 16. Fair Value of Financial Instruments Under FASB ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”), fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When available, management uses quoted market prices to determine fair value. If quoted prices are not available, fair value is based upon valuation techniques such as matrix pricing or other models that use, where possible, current market-based or independently sourced market parameters, such as interest rates. If observable market-based inputs are not available, we use unobservable inputs to determine appropriate valuation adjustments using discounted cash flow methodologies. Management uses its best judgment in estimating the fair value of our financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts we could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period end and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each period-end. ASC Topic 820 provides guidance for estimating fair value when the volume and level of activity for an asset or liability has significantly declined and for identifying circumstances when a transaction is not orderly. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are as follows: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 2 includes debt securities with quoted prices that are traded less frequently then exchange-traded instruments. Valuation techniques include matrix pricing which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. We did not have transfers of financial instruments within the fair value hierarchy during the three and nine months ended September 30, 2016 and 2015. Items Measured on a Recurring Basis Our available for sale investment securities are recorded at fair value on a recurring basis. Fair value for Level 1 securities are determined by obtaining quoted market prices on nationally recognized securities exchanges. Level 1 securities include common stocks. Level 2 securities include obligations of U.S. government-sponsored agencies and debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. The prices were obtained from third party vendors. This category generally includes our mortgage-backed securities and CMOs issued by U.S. government and government-sponsored agencies, non-agency CMOs, and corporate and municipal bonds. Additionally, Level 2 includes derivative instruments whose valuations are based on observable market data. Level 3 securities include investments in five private equity funds which are predominantly invested in real estate. The value of the private equity funds are derived from the funds’ financials and K-1 filings. We also review the funds’ asset values and its near-term projections. For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2016 and December 31, 2015 are as follows: Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of September 30, 2016 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Investment securities available for sale U.S. government agencies $ — $ $ — $ Mortgage-backed securities-residential — — Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies — — Non-agency — — Corporate bonds — — Municipal bonds — — Other securities — — Common stocks — — Total investment securities available for sale $ $ $ $ Liabilities: Derivative instruments Interest rate swaps $ — $ $ — $ Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of December 31, 2015 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Investment securities available for sale U.S. government agencies $ — $ $ — $ Mortgage-backed securities-residential — — Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies — — Non-agency — — Corporate bonds — — Municipal bonds — — Other securities — — Common stocks — — Total investment securities available for sale $ $ $ $ Liabilities: Derivative instruments Interest rate swaps $ — $ $ — $ The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value for the three and nine months ended September 30, 2016 and 2015: (In thousands) Other securities Investment Securities Available for Sale 2016 2015 Beginning balance July 1, $ $ Total gains/(losses) - (realized/unrealized): Included in earnings-net gains on sale and OTTI Included in other comprehensive income — Purchases — — Sales and calls Transfers in and/or out of Level 3 — — Ending balance September 30, $ $ (In thousands) Other securities Investment Securities Available for Sale 2016 2015 Beginning balance January 1, $ $ Total gains/(losses) - (realized/unrealized): Included in earnings-net gains on sale and OTTI Included in other comprehensive income Purchases Sales and calls Transfers in and/or out of Level 3 — — Ending balance September 30, $ $ Items Measured on a Nonrecurring Basis Non-accrual loans and TDRs are evaluated for impairment on an individual basis under FASB ASC Topic 310 “Receivables”. The impairment analysis includes current collateral values, known relevant factors that may affect loan collectability, and risks inherent in different kinds of lending. When the collateral value or discounted cash flows less costs to sell is less than the carrying value of the loan a specific reserve (valuation allowance) is established. Loans held for sale are carried at the lower of cost or fair value. OREO is carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the real estate. Additionally, for collateral acquired from tax liens, fair value may be established using brokers opinions due to their lower carrying value. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2016 and December 31, 2015 are as follows: Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of September 30, 2016 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets Impaired loans and leases $ — $ — $ $ Other real estate owned — — Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of December 31, 2015 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets Impaired loans and leases $ — $ — $ $ Other real estate owned — — The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at September 30, 2016 and December 31, 2015: Qualitative Information about Level 3 Fair Value Measurements As of September 30, 2016 Valuation Range (In thousands) Fair Value Techniques Unobservable Input (Weighted Average) Impaired loans and leases $ Appraisal of Appraisal adjustments - -20.8% (-14.9%) collateral (1) Liquidation expenses - -12.8% (-4.2%) Other real estate owned Appraisal of Appraisal adjustments - -52.6% (-15.5%) collateral (1) Liquidation expenses - -5.6% (-5.6%) Qualitative Information about Level 3 Fair Value Measurements As of December 31, 2015 Valuation Range (In thousands) Fair Value Techniques Unobservable Input (Weighted Average) Impaired loans and leases $ Appraisal of Appraisal adjustments - -62.3% (-13.7%) collateral (1) Liquidation expenses - -15.4% (-6.5%) Other real estate owned Appraisal of Appraisal adjustments - -54.1% (-17.1%) collateral (1) Liquidation expenses - -14.7% (-6.0%) (1) Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. The following methods and assumptions were used to estimate the fair values of our financial instruments at September 30, 2016 and December 31, 2015. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of our assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between our disclosures and those of other companies may not be meaningful. The methodologies for estimating the fair value of financial instruments that are measured on a recurring or nonrecurring basis are discussed above. Cash and cash equivalents (carried at cost): The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. Securities: Management uses quoted market prices to determine fair value of securities (level 1). If quoted prices are not available, fair value is based upon valuation techniques such as matrix pricing or other models that use, where possible, current market-based or independently sourced market parameters, such as interest rates (level 2). If observable market-based inputs are not available, we use unobservable inputs to determine appropriate valuation adjustments by reviewing the private equities funds’ financials and K-1 filings (level 3). Other Investment (carried at cost): This investment includes the Solomon Hess SBA Loan Fund, which we invested in to partially satisfy Royal Bank’s community reinvestment requirement. Shares in this fund are not publicly traded and therefore have no readily determinable fair market value. An investor can have its investment in the Fund redeemed for the balance of its capital account at any quarter end with 60 days notice to the Fund. The investment in this Fund is recorded at cost. We do not record this investment at fair value on a recurring basis, as this investment’s carrying amount approximates fair value. Restricted investment in bank stock (carried at cost): The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities. Loans receivable (carried at cost): The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired loans (generally carried at fair value): Impaired loans are accounted for under ASC Topic 310. Impaired loans are those in which we have measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based on the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Accrued interest receivable and payable (carried at cost): The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit liabilities (carried at cost): The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Long-term debt (carried at cost): Fair values of FHLB advances and other long-term borrowings are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Subordinated debt (carried at cost): Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Derivative instruments: We have contracted with a third party vendor to provide periodic valuations for our interest rate derivatives to determine the fair value of our interest rate swaps. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company. Off-balance sheet financial instruments (disclosed at cost): Fair values of our off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. They are not shown in the table because the amounts are immaterial. The tables below indicate the fair value of our financial instruments at September 30, 2016 and December 31, 2015. Fair Value Measurements At September 30, 2016 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs (In thousands) amount fair value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale Other investment — — Federal Home Loan Bank stock — — Loans, net — — Accrued interest receivable — — Financial Liabilities: Demand deposits — — NOW and money markets — — Savings — — Time deposits — — Short-term borrowings — — Long-term borrowings — — Subordinated debt — — Accrued interest payable — — Derivative Instruments (Liability): Interest rate swaps — — Fair Value Measurements At December 31, 2015 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs (In thousands) amount fair value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale Other investment — — Federal Home Loan Bank stock — — Loans, net — — Accrued interest receivable — — Financial Liabilities: Demand deposits — — NOW and money markets — — Interest-bearing brokered deposits — — Savings — — Time deposits — — Short-term borrowings — — Long-term borrowings — — Subordinated debt — — Accrued interest payable — — Derivative Instruments (Liability): Interest rate swaps — — Limitations The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale. This is due to the fact that no market exists for a sizable portion of the loan, deposit and off balance sheet instruments. In addition, the fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets that are not considered financial assets include premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Segment Information | Note 17. Segment Information FASB ASC Topic 280, “Segment Reporting” (“ASC Topic 280”) established standards for public business enterprises to report information about operating segments in their annual financial statements and requires that those enterprises report selected information about operating segments in subsequent interim financial reports issued to shareholders. It also established standards for related disclosure about products and services, geographic areas, and major customers. Operating segments are components of an enterprise, which are evaluated regularly by the chief operating decision makers in deciding how to allocate and assess resources and performance. Our chief operating decision makers are the CEO and the CFO. We have identified our reportable operating segments as “Community Banking” and “Tax Liens”. Community banking Our community banking segment consists of commercial and retail banking and equipment leasing. The community banking business segment includes Royal Bank and Royal Bank Leasing and generates revenue from a variety of products and services provided by those entities. Royal Bank and Royal Bank Leasing have similar economic characteristics in that earnings are predominantly derived from net interest income. For example, commercial lending is dependent upon the ability of Royal Bank to fund cash needed to make loans with retail deposits and other borrowings and to manage interest rate and credit risk. Tax liens At September 30, 2016, Royal Bank’s tax liens segment includes its 80% and 100% ownership interest in CSC and RTL, respectively. Our tax liens segment consisted of purchasing delinquent tax certificates from local municipalities at auction and then processing those liens to either encourage the property holder to pay off the lien, or to foreclose and sell the property. The tax liens segment earns income based on interest rates (determined at auction) and penalties assigned by the municipality along with gains on sale of foreclosed properties. CSC is liquidating its assets under an orderly, long term plan. RTL ceased acquiring tax certificates at public auctions in 2010. The following tables present selected financial information for reportable business segments for the three and nine months ended September 30, 2016 and 2015. For the three months ended September 30, 2016 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income (expense) $ $ $ Provision for loan and lease losses Total non-interest income Total non-interest expense Income tax expense — Net income (loss) $ $ $ Noncontrolling interest $ $ $ Net income (loss) attributable to Royal Bancshares $ $ $ For the three months ended September 30, 2015 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income (expense) $ $ $ (Credit) provision for loan and lease losses Total non-interest income Total non-interest expense Income tax expense — — — Net income (loss) $ $ $ Noncontrolling interest $ $ — $ Net income (loss) attributable to Royal Bancshares $ $ $ For the nine months ended September 30, 2016 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income (expense) $ $ $ Provision for loan and lease losses Total non-interest income Total non-interest expense Income tax benefit — Net income (loss) $ $ $ Noncontrolling interest $ $ $ Net income (loss) attributable to Royal Bancshares $ $ $ For the nine months ended September 30, 2015 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income $ $ $ (Credit) provision for loan and lease losses Total non-interest income Total non-interest expense Income tax expense — — — Net income (loss) $ $ $ Noncontrolling interest $ $ $ Net income (loss) attributable to Royal Bancshares $ $ $ Interest income earned by the community banking segment related to the tax liens segment was approximately $150 thousand and $189 thousand for the three month periods ended September 30, 2016 and 2015, respectively, and $457 thousand and $629 thousand for the nine month periods ended September 30, 2016 and 2015, respectively. |
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock | 9 Months Ended |
Sep. 30, 2016 | |
Federal Home Loan Bank Stock [Abstract] | |
Federal Home Loan Bank Stock | Note 18. Federal Home Loan Bank Stock As a member of the FHLB, we are required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The stock can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, there is no active market for the FHLB stock. At September 30, 2016 and December 31, 2015, FHLB stock totaled $3.0 million and $2.5 million, respectively. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. We evaluate impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects management’s view of the FHLB’s long-term performance, which includes factors such as the following: (1) its operating performance, (2) the severity and duration of declines in the fair value of its net assets related to its capital stock amount, (3) its liquidity position, and (4) the impact of legislative and regulatory changes on the FHLB. Based on the capital adequacy and the liquidity position of the FHLB, management believes that the par value of its investment in FHLB stock will be recovered. Accordingly, there is no other-than-temporary impairment related to the carrying amount of our FHLB stock as of September 30, 2016. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | Nature of Operations Royal Bancshares of Pennsylvania, Inc. (“Royal Bancshares”, the “Company”, “We” or “Our”), through its wholly-owned subsidiary Royal Bank America (“Royal Bank”) offers a full range of banking services to individual and corporate customers primarily located in the Mid-Atlantic states. Royal Bank competes with other banking and financial institutions in certain markets, including financial institutions with resources substantially greater than its own. Commercial banks, savings banks, savings and loan associations, credit unions, and brokerage firms actively compete for savings and time deposits and for various types of loans. Such institutions, as well as consumer finance and insurance companies, may be considered competitors of Royal Bank with respect to one or more of the services it renders. |
Basis of Financial Presentation | Basis of Financial Presentation The accompanying unaudited consolidated financial statements include the accounts of Royal Bancshares of Pennsylvania, Inc. and its wholly-owned subsidiaries, Royal Investments of Delaware, Inc., including Royal Investments of Delaware, Inc.’s wholly owned subsidiary, Royal Preferred, LLC, and Royal Bank, including Royal Bank’s subsidiaries, Royal Real Estate of Pennsylvania, Inc., Royal Investments America, LLC, RBA Property LLC, Narberth Property Acquisition LLC, Rio Marina LLC, and Royal Tax Lien Services, LLC (“RTL”). Royal Bank also has an 80% and 60% ownership interest in Crusader Servicing Corporation (“CSC”) and Royal Bank America Leasing, LP, respectively. The two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). These consolidated financial statements reflect the historical information of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Applications of the principles in our preparation of the consolidated financial statements in conformity with U.S. GAAP require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from those estimates. The interim financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to present a fair statement of the results for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. |
Reclassifications | Reclassifications Certain items in the 2015 consolidated financial statements and accompanying notes have been reclassified to conform to the current year’s presentation format. There was no effect on net income for the periods presented herein as a result of the reclassification. |
Recent Accounting Pronouncements | Accounting Policies Recently Adopted and Pending Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 14-09”), which establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for public entities for annual periods beginning after December 15, 2016, including interim periods therein. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. In August 2015, the FASB Issued ASU 2015-14 which deferred the effective date to December 31, 2017 and the initial application date (e.g. January 1, 2018.) We do not believe ASU 2014-09 will have a material effect on its financial statements. In June 2014, the FASB issued ASU No. 2014-12 , Compensation – Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in ASU 2014-12 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption was permitted. Entities may apply the amendments in this ASU either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 did not have a significant impact on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. ASU 2016-01 also clarifies that an entity should assess the need for a valuation allowance on a deferred tax asset related to unrealized losses of investments in debt instruments recognized in OCI in combination with the entity’s other deferred tax assets. Prior to this guidance, the alternative approach used in practice evaluated the need for a valuation allowance for a deferred tax asset related to unrealized losses on debt instruments recognized in other comprehensive income separately from other deferred tax assets. This alternative approach will no longer be acceptable. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not believe ASU 2016-01 will have a material effect on our financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases” (“ASU 2016-02”). From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessees. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in ASU 2016-05 clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments in this ASU 2016-05 are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. An entity has an option to apply the amendments in ASU 2016-05 on either a prospective basis or a modified retrospective basis. Early adoption is permitted, including adoption in an interim period. We do not believe ASU 2016-05 will have a material effect on our financial statements. In March 2016, FASB issued Accounting Standards Update No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). FASB is issuing ASU 2016-09 as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU 2016-09 involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in ASU 2016-09 are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We do not believe ASU 2016-09 will have a material effect on our financial statements. In June 2016, FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in ASU 2016-13 replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in ASU 2016-13 affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. There is diversity in practice in applying the incurred loss methodology, which means that before transition some entities may be more aligned, under current GAAP, than others to the new measure of expected credit losses. The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (PCD assets) that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Interest income for PCD assets should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. The amendments in ASU 2016-13 require that credit losses be presented as an allowance rather than as a writedown. This approach is an improvement to current GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current GAAP prohibits reflecting those improvements in current period earnings. For public business entities that are SEC filers, the amendments in ASU 2016-13 are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. All entities may adopt the amendments in ASU 2016-13 earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of ASU 2016-13. Amounts previously recognized in accumulated other comprehensive income as of the date of adoption that relate to improvements in cash flows expected to be collected should continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption should be recorded in earnings when received. We are currently evaluating the impact of the amendments in ASU 2016-13 on our consolidated financial statements. In August 2016, FASB issued Accounting Standards Update No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. T he following eight specific cash flow issues are addressed in ASU 2016-15: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (“COLI”s) (including bank-owned life insurance policies (“BOLI”s)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. For public business entities, the amendments in this ASU 2016-15 are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in ASU 2016-15 should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We do not believe ASU 2016-05 will have a material effect on our financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Amortized cost, gross unrealized gains and losses, and fair value of available-for-sale investment securities | As of September 30, 2016 Gross Gross Amortized unrealized unrealized (In thousands) cost gains losses Fair value U.S. government agencies $ $ $ — $ Mortgage-backed securities-residential — Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency — Corporate bonds — Municipal bonds Other securities — — Common stocks — — Total available for sale $ $ $ $ As of December 31, 2015 Gross Gross Amortized unrealized unrealized (In thousands) cost gains losses Fair value U.S. government agencies $ $ — $ $ Mortgage-backed securities-residential Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency Corporate bonds — Municipal bonds Other securities — Common stocks — — Total available for sale $ $ $ $ |
Amortized cost and fair value of investment securities, by contractual maturity | As of September 30, 2016 Amortized (In thousands) cost Fair value Within 1 year $ — $ — After 1 but within 5 years After 5 but within 10 years After 10 years Mortgage-backed securities-residential Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency Total available for sale debt securities No contractual maturity Total available for sale securities $ $ |
Gross realized gains and losses realized on sale of securities | For the three months ended For the nine months ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Gross realized gains $ $ $ $ Gross realized losses — Net realized gains $ $ $ $ |
Investment securities in a continuous unrealized loss position | September 30, 2016 Less than 12 months 12 months or longer Total Gross Number Gross Number Gross Number unrealized of unrealized of unrealized of (In thousands) Fair value losses positions Fair value losses positions Fair value losses positions Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies $ $ $ $ $ $ Municipal bonds Total available for sale $ $ $ $ $ $ December 31, 2015 Less than 12 months 12 months or longer Total Gross Number Gross Number Gross Number unrealized of unrealized of unrealized of (In thousands) Fair value losses positions Fair value losses positions Fair value losses positions U.S. government agencies $ $ $ $ $ $ Mortgage-backed securities-residential Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies Non-agency — — — Municipal bonds — — — Total available for sale $ $ $ $ $ $ |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans and Leases [Abstract] | |
Major classifications of loans held for investment | September 30, December 31, (In thousands) 2016 2015 Commercial real estate $ $ Construction and land development Commercial and industrial Multi-family Residential real estate Leases Tax certificates Consumer Total loans, net of unearned income $ $ |
Risk ratings for loan portfolio segment | As of September 30, 2016 (In thousands) Pass Pass-Watch Special Mention Substandard Non-accrual Total Commercial real estate $ $ $ $ — $ $ Construction and land development — — Commercial and industrial Multi-family — — — Residential real estate — — Leases — Tax certificates — — — Consumer — — — Total loans, net of unearned income $ $ $ $ $ $ As of December 31, 2015 (In thousands) Pass Pass-Watch Special Mention Substandard Non-accrual Total Commercial real estate $ $ $ $ — $ $ Construction and land development — — Commercial and industrial Multi-family — — — Residential real estate — — — Leases — Tax certificates — — — Consumer — — — Total loans, net of unearned income $ $ $ $ $ $ |
Aging analysis of past due payments for loan portfolio segment | As of September 30, 2016 30-59 Days 60-89 Days Accruing (In thousands) Past Due Past Due 90+ Days Non-accrual Current Total Commercial real estate $ — $ — $ — $ $ $ Construction and land development — — — Commercial and industrial — Multi-family — — — — Residential real estate — Leases — Tax certificates — — — Consumer — — — — Total loans, net of unearned income $ $ $ — $ $ $ As of December 31, 2015 30-59 Days 60-89 Days Accruing (In thousands) Past Due Past Due 90+ Days Non-accrual Current Total Commercial real estate $ $ — $ — $ $ $ Construction and land development — — Commercial and industrial — Multi-family — — — — Residential real estate — Leases — Tax certificates — — — Consumer — — — — Total loans, net of unearned income $ $ $ — $ $ $ |
Troubled debt restructurings that are on an accrual status and a non-accrual status | As of September 30, 2016 Non- Number of Accrual Accrual (In thousands) loans Status Status Total TDRs Commercial real estate $ $ — $ Construction and land development — Commercial and industrial Residential real estate — Total $ $ $ As of December 31, 2015 Non- Number of Accrual Accrual (In thousands) loans Status Status Total TDRs Commercial real estate $ $ — $ Construction and land development — Commercial and industrial — Residential real estate — Total $ $ $ |
Allowance for Loan and Lease 31
Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Allowance for Loan and Lease Losses [Abstract] | |
Detail of the allowance and loan portfolio disaggregated by loan portfolio segment | Allowance for Loan and Lease Losses As of and for the three months ended September 30, 2016 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ — $ Charge-offs — — — — — — Recoveries — — (Credit) provision — Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: related to loans individually evaluated for impairment $ — $ — $ — $ — $ $ $ — $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Allowance for Loan and Lease Losses As of and for the nine months ended September 30, 2016 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ — $ Charge-offs — — — — Recoveries — — (Credit) provision — Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: related to loans individually evaluated for impairment $ — $ — $ — $ — $ $ $ — $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loans Evaluated for Impairment As of September 30, 2016 Construction Commercial and land Commercial Multi- Residential Tax real estate development and industrial family real estate Leases certificates Consumer Unallocated Total (In thousands) Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ $ — $ $ $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Allowance for Loan and Lease Losses and Loans Evaluated for Impairment As of and for the year ended December 31, 2015 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs — — — — Recoveries — — — (Credit) provision Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: related to loans individually evaluated for impairment $ $ — $ $ — $ $ $ — $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loan Balances Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ $ — $ $ $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Allowance for Loan and Lease Losses As of and for the three months ended September 30, 2015 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs — — — — — — — Recoveries — — — — — Provision (credit) Ending balance $ $ $ $ $ $ $ $ $ $ Ending balance: related to loans individually evaluated for impairment $ — $ $ — $ — $ $ $ $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Allowance for Loan and Lease Losses As of and for the nine months ended September 30, 2015 Construction Commercial and land Commercial Multi- Residential Tax (In thousands) real estate development and industrial family real estate Leases certificates Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs — — — — Recoveries — — — Provision (credit) Ending balance $ $ $ $ $ $ $ $ $ $ Ending balance: related to loans individually evaluated for impairment $ — $ $ — $ — $ $ $ $ — $ — $ Ending balance: related to loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Loans Evaluated for Impairment As of September 30, 2015 Construction Commercial and land Commercial Multi- Residential Tax real estate development and industrial family real estate Leases certificates Consumer Unallocated Total (In thousands) Ending balance $ $ $ $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ $ — $ $ $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ $ $ — $ |
Financing receivable evaluated for impairment by portfolio segment | The following tables detail the loans that were evaluated for impairment by loan classification at September 30, 2016 and December 31, 2015. At September 30, 2016 Unpaid principal Recorded Related (In thousands) balance investment allowance With no related allowance recorded: Commercial real estate $ $ $ — Construction and land development — Commercial and industrial — Residential real estate — Tax certificates — Total: $ $ $ — With an allowance recorded: Residential real estate $ $ $ Leasing Total: $ $ $ At and for the year ended December 31, 2015 Unpaid Average Interest principal Recorded Related recorded income (In thousands) balance investment allowance investment recognized With no related allowance recorded: Commercial real estate $ $ $ — $ $ Construction and land development — — Commercial and industrial — Tax certificates — — Total: $ $ $ — $ $ With an allowance recorded: Commercial real estate $ $ $ $ $ — Construction and land development — — — — Commercial and industrial — Residential real estate — Leases — Tax certificates — — — — Total: $ $ $ $ $ — The following tables present the average recorded investment in impaired loans and the related interest income recognized for the three and nine months ended September 30, 2016 and 2015. For the three months ended September 30, 2016 For the nine months ended September 30, 2016 Average Interest Interest income Average Interest Interest income recorded income recognized recorded income recognized (In thousands) investment recognized cash basis investment recognized cash basis Commercial real estate $ $ — $ — $ $ — $ — Construction and land development — — — — Commercial and industrial — — Residential real estate — — — — Leasing — — — — Tax certificates — — — — Total: $ $ $ — $ $ $ — For the three months ended September 30, 2015 For the nine months ended September 30, 2015 Average Interest Interest income Average Interest Interest income recorded income recognized recorded income recognized (In thousands) investment recognized cash basis investment recognized cash basis Commercial real estate $ $ $ $ $ $ Construction and land development — — — — Commercial and industrial — — Residential real estate — — — — Leasing — — — — Tax certificates — — — — Total: $ $ $ $ $ $ |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Real Estate Owned [Abstract] | |
Details of changes in other real estate owned | For the nine months ended September 30, 2016 (In thousands) Loans Tax Liens Total Beginning balance $ $ $ Net proceeds from sales Net gains on sales Transfers in Cash additions — Impairment charge — Ending balance $ $ $ For the year ended December 31, 2015 (In thousands) Loans Tax Liens Total Beginning balance $ $ $ Net proceeds from sales Net gain on sales Transfers in Cash additions — Transfer to loans — Impairment charge Ending balance $ $ $ |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Deposits summary | September 30, December 31, (In thousands) 2016 2015 Non-interest bearing checking $ $ NOW Interest-bearing brokered deposits — Money Market Savings Time deposits ($250 and over) Time deposits (less than $250) Total deposits $ $ |
Borrowings and Subordinated D34
Borrowings and Subordinated Debentures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings and Subordinated Debentures | |
FHLB borrowings allocated by the year in which they mature with their corresponding weighted average rates | As of As of September 30, 2016 December 31, 2015 (Dollars in thousands) Amount Rate Amount Rate Advances maturing in 2016 $ % $ % 2017 % % 2018 % % 2021 % — — % Total FHLB borrowings $ $ |
Derivative Instruments and He35
Derivative Instruments and Hedging Activity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate swap, designated as cash flow hedge, effects of derivative in balance sheet | The effects of the derivative instrument on the Consolidated Financial Statements at September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and 2015 were as follows: As of September 30, 2016 Notional Contract Balance Sheet Expiration (In thousands) Amount Fair Value Location Date Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ $ Other liabilities June 24, 2021 Total: $ $ As of December 31, 2015 Notional Contract Balance Sheet Expiration (In thousands) Amount Fair Value Location Date Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ $ Other liabilities June 24, 2021 Total: $ $ |
Interest rate swap, designated as cash flow hedge, effects of derivative in OCI | For the three months ended September 30, 2016 Amount of Gain Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the nine months ended September 30, 2016 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the year ended December 31, 2015 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the three months ended September 30, 2015 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — For the nine months ended September 30, 2015 Amount of Loss Location of Loss Amount of Loss Recognized Recognized Recognized in OCI in Income in Income on Derivatives on Derivatives on Derivatives (In thousands) (Effective Portion) (Ineffective Portion) (Ineffective Portion) Derivatives designated as hedging instruments Interest rate swaps: Effective June 24, 2016 $ Not Applicable $ — Total: $ $ — |
Commitments, Contingencies, a36
Commitments, Contingencies, and Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments, Contingencies, and Concentrations [Abstract] | |
Contracts of financial instruments represent credit risk | September 30, December 31, (In thousands) 2016 2015 Financial instruments whose contract amounts represent credit risk: Open-end lines of credit $ $ Commitments to extend credit Standby letters of credit and financial guarantees written In March 2016, we commenced renovations on our 3-story building in Narberth, Pennsylvania. It is the site of Royal Bank’s main branch location. The branch will remain open during construction. We expect the project to be completed later this year for an approximate cost of $1.4 million. It is our intention to lease the second and third floors as a revenue source. |
Regulatory Capital Requiremen37
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Royal Bank's capital ratios | At September 30, 2016 To be well capitalized For capital under prompt corrective Actual adequacy purposes action provision (Dollars in thousands) Amount Ratio Amount Ratio* Amount Ratio Total capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to average assets, leverage) $ % $ % $ % Common equity Tier 1 (to risk-weighted assets) $ % $ % $ % |
Adjustments to net loss as well as the capital ratios | For the nine months ended (In thousands) September 30, 2016 RAP net income $ Tax lien adjustment, net of noncontrolling interest U.S. GAAP net income $ At September 30, 2016 As reported As adjusted under RAP for U.S. GAAP Total capital (to risk-weighted assets) % % Tier 1 capital (to risk-weighted assets) % % Tier 1 capital (to average assets, leverage) % % Common equity Tier 1 (to risk-weighted assets) % % |
Company capital ratios | At September 30, 2016 To be well capitalized For capital under the Federal Actual adequacy purposes Reserve's regulations (Dollars in thousands) Amount Ratio Amount Ratio* Amount Ratio Total capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to risk-weighted assets) $ % $ % $ % Tier 1 capital (to average assets, leverage) $ % $ % N/A N/A Common equity Tier 1 (to risk-weighted assets) $ % $ % N/A N/A |
Adjustment to Company's capital ratio under RAP | For the nine months ended (In thousands) September 30, 2016 U.S. GAAP net income $ Tax lien adjustment, net of noncontrolling interest RAP net income $ At September 30, 2016 As reported As adjusted under U.S. GAAP for RAP Total capital (to risk-weighted assets) % % Tier 1 capital (to risk-weighted assets) % % Tier 1 capital (to average assets, leverage) % % Common equity Tier 1 (to risk-weighted assets) % % |
Pension Plan (Tables)
Pension Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Pension Plan [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | For the three months ended For the nine months ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Amortization of prior service cost — — Amortization of actuarial loss Net periodic benefit cost $ $ $ $ |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income (Loss) Per Common Share [Abstract] | |
Schedule of computation of basic and diluted earning per share | Basic and diluted EPS are calculated as follows: For the three months ended September 30, 2016 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS Income available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ For the three months ended September 30, 2015 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS ncome available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ For the nine months ended September 30, 2016 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS Income available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ For the nine months ended September 30, 2015 Income Average shares Per share (In thousands, except for per share data) (numerator) (denominator) Amount Basic EPS Income available to common shareholders $ $ Diluted EPS Income available to common shareholders $ $ |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) [Abstract] | For the nine months ended September 30, 2016 Tax Before tax expense Net of tax (In thousands) amount (benefit) amount Unrealized gains on investment securities: Unrealized holding gains arising during period $ $ $ Less adjustment for impaired investments Less reclassification adjustment for gains realized in net income Unrealized gains on investment securities Unrecognized benefit obligation expense: Reclassification adjustment for amortization — Unrecognized benefit obligation — Unrealized loss on derivative instrument Other comprehensive income, net $ $ $ For the nine months ended September 30, 2015 Tax Before tax expense Net of tax (In thousands) amount (benefit) amount Unrealized gains on investment securities: Unrealized holding gains arising during period $ $ $ Less reclassification adjustment for gains realized in net income Unrealized gains on investment securities Unrecognized benefit obligation expense: Reclassification adjustment for amortization — Unrecognized benefit obligation — Unrealized loss on derivative instrument Other comprehensive income, net $ $ $ |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | September 30, December 31, (In thousands) 2016 2015 Unrecognized benefit obligation $ $ Unrealized gains on AFS investments Unrealized loss on derivative instrument Accumulated other comprehensive loss $ $ |
Fair Value of Financial Instr41
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of September 30, 2016 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Investment securities available for sale U.S. government agencies $ — $ $ — $ Mortgage-backed securities-residential — — Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies — — Non-agency — — Corporate bonds — — Municipal bonds — — Other securities — — Common stocks — — Total investment securities available for sale $ $ $ $ Liabilities: Derivative instruments Interest rate swaps $ — $ $ — $ Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of December 31, 2015 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets: Investment securities available for sale U.S. government agencies $ — $ $ — $ Mortgage-backed securities-residential — — Collateralized mortgage obligations: Issued or guaranteed by U.S. government agencies — — Non-agency — — Corporate bonds — — Municipal bonds — — Other securities — — Common stocks — — Total investment securities available for sale $ $ $ $ Liabilities: Derivative instruments Interest rate swaps $ — $ $ — $ |
Additional Information About Assets Measured at Fair Value on a Recurring Basis, Level 3 Inputs | (In thousands) Other securities Investment Securities Available for Sale 2016 2015 Beginning balance July 1, $ $ Total gains/(losses) - (realized/unrealized): Included in earnings-net gains on sale and OTTI Included in other comprehensive income — Purchases — — Sales and calls Transfers in and/or out of Level 3 — — Ending balance September 30, $ $ (In thousands) Other securities Investment Securities Available for Sale 2016 2015 Beginning balance January 1, $ $ Total gains/(losses) - (realized/unrealized): Included in earnings-net gains on sale and OTTI Included in other comprehensive income Purchases Sales and calls Transfers in and/or out of Level 3 — — Ending balance September 30, $ $ |
Financial Assets Measured at Fair Value on Nonrecurring Basis | Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of September 30, 2016 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets Impaired loans and leases $ — $ — $ $ Other real estate owned — — Fair Value Measurements Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable As of December 31, 2015 Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Fair Value Assets Impaired loans and leases $ — $ — $ $ Other real estate owned — — |
Schedule of quantitative information about assets measured at fair value on nonrecurring basis | Qualitative Information about Level 3 Fair Value Measurements As of September 30, 2016 Valuation Range (In thousands) Fair Value Techniques Unobservable Input (Weighted Average) Impaired loans and leases $ Appraisal of Appraisal adjustments - -20.8% (-14.9%) collateral (1) Liquidation expenses - -12.8% (-4.2%) Other real estate owned Appraisal of Appraisal adjustments - -52.6% (-15.5%) collateral (1) Liquidation expenses - -5.6% (-5.6%) Qualitative Information about Level 3 Fair Value Measurements As of December 31, 2015 Valuation Range (In thousands) Fair Value Techniques Unobservable Input (Weighted Average) Impaired loans and leases $ Appraisal of Appraisal adjustments - -62.3% (-13.7%) collateral (1) Liquidation expenses - -15.4% (-6.5%) Other real estate owned Appraisal of Appraisal adjustments - -54.1% (-17.1%) collateral (1) Liquidation expenses - -14.7% (-6.0%) (1) Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. |
Fair Value by Balance Sheet Grouping Instruments | Fair Value Measurements At September 30, 2016 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs (In thousands) amount fair value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale Other investment — — Federal Home Loan Bank stock — — Loans, net — — Accrued interest receivable — — Financial Liabilities: Demand deposits — — NOW and money markets — — Savings — — Time deposits — — Short-term borrowings — — Long-term borrowings — — Subordinated debt — — Accrued interest payable — — Derivative Instruments (Liability): Interest rate swaps — — Fair Value Measurements At December 31, 2015 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs (In thousands) amount fair value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale Other investment — — Federal Home Loan Bank stock — — Loans, net — — Accrued interest receivable — — Financial Liabilities: Demand deposits — — NOW and money markets — — Interest-bearing brokered deposits — — Savings — — Time deposits — — Short-term borrowings — — Long-term borrowings — — Subordinated debt — — Accrued interest payable — — Derivative Instruments (Liability): Interest rate swaps — — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Selected segment information and reconciliations to consolidated financial information | For the three months ended September 30, 2016 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income (expense) $ $ $ Provision for loan and lease losses Total non-interest income Total non-interest expense Income tax expense — Net income (loss) $ $ $ Noncontrolling interest $ $ $ Net income (loss) attributable to Royal Bancshares $ $ $ For the three months ended September 30, 2015 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income (expense) $ $ $ (Credit) provision for loan and lease losses Total non-interest income Total non-interest expense Income tax expense — — — Net income (loss) $ $ $ Noncontrolling interest $ $ — $ Net income (loss) attributable to Royal Bancshares $ $ $ For the nine months ended September 30, 2016 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income (expense) $ $ $ Provision for loan and lease losses Total non-interest income Total non-interest expense Income tax benefit — Net income (loss) $ $ $ Noncontrolling interest $ $ $ Net income (loss) attributable to Royal Bancshares $ $ $ For the nine months ended September 30, 2015 Community (In thousands) Banking Tax Liens Consolidated Total assets $ $ $ Total deposits $ $ — $ Interest income $ $ $ Interest expense Net interest income $ $ $ (Credit) provision for loan and lease losses Total non-interest income Total non-interest expense Income tax expense — — — Net income (loss) $ $ $ Noncontrolling interest $ $ $ Net income (loss) attributable to Royal Bancshares $ $ $ |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Investment - (Details) | 9 Months Ended |
Sep. 30, 2016trust | |
Noncontrolling Interest [Line Items] | |
Number of Delaware trust affiliates | 2 |
Royal Bank [Member] | Crusader Servicing Corporation [Member] | |
Noncontrolling Interest [Line Items] | |
Total percentage of ownership interest (in hundredths) | 80.00% |
Royal Bank [Member] | Royal Bank America Leasing LP | |
Noncontrolling Interest [Line Items] | |
Total percentage of ownership interest (in hundredths) | 60.00% |
Regulatory Matters and Signif44
Regulatory Matters and Significant Risks or Uncertainties - Dividend and Interest Restrictions (Details) - USD ($) $ in Millions | Oct. 07, 2016 | Jun. 30, 2014 | Sep. 30, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 12,205 | 18,856 | ||
Stock Repurchased and Retired During Period, Shares | 11,551 | 6,651 | ||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares | 12,205 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividend in arrears | $ 7.1 |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)funditem | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | |
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | $ 165,787 | $ 165,787 | $ 224,108 | ||
Gross unrealized gains | 3,058 | 3,058 | 2,205 | ||
Gross unrealized losses | (524) | (524) | (2,246) | ||
Available-for-sale Securities, Total | 168,321 | 168,321 | 224,067 | ||
Amortized cost [Abstract] | |||||
Within 1 year | 0 | 0 | |||
After 1 but within 5 years | 7,802 | 7,802 | |||
After 5 but within 10 years | 5,102 | 5,102 | |||
After 10 years | 1,000 | 1,000 | |||
Total available for sale debt securities | 163,928 | 163,928 | |||
Available-for-sale Equity Securities, Amortized Cost Basis | 1,859 | 1,859 | |||
Total available for sale securities | 165,787 | 165,787 | 224,108 | ||
Fair value [Abstract] | |||||
Within 1 year | 0 | 0 | |||
After 1 but within 5 years | 7,798 | 7,798 | |||
After 5 but within 10 years | 5,269 | 5,269 | |||
After 10 years | 1,074 | 1,074 | |||
Total available for sale debt securities | 166,462 | 166,462 | |||
No contractual maturity | 1,859 | 1,859 | |||
Fair value | 168,321 | 168,321 | 224,067 | ||
Proceeds from sales of AFS investment securities | 25,700 | $ 9,200 | 36,427 | $ 33,653 | |
Gross realized gains and losses on the sale of securities recognized in earnings [Abstract] | |||||
Gross realized gains | 280 | 104 | 1,426 | 676 | |
Gross realized losses | 0 | (24) | (44) | (24) | |
Net realized gains | 280 | 80 | 1,382 | 652 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 35 | $ 0 | 181 | 0 | |
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Less than 12 months, Fair value | 24,450 | 24,450 | 106,022 | ||
12 months or longer, Fair value | 11,782 | 11,782 | 37,100 | ||
Total, Fair value | 36,232 | 36,232 | 143,122 | ||
Less than 12 months, Gross unrealized losses | (273) | (273) | (1,134) | ||
12 months or longer, Gross unrealized losses | (251) | (251) | (1,112) | ||
Total, Gross unrealized losses | $ (524) | $ (524) | $ (2,246) | ||
Less than 12 months, number of positions | item | 10 | 10 | 43 | ||
12 months or longer, number of positions | item | 5 | 5 | 12 | ||
Total , number of positions | item | 15 | 15 | 55 | ||
Fair value | $ 168,321 | $ 168,321 | $ 224,067 | ||
Number of securities in an unrealized loss position for less than twelve months | item | 10 | 10 | 43 | ||
Number of securities in an unrealized loss position for more than twelve months | item | 5 | 5 | 12 | ||
Credit related impairment losses on debt securities held for which a portion of OTTI was recognized in other comprehensive income [Roll Forward] | |||||
Reductions for securities sold during the period (realized) | $ 0 | $ 0 | |||
U.S. Government Agencies [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | $ 3,498 | 3,498 | $ 26,127 | ||
Gross unrealized gains | 2 | 2 | 0 | ||
Gross unrealized losses | 0 | 0 | (564) | ||
Available-for-sale Securities, Total | 3,500 | 3,500 | 25,563 | ||
Amortized cost [Abstract] | |||||
Total available for sale securities | 3,498 | 3,498 | 26,127 | ||
Fair value [Abstract] | |||||
Fair value | 3,500 | 3,500 | 25,563 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Less than 12 months, Fair value | 6,681 | ||||
12 months or longer, Fair value | 18,882 | ||||
Total, Fair value | 25,563 | ||||
Less than 12 months, Gross unrealized losses | (57) | ||||
12 months or longer, Gross unrealized losses | (507) | ||||
Total, Gross unrealized losses | $ (564) | ||||
Less than 12 months, number of positions | item | 2 | ||||
12 months or longer, number of positions | item | 6 | ||||
Total , number of positions | item | 8 | ||||
Fair value | 3,500 | 3,500 | $ 25,563 | ||
Number of securities in an unrealized loss position for less than twelve months | item | 2 | ||||
Number of securities in an unrealized loss position for more than twelve months | item | 6 | ||||
Mortgage-backed Securities-residential [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | 7,373 | 7,373 | $ 11,002 | ||
Gross unrealized gains | 342 | 342 | 106 | ||
Gross unrealized losses | 0 | 0 | (50) | ||
Available-for-sale Securities, Total | 7,715 | 7,715 | 11,058 | ||
Amortized cost [Abstract] | |||||
Available for sale securities Debt maturities, amortized cost basis | 7,373 | 7,373 | |||
Total available for sale securities | 7,373 | 7,373 | 11,002 | ||
Fair value [Abstract] | |||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 7,715 | 7,715 | |||
Fair value | 7,715 | 7,715 | 11,058 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Less than 12 months, Fair value | 5,140 | ||||
12 months or longer, Fair value | 2,574 | ||||
Total, Fair value | 7,714 | ||||
Less than 12 months, Gross unrealized losses | (5) | ||||
12 months or longer, Gross unrealized losses | (45) | ||||
Total, Gross unrealized losses | $ (50) | ||||
Less than 12 months, number of positions | item | 2 | ||||
12 months or longer, number of positions | item | 1 | ||||
Total , number of positions | item | 3 | ||||
Fair value | 7,715 | 7,715 | $ 11,058 | ||
Number of securities in an unrealized loss position for less than twelve months | item | 2 | ||||
Number of securities in an unrealized loss position for more than twelve months | item | 1 | ||||
Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | 138,137 | 138,137 | $ 170,764 | ||
Gross unrealized gains | 2,372 | 2,372 | 1,524 | ||
Gross unrealized losses | (469) | (469) | (1,554) | ||
Available-for-sale Securities, Total | 140,040 | 140,040 | 170,734 | ||
Amortized cost [Abstract] | |||||
Available for sale securities Debt maturities, amortized cost basis | 138,137 | 138,137 | |||
Total available for sale securities | 138,137 | 138,137 | 170,764 | ||
Fair value [Abstract] | |||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 140,040 | 140,040 | |||
Fair value | 140,040 | 140,040 | 170,734 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Less than 12 months, Fair value | 22,424 | 22,424 | 87,020 | ||
12 months or longer, Fair value | 10,458 | 10,458 | 15,644 | ||
Total, Fair value | 32,882 | 32,882 | 102,664 | ||
Less than 12 months, Gross unrealized losses | (224) | (224) | (994) | ||
12 months or longer, Gross unrealized losses | (245) | (245) | (560) | ||
Total, Gross unrealized losses | $ (469) | $ (469) | $ (1,554) | ||
Less than 12 months, number of positions | item | 8 | 8 | 31 | ||
12 months or longer, number of positions | item | 3 | 3 | 5 | ||
Total , number of positions | item | 11 | 11 | 36 | ||
Fair value | $ 140,040 | $ 140,040 | $ 170,734 | ||
Number of securities in an unrealized loss position for less than twelve months | item | 8 | 8 | 31 | ||
Number of securities in an unrealized loss position for more than twelve months | item | 3 | 3 | 5 | ||
Mortgage-backed Securities, Issued by Private Enterprises [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | $ 4,514 | $ 4,514 | $ 2,729 | ||
Gross unrealized gains | 52 | 52 | 1 | ||
Gross unrealized losses | 0 | 0 | (26) | ||
Available-for-sale Securities, Total | 4,566 | 4,566 | 2,704 | ||
Amortized cost [Abstract] | |||||
Available for sale securities Debt maturities, amortized cost basis | 4,514 | 4,514 | |||
Total available for sale securities | 4,514 | 4,514 | 2,729 | ||
Fair value [Abstract] | |||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 4,566 | 4,566 | |||
Fair value | 4,566 | 4,566 | 2,704 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Less than 12 months, Fair value | 1,101 | ||||
12 months or longer, Fair value | 0 | ||||
Total, Fair value | 1,101 | ||||
Less than 12 months, Gross unrealized losses | (26) | ||||
12 months or longer, Gross unrealized losses | 0 | ||||
Total, Gross unrealized losses | $ (26) | ||||
Less than 12 months, number of positions | item | 1 | ||||
12 months or longer, number of positions | item | 0 | ||||
Total , number of positions | item | 1 | ||||
Fair value | 4,566 | 4,566 | $ 2,704 | ||
Number of securities in an unrealized loss position for less than twelve months | item | 1 | ||||
Number of securities in an unrealized loss position for more than twelve months | item | 0 | ||||
Corporate Bonds [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | 1,700 | 1,700 | $ 1,500 | ||
Gross unrealized gains | 74 | 74 | 56 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Available-for-sale Securities, Total | 1,774 | 1,774 | 1,556 | ||
Amortized cost [Abstract] | |||||
Total available for sale securities | 1,700 | 1,700 | 1,500 | ||
Fair value [Abstract] | |||||
Fair value | 1,774 | 1,774 | 1,556 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Fair value | 1,774 | 1,774 | 1,556 | ||
Municipal Bonds [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | 8,706 | 8,706 | 9,910 | ||
Gross unrealized gains | 216 | 216 | 73 | ||
Gross unrealized losses | (55) | (55) | (52) | ||
Available-for-sale Securities, Total | 8,867 | 8,867 | 9,931 | ||
Amortized cost [Abstract] | |||||
Total available for sale securities | 8,706 | 8,706 | 9,910 | ||
Fair value [Abstract] | |||||
Fair value | 8,867 | 8,867 | 9,931 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Less than 12 months, Fair value | 2,026 | 2,026 | 6,080 | ||
12 months or longer, Fair value | 1,324 | 1,324 | 0 | ||
Total, Fair value | 3,350 | 3,350 | 6,080 | ||
Less than 12 months, Gross unrealized losses | (49) | (49) | (52) | ||
12 months or longer, Gross unrealized losses | (6) | (6) | 0 | ||
Total, Gross unrealized losses | $ (55) | $ (55) | $ (52) | ||
Less than 12 months, number of positions | item | 2 | 2 | 7 | ||
12 months or longer, number of positions | item | 2 | 2 | 0 | ||
Total , number of positions | item | 4 | 4 | 7 | ||
Fair value | $ 8,867 | $ 8,867 | $ 9,931 | ||
Number of securities in an unrealized loss position for less than twelve months | item | 2 | 2 | 7 | ||
Number of securities in an unrealized loss position for more than twelve months | item | 2 | 2 | 0 | ||
Private Equity Funds [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | $ 1,833 | $ 1,833 | $ 2,050 | ||
Gross unrealized gains | 0 | 0 | 445 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Available-for-sale Securities, Total | 1,833 | 1,833 | 2,495 | ||
Amortized cost [Abstract] | |||||
Total available for sale securities | 1,833 | 1,833 | 2,050 | ||
Fair value [Abstract] | |||||
Fair value | 1,833 | 1,833 | 2,495 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Fair value | $ 1,833 | 1,833 | 2,495 | ||
Impairment charges on private equity funds | 181 | ||||
Number of private equity funds that had impairment charges recorded on | fund | 2 | ||||
Common Stock [Member] | |||||
Carrying value and fair value of available for sale investment securities [Abstract] | |||||
Total available for sale securities | $ 26 | 26 | 26 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Available-for-sale Securities, Total | 26 | 26 | 26 | ||
Amortized cost [Abstract] | |||||
Total available for sale securities | 26 | 26 | 26 | ||
Fair value [Abstract] | |||||
Fair value | 26 | 26 | 26 | ||
Available for sale securities, continuous unrealized loss position [Abstract] | |||||
Fair value | $ 26 | $ 26 | $ 26 |
Loans and Leases - Major classi
Loans and Leases - Major classifications of LHFI (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | $ 575,818 | $ 471,216 | $ 499,103 |
Proceeds from sales of loans and leases | 2,036 | 0 | |
Commercial real estate [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 253,074 | 210,883 | 225,679 |
Construction and land development [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 74,885 | 38,864 | 47,984 |
Commercial and industrial [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 106,254 | 82,414 | 85,980 |
Multi-family [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 23,831 | 15,222 | 16,249 |
Residential real estate [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 49,061 | 54,025 | 51,588 |
Leases [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 62,671 | 61,954 | 64,341 |
Tax certificates [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 3,803 | 5,294 | 4,755 |
Consumer [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | $ 2,239 | $ 2,560 | $ 2,527 |
Loans and Leases - Risk Ratings
Loans and Leases - Risk Ratings for Each Loan Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | $ 575,818 | $ 499,103 | $ 471,216 |
Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 253,074 | 225,679 | 210,883 |
Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 74,885 | 47,984 | 38,864 |
Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 106,254 | 85,980 | 82,414 |
Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 23,831 | 16,249 | 15,222 |
Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 49,061 | 51,588 | 54,025 |
Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 62,671 | 64,341 | 61,954 |
Tax certificates [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 3,803 | 4,755 | 5,294 |
Consumer [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 2,239 | 2,527 | $ 2,560 |
Pass [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 452,035 | 400,393 | |
Pass [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 216,295 | 191,320 | |
Pass [Member] | Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 10,068 | 4,429 | |
Pass [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 94,137 | 68,998 | |
Pass [Member] | Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 17,373 | 15,982 | |
Pass [Member] | Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 48,371 | 50,699 | |
Pass [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 60,567 | 62,896 | |
Pass [Member] | Tax certificates [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 3,058 | 3,630 | |
Pass [Member] | Consumer [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 2,166 | 2,439 | |
Pass Watch [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 116,534 | 90,049 | |
Pass Watch [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 35,601 | 31,994 | |
Pass Watch [Member] | Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 64,673 | 43,410 | |
Pass Watch [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 9,426 | 13,971 | |
Pass Watch [Member] | Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 6,458 | 267 | |
Pass Watch [Member] | Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 106 | ||
Pass Watch [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 197 | 319 | |
Pass Watch [Member] | Consumer [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 73 | 88 | |
Special Mention [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 1,106 | 1,104 | |
Special Mention [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 346 | 870 | |
Special Mention [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 329 | 195 | |
Special Mention [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 431 | 39 | |
Substandard [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 1,688 | 2,065 | |
Substandard [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 1,688 | 2,065 | |
Nonperforming Financing Receivable [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 4,455 | 5,492 | |
Nonperforming Financing Receivable [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 832 | 1,495 | |
Nonperforming Financing Receivable [Member] | Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 144 | 145 | |
Nonperforming Financing Receivable [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 674 | 751 | |
Nonperforming Financing Receivable [Member] | Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 584 | 889 | |
Nonperforming Financing Receivable [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 1,476 | 1,087 | |
Nonperforming Financing Receivable [Member] | Tax certificates [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | $ 745 | $ 1,125 |
Loans and Leases - Aging Analys
Loans and Leases - Aging Analysis of Past Due Payments for Each Loan Portfolio Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | $ 4,455,000 | $ 4,455,000 | $ 5,492,000 | ||
Current | 570,135,000 | 570,135,000 | 490,265,000 | ||
Total | 575,818,000 | $ 471,216,000 | 575,818,000 | $ 471,216,000 | 499,103,000 |
Interest income lost on non-accrual loans | 135,000 | 142,000 | 539,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 682,000 | 682,000 | 2,556,000 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 546,000 | 546,000 | 790,000 | ||
Commercial real estate [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | 832,000 | 832,000 | 1,495,000 | ||
Current | 252,242,000 | 252,242,000 | 224,088,000 | ||
Total | 253,074,000 | 210,883,000 | 253,074,000 | 210,883,000 | 225,679,000 |
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 96,000 | ||||
Construction and land development [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | 144,000 | 144,000 | 145,000 | ||
Current | 74,741,000 | 74,741,000 | 47,332,000 | ||
Total | 74,885,000 | 38,864,000 | 74,885,000 | 38,864,000 | 47,984,000 |
Construction and land development [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 507,000 | ||||
Commercial and industrial [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | 674,000 | 674,000 | 751,000 | ||
Current | 105,226,000 | 105,226,000 | 83,727,000 | ||
Total | 106,254,000 | 82,414,000 | 106,254,000 | 82,414,000 | 85,980,000 |
Commercial and industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 346,000 | 346,000 | 910,000 | ||
Commercial and industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 8,000 | 8,000 | 592,000 | ||
Multi-family [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Current | 23,831,000 | 23,831,000 | 16,249,000 | ||
Total | 23,831,000 | 15,222,000 | 23,831,000 | 15,222,000 | 16,249,000 |
Residential real estate [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | 584,000 | 584,000 | 889,000 | ||
Current | 48,231,000 | 48,231,000 | 49,816,000 | ||
Total | 49,061,000 | 54,025,000 | 49,061,000 | 54,025,000 | 51,588,000 |
Residential real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 139,000 | 139,000 | 724,000 | ||
Residential real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 107,000 | 107,000 | 159,000 | ||
Leases [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | 1,476,000 | 1,476,000 | 1,087,000 | ||
Current | 60,567,000 | 60,567,000 | 62,896,000 | ||
Total | 62,671,000 | 61,954,000 | 62,671,000 | 61,954,000 | 64,341,000 |
Leases [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 197,000 | 197,000 | 319,000 | ||
Leases [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Financing Receivable, Recorded Investment, Past Due | 431,000 | 431,000 | 39,000 | ||
Tax certificates [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Non-accrual | 745,000 | 745,000 | 1,125,000 | ||
Current | 3,058,000 | 3,058,000 | 3,630,000 | ||
Total | 3,803,000 | 5,294,000 | 3,803,000 | 5,294,000 | 4,755,000 |
Consumer [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Current | 2,239,000 | 2,239,000 | 2,527,000 | ||
Total | $ 2,239,000 | $ 2,560,000 | 2,239,000 | $ 2,560,000 | $ 2,527,000 |
Royal Bancshares [Member] | |||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||||
Interest income lost on non-accrual loans | $ 450,000 |
Loans and Leases - Impaired Loa
Loans and Leases - Impaired Loans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Impaired Loans [Abstract] | |||||
Cash collected on non accrual and impaired loan | $ 1,400,000 | $ 5,900,000 | |||
Amount credited to principal balance outstanding | 1,300,000 | 4,800,000 | |||
Summary of impaired loans [Abstract] | |||||
Impaired loans with a valuation allowance | $ 1,390,000 | 1,390,000 | $ 2,414,000 | ||
Impaired loans without a valuation allowance | 3,945,000 | 3,945,000 | 4,777,000 | ||
Valuation allowance related to impaired loans | 186,000 | 186,000 | $ 398,000 | ||
Average recorded investment [Abstract] | |||||
Average investment in impaired loans and leases | 5,835,000 | $ 10,622,000 | 6,332,000 | 13,077,000 | |
Interest income recognized on a cash basis on impaired loans and leases | $ 0 | $ 97,000 | $ 0 | $ 232,000 |
Loans and Leases - Troubled Deb
Loans and Leases - Troubled Debt Restructuring (Details) | 9 Months Ended | ||
Sep. 30, 2016USD ($)loanitem | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 5,000 | 6 | |
Total TDRs | $ 2,113,000 | $ 2,576,000 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 0 | ||
Foreclosed residential real estate property | $ 7,236,000 | 7,435,000 | $ 9,779,000 |
Mortgage Loans in Process of Foreclosure, Amount | 317,000 | ||
Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 1,792,000 | 2,339,000 | |
Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | $ 321,000 | $ 237,000 | |
Commercial real estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 1,000 | 1 | |
Total TDRs | $ 20,000 | $ 24,000 | |
Commercial real estate [Member] | Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | $ 20,000 | $ 24,000 | |
Construction and land development [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 1,000 | 1 | |
Total TDRs | $ 144,000 | $ 145,000 | |
Construction and land development [Member] | Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | $ 144,000 | $ 145,000 | |
Commercial and industrial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 2,000 | 3 | |
Total TDRs | $ 1,865,000 | $ 2,315,000 | |
Commercial and industrial [Member] | Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 1,688,000 | $ 2,315,000 | |
Commercial and industrial [Member] | Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | $ 177,000 | ||
Residential real estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 1,000 | 1 | |
Total TDRs | $ 84,000 | $ 92,000 | |
Residential real estate [Member] | Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 84,000 | ||
Residential real estate [Member] | Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 92,000 | ||
Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Foreclosed residential real estate property | 243,000 | $ 220,000 | $ 349,000 |
Loans, Residential Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Foreclosed residential real estate property | $ 28,000 |
Allowance for Loan and Lease 51
Allowance for Loan and Lease Losses - Changes in Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 10,008 | $ 10,036 | $ 9,689 | $ 11,708 | $ 11,708 |
Charge-offs | (425) | (177) | (1,128) | (1,639) | (2,535) |
Recoveries | 93 | 163 | 706 | 1,119 | 1,264 |
(Credit) provision | 578 | (216) | 987 | (1,382) | (748) |
Ending balance | 10,254 | 9,806 | 10,254 | 9,806 | 9,689 |
Ending balance: related to loans individually evaluated for impairment | 186 | 322 | 186 | 322 | 398 |
Ending balance: related to loans collectively evaluated for impairment | 10,068 | 9,484 | 10,068 | 9,484 | 9,291 |
LHFI [Abstract] | |||||
Ending balance | 575,818 | 471,216 | 575,818 | 471,216 | 499,103 |
Ending balance: individually evaluated for impairment | 5,335 | 10,118 | 5,335 | 10,118 | 7,191 |
Ending balance: collectively evaluated for impairment | 570,483 | 461,098 | 570,483 | 461,098 | 491,912 |
Commercial real estate [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 3,342 | 4,208 | 3,622 | 4,452 | 4,452 |
Charge-offs | (7) | 0 | (84) | (231) | (622) |
Recoveries | 17 | 0 | 201 | 351 | 380 |
(Credit) provision | (12) | (344) | (399) | (708) | (588) |
Ending balance | 3,340 | 3,864 | 3,340 | 3,864 | 3,622 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 77 |
Ending balance: related to loans collectively evaluated for impairment | 3,340 | 3,864 | 3,340 | 3,864 | 3,545 |
LHFI [Abstract] | |||||
Ending balance | 253,074 | 210,883 | 253,074 | 210,883 | 225,679 |
Ending balance: individually evaluated for impairment | 852 | 4,040 | 852 | 4,040 | 1,469 |
Ending balance: collectively evaluated for impairment | 252,222 | 206,843 | 252,222 | 206,843 | 224,210 |
Construction and land development [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,991 | 1,358 | 1,674 | 2,292 | 2,292 |
Charge-offs | 0 | (39) | 0 | (119) | (264) |
Recoveries | 15 | 150 | 273 | 402 | 503 |
(Credit) provision | 160 | 133 | 219 | (973) | (857) |
Ending balance | 2,166 | 1,602 | 2,166 | 1,602 | 1,674 |
Ending balance: related to loans individually evaluated for impairment | 0 | 145 | 0 | 145 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 2,166 | 1,457 | 2,166 | 1,457 | 1,674 |
LHFI [Abstract] | |||||
Ending balance | 74,885 | 38,864 | 74,885 | 38,864 | 47,984 |
Ending balance: individually evaluated for impairment | 144 | 290 | 144 | 290 | 145 |
Ending balance: collectively evaluated for impairment | 74,741 | 38,574 | 74,741 | 38,574 | 47,839 |
Commercial and industrial [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,365 | 1,705 | 1,513 | 1,780 | 1,780 |
Charge-offs | 0 | 0 | (108) | (541) | (566) |
Recoveries | 32 | 4 | 159 | 278 | 282 |
(Credit) provision | 17 | (301) | (150) | (109) | 17 |
Ending balance | 1,414 | 1,408 | 1,414 | 1,408 | 1,513 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 100 |
Ending balance: related to loans collectively evaluated for impairment | 1,414 | 1,408 | 1,414 | 1,408 | 1,413 |
LHFI [Abstract] | |||||
Ending balance | 106,254 | 82,414 | 106,254 | 82,414 | 85,980 |
Ending balance: individually evaluated for impairment | 2,120 | 3,024 | 2,120 | 3,024 | 2,687 |
Ending balance: collectively evaluated for impairment | 104,134 | 79,390 | 104,134 | 79,390 | 83,293 |
Multi-family [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 231 | 300 | 171 | 285 | 285 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
(Credit) provision | 36 | (113) | 96 | (98) | (114) |
Ending balance | 267 | 187 | 267 | 187 | 171 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 267 | 187 | 267 | 187 | 171 |
LHFI [Abstract] | |||||
Ending balance | 23,831 | 15,222 | 23,831 | 15,222 | 16,249 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 23,831 | 15,222 | 23,831 | 15,222 | 16,249 |
Residential real estate [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 647 | 584 | 586 | 616 | 616 |
Charge-offs | 0 | 0 | (40) | 0 | 0 |
Recoveries | 4 | 5 | 23 | 16 | 20 |
(Credit) provision | (76) | 67 | 6 | 24 | (50) |
Ending balance | 575 | 656 | 575 | 656 | 586 |
Ending balance: related to loans individually evaluated for impairment | 18 | 28 | 18 | 28 | 27 |
Ending balance: related to loans collectively evaluated for impairment | 557 | 628 | 557 | 628 | 559 |
LHFI [Abstract] | |||||
Ending balance | 49,061 | 54,025 | 49,061 | 54,025 | 51,588 |
Ending balance: individually evaluated for impairment | 668 | 918 | 668 | 918 | 889 |
Ending balance: collectively evaluated for impairment | 48,393 | 53,107 | 48,393 | 53,107 | 50,699 |
Leases [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 2,052 | 1,405 | 1,749 | 1,429 | 1,429 |
Charge-offs | (310) | (138) | (757) | (315) | (612) |
Recoveries | 18 | 4 | 35 | 20 | 26 |
(Credit) provision | 426 | 316 | 1,159 | 453 | 906 |
Ending balance | 2,186 | 1,587 | 2,186 | 1,587 | 1,749 |
Ending balance: related to loans individually evaluated for impairment | 168 | 131 | 168 | 131 | 194 |
Ending balance: related to loans collectively evaluated for impairment | 2,018 | 1,456 | 2,018 | 1,456 | 1,555 |
LHFI [Abstract] | |||||
Ending balance | 62,671 | 61,954 | 62,671 | 61,954 | 64,341 |
Ending balance: individually evaluated for impairment | 806 | 640 | 806 | 640 | 876 |
Ending balance: collectively evaluated for impairment | 61,865 | 61,314 | 61,865 | 61,314 | 63,465 |
Tax certificates [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 358 | 317 | 347 | 667 | 667 |
Charge-offs | (108) | 0 | (139) | (433) | (471) |
Recoveries | 6 | 0 | 14 | 52 | 53 |
(Credit) provision | 29 | 38 | 63 | 69 | 98 |
Ending balance | 285 | 355 | 285 | 355 | 347 |
Ending balance: related to loans individually evaluated for impairment | 0 | 18 | 0 | 18 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 285 | 337 | 285 | 337 | 347 |
LHFI [Abstract] | |||||
Ending balance | 3,803 | 5,294 | 3,803 | 5,294 | 4,755 |
Ending balance: individually evaluated for impairment | 745 | 1,206 | 745 | 1,206 | 1,125 |
Ending balance: collectively evaluated for impairment | 3,058 | 4,088 | 3,058 | 4,088 | 3,630 |
Consumer [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 22 | 35 | 27 | 38 | 38 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 1 | 0 | 1 | 0 | 0 |
(Credit) provision | (2) | (6) | (7) | (9) | (11) |
Ending balance | 21 | 29 | 21 | 29 | 27 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 21 | 29 | 21 | 29 | 27 |
LHFI [Abstract] | |||||
Ending balance | 2,239 | 2,560 | 2,239 | 2,560 | 2,527 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 2,239 | 2,560 | 2,239 | 2,560 | 2,527 |
Unallocated [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 0 | 124 | 0 | 149 | 149 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
(Credit) provision | 0 | (6) | 0 | (31) | (149) |
Ending balance | 0 | 118 | 0 | 118 | 0 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 0 | 118 | 0 | 118 | 0 |
LHFI [Abstract] | |||||
Ending balance | 0 | 0 | 0 | 0 | 0 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan and Lease 52
Allowance for Loan and Lease Losses - Loans that were Evaluated for Impairment by Loan Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | |
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | $ 10,197 | $ 11,688 |
With an allowance recorded | 5,335 | 1,480 |
Recorded investment [Abstract] | ||
With no related allowance recorded | 4,777 | 3,945 |
With an allowance recorded | 2,414 | 1,390 |
Related allowance [Abstract] | ||
Related allowance | 398 | 186 |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 9,738 | |
With an allowance recorded | 1,965 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 568 | |
With an allowance recorded | 0 | |
Commercial real estate [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 1,323 | 1,273 |
With an allowance recorded | 926 | |
Recorded investment [Abstract] | ||
With no related allowance recorded | 931 | 852 |
With an allowance recorded | 538 | |
Related allowance [Abstract] | ||
Related allowance | 77 | |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 4,144 | |
With an allowance recorded | 334 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 335 | |
With an allowance recorded | 0 | |
Construction and land development [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 546 | 546 |
With an allowance recorded | 0 | |
Recorded investment [Abstract] | ||
With no related allowance recorded | 145 | 144 |
With an allowance recorded | 0 | |
Related allowance [Abstract] | ||
Related allowance | 0 | |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 376 | |
With an allowance recorded | 90 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 0 | |
Commercial and industrial [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 2,662 | 4,564 |
With an allowance recorded | 2,500 | |
Recorded investment [Abstract] | ||
With no related allowance recorded | 2,576 | 2,120 |
With an allowance recorded | 111 | |
Related allowance [Abstract] | ||
Related allowance | 100 | |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 4,314 | |
With an allowance recorded | 172 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 233 | |
With an allowance recorded | 0 | |
Residential real estate [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 135 | |
With an allowance recorded | 1,033 | 674 |
Recorded investment [Abstract] | ||
With no related allowance recorded | 84 | |
With an allowance recorded | 889 | 584 |
Related allowance [Abstract] | ||
Related allowance | 27 | 18 |
Average recorded investment [Abstract] | ||
With an allowance recorded | 938 | |
Interest income recognized [Abstract] | ||
With an allowance recorded | 0 | |
Leases [Member] | ||
Unpaid principal balance [Abstract] | ||
With an allowance recorded | 876 | 806 |
Recorded investment [Abstract] | ||
With an allowance recorded | 876 | 806 |
Related allowance [Abstract] | ||
Related allowance | 194 | 168 |
Average recorded investment [Abstract] | ||
With an allowance recorded | 243 | |
Interest income recognized [Abstract] | ||
With an allowance recorded | 0 | |
Tax certificates [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 5,666 | 5,170 |
With an allowance recorded | 0 | |
Recorded investment [Abstract] | ||
With no related allowance recorded | 1,125 | $ 745 |
With an allowance recorded | 0 | |
Related allowance [Abstract] | ||
Related allowance | 0 | |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 904 | |
With an allowance recorded | 188 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 0 | |
With an allowance recorded | $ 0 |
Allowance for Loan and Lease 53
Allowance for Loan and Lease Losses - Impaired LHFI - Average Recorded Investment and Interest Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Average recorded investment [Abstract] | ||||
Average recorded investment | $ 5,835,000 | $ 10,622,000 | $ 6,332,000 | $ 13,077,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 28,000 | 77,000 | 85,000 | 239,000 |
Interest income recognized [Abstract] | ||||
Interest income recognized | 0 | 97,000 | 0 | 232,000 |
Commercial real estate [Member] | ||||
Average recorded investment [Abstract] | ||||
Average recorded investment | 867,000 | 4,256,000 | 1,185,000 | 5,599,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 33,000 | 0 | 97,000 |
Interest income recognized [Abstract] | ||||
Interest income recognized | 0 | 97,000 | 0 | 232,000 |
Construction and land development [Member] | ||||
Average recorded investment [Abstract] | ||||
Average recorded investment | 144,000 | 471,000 | 145,000 | 562,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 |
Interest income recognized [Abstract] | ||||
Interest income recognized | 0 | 0 | 0 | 0 |
Commercial and industrial [Member] | ||||
Average recorded investment [Abstract] | ||||
Average recorded investment | 2,258,000 | 3,570,000 | 2,373,000 | 4,740,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 28,000 | 44,000 | 85,000 | 142,000 |
Interest income recognized [Abstract] | ||||
Interest income recognized | 0 | 0 | 0 | 0 |
Residential real estate [Member] | ||||
Average recorded investment [Abstract] | ||||
Average recorded investment | 670,000 | 927,000 | 765,000 | 952,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 |
Interest income recognized [Abstract] | ||||
Interest income recognized | 0 | 0 | 0 | 0 |
Leases [Member] | ||||
Average recorded investment [Abstract] | ||||
Average recorded investment | 993,000 | 289,000 | 873,000 | 146,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 |
Interest income recognized [Abstract] | ||||
Interest income recognized | 0 | 0 | 0 | 0 |
Tax certificates [Member] | ||||
Average recorded investment [Abstract] | ||||
Average recorded investment | 903,000 | 1,109,000 | 991,000 | 1,078,000 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 |
Interest income recognized [Abstract] | ||||
Interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Other Real Estate Owned - Chang
Other Real Estate Owned - Changes in OREO (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)property | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Foreclosed Property [Roll Forward] | |||
Beginning balance | $ 7,435 | $ 9,779 | $ 9,779 |
Net proceeds from sales | (1,127) | (4,436) | (6,465) |
Net gains (losses) on sales | 7 | 769 | 919 |
Transfers in | 821 | 3,968 | 4,342 |
Cash additions | 243 | 558 | |
OREO Transfers to Loans | (995) | ||
Impairment charge | (143) | (659) | (703) |
Ending balance | $ 7,236 | 7,435 | |
Loans [Member] | |||
Real Estate Owned Disclosure [Line Items] | |||
Number of Real Estate Properties | property | 2 | ||
Foreclosed Property [Roll Forward] | |||
Beginning balance | $ 220 | 349 | 349 |
Net proceeds from sales | (6) | (1,735) | |
Net gains (losses) on sales | 1 | 60 | |
Transfers in | 28 | 1,671 | |
Cash additions | 0 | 0 | |
OREO Transfers to Loans | 0 | ||
Impairment charge | 0 | (125) | |
Ending balance | $ 243 | 220 | |
Tax Lien [Member] | |||
Real Estate Owned Disclosure [Line Items] | |||
Number of Real Estate Properties | property | 47 | ||
Foreclosed Property [Roll Forward] | |||
Beginning balance | $ 7,215 | $ 9,430 | 9,430 |
Net proceeds from sales | (1,121) | (4,730) | |
Net gains (losses) on sales | 6 | 859 | |
Transfers in | 793 | 2,671 | |
Cash additions | 243 | 558 | |
OREO Transfers to Loans | (995) | ||
Impairment charge | (143) | (578) | |
Ending balance | $ 6,993 | $ 7,215 |
Other Real Estate Owned - Compo
Other Real Estate Owned - Composition and Other Information (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Composition of OREO | |||
Other real estate owned ("OREO"), net | $ 7,236,000 | $ 7,435,000 | $ 9,779,000 |
Loans [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | 243,000 | 220,000 | 349,000 |
Loans, Land [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | 215,000 | ||
Loans, Residential Real Estate [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | 28,000 | ||
Tax Lien [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | $ 6,993,000 | $ 7,215,000 | $ 9,430,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Deposits [Abstract] | |||
Non-interest bearing checking | $ 90,709 | $ 83,529 | |
NOW | 42,295 | 42,558 | |
Interest-bearing brokered deposits | 0 | 25,000 | |
Money Market | 159,532 | 165,251 | |
Savings | 81,331 | 53,833 | |
Time deposits ($250 and over) | 14,211 | 18,066 | |
Time deposits (less than $250) | 204,161 | 189,655 | |
Total deposits | $ 592,239 | $ 577,892 | $ 553,764 |
Borrowings and Subordinated D57
Borrowings and Subordinated Debentures (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Advances from the Federal Home Loan Bank [Abstract] | |||
Line of credit with federal home loan bank, amount | $ 283,300 | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | 13,200 | ||
Amount [Abstract] | |||
2,016 | 15,000 | $ 19,000 | |
2,017 | 25,000 | 25,000 | |
2,018 | 10,000 | 10,000 | |
2,021 | 15,000 | 0 | |
Total FHLB borrowings | $ 65,000 | $ 54,000 | |
Rate [Abstract] | |||
2,016 | 0.57% | 0.85% | |
2,017 | 1.46% | 1.46% | |
2,018 | 2.01% | 2.01% | |
2,021 | 1.40% | 0.00% | |
Repayments of Long-term Debt | $ 11,970 | $ 10,342 | |
Line of credit maximum borrowing capacity | 20,000 | ||
Outstanding line of credit | $ 0 | $ 0 | |
Notes payable [Member] | Notes Payable To PNCBank Due August2016 Member | |||
Rate [Abstract] | |||
Notes payable with PNC Bank | 2,000 | ||
Description of variable rate basis on notes payable | one month LIBOR | ||
Notes payable [Member] | Notes PayableTo PNCBank Due January2018 Member | |||
Rate [Abstract] | |||
Notes payable with PNC Bank | $ 35,000 | $ 35,000 | |
Weighted average interest rate on other borrowings from PNC Bank (as a percent) | 3.65% | ||
Notes payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | Notes Payable To PNCBank Due August2016 Member | |||
Rate [Abstract] | |||
Trust preferred securities basis spread on variable rate (as a percent) | 0.15% |
Borrowings and Subordinated D58
Borrowings and Subordinated Debentures - Subordinated Debentures (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($)trust | Dec. 31, 2015USD ($) | |
Borrowings and Subordinated Debentures | ||
Junior subordinated debenture owed to unconsolidated subsidiary trust | $ 25,774,000 | $ 25,774,000 |
Number of Delaware trust affiliates | trust | 2 | |
Royal Bancshares Capital Trust I [Member] | Common Stock [Member] | ||
Borrowings and Subordinated Debentures | ||
Aggregate principal amount, common securities | $ 387,000 | |
Royal Bancshares Capital Trust I [Member] | Trust Preferred Securities [Member] | ||
Borrowings and Subordinated Debentures | ||
Aggregate principal amount, capital securities | 12,500,000 | |
Trust I [Member] | ||
Borrowings and Subordinated Debentures | ||
Junior subordinated debenture owed to unconsolidated subsidiary trust | $ 12,900,000 | |
Interest rate on notes payable (as a percent) | 3.00% | |
Trust I [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Borrowings and Subordinated Debentures | ||
Description of variable rate basis on notes payable | 3-month LIBOR | |
Trust preferred securities basis spread on variable rate (as a percent) | 2.15% | |
Trust II [Member] | ||
Borrowings and Subordinated Debentures | ||
Junior subordinated debenture owed to unconsolidated subsidiary trust | $ 12,900,000 | |
Interest rate on notes payable (as a percent) | 3.00% | |
Trust II [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Borrowings and Subordinated Debentures | ||
Description of variable rate basis on notes payable | 3-month LIBOR |
Derivative Instruments and He59
Derivative Instruments and Hedging Activity (Details) - Designated as Hedging Instrument - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Notional contract amount | $ 15,000,000 | $ 15,000,000 |
Derivative liabilities | (1,030,000) | (555,000) |
Interest Rate Swap | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional contract amount | 15,000,000 | |
Derivative liabilities | $ (1,030,000) | |
Interest Rate Swap | Royal Bancshares [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional contract amount | 15,000,000 | |
Derivative liabilities | $ (555,000) |
Derivative Instruments and He60
Derivative Instruments and Hedging Activity - Amount of Loss Recognized in OCI - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Loss Recognized in OCI | $ 131 | $ (282) | $ (314) | $ (467) | |
Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Loss Recognized in OCI | $ (366) | ||||
Interest Rate Swap | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Loss Recognized in OCI | $ 131 | $ (282) | $ (314) | $ (467) | $ (366) |
Commitments, Contingencies, a61
Commitments, Contingencies, and Concentrations (Details) $ in Thousands | 1 Months Ended | |||
Mar. 31, 2016item | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Number of stories in company owned building | item | 3 | |||
Scenario, Forecast [Member] | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Approximate cost of building renovation | $ 1,400 | |||
Unused lines of Credit [Member] | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Financial instruments whose contract amounts represent credit risk | $ 75,620 | $ 72,988 | ||
Commitments to Extend Credit [Member] | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Financial instruments whose contract amounts represent credit risk | 31,745 | 8,497 | ||
Standby letters of credit and financial guarantees written [Member] | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Financial instruments whose contract amounts represent credit risk | $ 257 | $ 515 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) | Feb. 20, 2014 | Jun. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2016USD ($)Vote$ / sharesshares | Dec. 31, 2015$ / sharesshares | Feb. 28, 2014 | Feb. 20, 2009USD ($)$ / sharesshares |
Preferred Stock [Abstract] | ||||||
Preferred stock, liquidation value (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | ||||
Share price (in dollars per share) | $ / shares | $ 1,207.11 | $ 1,502.39 | ||||
Preferred stock, shares outstanding (in shares) | shares | 12,205 | 18,856 | ||||
Shares allocated for repurchase (in shares) | shares | 11,551 | 6,651 | ||||
Stock Redeemed or Called During Period, Value | $ 9,992,000 | |||||
Dividends in arrears eliminated | $ 260,000 | |||||
Preferred stock cumulative dividend rate percentage for first five years (as a percent) | 5.00% | |||||
Warrant To Purchase Class A Common Stock [Member] | ||||||
Preferred Stock [Abstract] | ||||||
Number of shares to be purchased by warrant (in shares) | shares | 1,104,370 | |||||
Number of years for warrant issued to treasury | 10 years | |||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 4.13 | |||||
Series A Preferred Stock [Member] | ||||||
Preferred Stock [Abstract] | ||||||
Preferred stock, shares issued (in shares) | shares | 30,407 | |||||
Preferred stock, liquidation value (in dollars per share) | $ / shares | $ 1,000 | |||||
Preferred stock cumulative dividend rate percentage beginning February 2014 (as a percent) | 9.00% | |||||
Amount of approved purchase of preferred shares | $ 14,000,000 | |||||
Preferred stock dividend in arrears | $ 7,100,000 | |||||
Class A - Common stock | ||||||
Preferred Stock [Abstract] | ||||||
Stock Redeemed or Called During Period, Value | $ 0 | |||||
Common Stock [Abstract] | ||||||
Number of vote for class of shares held | Vote | 1 | |||||
Class B - Common stock | ||||||
Preferred Stock [Abstract] | ||||||
Stock Redeemed or Called During Period, Value | $ 0 | |||||
Common Stock [Abstract] | ||||||
Number of shares received after conversion, per share | 1.15 | |||||
Number of vote for class of shares held | Vote | 10 | |||||
Scenario, Adjustment [Member] | Warrant To Purchase Class A Common Stock [Member] | ||||||
Preferred Stock [Abstract] | ||||||
Number of shares to be purchased by warrant (in shares) | shares | 1,368,040 | |||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 3.33 | |||||
Capital Unit Preferred Stock And Warrant Member | ||||||
Preferred Stock [Abstract] | ||||||
Aggregate purchase price | $ 30,400,000 |
Regulatory Capital Requiremen63
Regulatory Capital Requirements (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Number of previous quarters for which the call report is filed in accordance with U.S.GAAP | item | 24 | 24 | ||
Capital actual amount under regulations [Abstract] | ||||
Total capital (to risk-weighted assets) | $ 100,544 | $ 100,544 | ||
Tier I capital (to risk-weighted assets) | 90,606 | 90,606 | ||
Tier I capital (to average assets, leverage) | 90,606 | 90,606 | ||
Common equity Tier 1 (to risk-weighted assets) | $ 55,124 | $ 55,124 | ||
Actual Ratio Under RAP [Abstract] | ||||
Total capital (to risk-weighted assets) (as a percent) | 16.361% | 16.361% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 14.744% | 14.744% | ||
Tier I capital (to average assets, leverage) (as a percent) | 11.22% | 11.22% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 8.97% | 8.97% | ||
For capital adequacy purposes, amount [Abstract] | ||||
Total capital (to risk-weighted assets) | $ 53,003 | $ 53,003 | ||
Tier I capital (to risk-weighted assets) | 40,713 | 40,713 | ||
Tier I capital (to average assets, leverage) | 32,303 | 32,303 | ||
Common equity Tier 1 (to risk-weighted assets) | $ 31,495 | $ 31,495 | ||
For capital adequacy purposes, ratio [Abstract] | ||||
Total capital (to risk-weighted assets) (in hundredths) | 8.625% | 8.625% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 6.625% | 6.625% | ||
Tier I capital (to average assets, leverage) (in hundredths) | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 5.125% | 5.125% | ||
To be well capitalized under prompt corrective action provision, amount [Abstract] | ||||
Total capital (to risk-weighted assets) | $ 61,453 | $ 61,453 | ||
Tier I capital (to risk-weighted assets) | $ 36,872 | $ 36,872 | ||
To be well capitalized under prompt corrective action provision, ratio [Abstract] | ||||
Total capital (to risk-weighted assets) (in hundredths) | 10.00% | 10.00% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 6.00% | 6.00% | ||
To be well capitalized under the Federal Reserve's regulations, amount | ||||
Total capital (to risk-weighted assets) | $ 61,453 | $ 61,453 | ||
Tier I capital (to risk-weighted assets) | $ 36,872 | $ 36,872 | ||
To be well capitalized under the Federal Reserve's regulations, ratio | ||||
Total capital (to risk-weighted assets) (in hundredths) | 10.00% | 10.00% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 6.00% | 6.00% | ||
Adjustments to net loss as well as the capital ratios [Abstract] | ||||
RAP net income | $ 4,693 | |||
Tax lien adjustment, net of noncontrolling interest | 1,560 | |||
Net income | $ 2,030 | $ 1,534 | $ 6,253 | $ 4,586 |
Actual Ratio Under US GAAP [Abstract] | ||||
Total capital (to risk-weighted assets) (in hundredths) | 16.361% | 16.361% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 14.744% | 14.744% | ||
Tier I capital (to average assets, leverage) (in hundredths) | 11.22% | 11.22% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 8.97% | 8.97% | ||
Ratios As Adjusted Under RAP [Abstract] | ||||
Total capital (to risk-weighted assets) (in hundredths) | 16.143% | 16.143% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 14.439% | 14.439% | ||
Tier I capital (to average assets, leverage) (in hundredths) | 10.981% | 10.981% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 8.736% | 8.736% | ||
Royal Bank [Member] | ||||
Capital actual amount under regulations [Abstract] | ||||
Total capital (to risk-weighted assets) | $ 90,551 | $ 90,551 | ||
Tier I capital (to risk-weighted assets) | 82,868 | 82,868 | ||
Tier I capital (to average assets, leverage) | 82,868 | 82,868 | ||
Common equity Tier 1 (to risk-weighted assets) | $ 65,242 | $ 65,242 | ||
Actual Ratio Under RAP [Abstract] | ||||
Total capital (to risk-weighted assets) (as a percent) | 14.794% | 14.794% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 13.539% | 13.539% | ||
Tier I capital (to average assets, leverage) (as a percent) | 10.354% | 10.354% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 10.659% | 10.659% | ||
For capital adequacy purposes, amount [Abstract] | ||||
Total capital (to risk-weighted assets) | $ 52,792 | $ 52,792 | ||
Tier I capital (to risk-weighted assets) | 40,550 | 40,550 | ||
Tier I capital (to average assets, leverage) | 32,015 | 32,015 | ||
Common equity Tier 1 (to risk-weighted assets) | $ 31,369 | $ 31,369 | ||
For capital adequacy purposes, ratio [Abstract] | ||||
Total capital (to risk-weighted assets) (in hundredths) | 8.625% | 8.625% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 6.625% | 6.625% | ||
Tier I capital (to average assets, leverage) (in hundredths) | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 5.125% | 5.125% | ||
To be well capitalized under prompt corrective action provision, amount [Abstract] | ||||
Total capital (to risk-weighted assets) | $ 61,208 | $ 61,208 | ||
Tier I capital (to risk-weighted assets) | 48,966 | 48,966 | ||
Tier I capital (to average assets, leverage) | 40,019 | 40,019 | ||
Common equity Tier 1 (to risk-weighted assets) | $ 39,785 | $ 39,785 | ||
To be well capitalized under prompt corrective action provision, ratio [Abstract] | ||||
Total capital (to risk-weighted assets) (in hundredths) | 10.00% | 10.00% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 8.00% | 8.00% | ||
Tier I capital (to average assets, leverage) (in hundredths) | 5.00% | 5.00% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 6.50% | 6.50% | ||
To be well capitalized under the Federal Reserve's regulations, amount | ||||
Total capital (to risk-weighted assets) | $ 61,208 | $ 61,208 | ||
Tier I capital (to risk-weighted assets) | $ 48,966 | $ 48,966 | ||
To be well capitalized under the Federal Reserve's regulations, ratio | ||||
Total capital (to risk-weighted assets) (in hundredths) | 10.00% | 10.00% | ||
Tier I capital (to risk-weighted assets) (in hundredths) | 8.00% | 8.00% | ||
Adjustments to net loss as well as the capital ratios [Abstract] | ||||
RAP net income | $ 4,410 | |||
Tax lien adjustment, net of noncontrolling interest | 1,560 | |||
Net income | $ 5,970 | |||
As adjusted for RAP | ||||
Total capital (to risk-weighted assets) (in hundredths) | 15.016% | 15.016% | ||
Tier 1 capital (to risk-weighted assets) (in hundredths) | 13.761% | 13.761% | ||
Tier 1 capital (to average assets, leverage) (in hundredths) | 10.53% | 10.53% | ||
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 10.889% | 10.889% |
Pension Plan (Details)
Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Pension Plan [Abstract] | |||||
Highest consecutive years of employee compensation used to compute benefit | 3 years | ||||
Years of employment used in benefit computation | 10 years | ||||
Net Pension Cost [Abstract] | |||||
Service cost | $ 11 | $ 17 | $ 35 | $ 49 | |
Interest cost | 143 | 135 | 428 | 403 | |
Amortization of prior service cost | 0 | 22 | 0 | 68 | |
Amortization of actuarial loss | 43 | 46 | 129 | 140 | |
Net periodic benefit cost | 197 | $ 220 | 592 | $ 660 | |
Unfunded pension plan obligations | 15,100 | 15,100 | $ 14,900 | ||
Cash surrender value of life insurance policies | $ 4,400 | $ 4,400 | $ 3,800 |
Earnings (Loss) Per Common Sh65
Earnings (Loss) Per Common Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2016shares | Sep. 30, 2016USD ($)item$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Number of classes of common stock outstanding | item | 2 | ||||
Earnings Per Share, Basic [Abstract] | |||||
Income (loss) available to common shareholders (numerator) | $ | $ 1,688 | $ 1,100 | $ 5,239 | $ 3,299 | |
Average shares (denominator) (in shares) | 30,086,000 | 30,077,000 | 30,038,000 | ||
Per share Amount (in dollars per share) | $ / shares | $ 0.06 | $ 0.17 | $ 0.11 | ||
Earnings Per Share, Diluted [Abstract] | |||||
Income (loss) available to common shareholders (numerator) | $ | $ 1,688 | $ 1,100 | $ 5,239 | $ 3,299 | |
Average shares (denominator) (in shares) | 30,158,000 | 30,074,000 | 30,157,000 | 30,045,000 | |
Per share Amount (in dollars per share) | $ / shares | $ 0.06 | $ 0.04 | $ 0.17 | $ 0.11 | |
Basic and Diluted EPS [Abstract] | |||||
Income (loss) available to common shareholders (numerator) | $ | $ 1,688 | $ 1,100 | $ 5,239 | $ 3,299 | |
Average shares (denominator) (in shares) | 30,043,000 | ||||
Net Income - Basic and Diluted | $ / shares | $ 0.06 | $ 0.04 | $ 0.17 | $ 0.11 | |
Employee Stock Option [Member] | |||||
Basic and Diluted EPS [Abstract] | |||||
Number of antidilutive common share (in shares) | 68,139 | 101,655 | |||
Warrant To Purchase Class A Common Stock [Member] | |||||
Basic and Diluted EPS [Abstract] | |||||
Number of antidilutive common share (in shares) | 1,368,040 | ||||
Class B - Common stock | |||||
Basic and Diluted EPS [Abstract] | |||||
Number of shares received after conversion, per share | 1.15 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Unrealized gains on investment securities, before tax [Abstract] | ||||||
Unrealized holding gains arising during period, before tax | $ 3,776 | $ 2,011 | ||||
Less adjustment for impaired investments, before tax | (181) | |||||
Less adjustment for impaired investments, tax | $ (12) | (62) | ||||
Less adjustment for impaired investments, net of tax (1) | [1] | (23) | $ 0 | (119) | 0 | |
Less reclassification adjustment for gains realized in net income, before tax | 1,382 | 652 | ||||
Unrealized gains on investment securities, before tax | 2,575 | 1,359 | ||||
Unrecognized benefit obligation expense, before tax [Abstract] | ||||||
Less reclassification adjustment for amortization, before tax | 232 | (51) | ||||
Unrecognized benefit obligation | (232) | (51) | ||||
Unrealized loss on derivative instrument, before tax | (475) | (708) | ||||
Other comprehensive income net, before tax | 1,868 | 600 | ||||
Unrealized gains on investment securities, tax [Abstract] | ||||||
Unrealized holding gains arising during period, tax | 1,434 | 691 | ||||
Less reclassification adjustment for gains realized in net income, tax | 95 | 28 | 470 | 222 | ||
Unrealized gains on investment securities, tax | 1,026 | 469 | ||||
Unrecognized benefit obligation expense, tax [Abstract] | ||||||
Less reclassification adjustment for amortization, tax | 0 | 0 | ||||
Unrecognized benefit obligation, tax | 0 | 0 | ||||
Unrealized loss on derivative instrument, tax | (161) | (241) | ||||
Other comprehensive income net, tax | 865 | 228 | ||||
Unrealized gains on investment securities [Abstract] | ||||||
Unrealized holding gains arising during period, net of tax | (877) | 1,190 | 2,342 | 1,320 | ||
Less reclassification adjustment for gains realized in net income, net of tax | [2] | 185 | 52 | 912 | 430 | |
Unrealized gains (losses) on investment securities, net of tax | (1,039) | 1,138 | 1,549 | 890 | ||
Unrecognized benefit obligation expense [Abstract] | ||||||
Less reclassification adjustment for amortization, net of tax | [3] | (78) | (17) | (232) | (51) | |
Unrecognized benefit obligation expense | (78) | (17) | (232) | (51) | ||
Unrealized loss on derivative instrument, net of tax | 131 | (282) | (314) | (467) | ||
Other comprehensive income (loss) | (986) | $ 839 | 1,003 | $ 372 | ||
Unrecognized benefit obligation | (3,909) | (3,909) | $ (3,677) | |||
Unrealized gains (losses) on AFS investments | 1,673 | 1,673 | 124 | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (680) | (680) | (366) | |||
Accumulated other comprehensive loss | $ (2,916) | $ (2,916) | $ (3,919) | |||
[1] | Gross amounts are included in total other-than-temporary impairment on AFS investment securities on the Consolidated Statements of Income in total non-interest income; amounts in the above table are net of $12 thousand and $62 thousand in taxes for the three and nine months ended September 30, 2016. See Note 15. Comprehensive Income. | |||||
[2] | Gross amounts are included in net gains on the sale of AFS investment securities on the Consolidated Statements of Income in total non-interest income; amounts in the above table are net of $95 thousand and $470 thousand in taxes for the three and nine months ended September 30, 2016 and $28 thousand and $222 thousand for the three and nine months ended September 30, 2015. See Note 15. Comprehensive Income. | |||||
[3] | Gross amounts are included in salaries and benefits on the Consolidated Statements of Income in non-interest expense. |
Fair Value of Financial Instr67
Fair Value of Financial Instruments (Details) $ in Thousands | Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | $ 168,321 | $ 224,067 |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 168,321 | 224,067 |
Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 168,321 | 224,067 |
Interest Rate Swap | Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,030 | 555 |
Interest Rate Swap | Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,030 | 555 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 3,500 | 25,563 |
Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 7,715 | 11,058 |
Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 140,040 | 170,734 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 4,566 | 2,704 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,774 | 1,556 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 8,867 | 9,931 |
Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,833 | 2,495 |
Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 26 | 26 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 168,321 | 224,067 |
Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,030 | 555 |
Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 3,500 | 25,563 |
Recurring [Member] | Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 7,715 | 11,058 |
Recurring [Member] | Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 140,040 | 170,734 |
Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 4,566 | 2,704 |
Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,774 | 1,556 |
Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 8,867 | 9,931 |
Recurring [Member] | Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,833 | 2,495 |
Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 26 | 26 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 26 | 26 |
Level 1 [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 26 | 26 |
Level 1 [Member] | Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 26 | 26 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 166,462 | 221,546 |
Level 2 [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,030 | 555 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 166,462 | 221,546 |
Level 2 [Member] | Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,030 | 555 |
Level 2 [Member] | Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 3,500 | 25,563 |
Level 2 [Member] | Recurring [Member] | Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 7,715 | 11,058 |
Level 2 [Member] | Recurring [Member] | Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 140,040 | 170,734 |
Level 2 [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 4,566 | 2,704 |
Level 2 [Member] | Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,774 | 1,556 |
Level 2 [Member] | Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 8,867 | 9,931 |
Level 2 [Member] | Recurring [Member] | Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 2 [Member] | Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | $ 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of investments in private equity funds | item | 5 | |
Investment securities available for sale (“AFS”), at fair value | $ 1,833 | 2,495 |
Level 3 [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,833 | 2,495 |
Level 3 [Member] | Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | 1,833 | 2,495 |
Level 3 [Member] | Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale (“AFS”), at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Assets measured at fair value on recurring basis Level 3 inputs [Roll Forward] | ||||
Beginning balance | $ 1,877 | $ 3,006 | $ 2,495 | $ 4,034 |
Fair Value Assets and Liabilities Measured on Recurring Basis Gain Loss Included in Earnings [Abstract] | ||||
Included in earnings | 10 | 4 | 945 | 319 |
Included in other comprehensive income | 0 | (9) | (445) | (551) |
Purchases | 0 | 0 | 104 | 4 |
Sales and calls | (54) | (4) | (1,266) | (809) |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | $ 1,833 | $ 2,997 | $ 1,833 | $ 2,997 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Measurement (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | $ 1,950 | $ 5,946 |
Other real estate owned | 1,308 | 2,384 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | 1,950 | 5,946 |
Other real estate owned | $ 1,308 | $ 2,384 |
Fair Value of Financial Instr70
Fair Value of Financial Instruments - Quantitative Information (Details) - Appraisal of collateral valuation technique [Member] - Level 3 [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired loans and leases [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Impaired Loans And Leases Fair Value | $ 1,950 | $ 5,946 |
Other real estate owned [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Foreclosed Properties Valued On Nonrecurring Basis | $ 1,308 | $ 2,384 |
Minimum [Member] | Impaired loans and leases [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Range (Weighted Average) of Appraisal adjustments (in hundredths) | 0.00% | 0.00% |
Range (Weighted Average) of Liquidation expenses (in hundredths | 0.00% | 0.00% |
Minimum [Member] | Other real estate owned [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Range (Weighted Average) of Appraisal adjustments (in hundredths) | 0.00% | 0.00% |
Range (Weighted Average) of Liquidation expenses (in hundredths | 0.00% | 0.00% |
Maximum [Member] | Impaired loans and leases [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Range (Weighted Average) of Appraisal adjustments (in hundredths) | (20.80%) | (62.30%) |
Range (Weighted Average) of Liquidation expenses (in hundredths | (12.80%) | (15.40%) |
Maximum [Member] | Other real estate owned [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Range (Weighted Average) of Appraisal adjustments (in hundredths) | (52.60%) | (54.10%) |
Range (Weighted Average) of Liquidation expenses (in hundredths | (5.60%) | (14.70%) |
Weighted Average [Member] | Impaired loans and leases [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Range (Weighted Average) of Appraisal adjustments (in hundredths) | (14.90%) | (13.70%) |
Range (Weighted Average) of Liquidation expenses (in hundredths | (4.20%) | (6.50%) |
Weighted Average [Member] | Other real estate owned [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Range (Weighted Average) of Appraisal adjustments (in hundredths) | (15.50%) | (17.10%) |
Range (Weighted Average) of Liquidation expenses (in hundredths | (5.60%) | (6.00%) |
Fair Value of Financial Instr71
Fair Value of Financial Instruments - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial Assets [Abstract] | ||
Available-for-sale Securities | $ 168,321 | $ 224,067 |
Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 28,391 | 25,420 |
Available-for-sale Securities | 26 | 26 |
Other investment | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities | ||
Demand deposits | 0 | 0 |
NOW and money markets | 0 | 0 |
Interest-bearing brokered deposits | 0 | |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 15,000 | 9,000 |
Long-term borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale Securities | 166,462 | 221,546 |
Other investment | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 3,770 | 4,149 |
Financial Liabilities | ||
Demand deposits | 90,709 | 83,529 |
NOW and money markets | 201,827 | 207,809 |
Interest-bearing brokered deposits | 25,000 | |
Savings | 81,331 | 53,833 |
Time deposits | 216,304 | 207,110 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 83,706 | 80,258 |
Subordinated debt | 26,864 | 26,789 |
Accrued interest payable | 2,240 | 709 |
Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale Securities | 1,833 | 2,495 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 3,018 | 2,545 |
Loans, net | 560,238 | 484,961 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities | ||
Demand deposits | 0 | 0 |
NOW and money markets | 0 | 0 |
Interest-bearing brokered deposits | 0 | |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 28,391 | 25,420 |
Available-for-sale Securities | 168,321 | 224,067 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 3,018 | 2,545 |
Loans, net | 565,564 | 489,414 |
Accrued interest receivable | 3,770 | 4,149 |
Financial Liabilities | ||
Demand deposits | 90,709 | 83,529 |
NOW and money markets | 201,827 | 207,809 |
Interest-bearing brokered deposits | 25,000 | |
Savings | 81,331 | 53,833 |
Time deposits | 218,372 | 207,721 |
Short-term borrowings | 15,000 | 9,000 |
Long-term borrowings | 85,000 | 81,970 |
Subordinated debt | 25,774 | 25,774 |
Accrued interest payable | 2,240 | 709 |
Estimated Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 28,391 | 25,420 |
Available-for-sale Securities | 168,321 | 224,067 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 3,018 | 2,545 |
Loans, net | 560,238 | 484,961 |
Accrued interest receivable | 3,770 | 4,149 |
Financial Liabilities | ||
Demand deposits | 90,709 | 83,529 |
NOW and money markets | 201,827 | 207,809 |
Interest-bearing brokered deposits | 25,000 | |
Savings | 81,331 | 53,833 |
Time deposits | 216,304 | 207,110 |
Short-term borrowings | 15,000 | 9,000 |
Long-term borrowings | 83,706 | 80,258 |
Subordinated debt | 26,864 | 26,789 |
Accrued interest payable | 2,240 | 709 |
Interest Rate Swap | Level 1 [Member] | ||
Financial Liabilities | ||
Derivative Liability | 0 | 0 |
Interest Rate Swap | Level 2 [Member] | ||
Financial Liabilities | ||
Derivative Liability | 1,030 | 555 |
Interest Rate Swap | Level 3 [Member] | ||
Financial Liabilities | ||
Derivative Liability | 0 | 0 |
Interest Rate Swap | Carrying Amount [Member] | ||
Financial Liabilities | ||
Derivative Liability | 1,030 | 555 |
Interest Rate Swap | Estimated Fair Value [Member] | ||
Financial Liabilities | ||
Derivative Liability | $ 1,030 | $ 555 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||||
Total assets | $ 811,368,000 | $ 761,911,000 | $ 811,368,000 | $ 761,911,000 | $ 788,283,000 |
Total deposits | 592,239,000 | 553,764,000 | 592,239,000 | 553,764,000 | $ 577,892,000 |
Interest income | 8,460,000 | 7,798,000 | 24,855,000 | 22,149,000 | |
Interest expense | 1,902,000 | 1,636,000 | 5,389,000 | 4,798,000 | |
Net Interest Income | 6,558,000 | 6,162,000 | 19,466,000 | 17,351,000 | |
(Credit) provision for loan and lease losses | 578,000 | (216,000) | 987,000 | (1,382,000) | |
Total non-interest Income | 1,189,000 | 577,000 | 3,469,000 | 2,061,000 | |
Noninterest Expense | 5,001,000 | 5,242,000 | 15,268,000 | 15,708,000 | |
Income tax (benefit) expense | 25,000 | 0 | 85,000 | 0 | |
Net Income | 2,143,000 | 1,713,000 | 6,595,000 | 5,086,000 | |
Noncontrolling interest | 113,000 | 179,000 | 342,000 | 500,000 | |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | $ 2,030,000 | 1,534,000 | 6,253,000 | 4,586,000 | |
Royal Bank [Member] | |||||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||||
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | $ 5,970,000 | ||||
Royal Bank [Member] | Crusader Servicing Corporation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Ownership interest (as a percent) | 80.00% | 80.00% | |||
Community Banking Segment [Member] | |||||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||||
Total assets | $ 798,996,000 | 745,853,000 | $ 798,996,000 | 745,853,000 | |
Total deposits | 592,239,000 | 553,764,000 | 592,239,000 | 553,764,000 | |
Interest income | 8,417,000 | 7,625,000 | 24,663,000 | 21,642,000 | |
Interest expense | 1,752,000 | 1,447,000 | 4,932,000 | 4,169,000 | |
Net Interest Income | 6,665,000 | 6,178,000 | 19,731,000 | 17,473,000 | |
(Credit) provision for loan and lease losses | 549,000 | (254,000) | 924,000 | (1,451,000) | |
Total non-interest Income | 1,177,000 | 503,000 | 3,422,000 | 1,863,000 | |
Noninterest Expense | 4,842,000 | 4,897,000 | 14,455,000 | 14,819,000 | |
Income tax (benefit) expense | 25,000 | 85,000 | 0 | ||
Net Income | 2,426,000 | 2,038,000 | 7,688,000 | 5,968,000 | |
Noncontrolling interest | 125,000 | 179,000 | 394,000 | 551,000 | |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | 2,301,000 | 1,859,000 | 7,294,000 | 5,417,000 | |
Tax Lien Segment [Member] | |||||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||||
Total assets | 12,372,000 | 16,058,000 | 12,372,000 | 16,058,000 | |
Total deposits | 0 | 0 | 0 | 0 | |
Interest income | 43,000 | 173,000 | 192,000 | 507,000 | |
Interest expense | 150,000 | 189,000 | 457,000 | 629,000 | |
Net Interest Income | (107,000) | (16,000) | (265,000) | (122,000) | |
(Credit) provision for loan and lease losses | 29,000 | 38,000 | 63,000 | 69,000 | |
Total non-interest Income | 12,000 | 74,000 | 47,000 | 198,000 | |
Noninterest Expense | 159,000 | 345,000 | 813,000 | 889,000 | |
Income tax (benefit) expense | 0 | 0 | |||
Net Income | (283,000) | (325,000) | (1,093,000) | (882,000) | |
Noncontrolling interest | (12,000) | 0 | (52,000) | (51,000) | |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | $ (271,000) | (325,000) | $ (1,041,000) | (831,000) | |
Tax Lien Segment [Member] | Royal Bank [Member] | Crusader Servicing Corporation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Ownership interest (as a percent) | 80.00% | 80.00% | |||
Tax Lien Segment [Member] | Royal Bank [Member] | Royal Tax Lien [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Ownership interest (as a percent) | 100.00% | 100.00% | |||
Intersegment Eliminations [Member] | |||||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||||
Interest income | $ 150,000 | $ 189,000 | $ 457,000 | $ 629,000 |
Federal Home Loan Bank Stock (D
Federal Home Loan Bank Stock (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Federal Home Loan Bank Stock [Abstract] | ||
Active market for Federal Home Loan Bank Stock | item | 0 | |
Total FHLB stock | $ 3,018 | $ 2,545 |
Other-than-temporary impairment related to the carrying amount of FHLB stock | $ 0 |