New Jersey | 22-3665653 | |
(State or Other Jurisdiction of Incorporation or Organization) | IRS Employer Identification Number) |
2650 Route 130, P.O. Box 634, Cranbury, NJ 08512 | ||
(Address of Principal Executive Offices, including Zip Code) |
(609) 655-4500 | ||
(Registrant’s telephone number, including area code) |
Title of each class Common stock, no par value | Name of each exchange on which registered NASDAQ |
None | ||
(Title of Class) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | ý |
(Do not check if a smaller reporting company) |
FORM 10-K | ||
TABLE OF CONTENTS | ||
PART I | ||
PART II | ||
PART III | ||
PART IV | ||
• | expansion of the Bank; |
• | personal service; and |
• | technological advances and e-commerce. |
• | allows bank holding companies meeting management, capital and Community Reinvestment Act standards to engage in a substantially broader range of non-banking activities than is permissible for a bank holding company, including insurance underwriting and making merchant banking investments in commercial and financial companies; if a bank holding company elects to become a financial holding company, it files a certification, effective in 30 days, and thereafter may engage in certain financial activities without further approvals; |
• | allows banks to establish subsidiaries to engage in certain activities which a financial holding company could engage in, if the bank meets certain management, capital and Community Reinvestment Act standards; |
• | allows insurers and other financial services companies to acquire banks and removes various restrictions that currently apply to bank holding company ownership of securities firms and mutual fund advisory companies; and establishes the overall regulatory structure applicable to financial holding companies that also engage in insurance and securities operations. |
• | a prohibition on personal loans made or arranged by the issuer to its directors and executive officers (except for loans made by a bank subject to Regulation O of the Federal Reserve Board); |
• | independence requirements for audit committee members; |
• | disclosure of whether at least one member of the audit committee is a “financial expert” (as such term is defined by the Securities and Exchange Commission (“SEC”) and if not, why not; |
• | independence requirements for outside auditors; |
• | a prohibition by a company’s registered public accounting firm from performing statutorily mandated audit services for the company if the company’s chief executive officer, chief financial officer, comptroller, chief accounting officer or any person serving in equivalent positions had been employed by such firm and participated in the audit of such company during the one-year period preceding the audit initiation date; |
• | certification of financial statements and annual and quarterly reports by the principal executive officer and the principal financial officer; |
• | the forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by directors and senior officers in the twelve month period following initial publication of any financial statements that later require restatement due to corporate misconduct; |
• | disclosure of off-balance sheet transactions; |
• | two-business day filing requirements for insiders filing Forms 4; |
• | disclosure of a code of ethics for financial officers and filing a Form 8-K for a change or waiver of such code; |
• | “real time” filing of periodic reports; |
• | posting of certain SEC filings and other information on the company’s website; |
• | the reporting of securities violations “up the ladder” by both in-house and outside attorneys; |
• | restrictions on the use of non-GAAP financial measures; |
• | the formation of a public accounting oversight board; and |
• | various increased criminal penalties for violations of securities laws. |
• | delaying, deferring, or preventing a change in control; |
• | entrenching our management and/or the board of directors; |
• | impeding a merger, consolidation, takeover, or other business combination involving us; or |
• | discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us. |
• | quarterly fluctuations in our operating and financial results; |
• | operating results that vary from the expectations of management, securities analysts and investors; |
• | changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors; |
• | events negatively impacting the financial services industry which result in a general decline in the market valuation of our common stock; |
• | announcements of material developments affecting our operations or our dividend policy; |
• | future sales of our equity securities; |
• | new laws or regulations or new interpretations of existing laws or regulations applicable to our business; |
• | changes in accounting standards, policies, guidance, interpretations or principles; and |
• | general domestic economic and market conditions. |
Location | Leased or Owned | Original Year Leased or Acquired | Year of Lease Expiration | |
Main Office | ||||
2650 Route 130 Cranbury, New Jersey | Leased | 1989 | 2017 | |
Village Office | ||||
74 North Main Street Cranbury, New Jersey | Owned | 2005 | — | |
Plainsboro Office | ||||
Plainsboro Village Center 11 Shalks Crossing Road Plainsboro, New Jersey | Leased | 1998 | 2021 | |
Hamilton Office | ||||
3659 Nottingham Way Hamilton, New Jersey | Leased | 1999 | 2024 | |
Princeton Office | ||||
The Windrows at Princeton Forrestal 2000 Windrow Drive Princeton, New Jersey | Leased | 2001 | 2016 | |
Perth Amboy Office | ||||
145 Fayette Street Perth Amboy, New Jersey | Leased | 2003 | 2019 | |
Jamesburg Office | ||||
1 Harrison Street Jamesburg, New Jersey | Owned | 2002 | — | |
West Windsor Office |
44 Washington Road Princeton Jct, New Jersey | Leased | 2004 | 2017 | |
Fort Lee Office | ||||
180 Main Street Fort Lee, New Jersey | Leased | 2006 | 2019 | |
Hightstown Office | ||||
140 Mercer Street Hightstown, New Jersey | Leased | 2007 | 2024 | |
Lawrenceville Property | ||||
150 Lawrenceville-Pennington Road Lawrenceville, New Jersey | Owned | 2009 | — | |
South River Operations Center | ||||
1246 South River Road, Bldg. 2 Cranbury, New Jersey | Leased | 2010 | 2020 | |
Rocky Hill Office | ||||
995 Route 518 Skillman, New Jersey | Owned | 2011 | — | |
Hopewell Office | ||||
86 East Broad Street Hopewell, New Jersey | Owned | 2011 | — | |
Hillsborough Office | ||||
32 New Amwell Road Hillsborough, New Jersey | Owned | 2011 | — | |
Rumson Office | ||||
20 Bingham Avenue Rumson, New Jersey | Leased | 2014 | 2016 | |
Fair Haven Office | ||||
636 River Road Fair Haven, New Jersey | Leased | 2014 | 2017 | |
Asbury Park Office | ||||
511 Cookman Avenue Asbury Park, New Jersey | Owned | 2014 | — | |
Shrewsbury Office | ||||
500 Broad Street Shrewsbury, New Jersey | Leased | 2014 | 2030 | |
Little Silver Office | ||||
517 Prospect Avenue Little Silver, New Jersey | Leased | 2015 | 2019 |
2015 | (1) | 2014 | (1) | ||||||||||
High | Low | High | Low | ||||||||||
First Quarter | $ | 10.98 | $ | 9.41 | $ | 10.25 | $ | 9.07 | |||||
Second Quarter | 11.86 | 10.07 | 9.77 | 9.09 | |||||||||
Third Quarter | 11.40 | 10.29 | 9.92 | 8.80 | |||||||||
Fourth Quarter | 12.37 | 10.81 | 10.43 | 9.61 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Program | Maximum Number of Shares That May Yet be Purchased Under the Program | ||||||||||
Beginning | Ending | |||||||||||||
October 1, 2015 | October 31, 2015 | 5,879 | $ | 11.69 | 5,879 | 100,357 | ||||||||
November 1, 2015 | November 30, 2015 | 1,380 | 12.56 | 1,380 | 98,977 | |||||||||
December 1, 2015 | December 31, 2015 | 17,914 | 11.56 | 17,914 | 81,063 | |||||||||
Total | 25,173 | $ | 11.94 | 25,173 | 81,063 |
1st Constitution Bancorp Reconciliation of Non-GAAP Measures (1) | ||||
Year ended December 31, | ||||
(Dollars in thousands, except per share data) | 2014 | |||
Adjusted Net Income | ||||
Net Income | $ | 4,356 | ||
Adjustments: | ||||
Provision for loan losses related to fraud (2) | 3,656 | |||
Merger-related expenses | 1,532 | |||
Income tax effect of adjustments (3) | (2,031 | ) | ||
Adjusted net income | $ | 7,513 | ||
Adjusted Net Income per Diluted Share | ||||
Adjusted net income | $ | 7,513 | ||
Diluted shares outstanding | 7,879,186 | |||
Adjusted net income per diluted share | $ | 0.95 | ||
Adjusted Return on Assets (4) | 0.79 | % | ||
Adjusted Return on Equity (4) | 9.22 | % |
(1) | Adjusted Net Income, Adjusted Net Income per Diluted Share, Adjusted Return on Assets and Adjusted Return on Equity are measures not in accordance with Generally Accepted Accounting Principles ("GAAP"). The Company used the non-GAAP financial measures because the Company believes that it is useful for the users of financial information to understand the effect on net income of the merger-related expenses incurred in the merger with Rumson and the large provision for loan losses recorded as the result of the fraudulent misrepresentations by a borrower and its principals. Management believes that these non-GAAP financial measures improve the comparability of the current period results with the results of the prior period. The Company cautions that the non-GAAP financial measures should be considered in addition to, but not a substitute for, the Company's GAAP results. |
(2) | The amount represents the full charge-off of a loan participation due to fraudulent misrepresentations by a borrower and its principals that was recorded in the second quarter of 2014. |
(3) | Tax effected at an income tax rate of 39.94%, less the impact of non-deductible merger expenses. |
(4) | Adjusted Return on Assets and Adjusted Return on Equity excludes the after-tax effect of the merger-related expenses and loan loss provision in 2014. |
(yields on a tax-equivalent basis) | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Yield | Average Balance | Interest | Average Yield | Average Balance | Interest | Average Yield | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Federal Funds Sold/Short-Term Investments | $ | 23,131 | $ | 50 | 0.22 | % | $ | 60,933 | $ | 150 | 0.25 | % | $ | 120,125 | $ | 300 | 0.25 | % | ||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||||||
Taxable | 127,859 | 3,167 | 2.48 | % | 168,992 | 4,022 | 2.38 | % | 162,246 | 3,915 | 2.41 | % | ||||||||||||||||||||
Tax-exempt (4) | 81,612 | 3,153 | 3.86 | % | 87,455 | 3,419 | 3.91 | % | 69,158 | 3,270 | 4.73 | % | ||||||||||||||||||||
Total | 209,471 | 6,320 | 3.02 | % | 256,447 | 7,441 | 2.90 | % | 231,404 | 7,185 | 3.10 | % | ||||||||||||||||||||
Loan Portfolio (1): | ||||||||||||||||||||||||||||||||
Construction | 95,627 | 5,961 | 6.23 | % | 77,159 | 5,233 | 6.78 | % | 43,391 | 2,757 | 6.35 | % | ||||||||||||||||||||
Residential Real Estate | 43,048 | 1,804 | 4.19 | % | 45,572 | 1,855 | 4.07 | % | 11,492 | 589 | 5.13 | % | ||||||||||||||||||||
Home Equity | 22,217 | 1,028 | 4.63 | % | 22,070 | 1,201 | 5.44 | % | 9,293 | 495 | 5.33 | % | ||||||||||||||||||||
Commercial Business and Commercial Real Estate | 290,301 | 16,381 | 5.64 | % | 271,888 | 15,893 | 5.85 | % | 145,470 | 10,392 | 7.14 | % | ||||||||||||||||||||
SBA Loans | 19,409 | 1,100 | 5.67 | % | 13,971 | 771 | 5.52 | % | 14,081 | 847 | 6.02 | % | ||||||||||||||||||||
Mortgage Warehouse Lines | 203,074 | 8,894 | 4.38 | % | 124,127 | 5,589 | 4.50 | % | 151,336 | 7,096 | 4.69 | % | ||||||||||||||||||||
Installment | 497 | 22 | 4.47 | % | 340 | 19 | 5.58 | % | 266 | 17 | 6.39 | % | ||||||||||||||||||||
All Other Loans | 10,312 | 407 | 3.95 | % | 8,252 | 318 | 3.85 | % | 24,133 | 374 | 1.55 | % | ||||||||||||||||||||
Total | 684,485 | 35,597 | 5.20 | % | 563,379 | 30,879 | 5.48 | % | 399,462 | 22,567 | 5.65 | % | ||||||||||||||||||||
Total Interest-Earning Assets | 917,087 | 41,967 | 4.58 | % | 880,759 | 38,470 | 4.37 | % | 750,991 | 30,052 | 4.00 | % | ||||||||||||||||||||
Allowance for Loan Losses | (7,484 | ) | (7,487 | ) | (6,857 | ) | ||||||||||||||||||||||||||
Cash and Due From Banks | 6,272 | 14,620 | 9,999 | |||||||||||||||||||||||||||||
Other Assets | 62,149 | 57,689 | 47,401 | |||||||||||||||||||||||||||||
Total Assets | $ | 978,024 | $ | 945,581 | $ | 801,534 | ||||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Money Market and NOW Accounts | $ | 300,813 | $ | 1,013 | 0.34 | % | $ | 286,235 | $ | 954 | 0.33 | % | $ | 222,581 | $ | 758 | 0.34 | % | ||||||||||||||
Savings Accounts | 196,844 | 950 | 0.48 | % | 199,078 | 904 | 0.45 | % | 198,169 | 894 | 0.45 | % | ||||||||||||||||||||
Certificates of Deposit under $100,000 | 87,306 | 875 | 1.00 | % | 70,574 | 910 | 1.29 | % | 68,741 | 860 | 1.25 | % | ||||||||||||||||||||
Certificates of Deposit of $100,000 and Over | 71,449 | 866 | 1.21 | % | 98,891 | 1,031 | 1.04 | % | 71,616 | 976 | 1.36 | % | ||||||||||||||||||||
Other Borrowed Funds | 38,472 | 577 | 1.50 | % | 23,724 | 515 | 2.18 | % | 10,285 | 415 | 4.04 | % | ||||||||||||||||||||
Trust Preferred Securities | 18,557 | 355 | 1.91 | % | 18,557 | 344 | 1.90 | % | 18,557 | 352 | 1.90 | % | ||||||||||||||||||||
Total Interest-Bearing Liabilities | 713,441 | 4,636 | 0.65 | % | 697,059 | 4,658 | 0.67 | % | 589,949 | 4,255 | 0.72 | % | ||||||||||||||||||||
Net Interest Spread (2) | 3.93 | % | 3.70 | % | 3.28 | % | ||||||||||||||||||||||||||
Demand Deposits | 164,419 | 159,935 | 137,873 | |||||||||||||||||||||||||||||
Other Liabilities | 8,857 | 7,065 | 7,500 | |||||||||||||||||||||||||||||
Total Liabilities | 886,717 | 864,059 | 735,322 | |||||||||||||||||||||||||||||
Shareholders' Equity | 91,307 | 81,522 | 66,212 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 978,024 | $ | 945,581 | $ | 801,534 | ||||||||||||||||||||||||||
Net Interest Margin(3) | $ | 37,331 | 4.07 | % | $ | 33,812 | 3.84 | % | $ | 25,797 | 3.44 | % | ||||||||||||||||||||
(1) | Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include nonaccrual loans with no related interest income. Please refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Non-Performing Assets” for a discussion of the Bank’s policy with regard to non-accrual loans. |
(2) | The net interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. |
(3) | The net interest margin is equal to net interest income divided by average interest earning assets. |
(4) | Tax-equivalent basis. The tax-equivalent adjustments were $1.0 million for the year ended December 2015 and $1.1 million for the years ended December 31, 2014 and 2013. |
Rate/Volume Table | Amount of Increase (Decrease) | |||||||||||||||||||||||
(Dollars in thousands) | 2015 versus 2014 | 2014 versus 2013 | ||||||||||||||||||||||
Due to Change in: | Due to Change in: | |||||||||||||||||||||||
(Tax-equivalent basis) | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Construction | $ | 1,253 | $ | (525 | ) | $ | 728 | $ | 2,216 | $ | 260 | $ | 2,476 | |||||||||||
Residential Real Estate | (103 | ) | 52 | (51 | ) | 1,568 | (302 | ) | 1,266 | |||||||||||||||
Home Equity | 8 | (181 | ) | (173 | ) | 688 | 18 | 706 | ||||||||||||||||
Commercial Business and Commercial Real Estate | 1,076 | (588 | ) | 488 | 8,202 | (2,701 | ) | 5,501 | ||||||||||||||||
Mortgage Warehouse Lines | 3,555 | (250 | ) | 3,305 | (1,248 | ) | (259 | ) | (1,507 | ) | ||||||||||||||
Installment | 9 | (6 | ) | 3 | 4 | (2 | ) | 2 | ||||||||||||||||
All Other Loans | 367 | 51 | 418 | (646 | ) | 514 | (132 | ) | ||||||||||||||||
Total Loans | $ | 6,165 | $ | (1,447 | ) | $ | 4,718 | $ | 10,784 | $ | (2,472 | ) | $ | 8,312 | ||||||||||
Investment Securities : | ||||||||||||||||||||||||
Taxable | $ | (979 | ) | $ | 124 | $ | (855 | ) | $ | 159 | $ | (52 | ) | $ | 107 | |||||||||
Tax-exempt | (228 | ) | (38 | ) | (266 | ) | 791 | (642 | ) | 149 | ||||||||||||||
Total Investment Securities | $ | (1,207 | ) | $ | 86 | $ | (1,121 | ) | $ | 950 | $ | (694 | ) | $ | 256 | |||||||||
Federal Funds Sold / Short-Term Investments | (95 | ) | (5 | ) | (100 | ) | (150 | ) | — | (150 | ) | |||||||||||||
Total Interest Income | $ | 4,863 | $ | (1,366 | ) | $ | 3,497 | $ | 11,584 | $ | (3,166 | ) | $ | 8,418 | ||||||||||
Interest Expense : | ||||||||||||||||||||||||
Money Market and NOW Accounts | $ | 49 | $ | 10 | $ | 59 | $ | 217 | $ | (21 | ) | $ | 196 | |||||||||||
Savings Accounts | (10 | ) | 56 | 46 | 10 | — | 10 | |||||||||||||||||
Certificates of Deposit under $100,000 | 216 | (251 | ) | (35 | ) | 23 | 27 | 50 | ||||||||||||||||
Certificates of Deposit of $100,000 and Over | (286 | ) | 121 | (165 | ) | 334 | (279 | ) | 55 | |||||||||||||||
Other Borrowed Funds | 321 | (259 | ) | 62 | 417 | (317 | ) | 100 | ||||||||||||||||
Trust Preferred Securities | — | 11 | 11 | — | (8 | ) | (8 | ) | ||||||||||||||||
Total Interest Expense | $ | 290 | $ | (312 | ) | $ | (22 | ) | $ | 1,001 | $ | (598 | ) | $ | 403 | |||||||||
Net Interest Income | $ | 4,573 | $ | (1,054 | ) | $ | 3,519 | $ | 10,583 | $ | (2,568 | ) | $ | 8,015 |
Non-interest Expenses | Year ended December 31, | ||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Salaries and employee benefits | $ | 17,232 | $ | 16,117 | |||
Occupancy expense | 3,461 | 3,355 | |||||
Data processing services | 1,211 | 1,264 | |||||
Equipment expense | 839 | 870 | |||||
Marketing | 282 | 197 | |||||
Telephone | 449 | 422 | |||||
Regulatory, professional and consulting fees | 1,681 | 1,360 | |||||
Merger-related expenses | — | 1,532 | |||||
FDIC deposit insurance | 660 | 715 | |||||
Directors’ fees | 92 | 92 | |||||
Other real estate owned expenses | 1,542 | 236 | |||||
Amortization of intangible assets | 428 | 456 | |||||
Other expenses | 1,878 | 1,721 | |||||
Total | $ | 29,755 | $ | 28,337 | |||
(Dollars in thousands) | Gross | Gross | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||
2015 | Cost | Gains | Losses | Value | |||||||||||
Available for sale- | |||||||||||||||
U. S. Treasury securities and obligations of U.S. Government Sponsored corporations (“GSE”) and agencies | $ | 5,523 | $ | — | $ | (42 | ) | $ | 5,481 | ||||||
Residential collateralized mortgage obligations- GSE | 8,255 | 68 | (36 | ) | 8,287 | ||||||||||
Residential mortgage backed securities – GSE | 32,279 | 541 | (185 | ) | 32,635 | ||||||||||
Obligations of state and political subdivisions | 21,125 | 365 | (54 | ) | 21,436 | ||||||||||
Trust preferred debt securities – single issuer | 2,474 | — | (338 | ) | 2,136 | ||||||||||
Corporate debt securities | 20,510 | 65 | (153 | ) | 20,422 | ||||||||||
Other debt securities | 1,053 | — | (28 | ) | 1,025 | ||||||||||
Restricted stock | 3,302 | — | — | 3,302 | |||||||||||
$ | 94,521 | $ | 1,039 | $ | (836 | ) | $ | 94,724 |
Amortized Cost | Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Held to maturity- | |||||||||||||||||||||||
Residential collateralized mortgage obligations – GSE | $ | 13,630 | $ | — | $ | 13,630 | $ | 404 | $ | — | $ | 14,034 | |||||||||||
Residential mortgage backed securities- GSE | 47,718 | — | 47,718 | 928 | (46 | ) | 48,600 | ||||||||||||||||
Obligations of state and political subdivisions | 61,135 | — | 61,135 | 2,294 | (14 | ) | 63,415 | ||||||||||||||||
Trust preferred debt securities - pooled | 657 | (501 | ) | 156 | 341 | — | 497 | ||||||||||||||||
Other debt securities | 622 | — | 622 | — | (11 | ) | 611 | ||||||||||||||||
$ | 123,762 | $ | (501 | ) | $ | 123,261 | $ | 3,967 | $ | (71 | ) | $ | 127,157 |
(Dollars in thousands) | Gross | Gross | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||
2014 | Cost | Gains | Losses | Value | |||||||||||
Available for sale- | |||||||||||||||
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies | $ | 1,538 | $ | — | $ | (14 | ) | $ | 1,524 | ||||||
Residential collateralized mortgage obligations-GSE | 4,455 | 101 | (23 | ) | 4,533 | ||||||||||
Residential mortgage backed securities – GSE | 27,089 | 825 | (143 | ) | 27,771 | ||||||||||
Obligations of state and political subdivisions | 21,733 | 299 | (329 | ) | 21,703 | ||||||||||
Trust preferred debt securities – single issuer | 2,472 | — | (403 | ) | 2,069 | ||||||||||
Corporate debt securities | 19,397 | 152 | (28 | ) | 19,521 | ||||||||||
Other debt securities | 1,290 | 1 | (11 | ) | 1,280 | ||||||||||
Restricted stock | 1,760 | — | — | 1,760 | |||||||||||
$ | 79,734 | $ | 1,378 | $ | (951 | ) | $ | 80,161 |
Amortized Cost | Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Held to maturity- | |||||||||||||||||||||||
Residential collateralized mortgage obligations – GSE | $ | 19,304 | $ | — | $ | 19,304 | $ | 700 | $ | — | $ | 20,004 | |||||||||||
Residential mortgage backed securities -GSE | 56,528 | — | 56,528 | 1,563 | (36 | ) | 58,055 | ||||||||||||||||
Obligations of state and political subdivisions | 66,887 | — | 66,887 | 2,297 | (92 | ) | 69,092 | ||||||||||||||||
Trust preferred debt securities - pooled | 657 | (501 | ) | 156 | 405 | — | 561 | ||||||||||||||||
Other debt securities | 763 | — | 763 | 1 | — | 764 | |||||||||||||||||
$ | 144,139 | $ | (501 | ) | $ | 143,638 | $ | 4,966 | $ | (128 | ) | $ | 148,476 |
(Dollars in thousands) | December 31, 2015 | ||||||||
Amortized cost | Fair Value | Yield | |||||||
Available for sale | |||||||||
Due in one year or less | $ | 10,788 | $ | 10,807 | 2.54% | ||||
Due after one year through five years | 17,911 | 17,863 | 1.82% | ||||||
Due after five years through ten years | 31,137 | 31,360 | 2.43% | ||||||
Due after ten years | 34,685 | 34,694 | 3.23% | ||||||
Total | $ | 94,521 | $ | 94,724 | 2.62% |
Carrying Value | Fair Value | Yield | |||||||
Held to maturity | |||||||||
Due in one year or less | $ | 17,040 | $ | 17,051 | 0.74% | ||||
Due after one year through five years | 14,935 | 15,448 | 4.06% | ||||||
Due after five years through ten years | 30,657 | 31,898 | 3.50% | ||||||
Due after ten years | 60,629 | 62,760 | 3.45% | ||||||
Total | $ | 123,261 | $ | 127,157 | 3.18% |
(Dollars in thousands) | December 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
Construction loans | $ | 93,745 | 14 | % | $ | 95,627 | 15 | % | $ | 51,002 | 14 | % | $ | 55,691 | 11 | % | $ | 49,286 | 10 | % | ||||||||||||||
Residential real estate loans | 40,744 | 6 | % | 46,446 | 7 | % | 13,764 | 4 | % | 10,897 | 2 | % | 12,885 | 3 | % | |||||||||||||||||||
Commercial business | 99,277 | 15 | % | 110,771 | 17 | % | 82,348 | 22 | % | 57,865 | 11 | % | 50,785 | 11 | % | |||||||||||||||||||
Commercial real estate | 207,250 | 30 | % | 198,211 | 30 | % | 98,390 | 26 | % | 102,413 | 20 | % | 99,637 | 21 | % | |||||||||||||||||||
Mortgage warehouse lines | 216,572 | 32 | % | 179,172 | 27 | % | 116,951 | 31 | % | 284,128 | 54 | % | 249,346 | 52 | % | |||||||||||||||||||
Loans to individuals | 23,074 | 3 | % | 23,156 | 4 | % | 9,766 | 3 | % | 9,643 | 2 | % | 12,220 | 3 | % | |||||||||||||||||||
Deferred loan costs | 1,226 | — | % | 715 | — | % | 944 | — | % | 987 | — | % | 1,018 | — | % | |||||||||||||||||||
All other loans | 233 | — | % | 199 | — | % | 171 | — | % | 189 | — | % | 256 | — | % | |||||||||||||||||||
Total | $ | 682,121 | 100 | % | $ | 654,297 | 100 | % | $ | 373,336 | 100 | % | $ | 521,813 | 100 | % | $ | 475,433 | 100 | % |
(Dollars in thousands) | Maturity Range | |||||||||||||||
Type | Within One Year | After One But Within Five Years | After Five Years | Total | ||||||||||||
(in thousands) | ||||||||||||||||
Commercial Business & Commercial Real Estate | $ | 89,779 | $ | 176,103 | $ | 40,645 | $ | 306,527 | ||||||||
Mortgage Warehouse Loans | 216,572 | — | — | 216,572 | ||||||||||||
Construction Loans | 90,302 | 3,443 | — | 93,745 | ||||||||||||
Total | $ | 396,653 | $ | 179,546 | $ | 40,645 | $ | 616,844 | ||||||||
Fixed rate loans | $ | 13,035 | $ | 48,816 | $ | 26,025 | $ | 87,876 | ||||||||
Floating rate loans | 383,618 | 130,730 | 14,620 | 528,968 | ||||||||||||
Total | $ | 396,653 | $ | 179,546 | $ | 40,645 | $ | 616,844 |
Non-Performing Assets and Loans | |||||||||||||||||||
(Dollars in thousands) | December 31, | ||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Non-Performing loans: | |||||||||||||||||||
Loans 90 days or more past due and still accruing | $ | — | $ | 317 | $ | — | $ | 85 | $ | — | |||||||||
Non-accrual loans | 6,020 | 4,523 | 6,322 | 5,878 | 2,991 | ||||||||||||||
Total non-performing loans | 6,020 | 4,840 | 6,322 | 5,963 | 2,991 | ||||||||||||||
Other real estate owned | 966 | 5,710 | 2,136 | 8,333 | 12,409 | ||||||||||||||
Other repossessed assets | — | 66 | — | — | — | ||||||||||||||
Total non-performing assets | 6,986 | 10,616 | 8,458 | 14,296 | 15,400 | ||||||||||||||
Performing troubled debt restructurings | 1,535 | 3,925 | 3,859 | 2,012 | 774 | ||||||||||||||
Performing troubled debt restructurings and total non-performing assets | $ | 8,521 | $ | 14,541 | $ | 12,317 | $ | 16,308 | $ | 16,174 | |||||||||
Non-performing loans to total loans | 0.88 | % | 0.74 | % | 1.69 | % | 1.14 | % | 0.63 | % | |||||||||
Non-performing loans to total loans excluding warehouse lines | 1.29 | % | 1.02 | % | 2.47 | % | 2.51 | % | 1.32 | % | |||||||||
Non-performing assets to total assets | 0.72 | % | 1.11 | % | 1.14 | % | 1.70 | % | 1.95 | % | |||||||||
Non-performing assets to total assets excluding mortgage warehouse lines | 0.93 | % | 1.37 | % | 1.35 | % | 2.57 | % | 2.84 | % | |||||||||
Total non-performing assets and performing troubled debt restructurings to total assets | 0.88 | % | 1.52 | % | 1.66 | % | 1.94 | % | 2.04 | % | |||||||||
• | Delinquencies and nonaccruals |
• | Portfolio quality |
• | Concentration of credit |
• | Trends in volume of loans |
• | Quality of collateral |
• | Policy and procedures |
• | Experience, ability, and depth of management |
• | Economic trends – national and local |
• | External factors – competition, legal and regulatory |
• | Consumer credit scores |
• | Internal credit risk grades |
• | Loan-to-value ratios |
• | Collateral |
• | Collection experience |
Allowance for Loan Losses | |||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||
Balance, beginning of year | $ | 6,925 | $ | 7,039 | $ | 7,151 | $ | 5,534 | $ | 5,763 | |||||||||
Provision charged to operating expenses | 1,100 | 5,750 | 1,077 | 2,150 | 2,558 | ||||||||||||||
Loans charged off: | |||||||||||||||||||
Construction loans | — | — | (562 | ) | (57 | ) | (2,362 | ) | |||||||||||
Residential real estate loans | — | (15 | ) | — | (131 | ) | — | ||||||||||||
Commercial and commercial real estate loans | (477 | ) | (5,906 | ) | (594 | ) | (276 | ) | (438 | ) | |||||||||
Loans to individuals | (14 | ) | (1 | ) | (52 | ) | (84 | ) | — | ||||||||||
Lease financing | — | — | — | — | — | ||||||||||||||
All other loans | — | — | — | — | — | ||||||||||||||
(491 | ) | (5,922 | ) | (1,208 | ) | (548 | ) | (2,800 | ) | ||||||||||
Recoveries: | |||||||||||||||||||
Construction loans | — | — | — | 3 | 9 | ||||||||||||||
Residential real estate loans | — | — | — | — | — | ||||||||||||||
Commercial and commercial real estate loans | 20 | 58 | 19 | 12 | 4 | ||||||||||||||
Loans to individuals | 6 | — | — | — | — | ||||||||||||||
Lease financing | — | — | — | — | — | ||||||||||||||
All other loans | — | — | — | — | — | ||||||||||||||
26 | 58 | 19 | 15 | 13 | |||||||||||||||
Net (charge offs) | (465 | ) | (5,864 | ) | (1,189 | ) | (533 | ) | (2,787 | ) | |||||||||
Balance, end of year | $ | 7,560 | $ | 6,925 | $ | 7,039 | $ | 7,151 | $ | 5,534 | |||||||||
Loans: | |||||||||||||||||||
At year end | $ | 682,121 | $ | 654,297 | $ | 373,336 | $ | 521,814 | $ | 475,432 | |||||||||
Average during the year | 675,531 | 556,362 | 399,462 | 463,587 | 374,685 | ||||||||||||||
Net charge offs to average loans outstanding | (0.07 | )% | (1.04 | )% | (0.30 | )% | (0.11 | )% | (0.74 | )% | |||||||||
Net charge-offs to average loans, excluding warehouse loans | (0.10 | )% | (1.36 | )% | (0.48 | )% | (0.21 | )% | (1.15 | )% | |||||||||
Allowance for loan losses to: | |||||||||||||||||||
Total loans at year end | 1.11 | % | 1.06 | % | 1.89 | % | 1.37 | % | 1.16 | % | |||||||||
Total loans at year end excluding Mortgage warehouse lines and related allowance | 1.44 | % | 1.27 | % | 2.52 | % | 2.41 | % | 1.95 | % | |||||||||
Non-performing loans | 125.59 | % | 143.08 | % | 111.34 | % | 119.92 | % | 185.01 | % |
(Dollars in thousands) | December 31, | ||||||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||||||
Amount | ALL as a % of Loans | % of Loans | Amount | ALL as a % of Loans | % of Loans | Amount | ALL as a % of Loans | % of Loans | |||||||||||||||||||||
Commercial business and commercial real estate loans | $ | 5,054 | 1.65 | % | 45 | % | $ | 4,154 | 1.34 | % | 47 | % | $ | 4,294 | 2.38 | % | 48 | % | |||||||||||
Construction loans | 1,025 | 1.09 | % | 14 | % | 1,215 | 1.27 | % | 15 | % | 1,205 | 2.36 | % | 14 | % | ||||||||||||||
Residential real estate loans | 288 | 0.71 | % | 6 | % | 197 | 0.42 | % | 7 | % | 165 | 1.20 | % | 4 | % | ||||||||||||||
Loans to individuals | 109 | 0.47 | % | 3 | % | 131 | 0.57 | % | 3 | % | 111 | 1.14 | % | 3 | % | ||||||||||||||
Subtotal | 6,476 | 1.39 | % | 68 | % | 5,697 | 1.20 | % | 73 | % | 5,775 | 2.26 | % | 69 | % | ||||||||||||||
Mortgage warehouse lines | 866 | 0.40 | % | 32 | % | 896 | 0.50 | % | 27 | % | 585 | 0.50 | % | 31 | % | ||||||||||||||
Unallocated reserves | 218 | — | — | 332 | — | — | 679 | — | — | ||||||||||||||||||||
Total | $ | 7,560 | 1.11 | % | 100 | % | $ | 6,925 | 1.06 | % | 100 | % | $ | 7,039 | 1.89 | % | 100 | % |
December 31, | |||||||||||||||||||
2012 | 2011 | ||||||||||||||||||
Amount | ALL as a % of Loans | % of Loans | Amount | ALL as a % of Loans | % of Loans | ||||||||||||||
Commercial business and commercial real estate loans | $ | 3,235 | 2.01 | % | 31 | % | $ | 2,532 | 2.01 | % | 32 | % | |||||||
Construction loans | 1,990 | 3.57 | % | 11 | % | 1,055 | 2.14 | % | 10 | % | |||||||||
Residential real estate loans | 112 | 1.03 | % | 2 | % | 91 | 0.71 | % | 3 | % | |||||||||
Loans to individuals | 105 | 1.07 | % | 2 | % | 190 | 1.52 | % | 3 | % | |||||||||
Subtotal | 5,442 | 2.41 | % | 46 | % | 3,868 | 1.95 | % | 48 | % | |||||||||
Mortgage warehouse lines | 1,421 | 0.50 | % | 54 | % | 1,122 | 0.45 | % | 52 | % | |||||||||
Unallocated reserves | 288 | — | — | 544 | — | — | |||||||||||||
Total | $ | 7,151 | 1.37 | % | 100 | % | $ | 5,534 | 1.16 | % | 100 | % |
December 31, 2015 | December 31, 2014 | ||||||||||||||||||
(Dollars in thousands) | Amount | Percent Of Total | Weighted Average Contractual Rate | Amount | Percent Of Total | Weighted Average Contractual Rate | |||||||||||||
Non-interest bearing demand | $ | 159,918 | 20 | % | — | % | $ | 162,281 | 20 | % | — | % | |||||||
Interest bearing demand | 284,547 | 36 | % | 0.34 | % | 297,679 | 37 | % | 0.34 | % | |||||||||
Savings | 196,324 | 25 | % | 0.48 | % | 190,817 | 23 | % | 0.46 | % | |||||||||
Total core deposits | $ | 640,789 | 81 | % | 0.27 | % | $ | 650,777 | 80 | % | 0.27 | % | |||||||
Certificates of deposit | $ | 145,968 | 19 | % | 1.10 | % | $ | 166,984 | 20 | % | 1.14 | % | |||||||
Total deposits | $ | 786,757 | 100.00 | % | 0.48 | % | $ | 817,761 | 100.00 | % | 0.49 | % |
Maturity | |||||||||||||||||||
3 Months or Less | Over 3 to 6 Months | Over 6 to 12 Months | Over 12 Months | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Certificates of deposit of $100,000 or more | $ | 12,135 | $ | 16,664 | $ | 22,316 | $ | 37,319 | $ | 88,434 | |||||||||
Certificates of deposit less than $100,000 | 10,179 | 9,314 | 13,828 | 24,213 | 57,534 | ||||||||||||||
Total certificates of deposit | $ | 22,314 | $ | 25,978 | $ | 36,144 | $ | 61,532 | $ | 145,968 |
Average Deposit Balances | ||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | |||||||||||||||||
Average Balance | Percentage of Total | Average Balance | Percentage of Total | Average Balance | Percentage of Total | |||||||||||||||
Non-interest bearing demand | $ | 164,419 | 20 | % | $ | 159,935 | 20 | % | $ | 137,873 | 20 | % | ||||||||
Interest bearing demand | 300,813 | 37 | % | 286,235 | 35 | % | 222,581 | 32 | % | |||||||||||
Savings | 196,844 | 24 | % | 199,078 | 24 | % | 198,169 | 29 | % | |||||||||||
Certificates of deposit of $100,000 or more | 71,449 | 9 | % | 98,891 | 12 | % | 71,616 | 9 | % | |||||||||||
Other certificates of deposit less than $100,000 | 87,306 | 10 | % | 70,574 | 9 | % | 68,741 | 10 | % | |||||||||||
Total | $ | 820,831 | 100 | % | $ | 814,713 | 100 | % | $ | 698,980 | 100 | % |
(Dollars in thousands) | One Year or Less | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||||
Off Balance Sheet: | |||||||||||||||||||
Standby letters of credit | $ | 2,106 | $ | — | $ | — | $ | — | $ | 2,106 | |||||||||
Commitments to extend credit | $ | 290,883 | $ | — | $ | — | $ | — | $ | 290,883 | |||||||||
Commitments to sell residential loans | $ | 16,870 | $ | — | $ | — | $ | — | $ | 16,870 | |||||||||
Total off balance sheet: | $ | 309,859 | $ | — | $ | — | $ | — | $ | 309,859 | |||||||||
Contractual Obligations: | |||||||||||||||||||
Operating Leases | $ | 1,255 | $ | 1,975 | $ | 1,221 | $ | 2,050 | $ | 6,501 | |||||||||
Borrowed funds and subordinated Debentures | 38,550 | 20,346 | — | 18,557 | 77,453 | ||||||||||||||
Certificates of deposit | $ | 84,436 | 55,450 | 6,082 | — | 145,968 | |||||||||||||
Retirement benefit obligation | 1,368 | 4,245 | — | — | 5,613 | ||||||||||||||
Total contractual obligations: | $ | 125,609 | 82,016 | 7,303 | 20,607 | 235,535 | |||||||||||||
Total | $ | 435,468 | $ | 82,016 | $ | 7,303 | $ | 20,607 | $ | 545,394 |
Interest Rate Sensitivity Analysis at December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Total | One Year | |||||||||||||||||||||||||||||||||||
($ in thousands) | Interest Sensitivity Period | Within | to | Over | Non-interest | |||||||||||||||||||||||||||||||
30 Day | 90 Day | 180 Day | 365 Day | One Year | Five Years | Five Years | Sensitive | Total | ||||||||||||||||||||||||||||
Assets : | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 4,828 | $ | — | $ | — | $ | — | $ | 4,828 | $ | — | $ | — | $ | 6,540 | $ | 11,368 | ||||||||||||||||||
Federal funds sold | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Investment securities | 9,394 | 20,659 | 6,418 | 24,261.0 | 60,732 | 91,545 | 65,708 | — | 217,985 | |||||||||||||||||||||||||||
Loans held for sale | 5,997 | — | — | — | 5,997 | — | — | — | 5,997 | |||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 393,370 | 14,640 | 19,489 | 40,296 | 467,795 | 182,437 | 24,329 | — | 674,561 | |||||||||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | 58,080 | 58,080 | |||||||||||||||||||||||||||
$ | 413,589 | $ | 35,299 | $ | 25,907 | $ | 64,557 | $ | 539,352 | $ | 273,982 | $ | 90,037 | $ | 64,620 | $ | 967,991 | |||||||||||||||||||
Sources of Funds : | ||||||||||||||||||||||||||||||||||||
Demand deposits - non-interest bearing | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 159,918 | $ | 159,918 | ||||||||||||||||||
Demand deposits - interest bearing | 123,873 | — | — | — | 123,873 | 132,354 | 28,320 | — | 284,547 | |||||||||||||||||||||||||||
Savings deposits | 109,773 | — | — | 29 | 109,802 | 47,384 | 39,138 | — | 196,324 | |||||||||||||||||||||||||||
Certificates of deposits | 6,549 | 15,765 | 25,978 | 36,144 | 84,436 | 61,532 | — | — | 145,968 | |||||||||||||||||||||||||||
Borrowings | 38,550 | — | — | 10,000 | 48,550 | 10,000 | — | 346 | 58,896 | |||||||||||||||||||||||||||
Redeemable subordinated debentures | — | 18,557 | — | — | 18,557 | — | — | — | 18,557 | |||||||||||||||||||||||||||
Non-interest-bearing sources | — | — | — | — | — | — | — | 103,781 | 103,781 | |||||||||||||||||||||||||||
$ | 278,745 | $ | 34,322 | $ | 25,978 | $ | 46,173 | $ | 385,218 | $ | 251,270 | $ | 67,458 | $ | 264,045 | $ | 967,991 | |||||||||||||||||||
Asset (Liability) Sensitivity Gap : | ||||||||||||||||||||||||||||||||||||
Period Gap | $ | 134,844 | $ | 977 | $ | (71 | ) | $ | 18,384 | $ | 154,134 | $ | 22,712 | $ | 22,579 | $ | (199,425 | ) | — | |||||||||||||||||
Cumulative Gap | $ | 134,844 | $ | 135,821 | $ | 135,750 | $ | 154,134 | $ | 308,268 | $ | 330,980 | $ | 353,559 | — | — | ||||||||||||||||||||
Cumulative Gap to Total Assets | 13.9 | % | 14.0 | % | 14.0 | % | 15.9 | % | 31.8 | % | 34.2 | % | 36.5 | % | — | — |
Next 12 Months | ||||||||||||||||||||||
Economic Value of Equity (2) | Net Interest Income | |||||||||||||||||||||
Change in Interest Rates | Dollar | Dollar | Percentage | Dollar | Dollar | Percentage | ||||||||||||||||
Basis Point (bp) (1) | ||||||||||||||||||||||
Amount | Change | Change | Amount | Change | Change | |||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
+300 bp | $ | 130,547 | $ | 1,606 | 1.25 | % | $ | 40,860 | $ | 3,697 | 9.95 | % | ||||||||||
+200 bp | 130,547 | 1,606 | 1.25 | % | 39,513 | 2,350 | 6.32 | % | ||||||||||||||
0 bp | 128,941 | — | — | 37,163 | — | — | ||||||||||||||||
(1) | Assumes an instantaneous and parallel shift in interest rates at all maturities. |
(2) | EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. |
• | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the receipts and expenditures of the Company are being made only in accordance with authorizations of its management and directors; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on its financial statements. |
2. | All schedules are omitted because they are either inapplicable or not required, or because the information required therein is included in the Consolidated Financial Statements and Notes thereto. |
Exhibit No. | Description | |
3 | (i)(A) | Certificate of Incorporation of the Company (conformed copy) (incorporated by reference to Exhibit 3(i)(A) to the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on March 27, 2009) |
3 | (i)(B) | Certificate of Amendment to the Certificate of Incorporation increasing the number of shares designated as Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on December 23, 2008) |
3 | (i)(C) | Certificate of Amendment to the Certificate of Incorporation establishing the terms of the Fixed Rate Cumulative Perpetual Preferred Stock, Series B (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on December 23, 2008) |
3 | (ii)(A) | By-laws, as amended, of the Company (conformed copy) (incorporated by reference to Exhibit 3(ii)(A) to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on October 22, 2007) |
4.1 | Specimen Share of Common Stock (incorporated by reference to Exhibit 4.1 to the Company’s Form 10-KSB (SEC File No. 000-32891) filed with the SEC on March 22, 2002) | |
4.2 | Warrant, dated November 23, 2011, to purchase shares of the Company’s common stock (incorporated by reference to Exhibit 4.5 to the Company’s Form 10-K filed with the SEC on March 22, 2013) | |
4.3 | Warrant, dated November 23, 2011, to purchase shares of the Company’s common stock (incorporated by reference to Exhibit 4.6 to the Company’s Form 10-K filed with the SEC on March 22, 2013) | |
10.1 | # | 1st Constitution Bancorp Supplemental Executive Retirement Plan, dated as of October 1, 2002 (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on November 13, 2002) |
10.2 | # | Amended and Restated 1st Constitution Bancorp Directors’ Insurance Plan, effective as of June 16, 2005 (incorporated by reference to Exhibit No. 10 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on March 24, 2006) |
10.3 | # | 1st Constitution Bancorp Form of Executive Life Insurance Agreement (incorporated by reference to Exhibit 10.4 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on November 13, 2002) |
10.4 | # | Amendment No. 1 to 1st Constitution Bancorp Supplemental Executive Retirement Plan, effective January 1, 2004 (incorporated by reference to Exhibit 10.12 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 11, 2004) |
10.5 | # | The 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Appendix A of the Company's proxy statement (SEC File No. 000-32891) filed with the SEC on April 15, 2005) |
10.6 | # | Form of Restricted Stock Agreement under the 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.18 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 8, 2005) |
10.7 | # | Form of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.19 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 8, 2005) |
10.8 | # | Form of Incentive Stock Option Agreement under the 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.20 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 8, 2005) |
10.9 | Amended and Restated Declaration of Trust of 1st Constitution Capital Trust II, dated as of June 15, 2006, among 1st Constitution Bancorp, as sponsor, the Delaware and institutional trustee named therein, and the administrators named therein (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on June 16, 2006) | |
10.10 | Indenture, dated as of June 15, 2006, between 1st Constitution Bancorp, as issuer, and the trustee named therein, relating to the Floating Rate Junior Subordinated Debt Securities due 2036 (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on June 16, 2006) | |
10.11 | Guarantee Agreement, dated as of June 15, 2006, between 1st Constitution Bancorp and the guarantee trustee named therein (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on June 16, 2006) | |
10.12 | # | Amendment No. 2 to 1st Constitution Bancorp Supplemental Executive Retirement Plan, effective as of December 31, 2004 (incorporated by reference to Exhibit 10.24 to the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on April 15, 2008) |
10.13 | # | 1st Constitution Bancorp 2005 Supplemental Executive Retirement Plan, effective as of January 1, 2005 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on December 28, 2006) |
10.14 | # | Amended and Restated Employment Agreement between the Company and Robert F. Mangano dated as of July 1, 2010 (incorporated by reference to Exhibit 10 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on July 14, 2010) |
10.15 | # | 1st Constitution Bancorp 2013 Equity Incentive Plan (incorporated by reference to the Company's proxy statement filed with the SEC on April 11, 2013) |
10.16 | #* | Form of Restricted Stock Agreement under the 1st Constitution Bancorp 2013 Equity Incentive Plan |
10.17 | #* | Form of Incentive Stock Option Agreement under the 1st Constitution Bancorp 2013 Equity Incentive Plan |
10.18 | Agreement and Plan of Merger, dated as of August 14, 2013, by and between the Company, 1st Constitution Bank and Rumson-Fair Haven Bank & Trust Company (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed with the SEC on August 15, 2013) | |
10.19 | First Amendment to Agreement and Plan of Merger, dated September 19, 2013, by and among the Company, 1st Constitution Bank and Rumson-Fair Haven Bank & Trust Company (incorporated by reference to Exhibit 2.2 to the Company’s Form 10-Q filed with the SEC on November 12, 2013) |
10.20 | # | Letter Agreement, dated January 31, 2014, between 1st Constitution Bank and Stephen J. Gilhooly (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on April 1, 2014) |
10.21 | # | Amendment to the Amended and Restated Employment Agreement, dated April 4, 2014, between 1st Constitution Bancorp and Robert F. Mangano (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on April 8, 2014) |
10.22 | # | 1st Constitution Bancorp 2015 Directors Stock Plan (incorporated by reference to Appendix A to the Company's proxy statement on Schedule 14A for its annual meeting of shareholders held on May 21, 2015 ( SEC File No. 000-32891) filed with the SEC on April 14, 2015) |
21 | * | Subsidiaries of the Company |
23.1 | * | Consent of BDO USA, LLP as Independent Registered Public Accounting Firm |
31.1 | * | Certification of the principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a) |
31.2 | * | Certification of the principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a) |
32 | * | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by the principal executive officer and the principal financial officer of the Company |
101.INS | * | XBRL Instance Document |
101.SCH | * | XBRL Taxonomy Extension Schema Document |
101.CAL | * | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | * | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | * | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | * | XBRL Taxonomy Extension Presentation Linkbase Document |
2015 | 2014 | ||||||
ASSETS | |||||||
CASH AND DUE FROM BANKS | $ | 11,368 | $ | 14,545 | |||
FEDERAL FUNDS SOLD / SHORT TERM INVESTMENTS | — | — | |||||
Total cash and cash equivalents | 11,368 | 14,545 | |||||
INVESTMENT SECURITIES | |||||||
Investment securities available for sale, at fair value | 94,724 | 80,161 | |||||
Investment securities held to maturity (fair value of $127,157 and $148,476 at December 31, 2015 and 2014, respectively) | 123,261 | 143,638 | |||||
Total securities | 217,985 | 223,799 | |||||
LOANS HELD FOR SALE | 5,997 | 8,372 | |||||
LOANS | 682,121 | 654,297 | |||||
Less- Allowance for loan losses | (7,560 | ) | (6,925 | ) | |||
Net loans | 674,561 | 647,372 | |||||
PREMISES AND EQUIPMENT, net | 11,109 | 11,373 | |||||
ACCRUED INTEREST RECEIVABLE | 2,853 | 3,096 | |||||
BANK-OWNED LIFE INSURANCE | 21,583 | 21,218 | |||||
OTHER REAL ESTATE OWNED | 966 | 5,710 | |||||
GOODWILL AND INTANGIBLE ASSETS | 13,284 | 13,711 | |||||
OTHER ASSETS | 8,285 | 7,583 | |||||
Total assets | $ | 967,991 | $ | 956,779 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Deposits | |||||||
Non-interest bearing | $ | 159,918 | $ | 162,281 | |||
Interest bearing | 626,839 | 655,480 | |||||
Total deposits | 786,757 | 817,761 | |||||
BORROWINGS | 58,896 | 25,107 | |||||
REDEEMABLE SUBORDINATED DEBENTURES | 18,557 | 18,557 | |||||
ACCRUED INTEREST PAYABLE | 846 | 907 | |||||
ACCRUED EXPENSES AND OTHER LIABILITIES | 6,975 | 7,337 | |||||
Total liabilities | 872,031 | 869,669 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock, no par value: 5,000,000 shares authorized, none issued | — | — | |||||
Common stock, no par value; 30,000,000 shares authorized; 7,575,492 and 7,165,084 shares issued and 7,545,684 and 7,134,174 shares outstanding as of December 31, 2015 and 2014, respectively | 70,845 | 61,448 | |||||
Retained earnings | 25,589 | 25,730 | |||||
Treasury Stock 29,808 shares and, 30,910 shares at December 31, 2015 and 2014, respectively | (344 | ) | (316 | ) | |||
Accumulated other comprehensive (loss) income | (130 | ) | 248 | ||||
Total shareholders’ equity | 95,960 | 87,110 | |||||
Total liabilities and shareholders’ equity | $ | 967,991 | $ | 956,779 |
2015 | 2014 | ||||||
INTEREST INCOME: | |||||||
Loans, including fees | $ | 35,597 | $ | 30,879 | |||
Securities: | |||||||
Taxable | 3,167 | 4,022 | |||||
Tax-exempt | 2,131 | 2,310 | |||||
Federal funds sold and short-term investments | 50 | 150 | |||||
Total interest income | 40,945 | 37,361 | |||||
INTEREST EXPENSE: | |||||||
Deposits | 3,704 | 3,799 | |||||
Borrowings | 577 | 515 | |||||
Redeemable subordinated debentures | 355 | 344 | |||||
Total interest expense | 4,636 | 4,658 | |||||
Net interest income | 36,309 | 32,703 | |||||
PROVISION FOR LOAN LOSSES | 1,100 | 5,750 | |||||
Net interest income after provision for loan losses | 35,209 | 26,953 | |||||
NON-INTEREST INCOME: | |||||||
Service charges on deposit accounts | 818 | 988 | |||||
Loss on sales of securities available for sale | — | (1 | ) | ||||
Gain on sales of loans, net | 4,039 | 3,103 | |||||
Income on Bank-owned life insurance | 558 | 564 | |||||
Other income | 1,857 | 2,160 | |||||
Total other income | 7,272 | 6,814 | |||||
NON-INTEREST EXPENSES: | |||||||
Salaries and employee benefits | 17,232 | 16,117 | |||||
Occupancy expense | 3,461 | 3,355 | |||||
Data processing expenses | 1,211 | 1,264 | |||||
FDIC insurance expense | 660 | 715 | |||||
Other real estate owned expenses | 1,542 | 236 | |||||
Merger-related expenses | — | 1,532 | |||||
Other operating expenses | 5,649 | 5,119 | |||||
Total other expenses | 29,755 | 28,338 | |||||
Income before income taxes | 12,726 | 5,429 | |||||
INCOME TAXES | 4,062 | 1,073 | |||||
Net income | $ | 8,664 | $ | 4,356 | |||
NET INCOME PER COMMON SHARE | |||||||
Basic | $ | 1.10 | $ | 0.56 | |||
Diluted | $ | 1.07 | $ | 0.55 | |||
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||
Basic | 7,901,278 | 7,735,303 | |||||
Diluted | 8,075,752 | 7,879,186 |
2015 | 2014 | ||||||
Net income | $ | 8,664 | $ | 4,356 | |||
Other comprehensive (loss) income, net of tax | |||||||
Unrealized (losses) gains on securities available for sale | (224 | ) | 3,418 | ||||
Tax effect | 38 | (1,210 | ) | ||||
Net of tax amount | (186 | ) | 2,208 | ||||
Reclassification adjustment for realized loss included in income (1) | — | 1 | |||||
Tax effect (2) | — | — | |||||
Net of tax amount | — | 1 | |||||
Pension liability | (53 | ) | 488 | ||||
Tax effect | 21 | (195 | ) | ||||
Net of tax amount | (32 | ) | 293 | ||||
Reclassification adjustment for actuarial gains included in income (3) | (266 | ) | (10 | ) | |||
Tax effect (2) | 106 | 4 | |||||
Net of tax amount | (160 | ) | (6 | ) | |||
Total other comprehensive (loss) income | (378 | ) | 2,496 | ||||
Comprehensive income | $ | 8,286 | $ | 6,852 |
(1) | Included in loss on sales of securities available for sale |
(2) | Included in income taxes |
(3) | Included in salaries and employee benefits expense |
Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | |||||||||||||||
BALANCE, January 1, 2014 | $ | 49,403 | $ | 21,374 | $ | (172 | ) | $ | (2,248 | ) | $ | 68,357 | |||||||
Exercise of stock options and issuance of restricted shares under employee benefit programs | 299 | 299 | |||||||||||||||||
Share-based compensation | 585 | 585 | |||||||||||||||||
Acquisition of Rumson Fair Haven Bank and Trust Company (1,019,223 shares) | 11,161 | 11,161 | |||||||||||||||||
Treasury stock purchased, net (14,072 shares) | (144 | ) | (144 | ) | |||||||||||||||
Net Income for the year ended December 31, 2014 | 4,356 | 4,356 | |||||||||||||||||
Other comprehensive income | 2,496 | 2,496 | |||||||||||||||||
BALANCE, December 31, 2014 | $ | 61,448 | $ | 25,730 | $ | (316 | ) | $ | 248 | $ | 87,110 | ||||||||
BALANCE, January 1, 2015 | $ | 61,448 | $ | 25,730 | $ | (316 | ) | $ | 248 | $ | 87,110 | ||||||||
Exercise of stock options and issuance of restricted shares under employee benefit programs (33,800 shares issued from Treasury Stock) | (39 | ) | 331 | 292 | |||||||||||||||
Share-based compensation | 631 | 631 | |||||||||||||||||
5% Stock dividends declared February and December 2015 (737,448 shares) | 8,805 | (8,805 | ) | — | |||||||||||||||
Treasury stock purchased, net (31,050 shares) | (359 | ) | (359 | ) | |||||||||||||||
Net Income for the year ended December 31, 2015 | 8,664 | 8,664 | |||||||||||||||||
Other comprehensive (loss) | (378 | ) | (378 | ) | |||||||||||||||
BALANCE, December 31, 2015 | $ | 70,845 | $ | 25,589 | $ | (344 | ) | $ | (130 | ) | $ | 95,960 |
2015 | 2014 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 8,664 | $ | 4,356 | |||
Adjustments to reconcile net income to net cash provided by operating activities- | |||||||
Provision for loan losses | 1,100 | 5,750 | |||||
Provision for loss on other real estate owned | 382 | 112 | |||||
Depreciation and amortization | 2,388 | 1,734 | |||||
Net amortization of premiums and discounts on securities | 810 | 1,127 | |||||
Loss on sales of securities available for sale | — | 1 | |||||
Loss (gains) on sales of other real estate owned | 692 | (43 | ) | ||||
Gains on sales of loans held for sale | (4,039 | ) | (3,103 | ) | |||
Originations of loans held for sale | (134,073 | ) | (114,752 | ) | |||
Proceeds from sales of loans held for sale | 140,486 | 120,407 | |||||
Income on bank-owned life insurance | (558 | ) | (564 | ) | |||
Share-based compensation expense | 631 | 585 | |||||
Deferred tax expense (benefit) | 159 | (143 | ) | ||||
Decrease (increase) in accrued interest receivable | 243 | (553 | ) | ||||
(Increase) decrease in other assets | (1,812 | ) | 620 | ||||
(Decrease) increase in accrued interest payable | (61 | ) | 24 | ||||
(Decrease) increase in accrued expense and other liabilities | (362 | ) | 1,362 | ||||
Net cash provided by operating activities | 14,650 | 16,920 | |||||
INVESTING ACTIVITIES: | |||||||
Purchases of securities - | |||||||
Available for sale | (34,109 | ) | — | ||||
Held to maturity | (15,599 | ) | (18,424 | ) | |||
Proceeds from maturities and repayments of securities - | |||||||
Available for sale | 18,783 | 23,606 | |||||
Held to maturity | 35,705 | 27,238 | |||||
Proceeds from sales of securities available for sale | — | 28,113 | |||||
Net (increase) in loans | (30,646 | ) | (147,363 | ) | |||
Capital expenditures | (706 | ) | (493 | ) | |||
Net cash received in the acquisition | — | 21,375 | |||||
Proceeds from sales of other real estate owned | 6,027 | 287 | |||||
Net cash used in investing activities | (20,545 | ) | (65,661 | ) | |||
FINANCING ACTIVITIES: | |||||||
Exercise of stock options and issuance of restricted shares | 292 | 299 | |||||
Purchase of treasury stock | (359 | ) | (144 | ) | |||
Net decrease in demand, savings and time deposits | (31,004 | ) | (10,275 | ) | |||
Net increase in borrowings | 33,789 | 4,128 | |||||
Net cash provided by (used in) financing activities | 2,718 | (5,992 | ) | ||||
Decrease in cash and cash equivalents | (3,177 | ) | (54,733 | ) | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 14,545 | 69,278 | |||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 11,368 | $ | 14,545 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the year for - | |||||||
Interest | $ | 4,697 | $ | 4,634 | |||
Income taxes | 4,170 | 784 | |||||
Non-cash investing activities | |||||||
Real estate acquired in full satisfaction of loans in foreclosure | 2,357 | 3,995 | |||||
Acquisition of Rumson Fair Haven Bank | |||||||
Non-cash assets acquired: | |||||||
Investment securities available for sale | — | 30,024 | |||||
Loans | — | 143,714 | |||||
Goodwill | — | 8,089 | |||||
Core deposit intangible | — | 1,189 | |||||
Bank-owned life insurance, premises and equipment and other assets | — | 8,122 | |||||
— | 191,138 | ||||||
Liabilities assumed: | |||||||
Deposits | — | 189,490 | |||||
Advances from FHLB | — | 11,030 | |||||
Other liabilities | — | 832 | |||||
— | 201,352 | ||||||
Common stock issued for acquisition | — | 11,161 |
• | Management judges the loan to be uncollectible; |
• | Repayment is deemed to be protracted beyond reasonable time frames; |
• | The loan has been classified as a loss by either internal loan review process or external examiners; |
• | The customer has filed bankruptcy and the loss becomes evident owing to a lack of assets; or |
• | The loan is significantly past due unless both well secured and in the process of collection. |
(Dollars in thousands except per share data) | Year Ended December 31, 2015 | |||||||||
Net Income | Weighted average shares | Per share Amount | ||||||||
Basic earnings per common share: | ||||||||||
Net income | $ | 8,664 | 7,901,278 | $ | 1.10 | |||||
Effect of dilutive securities: | ||||||||||
Stock options and warrants | 174,474 | |||||||||
Diluted EPS: | ||||||||||
Net income plus assumed conversion | $ | 8,664 | 8,075,752 | $ | 1.07 |
Year Ended December 31, 2014 | ||||||||||
Net Income | Weighted average shares | Per share Amount | ||||||||
Basic earnings per common share: | ||||||||||
Net income | $ | 4,356 | 7,735,303 | $ | 0.56 | |||||
Effect of dilutive securities: | ||||||||||
Stock options and warrants | 143,883 | |||||||||
Diluted EPS: | ||||||||||
Net income plus assumed conversion | $ | 4,356 | 7,879,186 | $ | 0.55 |
(Dollars in thousands) | Amount | ||
Consideration paid: | |||
Company stock issued | $ | 11,161 | |
Cash payment | 14,770 | ||
Total consideration paid | 25,931 | ||
Recognized amounts of identifiable assets and liabilities assumed at fair value: | |||
Cash and cash equivalents | 36,145 | ||
Securities available for sale | 30,024 | ||
Loans | 143,714 | ||
Premises and equipment, net | 1,913 | ||
Identifiable intangible assets | 1,189 | ||
Bank-owned life insurance | 4,471 | ||
Accrued interest receivable and other assets | 1,738 | ||
Deposits | (189,490 | ) | |
Borrowings | (11,030 | ) | |
Other liabilities | (832 | ) | |
Total identifiable assets | 17,842 | ||
Goodwill | 8,089 |
(Dollars in thousands) | Gross | Gross | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||
2015 | Cost | Gains | Losses | Value | |||||||||||
Available for sale- | |||||||||||||||
U.S. Treasury securities and obligations of U.S. Government | |||||||||||||||
sponsored corporations (“GSE”) and agencies | $ | 5,523 | $ | — | $ | (42 | ) | $ | 5,481 | ||||||
Residential collateralized mortgage obligations- GSE | 8,255 | 68 | (36 | ) | 8,287 | ||||||||||
Residential mortgage backed securities – GSE | 32,279 | 541 | (185 | ) | 32,635 | ||||||||||
Obligations of state and political subdivisions | 21,125 | 365 | (54 | ) | 21,436 | ||||||||||
Trust preferred debt securities – single issuer | 2,474 | — | (338 | ) | 2,136 | ||||||||||
Corporate debt securities | 20,510 | 65 | (153 | ) | 20,422 | ||||||||||
Other debt securities | 1,053 | — | (28 | ) | 1,025 | ||||||||||
Restricted stock | 3,302 | — | — | 3,302 | |||||||||||
$ | 94,521 | $ | 1,039 | $ | (836 | ) | $ | 94,724 |
Amortized Cost | Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Held to maturity- | |||||||||||||||||||||||
Residential collateralized mortgage obligations – GSE | $ | 13,630 | $ | — | $ | 13,630 | $ | 404 | $ | — | $ | 14,034 | |||||||||||
Residential mortgage backed securities - GSE | 47,718 | — | 47,718 | 928 | (46 | ) | 48,600 | ||||||||||||||||
Obligations of state and political subdivisions | 61,135 | 61,135 | 2,294 | (14 | ) | 63,415 | |||||||||||||||||
Trust preferred debt securities - pooled | 657 | (501 | ) | 156 | 341 | — | 497 | ||||||||||||||||
Other debt securities | 622 | — | 622 | — | (11 | ) | 611 | ||||||||||||||||
$ | 123,762 | $ | (501 | ) | $ | 123,261 | $ | 3,967 | $ | (71 | ) | $ | 127,157 |
(Dollars in thousands) | Gross | Gross | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||
2014 | Cost | Gains | Losses | Value | |||||||||||
Available for sale- | |||||||||||||||
U. S. Treasury securities and obligations of U.S. Government | |||||||||||||||
sponsored corporations (“GSE”) and agencies | $ | 1,538 | $ | — | $ | (14 | ) | $ | 1,524 | ||||||
Residential collateralized mortgage obligations - GSE | 4,455 | 101 | (23 | ) | 4,533 | ||||||||||
Residential mortgage backed securities – GSE | 27,089 | 825 | (143 | ) | 27,771 | ||||||||||
Obligations of state and political subdivisions | 21,733 | 299 | (329 | ) | 21,703 | ||||||||||
Trust preferred debt securities – single issuer | 2,472 | — | (403 | ) | 2,069 | ||||||||||
Corporate debt securities | 19,397 | 152 | (28 | ) | 19,521 | ||||||||||
Other debt securities | 1,290 | 1 | (11 | ) | 1,280 | ||||||||||
Restricted stock | 1,760 | — | — | 1,760 | |||||||||||
$ | 79,734 | $ | 1,378 | $ | (951 | ) | $ | 80,161 |
Amortized Cost | Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Held to maturity- | |||||||||||||||||||||||
Residential collateralized mortgage obligations – GSE | $ | 19,304 | $ | — | $ | 19,304 | $ | 700 | $ | — | $ | 20,004 | |||||||||||
Residential mortgage backed securities - GSE | 56,528 | — | 56,528 | 1,563 | (36 | ) | 58,055 | ||||||||||||||||
Obligations of state and political subdivisions | 66,887 | — | 66,887 | 2,297 | (92 | ) | 69,092 | ||||||||||||||||
Trust preferred debt securities - pooled | 657 | (501 | ) | 156 | 405 | — | 561 | ||||||||||||||||
Other debt securities | 763 | — | 763 | 1 | — | 764 | |||||||||||||||||
$ | 144,139 | $ | (501 | ) | $ | 143,638 | $ | 4,966 | $ | (128 | ) | $ | 148,476 |
(Dollars in thousands) | December 31, 2015 | |||||||||
Amortized Cost | Fair Value | Yield | ||||||||
Available for sale | ||||||||||
Due in one year or less | $ | 10,788 | $ | 10,807 | 2.54 | % | ||||
Due after one year through five years | 17,911 | 17,863 | 1.82 | % | ||||||
Due after five years through ten years | 31,137 | 31,360 | 2.43 | % | ||||||
Due after ten years | 34,685 | 34,694 | 3.23 | % | ||||||
Total | $ | 94,521 | $ | 94,724 | 2.62 | % | ||||
Carrying Value | Fair Value | Yield | ||||||||
Held to maturity | ||||||||||
Due in one year or less | $ | 17,040 | $ | 17,051 | 0.74 | % | ||||
Due after one year through five years | 14,935 | 15,448 | 4.06 | % | ||||||
Due after five years through ten years | 30,657 | 31,898 | 3.50 | % | ||||||
Due after ten years | 60,629 | 62,760 | 3.45 | % | ||||||
Total | $ | 123,261 | $ | 127,157 | 3.18 | % |
2015 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
(Dollars in thousands) | Number of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
U.S. Government sponsored corporations and agencies | 3 | $ | 5,481 | $ | (42 | ) | — | — | $ | 5,481 | $ | (42 | ) | |||||||||||||
Residential collateralized mortgage obligations - GSE | 2 | 5,894 | (36 | ) | — | — | 5,894 | (36 | ) | |||||||||||||||||
Residential mortgage backed securities - GSE | 19 | 20,911 | (175 | ) | 3,980 | (56 | ) | 24,891 | (231 | ) | ||||||||||||||||
Obligations of state and political subdivisions | 32 | 2,760 | (19 | ) | 6,465 | (49 | ) | 9,225 | (68 | ) | ||||||||||||||||
Trust preferred debt securities -single issuer | 4 | — | — | 2,136 | (338 | ) | 2,136 | (338 | ) | |||||||||||||||||
Corporate debt securities | 4 | 9,214 | (153 | ) | — | — | 9,214 | (153 | ) | |||||||||||||||||
Other debt securities | 3 | 586 | (11 | ) | 1,025 | (28 | ) | 1,611 | (39 | ) | ||||||||||||||||
Total temporarily impaired securities | 67 | $ | 44,846 | $ | (436 | ) | $ | 13,606 | $ | (471 | ) | $ | 58,452 | $ | (907 | ) |
2014 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
(Dollars in thousands) | Number of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
U.S. Government sponsored corporations and agencies | 1 | $ | 1,524 | $ | (14 | ) | — | — | $ | 1,524 | $ | (14 | ) | |||||||||||||
Residential collateralized mortgage obligations-GSE | 1 | 1,025 | (23 | ) | — | — | 1,025 | (23 | ) | |||||||||||||||||
Residential mortgage backed securities - GSE | 16 | 755 | — | 15,441 | (179 | ) | 16,196 | (179 | ) | |||||||||||||||||
Obligations of state and political subdivisions | 57 | 2,491 | (23 | ) | 15,621 | (398 | ) | 18,112 | (421 | ) | ||||||||||||||||
Trust preferred debt securities – single issuer | 4 | — | — | 2,068 | (403 | ) | 2,068 | (403 | ) | |||||||||||||||||
Corporate debt securities | 7 | 6,259 | (5 | ) | 1,017 | (23 | ) | 7,276 | (28 | ) | ||||||||||||||||
Other debt securities | 2 | 985 | (6 | ) | 86 | (5 | ) | 1,071 | (11 | ) | ||||||||||||||||
Total temporarily impaired securities | 88 | $ | 13,039 | $ | (71 | ) | $ | 34,233 | $ | (1,008 | ) | $ | 47,272 | $ | (1,079 | ) |
(Dollars in thousands) | 2015 | 2014 | |||||
Commercial business | $ | 99,277 | $ | 110,771 | |||
Commercial real estate | 207,250 | 198,211 | |||||
Mortgage warehouse lines | 216,572 | 179,172 | |||||
Construction loans | 93,745 | 95,627 | |||||
Residential real estate loans | 40,744 | 46,446 | |||||
Loans to individuals | 23,074 | 23,156 | |||||
All other loans | 233 | 199 | |||||
Gross Loans | 680,895 | 653,582 | |||||
Deferred loan costs | 1,226 | 715 | |||||
$ | 682,121 | $ | 654,297 |
(Dollars in thousands) | 30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Recorded Investment >90 Days Accruing | Nonaccrual Loans | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
Construction Loans | $ | — | $ | — | $ | — | $ | — | $ | 93,745 | $ | 93,745 | $ | — | $ | — | |||||||||||||||
Commercial Business | 530 | 5 | 186 | 721 | 98,556 | 99,277 | — | 304 | |||||||||||||||||||||||
Commercial Real Estate | 789 | — | 3,996 | 4,785 | 202,465 | 207,250 | — | 4,321 | |||||||||||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | 216,572 | 216,572 | — | — | |||||||||||||||||||||||
Residential Real Estate Loans | — | 166 | 1,132 | 1,298 | 39,446 | 40,744 | — | 1,132 | |||||||||||||||||||||||
Loans to Individuals | 400 | — | 263 | 663 | 22,411 | 23,074 | — | 263 | |||||||||||||||||||||||
Other | — | — | — | — | 233 | 233 | — | — | |||||||||||||||||||||||
Deferred Loan Fees and Costs, Net | — | — | — | — | 1,226 | 1,226 | — | — | |||||||||||||||||||||||
Total | $ | 1,719 | $ | 171 | $ | 5,577 | $ | 7,467 | $ | 674,654 | $ | 682,121 | $ | — | $ | 6,020 |
(Dollars in thousands) | 30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Recorded Investment >90 Days Accruing | Nonaccrual Loans | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
Construction Loans | $ | — | $ | — | $ | — | $ | — | $ | 95,627 | $ | 95,627 | $ | — | $ | — | |||||||||||||||
Commercial Business | 1,823 | 51 | 492 | 2,366 | 108,405 | 110,771 | — | 464 | |||||||||||||||||||||||
Commercial Real Estate | 3,988 | — | 2,772 | 6,760 | 191,451 | 198,211 | — | 2,435 | |||||||||||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | 179,172 | 179,172 | — | — | |||||||||||||||||||||||
Residential Real Estate Loans | — | — | 1,668 | 1,668 | 44,778 | 46,446 | 317 | 1,361 | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||
Loans to Individuals | 4 | — | 263 | 267 | 22,889 | 23,156 | — | 263 | |||||||||||||||||||||||
Other | — | — | — | — | 199 | 199 | — | — | |||||||||||||||||||||||
Deferred Loan Fees and Costs, Net | — | — | — | — | 715 | 715 | — | — | |||||||||||||||||||||||
Total | $ | 5,815 | $ | 51 | $ | 5,195 | $ | 11,061 | $ | 643,236 | $ | 654,297 | $ | 317 | $ | 4,523 |
• | Delinquencies and nonaccruals |
• | Portfolio quality |
• | Concentration of credit |
• | Trends in volume of loans |
• | Quality of collateral |
• | Policy and procedures |
• | Experience, ability, and depth of management |
• | Economic trends – national and local |
• | External factors – competition, legal and regulatory |
• | Consumer credit scores |
• | Internal credit risk grades |
• | Loan-to-value ratios |
• | Collateral |
• | Collection experience |
(Dollars in thousands) | |||||||||||||||||||
Commercial Credit Exposure- By Internally Assigned Grade | Construction | Commercial Business | Commercial Real Estate | Mortgage Warehouse Lines | Residential Real Estate | ||||||||||||||
Grade: | |||||||||||||||||||
Pass | $ | 93,558 | $ | 90,856 | $ | 191,754 | $ | 216,572 | $ | 39,878 | |||||||||
Special Mention | 187 | 7,768 | 9,311 | — | 260 | ||||||||||||||
Substandard | — | 653 | 6,185 | — | 606 | ||||||||||||||
Doubtful | — | — | — | — | — | ||||||||||||||
Loss | — | — | — | — | — | ||||||||||||||
Total | $ | 93,745 | $ | 99,277 | $ | 207,250 | $ | 216,572 | $ | 40,744 |
(Dollars in thousands) | |||||||
Consumer Credit Exposure -By Payment Activity | Loans to Individuals | Other | |||||
Performing | $ | 22,811 | $ | 233 | |||
Nonperforming | 263 | — | |||||
Total | $ | 23,074 | $ | 233 |
(Dollars in thousands) | |||||||||||||||||||
Commercial Credit Exposure- By Internally Assigned Grade | Construction | Commercial Business | Commercial Real Estate | Mortgage Warehouse Lines | Residential Real Estate | ||||||||||||||
Grade: | |||||||||||||||||||
Pass | $ | 95,391 | $ | 103,107 | $ | 178,701 | $ | 179,172 | $ | 44,768 | |||||||||
Special Mention | 236 | 6,711 | 12,052 | — | 95 | ||||||||||||||
Substandard | — | 792 | 7,458 | — | 1,583 | ||||||||||||||
Doubtful | — | 161 | — | — | — | ||||||||||||||
Loss | — | — | — | — | — | ||||||||||||||
Total | $ | 95,627 | $ | 110,771 | $ | 198,211 | $ | 179,172 | $ | 46,446 |
(Dollars in thousands) | |||||||
Consumer Credit Exposure - By Payment Activity | Loans to Individuals | Other | |||||
Performing | $ | 22,893 | $ | 199 | |||
Nonperforming | 263 | — | |||||
Total | $ | 23,156 | $ | 199 |
Allowance for Loan Losses as of and for the year ended December 31, 2015 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Mortgage | Residential | Loans to | Deferred | Total | |||||||||||||||||||||||
Construction | Business | Real Estate | Warehouse | Real Estate | Individuals | Other | Unallocated | Fees | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Beginning balance | $ | 1,215 | $ | 1,761 | $ | 2,393 | $ | 896 | $ | 197 | $ | 129 | $ | 2 | $ | 332 | $ | — | $ | 6,925 | ||||||||||
Provision charged to operations | (190 | ) | 347 | 1,010 | (30 | ) | 91 | (13 | ) | (1 | ) | (114 | ) | — | 1,100 | |||||||||||||||
Loans charged off | — | (116 | ) | (361 | ) | — | — | (13 | ) | (1 | ) | — | — | (491 | ) | |||||||||||||||
Recoveries of loans charged off | — | 13 | 7 | — | — | 6 | — | — | 26 | |||||||||||||||||||||
Ending balance | $ | 1,025 | $ | 2,005 | $ | 3,049 | $ | 866 | $ | 288 | $ | 109 | $ | — | $ | 218 | $ | — | $ | 7,560 | ||||||||||
Individually evaluated for impairment | $ | — | $ | 68 | $ | 125 | $ | — | $ | 69 | $ | — | $ | — | $ | — | $ | — | $ | 262 | ||||||||||
Loans acquired with deteriorated credit quality | — | — | 64 | — | — | — | — | — | — | 64 | ||||||||||||||||||||
Collectively evaluated for impairment | 1,025 | 1,937 | 2,860 | 866 | 219 | 109 | — | 218 | — | 7,234 | ||||||||||||||||||||
Ending Balance | $ | 1,025 | $ | 2,005 | $ | 3,049 | $ | 866 | $ | 288 | $ | 109 | $ | — | $ | 218 | $ | — | $ | 7,560 | ||||||||||
Loans receivables: | ||||||||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 241 | $ | 1,359 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,600 | ||||||||||
Individually evaluated for impairment | 494 | 458 | 4,833 | — | 1,132 | 263 | — | — | — | 7,180 | ||||||||||||||||||||
Collectively evaluated for impairment | 93,251 | 98,578 | 201,058 | 216,572 | 39,612 | 22,811 | 233 | — | 1,226 | 673,341 | ||||||||||||||||||||
Ending Balance | $ | 93,745 | $ | 99,277 | $ | 207,250 | $ | 216,572 | $ | 40,744 | $ | 23,074 | $ | 233 | $ | — | $ | 1,226 | $ | 682,121 |
Allowance for Loan Losses as of and for the year ended December 31, 2014 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Mortgage | Residential | Loans to | Deferred | Total | |||||||||||||||||||||||
Construction | Business | Real Estate | Warehouse | Real Estate | Individuals | Other | Unallocated | Fees | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Beginning balance | $ | 1,205 | $ | 1,272 | $ | 3,022 | $ | 585 | $ | 165 | $ | 109 | $ | 2 | $ | 679 | $ | — | $ | 7,039 | ||||||||||
Provision charged to operations | 10 | 4,794 | 914 | 311 | 47 | 20 | 1 | (347 | ) | — | 5,750 | |||||||||||||||||||
Loans charged off | — | (4,324 | ) | (1,582 | ) | — | (15 | ) | — | (1 | ) | — | — | (5,922 | ) | |||||||||||||||
Recoveries of loans charged off | — | 19 | 39 | — | — | — | — | — | 58 | |||||||||||||||||||||
Ending balance | $ | 1,215 | $ | 1,761 | $ | 2,393 | $ | 896 | $ | 197 | $ | 129 | $ | 2 | $ | 332 | $ | — | $ | 6,925 | ||||||||||
Individually evaluated for impairment | $ | — | $ | 122 | $ | 593 | $ | — | $ | — | $ | 26 | $ | — | $ | — | $ | — | $ | 741 | ||||||||||
Collectively evaluated for impairment | 1,215 | 1,639 | 1,800 | 896 | 197 | 103 | 2 | 332 | — | 6,184 | ||||||||||||||||||||
Ending Balance | $ | 1,215 | $ | 1,761 | $ | 2,393 | $ | 896 | $ | 197 | $ | 129 | $ | 2 | $ | 332 | $ | — | $ | 6,925 | ||||||||||
Loans receivables: | ||||||||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 320 | $ | 1,705 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,025 | ||||||||||
Individually evaluated for impairment | 450 | 612 | 5,762 | — | 1,361 | 263 | — | — | — | 8,448 | ||||||||||||||||||||
Collectively evaluated for impairment | 95,177 | 109,839 | 190,744 | 179,172 | 45,085 | 22,893 | 199 | — | 715 | 643,824 | ||||||||||||||||||||
Ending Balance | $ | 95,627 | $ | 110,771 | $ | 198,211 | $ | 179,172 | $ | 46,446 | $ | 23,156 | $ | 199 | $ | — | $ | 715 | $ | 654,297 |
Impaired Loans Receivables (By Class) - December 31, 2015 | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Year to Date 2015 Average Recorded Investment | Year to Date 2015 Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
With no related allowance: | |||||||||||||||||||
Construction | $ | 494 | $ | 494 | — | $ | 477 | $ | 27 | ||||||||||
Commercial Business | 488 | 847 | — | 492 | 23 | ||||||||||||||
Commercial Real Estate | 2,417 | 2,683 | — | 2,998 | 94 | ||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | — | ||||||||||||||
Subtotal | 3,399 | 4,024 | — | 3,967 | 144 | ||||||||||||||
Residential Real Estate | 831 | 831 | — | 981 | — | ||||||||||||||
Consumer | |||||||||||||||||||
Loans to Individuals | 263 | 280 | — | 88 | — | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Subtotal | 263 | 280 | — | 88 | — | ||||||||||||||
Subtotal with no related allowance | 4,493 | 5,135 | — | 5,036 | 144 | ||||||||||||||
With an allowance: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Commercial Business | 211 | 237 | 68 | 307 | 5 | ||||||||||||||
Commercial Real Estate | 3,775 | 3,788 | 189 | 4,200 | 154 | ||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | — | ||||||||||||||
Subtotal | 3,986 | 4,025 | 257 | 4,507 | 159 | ||||||||||||||
Residential Real Estate | 301 | 316 | 69 | 100 | — | ||||||||||||||
Consumer | |||||||||||||||||||
Loans to Individuals | — | — | — | 175 | — | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Subtotal | — | — | — | 175 | — | ||||||||||||||
Subtotal with an allowance | 4,287 | 4,025 | 326 | 4,782 | 159 | ||||||||||||||
Total: | |||||||||||||||||||
Construction | 494 | 494 | — | 477 | 27 | ||||||||||||||
Commercial Business | 699 | 1,084 | 68 | 799 | 28 | ||||||||||||||
Commercial Real Estate | 6,192 | 6,471 | 189 | 7,198 | 248 | ||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | — | ||||||||||||||
Residential Real Estate | 1,132 | 1,147 | 69 | 1,081 | — | ||||||||||||||
Consumer | 263 | 280 | — | 263 | — | ||||||||||||||
Total | $ | 8,780 | $ | 9,476 | $ | 326 | $ | 9,818 | $ | 303 |
Impaired Loans Receivables (By Class) - December 31, 2014 | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Year to Date 2014 Average Recorded Investment | Year to Date 2014 Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
With no related allowance: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Construction | $ | 450 | $ | 450 | — | $ | 329 | $ | 18 | ||||||||||
Commercial Business | 558 | 1,145 | — | 586 | 20 | ||||||||||||||
Commercial Real Estate | 4,058 | 4,344 | — | 4,144 | 139 | ||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | — | ||||||||||||||
Subtotal | 5,066 | 5,939 | — | 5,059 | 177 | ||||||||||||||
Residential Real Estate | 1,361 | 1,376 | — | 1,410 | — | ||||||||||||||
Consumer | |||||||||||||||||||
Loans to Individuals | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Subtotal | — | — | — | — | — | ||||||||||||||
Subtotal with no related allowance | 6,427 | 7,315 | — | 6,469 | 177 | ||||||||||||||
With an allowance: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Commercial Business | 374 | 374 | 122 | 531 | 3 | ||||||||||||||
Commercial Real Estate | 3,409 | 3,409 | 593 | 3,439 | 214 | ||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | — | ||||||||||||||
Subtotal | 3,783 | 3,783 | 715 | 3,970 | 217 | ||||||||||||||
Residential Real Estate | — | — | — | — | — | ||||||||||||||
Consumer | |||||||||||||||||||
Loans to Individuals | 263 | 263 | 26 | 251 | — | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Subtotal | 263 | 263 | 26 | 251 | — | ||||||||||||||
Subtotal with an allowance | 4,046 | 4,046 | 741 | 6,404 | 217 | ||||||||||||||
Total: | |||||||||||||||||||
Construction | 450 | 450 | — | 329 | 18 | ||||||||||||||
Commercial Business | 932 | 1,519 | 122 | 1,117 | 23 | ||||||||||||||
Commercial Real Estate | 7,467 | 7,753 | 593 | 7,583 | 353 | ||||||||||||||
Mortgage Warehouse Lines | — | — | — | — | — | ||||||||||||||
Residential Real Estate | 1,361 | 1,376 | — | 1,410 | — | ||||||||||||||
Consumer | 263 | 263 | 26 | 251 | — | ||||||||||||||
Total | $ | 10,473 | $ | 11,361 | $ | 741 | $ | 10,690 | $ | 394 |
(Dollars in thousands) | |||||||
Purchased Loans with Evidence of Credit Deterioration | |||||||
12/31/2015 | 12/31/2014 | ||||||
Outstanding balance | $ | 1,964 | $ | 2,705 | |||
Carrying amount | $ | 1,600 | $ | 2,024 |
(Dollars in thousands) | |||||||
December 31, 2015 | December 31, 2014 | ||||||
Balance at beginning of year | $ | 135 | $ | — | |||
Acquisition of impaired loans | — | 241 | |||||
Accretion of discount | (62 | ) | (106 | ) | |||
Balance at end of year | $ | 73 | $ | 135 | |||
Non-accretable difference at end of year | $ | 215 | $ | 546 |
Periods ending December 31, | |||||
(Dollars in thousands) | |||||
2016 | $ | 30 | |||
2017 | 22 | ||||
2018 | 8 | ||||
Thereafter | 13 | ||||
Total | $ | 73 |
(Dollars in thousands) | December 31, | |||||||||
2015 | 2014 | |||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||
5 | $ | 1,008 | 1 | $ | 33 |
(Dollars in thousands) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||
Troubled Debt Restructurings: | ||||||||||
Commercial Real Estate | 1 | $ | 288 | $ | 288 |
(Dollars in thousands) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||
Troubled Debt Restructurings: | ||||||||||
Commercial Business | 3 | $ | 162 | $ | 162 |
(Dollars in thousands) | December 31, | ||||||
2015 | 2014 | ||||||
Balance, beginning of year | $ | 1,376 | $ | 1,587 | |||
Loans granted | 16 | 206 | |||||
Repayments of loans | (522 | ) | (417 | ) | |||
Balance, end of year | $ | 870 | $ | 1,376 |
December 31, | |||||||||
(Dollars in thousands) | Estimated Useful Lives | 2015 | 2014 | ||||||
Land | $ | 1,798 | $ | 1,798 | |||||
Building | 40 years | 8,083 | 8,281 | ||||||
Leasehold improvements | 3 - 10 years | 5,762 | 5,234 | ||||||
Furniture, fixtures and equipment | 3 – 15 years | 4,542 | 4,286 | ||||||
20,185 | 19,599 | ||||||||
Less: Accumulated depreciation | (9,076 | ) | (8,226 | ) | |||||
$ | 11,109 | $ | 11,373 |
(Dollars in thousands) | 2015 | 2014 | |||||
Balance, beginning of year | $ | 5,710 | $ | 2,136 | |||
Transfers into real estate owned | 2,357 | 3,995 | |||||
Transfers to other assets | — | (66 | ) | ||||
Sale of real estate owned | (6,027 | ) | (243 | ) | |||
Loss on sale of real estate owned | (692 | ) | — | ||||
Write-down of real estate owned | (382 | ) | (112 | ) | |||
Balance, end of year | $ | 966 | $ | 5,710 |
(Dollars in thousands) | 2015 | 2014 | |||||
Goodwill | $ | 11,853 | $ | 11,853 | |||
Core deposits intangible | 1,431 | 1,858 | |||||
Total | $ | 13,284 | $ | 13,711 |
(Dollars in thousands) | |||||
2016 | $ | 406 | |||
2017 | 384 | ||||
2018 | 305 | ||||
2019 | 110 | ||||
2020 | 88 | ||||
Thereafter | 138 | ||||
$ | 1,431 |
(Dollars in thousands) | 2015 | 2014 | |||||
Non-interest bearing | $ | 159,918 | $ | 162,281 | |||
Interest bearing | 284,547 | 297,679 | |||||
Savings | 196,324 | 190,817 | |||||
Certificates of deposit | 145,968 | 166,984 | |||||
$ | 786,757 | $ | 817,761 |
(Dollars in thousands) | |||||
Year | Amount | ||||
2016 | $ | 84,436 | |||
2017 | 35,448 | ||||
2018 | 16,392 | ||||
2019 | 3,611 | ||||
2020 | 6,081 | ||||
$ | 145,968 |
(Dollars in thousands) | 2015 | 2014 | |||||
Federal- | |||||||
Current | $ | 3,199 | $ | 894 | |||
Deferred | 8 | 18 | |||||
3,207 | 912 | ||||||
State- | |||||||
Current | 704 | 322 | |||||
Deferred | 151 | (161 | ) | ||||
855 | 161 | ||||||
$ | 4,062 | $ | 1,073 |
(Dollars in thousands) | 2015 | 2014 | |||||
Federal income tax | $ | 4,327 | $ | 1,846 | |||
Add (deduct) effect of: | |||||||
State income taxes net of federal income tax effect | 564 | 106 | |||||
Tax-exempt interest income | (724 | ) | (785 | ) | |||
Bank-owned life insurance | (203 | ) | (192 | ) | |||
Other items, net | 98 | 98 | |||||
Provision for income taxes | $ | 4,062 | $ | 1,073 |
(Dollars in thousands) | 2015 | 2014 | |||||
Deferred tax assets (liabilities): | |||||||
Write-downs and expenses of OREO | $ | — | $ | 145 | |||
Allowance for loan losses | 3,020 | 2,766 | |||||
Unrealized gain on securities available for sale | (113 | ) | (151 | ) | |||
Supplemental executive retirement plan liability | 2,060 | 2,003 | |||||
Other than temporary impairment loss | 170 | 170 | |||||
Depreciation | 482 | 367 | |||||
Nonaccrual interest | 231 | 227 | |||||
Pension liability | (75 | ) | (202 | ) | |||
Other | 324 | 500 | |||||
Acquisition accounting adjustments | 441 | 709 | |||||
Net deferred tax assets, included in other assets | $ | 6,540 | $ | 6,534 |
Year ended December 31, 2015: | |||||||||||
(Dollars in thousands) | Before-Tax Amount | Income Tax Effect | Net-of-Tax Amount | ||||||||
Unrealized holding (losses) gains on available for sale securities: | |||||||||||
Unrealized holding gains on available for sale securities | $ | 203 | $ | (113 | ) | $ | 90 | ||||
Reclassification adjustment for (gains)losses realized in income | — | — | — | ||||||||
Other comprehensive gain on securities available for sale | 203 | (113 | ) | 90 | |||||||
Unrealized impairment (loss) on held to maturity security: | |||||||||||
Unrealized impairment (loss) on held to maturity security | (501 | ) | 170 | (331 | ) | ||||||
Unfunded pension liability: | |||||||||||
Changes from plan actuarial gains and losses included in other comprehensive income | 452 | (181 | ) | 271 | |||||||
Reclassification adjustment for (gains) realized in income | (266 | ) | 106 | (160 | ) | ||||||
Other comprehensive gain from plan actuarial gains | 186 | (75 | ) | 111 | |||||||
Accumulated other comprehensive (loss) | $ | (112 | ) | $ | (18 | ) | $ | (130 | ) | ||
Year ended December 31, 2014: | |||||||||||
(Dollars in thousands) | Before-Tax Amount | Income Tax Effect | Net-of-Tax Amount | ||||||||
Unrealized holding (losses) gains on available for sale securities: | |||||||||||
Unrealized holding gains on available for sale securities | $ | 426 | $ | (151 | ) | $ | 275 | ||||
Reclassification adjustment for loss realized in income | 1 | — | 1 | ||||||||
Other comprehensive gain on securities available for sale | 427 | (151 | ) | 276 | |||||||
Unrealized impairment (loss) on held to maturity security: | |||||||||||
Unrealized impairment (loss) on held to maturity security | (501 | ) | 170 | (331 | ) | ||||||
Unfunded pension liability: | |||||||||||
Changes from plan actuarial gains and losses included in other comprehensive income | 515 | (206 | ) | 309 | |||||||
Reclassification adjustment for (gains) realized in income | (10 | ) | 4 | (6 | ) | ||||||
Other comprehensive gain from plan actuarial gains | 505 | (202 | ) | 303 | |||||||
Accumulated other comprehensive income | $ | 431 | $ | (183 | ) | $ | 248 |
(Dollars in thousands) | Unrealized Holding (Losses) Gains on Available for Sale Securities | Unrealized Impairment Loss On Held to Maturity Security | Unfunded Pension Liability | Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance, January 1, 2014 | $ | (1,933 | ) | $ | (331 | ) | $ | 16 | $ | (2,248 | ) | ||||
Other comprehensive income (loss) before reclassifications | 2,208 | — | 293 | 2,501 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | — | (6 | ) | (5 | ) | |||||||||
Other comprehensive income (loss) | 2,209 | — | 287 | 2,496 | |||||||||||
Balance, December 31, 2014 | 276 | (331 | ) | 303 | 248 | ||||||||||
Other comprehensive income (loss) before reclassifications | (186 | ) | — | (32 | ) | (218 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | (160 | ) | (160 | ) | |||||||||
Other comprehensive (loss) | (186 | ) | — | (192 | ) | (378 | ) | ||||||||
Balance, December 31, 2015 | $ | 90 | $ | (331 | ) | $ | 111 | $ | (130 | ) |
(Dollars in thousands) | 2015 | 2014 | |||||
Change in Benefit Obligation | |||||||
Beginning January 1 | $ | 4,511 | $ | 4,538 | |||
Service cost | 267 | 262 | |||||
Interest cost | 183 | 199 | |||||
Actuarial (gain) loss | 53 | (488 | ) | ||||
Benefits paid | (43 | ) | — | ||||
Ending December 31 | $ | 4,971 | $ | 4,511 | |||
Amount Recognized in Consolidated Balance Sheets | |||||||
Liability for pension | $ | 4,971 | $ | 4,511 | |||
Net actuarial gain included in accumulated other comprehensive income | 186 | 505 | |||||
Prior service cost included in accumulated other comprehensive income | — | — | |||||
Net recognized pension liability | $ | 5,157 | $ | 5,016 | |||
Information for pension plans with an accumulated benefit obligation in excess of plan assets | |||||||
Projected benefit obligation | $ | 4,971 | $ | 4,511 | |||
Accumulated benefit obligation | 4,699 | 4,092 |
Components of Net Periodic Benefit Cost | 2015 | 2014 | |||||
Service cost | $ | 267 | $ | 262 | |||
Interest cost | 183 | 199 | |||||
Amortization of prior service cost | — | — | |||||
Recognized net actuarial gain | (266 | ) | (10 | ) | |||
Net periodic benefit expense | $ | 184 | $ | 451 |
Weighted-Average Assumptions, December 31 | 2015 | 2014 | |||
Discount Rate | 4.0 | % | 4.9 | % | |
Salary Scale | 4.0 | % | 4.0 | % |
Projected Annual Benefit Payments* | |||||
(Dollars in thousands) | 2016 | $ | 1,368 | ||
2017 | $ | 4,245 | |||
2018 | $ | — | |||
2019 | $ | — | |||
2020 | $ | — | |||
2021-2025 | $ | — |
Stock Options | Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2014 | 259,747 | $ | 7.99 | ||||||||||
Granted | 12,899 | 10.00 | |||||||||||
Exercised | — | — | |||||||||||
Forfeited | (8,711 | ) | 11.62 | ||||||||||
Expired | (17,055 | ) | 10.44 | ||||||||||
Outstanding at December 31, 2014 | 246,880 | 7.80 | 5.3 | $ | 607,000 | ||||||||
Granted | 13,892 | 10.10 | |||||||||||
Exercised | (43,639 | ) | 6.68 | ||||||||||
Forfeited | (27,788 | ) | 10.55 | ||||||||||
Expired | (11,751 | ) | 11.89 | ||||||||||
Outstanding at December 31, 2015 | 177,594 | $ | 7.41 | 5.2 | $ | 861,000 | |||||||
Exercisable at December 31, 2015 | 143,942 | $ | 8.80 | 4.7 | $ | 707,000 |
Outstanding Options | Exercisable Options | ||||||||||||||||
Exercise Price Range | Number | Average Life in Years | Average Exercise Price | Number | Average Life in Years | Average Exercise Price | |||||||||||
$5.92 to $6.21 | 59,845 | 5.8 | $ | 5.59 | 47,876 | 5.8 | $ | 6.15 | |||||||||
$6.79 to $10.75 | 84,801 | 4.9 | $ | 7.37 | 75,024 | 4.6 | $ | 8.05 | |||||||||
$11.51 to $13.77 | 32,948 | 4.9 | $ | 10.85 | 21,042 | 2.8 | $ | 12.95 | |||||||||
177,594 | 5.2 | $ | 7.41 | 143,942 | 4.7 | $ | 8.80 |
2015 | 2014 | ||||||
Fair value of options granted | $ | 3.86 | $ | 4.75 | |||
Risk-free rate of return | 1.99 | % | 1.65 | % | |||
Expected option life in years | 7 | 7 | |||||
Expected volatility | 30.66 | % | 38.01 | % | |||
Expected dividends (1) | — | — |
Non-vested Shares | Number of Shares | Average Grant-Date Fair Value | |||||
January 1, 2014 | 150,480 | $ | 5.98 | ||||
Granted | 70,450 | 10.17 | |||||
Vested | (72,296 | ) | 7.01 | ||||
Forfeited | — | — | |||||
Non-vested at December 31, 2014 | 148,634 | 7.16 | |||||
Granted | 70,515 | 10.66 | |||||
Vested | (60,930 | ) | 8.99 | ||||
Forfeited | (14,340 | ) | 8.61 | ||||
Non-vested at December 31, 2015 | 143,879 | $ | 8.32 |
(Dollars in thousands) | 2016 | $ | 1,255 | ||
2017 | 1,074 | ||||
2018 | 901 | ||||
2019 | 713 | ||||
2020 | 508 | ||||
Thereafter | 2,050 | ||||
$ | 6,501 |
(Dollars in thousands) | 2015 | 2014 | |||||
Marketing | $ | 282 | $ | 197 | |||
Equipment | 839 | 870 | |||||
Telephone | 449 | 422 | |||||
Regulatory, professional and other consulting fees | 1,681 | 1,360 | |||||
Amortization of intangible assets | 428 | 456 | |||||
Other expenses | 1,970 | 1,814 | |||||
$ | 5,649 | $ | 5,119 |
To Be Well Capitalized Under Prompt | ||||||||||||||||||
For Capital | Corrective | |||||||||||||||||
(Dollars in thousands) | Actual | Adequacy Purposes | Action Provisions | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
As of December 31, 2015 | ||||||||||||||||||
Company | ||||||||||||||||||
Common equity Tier 1 (CET1) | $ | 83,994 | 10.03 | % | $ | 37,628 | >4.5% | N/A | N/A | |||||||||
Total Capital to Risk Weighted Assets | $ | 109,554 | 13.08 | % | $ | 66,894 | >8% | N/A | N/A | |||||||||
Tier I Capital to Risk Weighted Assets | 101,994 | 12.18 | % | 50,170 | >6% | N/A | N/A | |||||||||||
Tier I Capital to Average Assets | 101,994 | 10.80 | % | 37,765 | >4% | N/A | N/A | |||||||||||
Bank | ||||||||||||||||||
Common equity Tier 1 (CET1) | $ | 99,631 | 11.90 | % | $ | 37,628 | >4.5% | $ | 54,431 | ≥6.5% | ||||||||
Total Capital to Risk Weighted Assets | $ | 107,191 | 12.80 | % | $ | 66,894 | >8% | $ | 83,739 | ≥10% | ||||||||
Tier I Capital to Risk Weighted Assets | 99,631 | 11.90 | % | 50,170 | >6% | 66,991 | ≥8% | |||||||||||
Tier I Capital to Average Assets (Leverage) | 99,631 | 10.55 | % | 37,765 | >4% | 47,211 | >5% | |||||||||||
As of December 31, 2014 | ||||||||||||||||||
Company | ||||||||||||||||||
Total Capital to Risk Weighted Assets | $ | 98,309 | 12.28 | % | $ | 64,045 | >8% | N/A | N/A | |||||||||
Tier I Capital to Risk Weighted Assets | 91,384 | 11.41 | % | 32,023 | >4% | N/A | N/A | |||||||||||
Tier I Capital to Average Assets | 91,384 | 9.53 | % | 38,348 | >4% | N/A | N/A | |||||||||||
Bank | ||||||||||||||||||
Total Capital to Risk Weighted Assets | $ | 96,048 | 12.00 | % | $ | 64,045 | >8% | $ | 80,056 | >10% | ||||||||
Tier I Capital to Risk Weighted Assets | 89,123 | 11.13 | % | 32,023 | >4% | 48,034 | >6% | |||||||||||
Tier I Capital to Average Assets (Leverage) | 89,123 | 9.30 | % | 38,348 | >4% | 47,935 | >5% |
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 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). |
(Dollars in thousands) | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Fair Value | |||||||||||
December 31, 2015: | |||||||||||||||
Securities available for sale: | |||||||||||||||
U.S. Treasury Securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies | $ | — | $ | 5,481 | $ | — | $ | 5,481 | |||||||
Residential collateralized mortgage obligations - GSE | — | 8,287 | — | 8,287 | |||||||||||
Residential mortgage backed securities-GSE | — | 32,635 | — | 32,635 | |||||||||||
Obligations of state and political subdivisions | — | 21,436 | — | 21,436 | |||||||||||
Trust preferred debt securities - single issuer | — | 2,136 | — | 2,136 | |||||||||||
Corporate debt securities | 14,043 | 6,379 | — | 20,422 | |||||||||||
Other debt securities | — | 971 | 54 | 1,025 | |||||||||||
Restricted stock | — | 3,302 | — | 3,302 | |||||||||||
Total | $ | 14,043 | 80,627 | 54 | 94,724 | ||||||||||
December 31, 2014: | |||||||||||||||
Securities available for sale: | |||||||||||||||
U.S. Treasury Securities and obligations of U.S Government sponsored corporations (“GSE”) and agencies | $ | — | $ | 1,524 | $ | — | $ | 1,524 | |||||||
Residential collateralized mortgage obligations - GSE | — | 4,533 | — | 4,533 | |||||||||||
Residential mortgage backed securities – GSE | — | 27,771 | — | 27,771 | |||||||||||
Obligations of state and political subdivisions | — | 21,703 | — | 21,703 | |||||||||||
Trust preferred debt securities - single issuer | — | 2,069 | — | 2,069 | |||||||||||
Corporate debt securities | — | 19,521 | — | 19,521 | |||||||||||
Other debt securities | — | 1,194 | 86 | 1,280 | |||||||||||
Restricted stock | — | 1,760 | — | 1,760 | |||||||||||
Total | $ | — | 80,075 | 86 | 80,161 |
(Dollars in thousands) | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Fair Value | |||||||||
December 31, 2015: | |||||||||||||
Impaired loans | — | — | $ | 3,960 | $ | 3,960 | |||||||
Other real estate owned | — | — | 966 | 966 | |||||||||
December 31, 2014: | |||||||||||||
Impaired loans | — | — | $ | 3,883 | $ | 3,883 | |||||||
Other real estate owned | — | — | 5,710 | 5,710 |
(Dollars in thousands) | Quantitative Information about Level 3 Fair Value Measurements | ||||||||
Fair Value Estimate | Valuation Techniques | Unobservable Input | Range (Weighted Average) | ||||||
December 31, 2015 | |||||||||
Impaired loans | $ | 3,960 | Appraisal of collateral (1) | Appraisal adjustments (2) | 11%-44% (29.6%) | ||||
Other real estate owned | $ | 966 | Appraisal of collateral (1) | Appraisal adjustments (2) | 11% | ||||
December 31, 2014 | |||||||||
Impaired loans | $ | 3,883 | Appraisal of collateral (1) | Appraisal adjustments (2) | 8%-17% (10.66%) | ||||
Other real estate owned | $ | 5,710 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0-39% (25.1%) |
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs that are not identifiable. |
(2) | Includes qualitative adjustments by management and estimated liquidation expenses. |
December 31, 2015 | |||||||||||||||||
(Dollars in thousands) | Carrying Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Fair Value | ||||||||||||
Cash and cash equivalents | $ | 11,368 | $ | 11,368 | — | — | $ | 11,368 | |||||||||
Securities available for sale | 94,724 | 14,043 | 80,627 | 54 | 94,724 | ||||||||||||
Securities held to maturity | 123,261 | — | 127,157 | — | 127,157 | ||||||||||||
Loans held for sale | 5,997 | — | 6,115 | — | 6,115 | ||||||||||||
Loans, net | 674,561 | — | — | 688,279 | 688,279 | ||||||||||||
Accrued interest receivable | 2,853 | — | 2,853 | — | 2,853 | ||||||||||||
Deposits | (786,757 | ) | — | (786,594 | ) | — | (786,594 | ) | |||||||||
Borrowings | (58,896 | ) | — | (59,347 | ) | — | (59,347 | ) | |||||||||
Redeemable subordinated debentures | (18,557 | ) | — | (18,557 | ) | — | (18,557 | ) | |||||||||
Accrued interest payable | (846 | ) | — | (846 | ) | — | (846 | ) |
December 31, 2014 | |||||||||||||||||
(Dollars in thousands) | Carrying Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Fair Value | ||||||||||||
Cash and cash equivalents | $ | 14,545 | $ | 14,545 | — | — | $ | 14,545 | |||||||||
Securities available for sale | 80,161 | — | 80,075 | 86 | 80,161 | ||||||||||||
Securities held to maturity | 143,638 | — | 148,476 | — | 148,476 | ||||||||||||
Loans held for sale | 8,372 | — | 8,500 | — | 8,500 | ||||||||||||
Loans, net | 647,372 | — | — | 656,153 | 656,153 | ||||||||||||
Accrued interest receivable | 3,096 | — | 3,096 | — | 3,096 | ||||||||||||
Deposits | (817,761 | ) | — | (818,265 | ) | — | (818,265 | ) | |||||||||
Borrowings | (25,107 | ) | — | (25,838 | ) | — | (25,838 | ) | |||||||||
Redeemable subordinated debentures | (18,557 | ) | — | (18,557 | ) | — | (18,557 | ) | |||||||||
Accrued interest payable | (907 | ) | — | (907 | ) | — | (907 | ) |
December 31, 2015 | December 31, 2014 | ||||||
Assets: | |||||||
Cash | $ | 77 | $ | 66 | |||
Investment securities available for sale, at fair value | 557 | 557 | |||||
Investment in subsidiaries | 111,597 | 102,848 | |||||
Other assets | 2,286 | 2,196 | |||||
Total Assets | $ | 114,517 | $ | 105,667 | |||
Liabilities And Shareholders’ Equity | |||||||
Subordinated debentures | $ | 18,557 | $ | 18,557 | |||
Shareholders’ equity | 95,960 | 87,110 | |||||
Total Liabilities and Shareholders’ Equity | $ | 114,517 | $ | 105,667 |
Year ended December 31, | |||||||
2015 | 2014 | ||||||
Income: | |||||||
Interest | $ | 11 | $ | 11 | |||
Total Income | 11 | 11 | |||||
Expense: | |||||||
Interest | 366 | 355 | |||||
Total Expense | 366 | 355 | |||||
Loss before income taxes and equity in undistributed income of subsidiaries | (354 | ) | (344 | ) | |||
Federal income tax benefit | (121 | ) | (117 | ) | |||
Loss before equity in undistributed income of subsidiaries | (233 | ) | (227 | ) | |||
Equity in undistributed income of subsidiaries | 8,897 | 4,583 | |||||
Net Income | 8,664 | 4,356 | |||||
Equity in other comprehensive (loss) income of subsidiaries | (378 | ) | 2,496 | ||||
Comprehensive Income | $ | 8,286 | $ | 6,852 |
Year ended December 31, | |||||||
2015 | 2014 | ||||||
Operating Activities: | |||||||
Net Income | $ | 8,664 | $ | 4,356 | |||
Adjustments: | |||||||
(Increase) decrease in other assets | (92 | ) | 27 | ||||
Equity in undistributed income of subsidiaries | (8,897 | ) | (4,583 | ) | |||
Net cash used in operating activities | (325 | ) | (200 | ) | |||
Cash Flows From Investing Activities: | |||||||
Investment in subsidiary | (186 | ) | (460 | ) | |||
Net cash used in investing activities | (186 | ) | (460 | ) | |||
Cash Flows From Financing Activities: | |||||||
Issuance of common stock, net | 550 | 815 | |||||
Purchase of treasury stock, net | (28 | ) | (144 | ) | |||
Net cash provided by financing activities | 522 | 671 | |||||
Net increase in cash | 11 | 11 | |||||
Cash at beginning of year | 66 | 55 | |||||
Cash at end of year | $ | 77 | $ | 66 |
(Dollars in thousands, except per share data) | 2015 | ||||||||||||||
Dec. 31 | Sept. 30 | June 30 | March 31 | ||||||||||||
Summary of Operations | |||||||||||||||
Interest income | $ | 9,861 | $ | 10,832 | $ | 10,565 | $ | 9,687 | |||||||
Interest expense | 1,170 | 1,169 | 1,153 | 1,144 | |||||||||||
Net interest income | 8,691 | 9,663 | 9,412 | 8,543 | |||||||||||
Provision for loan losses | 500 | 100 | — | 500 | |||||||||||
Net interest income after provision | |||||||||||||||
for loan losses | 8,191 | 9,563 | 9,412 | 8,043 | |||||||||||
Non-interest income | 1,620 | 1,427 | 1,988 | 2,237 | |||||||||||
Non-interest expense | 7,437 | 7,380 | 7,973 | 6,965 | |||||||||||
Income before income taxes | 2,374 | 3,610 | 3,427 | 3,315 | |||||||||||
Income taxes | 747 | 1,148 | 1,112 | 1,055 | |||||||||||
Net income | $ | 1,627 | $ | 2,462 | $ | 2,315 | $ | 2,260 | |||||||
Net income per common share (1): | |||||||||||||||
Basic | $ | 0.21 | $ | 0.31 | $ | 0.30 | $ | 0.29 | |||||||
Diluted | $ | 0.20 | $ | 0.30 | $ | 0.29 | $ | 0.28 |
(1) | The sum of quarterly income per basic and diluted common share does not equal net income per basic and diluted common share for the year ended December 31, 2015 due to differences in the computation of weighted average basic and diluted common shares on a quarterly and annual basis. |
(Dollars in thousands, except per share data) | 2014 | ||||||||||||||
Dec. 31 | Sept. 30 | June 30 | March 31 | ||||||||||||
Summary of Operations | |||||||||||||||
Interest income | $ | 9,668 | $ | 10,133 | $ | 9,564 | $ | 7,996 | |||||||
Interest expense | 1,187 | 1,186 | 1,186 | 1,099 | |||||||||||
Net interest income | 8,481 | 8,947 | 8,378 | 6,897 | |||||||||||
Provision for loan losses | 500 | 650 | 4,100 | 500 | |||||||||||
Net interest income after provision | |||||||||||||||
For loan losses | 7,981 | 8,297 | 4,278 | 6,397 | |||||||||||
Non-interest income | 1,670 | 1,916 | 1,413 | 1,815 | |||||||||||
Non-interest expense | 6,797 | 7,158 | 6,859 | 7,524 | |||||||||||
Income before income taxes | 2,854 | 3,055 | (1,168 | ) | 688 | ||||||||||
Income taxes | 838 | 917 | (728 | ) | 46 | ||||||||||
Net income (loss) | $ | 2,016 | $ | 2,138 | $ | (440 | ) | $ | 642 | ||||||
Net income (loss) per common share : | |||||||||||||||
Basic | $ | 0.26 | $ | 0.27 | $ | (0.06 | ) | $ | 0.09 | ||||||
Diluted | $ | 0.25 | $ | 0.27 | $ | (0.06 | ) | $ | 0.09 |
1st CONSTITUTION BANCORP | |||
Date: March 22, 2016 | By: | /s/ ROBERT F. MANGANO | |
Robert F. Mangano | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) |
Signature | Capacity | Date | ||
/s/ ROBERT F. MANGANO | President, Chief Executive Officer and Director | March 22, 2016 | ||
Robert F. Mangano | (Principal Executive Officer) | |||
/s/ CHARLES S. CROW, III | Chairman of the Board | March 22, 2016 | ||
Charles S. Crow, III /s/ WILLIAM M. RUE | Director | March 22, 2016 | ||
William M. Rue /s/ FRANK E. WALSH, III | Director | March 22, 2016 | ||
Frank E. Walsh, III /s/ JOHN P. COSTAS | Director | March 22, 2016 | ||
John P. Costas /s/ STEPHEN J. GILHOOLY | Senior Vice President, Treasurer and Chief Financial Officer | March 22, 2016 | ||
Stephen J. Gilhooly | (Principal Financial Officer) |
Exhibit No. | Description | ||
3 | (i)(A) | Certificate of Incorporation of the Company (conformed copy) (incorporated by reference to Exhibit 3(i)(A) to the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on March 27, 2009) | |
3 | (i)(B) | Certificate of Amendment to the Certificate of Incorporation increasing the number of shares designated as Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on December 23, 2008) | |
3 | (i)(C) | Certificate of Amendment to the Certificate of Incorporation establishing the terms of the Fixed Rate Cumulative Perpetual Preferred Stock, Series B (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on December 23, 2008) | |
3 | (ii)(A) | By-laws, as amended, of the Company (conformed copy) (incorporated by reference to Exhibit 3(ii)(A) to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on October 22, 2007) | |
4.1 | Specimen Share of Common Stock (incorporated by reference to Exhibit 4.1 to the Company’s Form 10-KSB (SEC File No. 000-32891) filed with the SEC on March 22, 2002) | ||
4.2 | Warrant, dated November 23, 2011, to purchase shares of the Company’s common stock (incorporated by reference to Exhibit 4.5 to the Company’s Form 10-K filed with the SEC on March 22, 2013) | ||
4.3 | Warrant, dated November 23, 2011, to purchase shares of the Company’s common stock (incorporated by reference to Exhibit 4.6 to the Company’s Form 10-K filed with the SEC on March 22, 2013) | ||
10.1 | # | 1st Constitution Bancorp Supplemental Executive Retirement Plan, dated as of October 1, 2002 (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on November 13, 2002) | |
10.2 | # | Amended and Restated 1st Constitution Bancorp Directors’ Insurance Plan, effective as of June 16, 2005 (incorporated by reference to Exhibit No. 10 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on March 24, 2006) | |
10.3 | # | 1st Constitution Bancorp Form of Executive Life Insurance Agreement (incorporated by reference to Exhibit 10.4 to the Company’s Form 10-QSB (SEC File No. 000-32891) filed with the SEC on November 13, 2002) | |
10.4 | # | Amendment No. 1 to 1st Constitution Bancorp Supplemental Executive Retirement Plan, effective January 1, 2004 (incorporated by reference to Exhibit 10.12 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 11, 2004) | |
10.5 | # | The 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Appendix A of the Company's proxy statement (SEC File No. 000-32891) filed with the SEC on April 15, 2005) | |
10.6 | # | Form of Restricted Stock Agreement under the 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.18 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 8, 2005) | |
10.7 | # | Form of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.19 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 8, 2005) | |
10.8 | # | Form of Incentive Stock Option Agreement under the 1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.20 to the Company’s Form 10-Q (SEC File No. 000-32891) filed with the SEC on August 8, 2005) | |
10.9 | Amended and Restated Declaration of Trust of 1st Constitution Capital Trust II, dated as of June 15, 2006, among 1st Constitution Bancorp, as sponsor, the Delaware and institutional trustee named therein, and the administrators named therein (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on June 16, 2006) |
10.10 | Indenture, dated as of June 15, 2006, between 1st Constitution Bancorp, as issuer, and the trustee named therein, relating to the Floating Rate Junior Subordinated Debt Securities due 2036 (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on June 16, 2006) | ||
10.11 | Guarantee Agreement, dated as of June 15, 2006, between 1st Constitution Bancorp and the guarantee trustee named therein (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on June 16, 2006) | ||
10.12 | # | Amendment No. 2 to 1st Constitution Bancorp Supplemental Executive Retirement Plan, effective as of December 31, 2004 (incorporated by reference to Exhibit 10.24 to the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on April 15, 2008) | |
10.13 | # | 1st Constitution Bancorp 2005 Supplemental Executive Retirement Plan, effective as of January 1, 2005 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on December 28, 2006) | |
10.14 | # | Amended and Restated Employment Agreement between the Company and Robert F. Mangano dated as of July 1, 2010 (incorporated by reference to Exhibit 10 to the Company’s Form 8-K (SEC File No. 000-32891) filed with the SEC on July 14, 2010) | |
10.15 | # | 1st Constitution Bancorp 2013 Equity Incentive Plan (incorporated by reference to the Company's proxy statement filed with the SEC on April 11, 2013) | |
10.16 | #* | Form of Restricted Stock Agreement under the 1st Constitution Bancorp 2013 Equity Incentive Plan | |
10.17 | #* | Form of Incentive Stock Option Agreement under the 1st Constitution Bancorp 2013 Equity Incentive Plan | |
10.18 | Agreement and Plan of Merger, dated as of August 14, 2013, by and between the Company, 1st Constitution Bank and Rumson-Fair Haven Bank & Trust Company (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed with the SEC on August 15, 2013) | ||
10.19 | First Amendment to Agreement and Plan of Merger, dated September 19, 2013, by and among the Company, 1st Constitution Bank and Rumson-Fair Haven Bank & Trust Company (incorporated by reference to Exhibit 2.2 to the Company’s Form 10-Q filed with the SEC on November 12, 2013) | ||
10.20 | # | Letter Agreement, dated January 31, 2014, between 1st Constitution Bank and Stephen J. Gilhooly (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on April 1, 2014) | |
10.21 | # | Amendment to the Amended and Restated Employment Agreement, dated April 4, 2014, between 1st Constitution Bancorp and Robert F. Mangano (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on April 8, 2014) | |
10.22 | # | 1st Constitution Bancorp 2015 Directors Stock Plan (incorporated by reference to Appendix A to the Company's proxy statement on Schedule 14A for it annual meeting of shareholders held on May 21, 2015 (SEC File No. 000-32891) filed with the SEC on April 14, 2015) | |
21 | * | Subsidiaries of the Company | |
23.1 | * | Consent of BDO USA, LLP as Independent Registered Public Accounting Firm | |
31.1 | * | Certification of the principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a) | |
31.2 | * | Certification of the principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a) | |
32 | * | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by the principal executive officer and the principal financial officer of the Company | |
101.INS | * | XBRL Instance Document |
101.SCH | * | XBRL Taxonomy Extension Schema Document | |
101.CAL | * | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | * | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | * | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | * | XBRL Taxonomy Extension Presentation Linkbase Document | |
_____ | by surrender of shares of the Company’s common stock with a value of $_____ represented by certificate number_____, duly endorsed for transfer to the Company with signature guaranteed, which may be (i) shares which were received by me upon exercise of one or more incentive stock options, but only if such shares had been held by me for a least the greater of (A) two years from the date the incentive stock options were granted or (B) one year after the transfer of shares to me, (ii) shares which were received by me upon exercise of one or more nonqualified stock options, but only if such shares had been held by me for at least six months, or (iii) shares which were received by me upon the vesting of one or more shares of restricted stock of the Company, but only if and to the extent that such shares had been held by me for at least six months after vesting. |
Name of Subsidiary | Other Names Under Which Subsidiary Conducts Business | State or Other Jurisdiction of Incorporation or Organization | ||
1st Constitution Bank | N/A | New Jersey | ||
1st Constitution Capital Trust II | N/A | Delaware | ||
1st Constitution Investment Company of New Jersey, Inc. | N/A | New Jersey | ||
FCB Assets Holdings, Inc. | N/A | New Jersey | ||
204 South Newman Street Corp. | N/A | New Jersey | ||
249 New York Avenue LLC | N/A | New Jersey | ||
1. | I have reviewed this annual report on Form 10-K of 1st Constitution Bancorp; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
1. | I have reviewed this annual report on Form 10-K of 1st Constitution Bancorp; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Document and Entity Information - USD ($) |
12 Months Ended | ||
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Dec. 31, 2015 |
Feb. 29, 2016 |
Jun. 30, 2015 |
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | 1ST CONSTITUTION BANCORP | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 7,954,314 | ||
Entity Public Float | $ 70,104,546 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001141807 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-Known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in Dollars) | $ 127,157 | $ 148,476 |
Preferred stock, par value (in Dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 7,575,492 | 7,165,084 |
Common stock, shares outstanding | 7,545,684 | 7,134,174 |
Treasury stock shares | 29,808 | 30,910 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||||||||
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Dec. 31, 2015 |
Dec. 31, 2014 |
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Statement of Comprehensive Income [Abstract] | |||||||||
Net income | $ 8,664 | $ 4,356 | |||||||
Other comprehensive (loss) income, net of tax | |||||||||
Unrealized (losses) gains on securities available for sale | (224) | 3,418 | |||||||
Tax effect | 38 | (1,210) | |||||||
Net of tax amount | (186) | 2,208 | |||||||
Reclassification adjustment for realized loss included in income | [1] | 0 | 1 | ||||||
Tax effect | [2] | 0 | 0 | ||||||
Net of tax amount | 0 | 1 | |||||||
Pension liability | (53) | 488 | |||||||
Tax effect | 21 | (195) | |||||||
Net of tax amount | (32) | 293 | |||||||
Reclassification adjustment for actuarial gains included in income | [3] | (266) | (10) | ||||||
Tax effect | [2] | 106 | 4 | ||||||
Net of tax amount | (160) | (6) | |||||||
Total other comprehensive (loss) income | (378) | 2,496 | |||||||
Comprehensive income | $ 8,286 | $ 6,852 | |||||||
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Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Feb. 28, 2015 |
|
Dividend declared percentage | 5.00% | 5.00% | |
Stock dividends declared (shares) | 737,448 | ||
Common Stock [Member] | |||
Acquisition of Rumson Fair Haven Bank and Trust Company (shares) | 1,019,223 | ||
Treasury Stock [Member] | |||
Treasury stock purchased (shares) | 31,050 | 14,072 | |
Number of shares issued from Treasury stock | 33,800 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 1st Constitution Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended, and was organized under the laws of the State of New Jersey. The Company is parent to 1st Constitution Bank (the “Bank”), a state chartered commercial bank. The Bank provides community banking services to a broad range of customers, including corporations, individuals, partnerships and other community organizations in the central and northeastern New Jersey areas. The Bank conducts its operations through its main office located in Cranbury, New Jersey and operated, as of December 31, 2015, eighteen additional branch offices in downtown Cranbury, Fort Lee, Hamilton Square, Hightstown, Hillsborough, Hopewell, Jamesburg, Lawrenceville, Perth Amboy, Plainsboro, Skillman, West Windsor, Princeton, Rumson, Fair Haven, Asbury Park, Shrewsbury and Little Silver, New Jersey. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2015 for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through the date these financial statements were issued. The Company paid a 5% common stock dividend on April 7, 2015 and declared a 5% common stock dividend on December 18, 2015 that was paid on February 1, 2016. As appropriate, common shares and per common share data presented in the consolidated financial statements and the accompanying notes below have been adjusted to reflect the common stock dividends. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the accepted practices within the banking industry. The following is a description of the more significant of these policies and practices. Principles of Consolidation The accompanying consolidated financial statements include the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 1st Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street Corp. and 249 New York Avenue, LLC. 1st Constitution Capital Trust II, a subsidiary of the Company (“Trust II”), is not included in the Company’s consolidated financial statements as it is a variable interest entity and the Company is not the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation and certain prior period amounts have been reclassified to conform to current year presentation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary security impairment, the fair value of other real estate owned, the valuation of deferred tax assets and the fair value of acquired assets and liabilities. Concentration of Credit Risk Financial instruments which potentially subject the Company and its subsidiaries to concentrations of credit risk primarily consist of investment securities and loans. At December 31, 2015, 49.4% of our investment securities portfolio consisted of U.S. Government and Agency issues and collateralized mortgage obligations collateralized by agency mortgage backed securities. In addition, 37.9% of the portfolio consists of municipal bonds. The remaining 12.7% of our investment securities consisted primarily of corporate debt issues and restricted stock of the Federal Home Loan Bank ("FHLB") of New York. The Bank’s lending activity is primarily concentrated in loans collateralized by real estate located in the State of New Jersey. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in that state. Interest Rate Risk The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to purchase investment securities and to make loans, the majority of which are secured by real estate. The potential for interest-rate risk exists as a result of the generally shorter duration of interest-sensitive assets compared to the generally longer duration of interest-sensitive liabilities. In a changing interest rate environment, assets held by the Bank will re-price faster than liabilities of the Bank, thereby affecting net interest income. For this reason, management regularly monitors the maturity structure and rate adjustment features of the Bank’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. Investment Securities Investment Securities which the Company has the intent and ability to hold until maturity are classified as held to maturity and are recorded at cost, adjusted for amortization of premiums and accretion of discounts. Investment Securities which are held for indefinite periods of time, which management intends to use as part of its asset/liability management strategy, or that may be sold in response to changes in interest rates, changes in prepayment risk, increased capital requirements or other similar factors, are classified as available for sale and are carried at fair value, except for restricted stock of the FHLB of New York which is carried at cost. Unrealized gains and losses on such securities are recorded as a separate component of shareholders’ equity. Realized gains and losses, which are computed using the specific identification method, are recognized on a trade date basis. If the fair value of a security is less than its amortized cost, the security is deemed to be impaired. Management evaluates all securities with unrealized losses quarterly to determine if such impairments are temporary or other-than-temporary in accordance with the Accounting Standards Codification (“ASC”) of the Financial Accounting Standards Board (“FASB”). Temporary impairments on available for sale securities are recognized, on a tax-effected basis, through other comprehensive income (“OCI”) with offsetting adjustments to the carrying value of the security and the balance of related deferred taxes. Temporary impairments of held to maturity securities are not recorded in the consolidated financial statements; however, information concerning the amount and duration of impairments on held to maturity securities is disclosed. Other-than-temporary impairments ("OTTI") on all equity securities and on debt securities that the Company has decided to sell, or will, more likely than not, be required to sell prior to the full recovery of fair value to a level equal to or exceeding amortized cost, are recognized in earnings. If neither of these conditions regarding the likelihood of sale for a debt security apply, the OTTI is bifurcated into credit-related and noncredit-related components. Credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on a debt security fall below its amortized cost. The noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related OTTI in earnings. Noncredit-related OTTI on debt securities are recognized in OCI. For held to maturity debt securities, the amount of any OTTI recorded in OCI is amortized prospectively over the remaining lives of the securities based on the timing of future estimated cash flows related to those securities. Premiums and discounts on all securities are amortized/accreted to maturity by use of the level-yield method considering the impact of principal amortization and prepayments. Federal law requires a member institution of the FHLB system to hold restricted stock of its district FHLB according to a predetermined formula. The Bank’s investment in the restricted stock of the FHLB of New York, while included in investment securities available for sale, is carried at cost. Management evaluates the FHLB restricted stock for impairment in accordance with U.S. GAAP. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management believes no impairment charge is necessary related to the FHLB stock as of December 31, 2015. Bank-Owned Life Insurance The Company invests in bank-owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by the Company on a chosen group of employees. The Company is the owner and beneficiary of the policies. This pool of insurance, due to the advantages of the Bank, is profitable to the Company. This profitability offsets a portion of current and future benefit costs and is intended to provide a funding source for the payment of future benefits. The Bank’s deposits fund BOLI and the earnings from BOLI are recognized as non-interest income. Loans and Loans Held For Sale Loans that management intends to hold to maturity are stated at the principal amount outstanding, net of unearned income. Unearned income is recognized over the lives of the respective loans, principally using the effective interest method. Interest income is generally not accrued on loans, including impaired loans, where interest or principal is 90 days or more past due, unless the loans are adequately secured and in the process of collection, or on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations. When it is probable that, based upon current information, the Bank will not collect all amounts due under the contractual terms of the loan, the loan is reported as impaired. Smaller balance homogeneous type loans, such as residential loans and loans to individuals, which are collectively evaluated, are generally excluded from consideration for impairment. Loan impairment is measured based upon the present value of the expected future cash flows discounted at the loan’s effective interest rate or the underlying fair value of collateral for collateral dependent loans. When a loan, including an impaired loan, is placed on non-accrual, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Non-accrual loans are generally not returned to accruing status until principal and interest payments have been brought current and full collectibility is reasonably assured. Cash receipts on non-accrual and impaired loans are applied to principal, unless the loan is deemed fully collectible. Loans held for sale are carried at the lower of aggregated cost or fair value. The fair value of loans held for sale are determined, when possible, using quoted secondary market prices. If no such quoted market prices exist, fair values are determined using quoted prices for similar loans, adjusted for the specific attributes of the loans. Realized gains and losses on loans held for sale are recognized at settlement date and are determined based on the cost, including deferred net loan origination fees and the costs of the specific loans sold. Residential mortgage loans are sold servicing released. The Bank accounts for its transfers and servicing of financial assets in accordance with ASC Topic 860, “Transfers and Servicing” ("ASC Topic 860"). The Bank originates residential mortgages under a definitive plan to sell those loans with servicing generally released. Residential mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Bank also originates commercial loans of which a portion are guaranteed by the SBA. The guaranteed portion of the loans is generally sold into the secondary market. Gains and losses on sales are also accounted for in accordance with ASC Topic 860. The Bank enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding “rate lock commitments”. Rate lock commitments on residential mortgage loans that are intended to be sold are considered to be derivatives. Time elapsing between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 120 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The market value of rate lock commitments and best efforts commitments is not readily ascertainable with precision because rate lock commitments and best efforts commitments are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments based upon the forward sales price that is obtained in the best efforts commitment at the time the borrower locks in the interest rate on the loan while taking into consideration the probability that the rate lock commitments will close. Due to high correlation between rate lock commitments and best efforts commitments, no gain or loss occurs on the rate lock commitments. Rate lock commitments and related derivative instruments were not deemed to be significant at December 31, 2015 and 2014 and therefore, not recorded on the balance sheet at December 31, 2015 and 2014. ASC Topic 460, “Guarantees,” requires a guarantor entity, at the inception of a guarantee covered by the measurement provisions of the interpretation, to record a liability for the fair value of the obligation undertaken in issuing the guarantee. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial performance of a customer to a third party. Those guarantees are primarily issued to support contracts entered into by customers. Most guarantees extend for one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank defines the fair value of these letters of credit as the fees paid by the customer or similar fees collected on similar instruments. The Bank amortizes the fees collected over the life of the instrument. The Bank generally obtains collateral, such as real estate or liens on customer assets for these types of commitments. The Bank’s potential liability would be reduced by any proceeds obtained in liquidation of the collateral held. The Bank had standby letters of credit for customers aggregating $2.1 million and $2.6 million at December 31, 2015 and 2014, respectively. These letters of credit are primarily related to real estate lending and the approximate value of underlying collateral upon liquidation is expected to be sufficient to cover this maximum potential exposure at December 31, 2015. The amount of the liability related to guarantees under standby letters of credit issued was not material as of December 31, 2015 and 2014. Allowance for Loan Losses The allowance for loan losses is maintained at a level sufficient to absorb estimated credit losses in the loan portfolio as of the date of the financial statements. The allowance for loan losses is a valuation reserve available for losses incurred or inherent in the loan portfolio and other extensions of credit. The determination of the adequacy of the allowance for loan losses is a critical accounting policy of the Company. All, or part, of the principal balance of commercial and commercial real estate loans and construction loans are charged off against the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. Loans are placed in a nonaccrual status when the ultimate collectability of principal or interest in whole, or in part, is in doubt. Past-due loans contractually past-due 90 days or more for either principal or interest are also placed in nonaccrual status unless they are both well secured and in the process of collection. Impaired loans are evaluated individually. Purchased Credit-Impaired (“PCI”) loans are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e.; the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans or the “accretable yield”, is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference”, are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and result in an increase in yield on a prospective basis. The following is our charge-off policy for our loan segments: Commercial, Commercial Real Estate and Construction Loans are generally fully or partially charged down to the fair value of collateral securing the asset when:
Consumer Consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and using the mandated methods by asset type for income tax purposes. Building, furniture and fixtures, equipment and leasehold improvements are depreciated or amortized over the estimated useful lives of the assets or lease terms, as applicable. Estimated useful lives of buildings are forty years, furniture and fixtures and equipment are three to fifteen years, and leasehold improvements are generally three to ten years. Expenditures for maintenance and repairs are charged to expense as incurred. The Company accounts for impairment of long lived assets in accordance with ASC Topic 360, “Property, Plant, and Equipment,” which requires recognition and measurement for the impairment of long lived assets to be held and used or to be disposed of by sale. The Bank had no impaired long lived assets at December 31, 2015 and 2014. Derivative Contracts Derivative contracts, as required by ASC Topic 815, “Derivatives and Hedging,” are carried at fair value as either assets or liabilities in the balance sheet with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders’ equity, net of related income tax effects for contracts that are classified as cash flow hedges. Gains and losses on derivative contracts are recognized upon realization utilizing the specific identification method. Income Taxes There are two components of income tax expense or benefit: current and deferred. Current income tax expense or benefit approximates cash to be paid or refunded for taxes for the applicable period. Deferred tax assets and liabilities are recognized due to differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in the financial statements. Deferred tax assets are subject to management’s judgment based upon available evidence that future realizations are likely. If management determines that the Company may not be able to realize some or all of the net deferred tax asset in the future, a charge to income tax expense may be required to increase the valuation reserve of the net deferred tax asset. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is recognized for the change in deferred tax liabilities. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements in accordance with ASC Topic 740, “Income Taxes,” which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has not identified any significant income tax uncertainties through the evaluation of its income tax positions for the years ended December 31, 2015 and 2014 and has not recognized any liabilities for tax uncertainties as of December 31, 2015 and 2014. Our policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense; such amounts were not significant during the years ended December 31, 2015 and 2014. The tax years subject to examination by the taxing authorities are, for federal and state purposes, the years ended December 31, 2015, 2014, 2013 and 2012. Other Real Estate Owned ("OREO") OREO obtained through loan foreclosures or the receipt of deeds-in-lieu of foreclosure is recorded at the fair value of the related property, as determined by current appraisals less estimated costs to sell at the initial transfer from the loan portfolio. Write-downs on these properties, which occur after the initial transfer from the loan portfolio, are recorded as operating expenses. Costs of holding such properties are charged to expense in the current period. Gains, to the extent realized, and losses on the disposition of these properties are reflected in current operations. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable net assets acquired in accordance with the purchase method of accounting. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or more often if events or circumstances indicated that there may be impairment, in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” Goodwill is tested for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. Core deposit intangibles are a measure of the value of checking and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles are amortized over their estimated lives (ranging from five to ten years) and identifiable intangible assets are evaluated for impairment if events and circumstances indicate a possible impairment. Any impairment loss related to goodwill and other intangible assets is reflected as other non-interest expense in the statement of income in the period in which the impairment was determined. No assurance can be given that future impairment tests will not result in a charge to earnings. See Note 9 – Goodwill and Intangible Assets for additional information. Share-Based Compensation The Company recognizes compensation expense for stock awards and options in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The expense of stock-based compensation is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is usually the vesting period. The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each stock option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. See Note 16 – Share-Based Compensation for additional information. Benefit Plans The Company provides certain retirement savings benefits to employees under a 401(k) plan. The Company’s contributions to the 401(k) plan are expensed as incurred. The Company also provides retirement benefits to certain employees under supplemental executive retirement plans. The plans are unfunded and the Company accrues actuarial determined benefit costs over the estimated service period of the employees in the plans. In accordance with ASC Topic 715, “Compensation – Retirement Benefits,” the Company recognizes the unfunded status of these postretirement plans as a liability in its consolidated balance sheets and recognizes changes in that unfunded status in the year in which the changes occur through other comprehensive income. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, interest and non-interest bearing amounts due from banks, Federal funds sold and short-term investments. Generally, Federal funds are sold and short-term investments are made for a one or two-day period. For purposes of the Consolidated Statements of Cash Flows, accounts affected by the Rumson acquisition are presented net of the assets and liabilities acquired. Assets and liabilities acquired are presented in the Supplemental Disclosures of Cash Flow Information. Reclassifications Certain reclassifications have been made to the prior period amounts to conform with the current period presentation. Such reclassification had no impact on net income or total shareholders’ equity. Advertising Costs It is the Company’s policy to expense advertising costs in the period in which they are incurred. Earnings Per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding, as adjusted for the assumed exercise of dilutive common stock warrants and common stock options using the treasury stock method. The following tables illustrate the reconciliation of the numerators and denominators of the basic and diluted earnings per common share (EPS) calculations. Dilutive securities in the tables below exclude common stock options and warrants with exercise prices that exceed the average market price of the Company’s common stock during the periods presented. Inclusion of these common stock options and warrants would be anti-dilutive to the diluted earnings per common share calculation.
For the years ended December 31, 2015 and 2014, 25,182 and 63,926 options, respectively, were anti-dilutive and were not included in the computation of diluted earnings per common share. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, other-than-temporary non-credit related security impairments, unrealized gains and losses on cash flows hedges, and changes in the funded status of benefit plans. Variable Interest Entities Management has determined that Trust II qualifies as a variable interest entity under ASC Topic 810, “Consolidation.” Trust II issued mandatorily redeemable preferred stock to investors, loaned the proceeds to the Company and holds, as its sole asset, subordinated debentures issued by the Company. As a qualified variable interest entity, Trust II’s Balance Sheet and Statement of Operations have never been consolidated with those of the Company. In March 2005, the Federal Reserve Board ("FRB") adopted a final rule that would continue to allow the inclusion of trust preferred securities in Tier 1 capital, but with stricter quantitative limits. Under the final rule, after a five-year transition period, the aggregate amount of trust preferred securities and certain other capital elements would be limited to 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit could be included in Tier 2 capital, subject to restrictions. Based on the final rule, the Company has included all of its $18.0 million in trust preferred securities in Tier 1 capital at December 31, 2015 and 2014. Segment Information U.S. GAAP establishes 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-maker in deciding how to allocate and assess resources and performance. The Company’s chief operating decision-maker is the President and Chief Executive Officer. The Company has applied the aggregation criteria for its operating segments to create one reportable segment, “Community Banking.” The Company’s Community Banking segment consists of construction, commercial, retail and mortgage banking operations. The Community Banking segment is managed as a single strategic unit, which generates revenue from a variety of products and services provided by the Company. Construction, commercial, retail and mortgage banking lending is dependent upon the ability of the Company to fund itself with retail deposits and other borrowings and to manage interest rate, liquidity and credit risk as a single unit. Recent Accounting Pronouncements ASU Update 2016-02: Leases In February 2016, the FASB issued ASU 2016-02 "Leases." 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 lessee. 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. 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. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. ASU Update 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The guidance in the ASU, among other things, requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. ASU Update 2015-16 Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," to require adjustments to provisional amounts that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update would require an entity to disclose (either on the face of the income statement or in the notes) the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 and for all other entities for fiscal years beginning after December 31, 2015 and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The amendments in this update should be applied prospectively to measurement-period adjustments that occur after the effective date of this update. The Company does not expect that the adoption of this guidance will have a material impact on the Company's consolidated financial statements. ASU 2014-9 Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers (Topic 606).” The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are in the scope of other standards. This ASU, which does not apply to financial instruments, is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. The Company does not anticipate a material impact on the Company's consolidated financial statements related to this guidance. ASU 2014-12 Accounting for Share-Based-Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period (a consensus of the FAS Emerging Issues Task Force). In June 2014, the FASB issued ASU 2014-12, "Accounting for Share-Based-Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period," which requires that a performance target included in a share-based payment award that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This update is effective for interim and annual periods beginning after December 15, 2015. The amendments can be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the Company’s consolidated financial statements. |
Acquisition of Rumson-Fair Haven Bank and Trust Company |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Rumson-Fair Haven Band and Trust Company | Acquisition of Rumson-Fair Haven Bank and Trust Company On February 7, 2014, the Company completed its acquisition of Rumson-Fair Haven Bank and Trust Company, a New Jersey state commercial bank (“Rumson”), which merged with and into the Bank, with the Bank as the surviving entity. The merger agreement among the Company, the Bank and Rumson (the “Merger Agreement”) provided that the shareholders of Rumson would receive, at their election, for each outstanding share of Rumson common stock that they own at the effective time of the merger, either 0.7772 shares of the Company common stock or $7.50 in cash or a combination thereof, subject to proration as described in the Merger Agreement, so that 60% of the aggregate merger consideration consisted of cash and 40% consisted of shares of the Company’s common stock. The Company issued an aggregate of 1,019,223 shares of its common stock and paid $14.8 million in cash in the transaction. The merger was accounted for under the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair values as of the acquisition date. Rumsons' results of operations have been included in the Company’s Consolidated Statements of Income since February 7, 2014. The following table summarizes the final fair value of the acquired assets and liabilities.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Securities | Investment Securities Amortized cost, carrying value, gross unrealized gains and losses, and the fair value by security type are as follows:
At December 31, 2015 and December 31, 2014, $69.8 million and $101.6 million of investment securities, respectively, were pledged to collateralize borrowings from the FHLB and municipal deposits under the State of New Jersey Governmental Unit Deposit Protection Act ("GUDPA"). The following table sets forth certain information regarding the amortized cost, carrying value, fair value, weighted average yields and contractual maturities of the Company's investment portfolio as of December 31, 2015. 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. Restricted stock is included in “Available for sale - Due in one year or less.”
Gross unrealized losses on available for sale and held to maturity securities and the fair value of the related securities aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and 2014 are as follows:
U.S. Treasury securities and obligations of U.S. Government sponsored corporations and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than temporarily impaired. Residential collateralized mortgage obligations and residential mortgage backed securities: The unrealized losses on investments in residential collateralized mortgage obligations and residential mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuer, primarily government or government sponsored agencies. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than temporarily impaired. Obligations of state and political subdivisions: The unrealized losses on investments in these securities were caused by increases in market interest rates. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. None of the issuers have defaulted on interest payments. These investments are not considered to be other than temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than temporarily impaired. Trust preferred debt securities – single issuer: The investments in these securities with unrealized losses are comprised of four corporate trust preferred securities issued by two large financial institutions that both mature in 2027. The contractual terms of the trust preferred securities do not allow the issuer to settle the securities at a price less than the face value of the trust preferred securities, which is greater than the amortized cost of the trust preferred securities. One of the issuers continues to maintain an investment grade credit rating and neither has defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate spreads and the lack of an active trading market for these securities and, to a lesser degree, market concerns about the issuers’ credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Corporate debt securities. The unrealized losses on investments in corporate debt securities were caused by an increase in market interest rates. None of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes in market interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities-pooled: This trust preferred debt security was issued by a two issuer pool (Preferred Term Securities XXV, Ltd. co-issued by Keefe, Bruyette and Woods, Inc. and First Tennessee (“PRETSL XXV”)), consisting primarily of financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment charge of $865,000, of which $364,000 was determined to be a credit loss and charged to operations and $501,000 was recognized in other comprehensive income (loss) component of shareholders’ equity. The primary factor used to determine the credit portion of the impairment loss to be recognized in the income statement for this security was the discounted present value of projected cash flow where that present value of cash flow was less than the amortized cost basis of the security. The present value of cash flow was developed using an EITF 99-20 model that considered performing collateral ratios, the level of subordination to senior tranches of the security, credit ratings of and projected credit defaults in the underlying collateral. On a quarterly basis, management evaluates this security to determine if any additional other-than-temporary impairment is required. As of December 31, 2015, management concluded that no additional other than temporary impairment had occurred. The Company regularly reviews the composition of the investment securities portfolio, taking into account market risks, the current and expected interest rate environment, liquidity needs and its overall interest rate risk profile and strategic goals. |
Loans and Loans Held for Sale |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Loans Held for Sale | Loans and Loans Held for Sale Loans are as follows:
The Bank’s lending focus and business is concentrated primarily in New Jersey, particularly Middlesex, Mercer, Monmouth and Somerset Counties and the Fort Lee area of Bergen County. A significant portion of the total loan portfolio is secured by real estate or other collateral located in these areas. The Bank had residential mortgage loans held for sale of $6.0 million at December 31, 2015 and $8.4 million at December 31, 2014. The Bank sells residential mortgage loans in the secondary market on a non-recourse basis, generally with the related loan servicing rights released to purchasers. Loans held for sale at December 31, 2015 and 2014 were residential mortgage loans that the Bank intends to sell under best efforts forward sales commitments providing for delivery to purchasers generally within a two month period. The fair value of related derivatives of interest rate lock commitments and forward sales of closed loans were not significant at December 31, 2015 and 2014. |
Allowance for Loan Losses and Credit Quality Disclosures |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Credit Quality Disclosures | Allowance for Loan Losses and Credit Quality Disclosures The Company’s primary lending emphasis is the origination of commercial and commercial real estate loans and mortgage warehouse lines of credit. Based on the composition of the loan portfolio, the inherent primary risks are deteriorating credit quality, a decline in the economy and a decline in New Jersey real estate market values. Any one, or a combination, of these events may adversely affect the loan portfolio and may result in increased delinquencies, loan losses and increased future provision levels. The following table provides an aging of the loan portfolio by loan class at December 31, 2015:
As provided by ASC 310-30, the excess of cash flows expected at acquisition over the initial investment in the loan is recognized as interest income over the life of the loan. Accordingly, loans acquired with evidence of deteriorated credit quality in the amount of $489,000 at December 31, 2015 were not classified as non-performing loans due to the accretion of income based on expected cash flows. The following table provides an aging of the loan portfolio by loan class at December 31, 2014:
Additional income before taxes amounting to $579,000 and $568,000 would have been recognized in 2015 and 2014, respectively, if interest on all loans had been recorded based upon original contract terms. Management reviews the adequacy of the allowance on at least a quarterly basis to ensure that the provision for loan losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is adequate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the adequacy of the allowance for loan losses consists of several key elements and is consistent with generally accepted accounting principles (GAAP) and interagency supervisory guidance. The allowance for loan losses methodology consists of two major components. The first component is an estimation of losses associated with individually identified impaired loans, which follows ASC Topic 310. The second major component estimates losses under ASC Topic 450, which provides guidance for estimating losses on groups of loans with similar risk characteristics. The Company’s methodology results in an allowance for loan losses which includes a specific reserve for impaired loans, an allocated reserve, and an unallocated portion. When analyzing groups of loans under ASC Topic 450, the Bank follows the Interagency Policy Statement on the Allowance for Loan and Lease Losses. The methodology considers the Company’s historical loss experience adjusted for changes in trends, conditions, and other relevant factors that affect repayment of the loans as of the evaluation date. These adjustment factors, known as qualitative factors, include:
The methodology includes the segregation of the loan portfolio into loan types with a further segregation into risk rating categories, such as special mention, substandard, doubtful, and loss. This allows for an allocation of the allowance for loan losses by loan type; however, the allowance is available to absorb any loan loss without restriction. Larger balance, non-homogeneous loans representing significant individual credit exposures are evaluated individually through the internal loan review process. It is this process that produces the watch list for loans that have indications of credit weakness. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated. Based on these reviews, an estimate of probable losses for the individual larger-balance loans are determined, whenever possible, and used to establish specific loan loss reserves. In general, for non-homogeneous loans not individually assessed and for homogeneous groups, such as residential mortgages and consumer credits, the loans are collectively evaluated based on delinquency status, loan type, and historical losses. These loan groups are then internally risk rated. The watch list includes loans that are assigned a rating of special mention, substandard, doubtful and loss. Loans assigned a rating of special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans rated as doubtful in whole, or in part, are placed in nonaccrual status. Loans classified as a loss are considered uncollectible and are charged off against the allowance for loan losses. The specific allowance for impaired loans is established for specific loans that have been identified by management as being impaired. These loans are considered to be impaired primarily because the loans have not performed according to payment terms and there is reason to believe that repayment of the loan principal in whole or in part, is unlikely. The specific portion of the allowance is the total amount of potential unconfirmed losses for these individual impaired loans. To assist in determining the fair value of loan collateral, the Company often utilizes independent third party qualified appraisal firms which in turn employ their own criteria and assumptions that may include occupancy rates, rental rates, and property expenses, among others. The second category of reserves consists of the allocated portion of the allowance. The allocated portion of the allowance is determined by taking pools of loans outstanding that have similar characteristics and applying historical loss experience for each pool. This estimate represents the potential unconfirmed losses within the portfolio. Individual loan pools are created for commercial and commercial real estate loans, construction loans, warehouse lines of credit and various types of loans to individuals. The historical loss estimation for each loan pool is then adjusted to account for current conditions, current loan portfolio performance, loan policy or management changes, or any other qualitative factor which may cause future losses to deviate from historical levels. The Company also maintains an unallocated allowance. The unallocated allowance is used to cover any factors or conditions which may cause a potential loan loss but are not specifically identifiable. It is prudent to maintain an unallocated portion of the allowance because no matter how detailed an analysis of potential loan losses is performed, these estimates by definition lack precision. Management must make estimates using assumptions and information that is often subjective and changing rapidly. The following discusses the risk characteristics of each of our loan portfolio segments, commercial, mortgage warehouse lines of credit, and consumer. Commercial The Company’s primary lending emphasis is the origination of commercial, construction and commercial real estate loans. Based on the composition of the loan portfolio, the inherent primary risks are deteriorating credit quality, a decline in the economy, and a decline in New Jersey real estate market values. Any one or a combination of these events may adversely affect the loan portfolio and may result in increased delinquencies, loan losses and increased future provision levels. Mortgage Warehouse Lines of Credit The Company’s mortgage warehouse lending operations provides revolving lines of credit that are available to licensed mortgage banking companies. The warehouse line of credit is used by the mortgage banker to originate one-to-four family residential mortgage loans that are pre-sold into the secondary mortgage market, which includes state and national banks, national mortgage banking firms, insurance companies and government-sponsored enterprises, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and others. On average, an advance under the warehouse line of credit remains outstanding for a period of less than 30 days, with repayment coming directly from the sale of the loan into the secondary mortgage market. Interest and a transaction fee are collected by the Bank at the time of repayment. As a separate segment of the total portfolio, the warehouse loan portfolio is individually analyzed as a whole for allowance for loan losses purposes. Warehouse lines of credit are subject to the same inherent risks as other commercial lending, but the overall degree of risk differs. While the Company’s loss experience with this type of lending has been non-existent since the product was introduced in 2008; there are other risks unique to this lending that still must be considered in assessing the adequacy of the allowance for loan losses. These unique risks may include, but are not limited to, (i) credit risks relating to the mortgage bankers that borrow from us, (ii) the risk of intentional misrepresentation or fraud by any of such mortgage bankers, (iii) changes in the market value of mortgage loans originated by the mortgage banker, the sale of which is the expected source of repayment of the borrowings under a warehouse line of credit, due to changes in interest rates during the time in warehouse, or (iv) unsalable or impaired mortgage loans so originated, which could lead to decreased collateral value and the failure of a purchaser of the mortgage loan to purchase the loan from the mortgage banker. These factors, along with the other qualitative factors such as economic trends, concentrations of credit, trends in the volume of loans, portfolio quality, delinquencies and nonaccruals, are also considered and may have positive or negative effects on the allocated allowance. The aggregate amount resulting from the application of these qualitative factors determines the overall risk for the portfolio and results in an allocated allowance for warehouse lines of credit. Consumer The Company’s loan portfolio consumer segment is comprised of residential real estate loans, home equity loans and other loans to individuals. Individual loan pools are created for the various types of loans to individuals. In general, for homogeneous groups such as residential mortgages and consumer credits, the loans are collectively evaluated based on delinquency status, loan type, and historical losses. These loan groups are then internally risk rated. The Company considers the following credit quality indicators in assessing the risk in the loan portfolio:
Internal Risk Rating of Loans The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list are treated as “pass” for grading purposes: 1. Excellent - Loans that are based upon cash collateral held at the Bank and adequately margined. Loans that are based upon "blue chip" stocks listed on the major exchanges and adequately margined. 2. Above Average - Loans to companies whose balance sheets show excellent liquidity and long-term debt is on well-spread schedules of repayment easily covered by cash flow. Such companies have been consistently profitable and have diversification in their product lines or sources of revenue. The continuation of profitable operations for the foreseeable future is likely. Management is comprised of a mix of ages, experience, and backgrounds and management succession is in place. Sources of raw materials and for service companies, the source of revenue is abundant. Future needs have been planned for. Character and management ability of individuals or company principals are excellent. Loans to individuals are supported by high net worths and liquid assets. 3. Good - Loans to companies whose balance sheets show good liquidity and cash flow adequate to meet maturities of long-term debt with a comfortable margin. Such companies have established profitable records over a number of years, and there has been growth in net worth. Operating ratios are in line with those of the industry, and expenses are in proper relationship to the volume of business done and the profits achieved. Management is well-balanced and competent in their responsibilities. Economic environment is favorable; however, competition is strong. The prospects for growth are good. Loans in this category do not meet the collateral requirements of loans in categories 1 and 2 above. Loans to individuals are supported by good net worth but whose supporting assets are illiquid. 3w. Watch List - Included in this category are loans evidencing problems identified by Bank management that require closer supervision. Such problem has not developed to the point which requires a Special Mention rating. This category also covers situations where the Bank does not have adequate current information upon which credit quality can be determined. The account officer has the obligation to correct these deficiencies within 30 days from the time of notification. 4. Special Mention - A "special mention" loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in derterioration of the repayment prospects for the loan or in the Bank's credit position at some future date. Special mention loans are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. 5. Substandard - A "substandard" loan is inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified "doubtful" has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. 7. Loss - A loan classified "loss" is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desireable to defer writing off this basically worthless loan even though partial recovery may be affected in the future. The following table provides a breakdown of the loan portfolio by credit quality indictor at December 31, 2015:
The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2014:
Impaired Loans Disclosures Loans are considered to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. When a loan is placed on nonaccrual status, it is also considered to be impaired. Loans are placed on nonaccrual status when: (1) the full collection of interest or principal becomes uncertain; or (2) they are contractually past due 90 days or more as to interest or principal payments unless the loans are both well secured and in the process of collection. The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at December 31, 2015 and 2014, respectively.
When a loan is identified as impaired, the measurement of impairment is based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole remaining source of repayment for the loan is the liquidation of the collateral. In such cases, the current fair value of the collateral less selling costs is used. If the value of the impaired loan is less than the recorded investment in the loan, the impairment is recognized through an allowance estimate or a charge to the allowance.
Purchased Credit-Impaired Loans Purchased Credit-Impaired loans (“PCI”), are loans acquired at a discount that is due in part to credit quality. In conjunction with the Rumson merger, loans totaling $2.6 million were deemed to be PCI at February 7, 2014. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses). The following table presents additional information regarding purchased credit impaired loans for the years ended December 31, 2015 and 2014:
In 2015, an allowance for loan losses in the amount of $64,000 was recorded for one PCI loan. The following table presents changes in accretable discount for purchased credit impaired loans for the years ended December 31, 2015 and 2014:
The following table presents the years for the scheduled remaining accretable discount that will accrete to income based on the Company’s most recent estimates of cash flows for PCI loans:
Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in process of foreclosure:
In the normal course of business, the Bank may consider modifying loan terms for various reasons. These reasons may include as a retention strategy to compete in the current interest rate environment or to re-amortize or extend a loan term to better match the loan’s payment stream with the borrower’s cash flow. A modified loan would be considered to be a troubled debt restructuring (“TDR”) if the Bank grants a concession to a borrower and has determined that the borrower is troubled (i.e., experiencing financial difficulties). If the Bank restructures a loan to a troubled borrower, the loan terms (i.e. interest rate, payment, amortization period, maturity date) may be modified in various ways to enable the borrower to cover the modified debt service payments based on current financials and cash flow adequacy. If a borrower’s hardship is thought to be temporary, then modified terms may only be offered for that time period. Where possible, the Bank would attempt to obtain additional collateral and/or secondary payment sources at the time of the restructure in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms. The Bank will not offer modified terms if it believes that modifying the loan terms will only delay an inevitable permanent default. In evaluating whether a restructuring constitutes a troubled debt restructuring, applicable guidance requires that a creditor must separately conclude that the restructuring constitutes a concession and the borrower is experiencing financial difficulties. The following table is a breakdown of troubled debt restructurings, all of which are classified as impaired, which occurred during the years ended December 31, 2015 and 2014. During 2015
During 2014
There were no troubled debt restructurings that subsequently defaulted within twelve months of restructuring during the year ended December 31, 2015 or December 31, 2014. If the Bank determines that a borrower has suffered deterioration in their financial condition, a restructuring of the loan terms may occur. Such loan restructurings may include, but are not limited to, reductions in principal or interest, reductions in interest rates, and extensions of the maturity date. When modifications are implemented, such loans meet the definition of a troubled debt restructuring. All of the modifications employed by the Bank during 2015 and 2014 have resulted in lower amortization payments. The lower payments are determined by an analysis of the borrower’s cash flow ability to meet the modified terms while anticipating an improved financial condition to enable a resumption of the original payment terms. |
Related Parties |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Parties | Related Parties Activity related to loans to directors, executive officers and their affiliated interests during 2015 and 2014 is as follows:
All such loans were made under customary terms and conditions and were current as to principal and interest payments as of December 31, 2015 and 2014. Related party deposits were $9.0 million and $7.9 million at December 31, 2015 and 2014, respectively. The Company has had and intends to have business transactions in the ordinary course of business with directors, officers and associates on comparable terms as those prevailing from time to time for other non-affiliated vendors of the Company. For these transactions, the expenses are not significant to the operations of the Company. |
Premises and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Premises and Equipment Premises and equipment consist of the following:
Depreciation expense was $1.0 million and $1.1 for the years ended December 31, 2015 and 2014, respectively. |
Other Real Estate Owned ("OREO") |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO) | Other Real Estate Owned (“OREO”) Activity related to other real estate owned for the years ended December 31, 2015 and 2014 is as follows:
At December 31, 2015 OREO is comprised of one residential property. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets are summarized as follows:
Amortization expense of intangible assets was $428,000 and $456,000 for the years ended December 31, 2015 and 2014, respectively. Scheduled amortization of the core deposits intangible is as follows:
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Deposits |
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Deposits | Deposits Deposits at December 31, 2015 and 2014 are summarized as follows:
At December 31, 2015, certificates of deposit have contractual maturities as follows:
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Borrowings |
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Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The balance of borrowings was $58.9 million at December 31, 2015, consisting of three long-term FHLB advances totaling $20.3 million and overnight funds purchased of $38.6 million. The balance of borrowings was $25.1 million at December 31, 2014, consisting of three long-term FHLB advances of $20.7 million and overnight funds purchased of $4.4 million. These borrowings are primarily used to fund asset growth not supported by deposit generation. Two long-term FHLB fixed rate convertible advances were assumed by the Bank as a result of the Rumson merger. These two advances total $10.0 million and bear interest at an average rate of 4.50%. As a result of acquisition accounting, the two advances were fair valued and a premium of $1.0 million was assigned. The premium is being amortized over the remaining term of the advances. The two advances had a combined carrying amount of $10.3 million at December 31, 2015. Both advances mature on December 14, 2016. The Bank also has a fixed rate convertible advance from the FHLB in the amount of $10.0 million that bears interest at the rate of 4.08%. This advance may be called by the FHLB quarterly at the option of the FHLB if rates rise and the rate earned by the FHLB is no longer a “market” rate. This advance is fully secured by marketable securities. The FHLB advance matures on July 31, 2017. Due to the call provision, the expected maturity could differ from the contractual maturity. |
Redeemable Subordinated Debentures |
12 Months Ended |
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Dec. 31, 2015 | |
Subordinated Borrowings [Abstract] | |
Redeemable Subordinated Debentures | Redeemable Subordinated Debentures On May 30, 2006, the Company established 1st Constitution Capital Trust II, a Delaware business trust and wholly owned subsidiary of the Company (“Trust II”), for the sole purpose of issuing $18 million of trust preferred securities (the “Capital Securities”). Trust II utilized the $18 million proceeds along with $557,000 invested in Trust II by the Company to purchase $18,557,000 of floating rate junior subordinated debentures issued by the Company and due to mature on June 15, 2036. The subordinated debentures carry a floating interest rate based on the three-month LIBOR plus 165 basis points (2.16200% at December 31, 2015). The Capital Securities were issued in connection with a pooled offering involving approximately 50 other financial institution holding companies. All of the Capital Securities were sold to a single pooling vehicle. The floating rate junior subordinated debentures are the only asset of Trust II and have terms that mirrored the Capital Securities. These debentures are redeemable in whole or in part prior to maturity after June 15, 2011. Trust II is obligated to distribute all proceeds of a redemption of these debentures, whether voluntary or upon maturity, to holders of the Capital Securities. The Company’s obligation with respect to the Capital Securities and the debentures, when taken together, provided a full and unconditional guarantee on a subordinated basis by the Company of the obligations of Trust II to pay amounts when due on the Capital Securities. Interest payments on the floating rate junior subordinated debentures flow through Trust II to the pooling vehicle. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of income tax expense (benefit) are summarized as follows:
A comparison of income tax expense at the Federal statutory rate in 2015 and 2014 to the Company’s provision for income taxes is as follows:
The tax effects of existing temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:
Based upon the current facts, management has determined that it is more likely than not that there will be sufficient taxable income in future years to realize the deferred tax assets. However, there can be no assurances about the level of future earnings. |
Comprehensive Income and Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income and Accumulated Other Comprehensive Income | Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income is the total of (1) net income and (2) all other changes in equity from non-shareholder sources, which are referred to as other comprehensive income. The components of accumulated other comprehensive income (loss) that are included in shareholders' equity and the related tax effects are as follows:
Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax:
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Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans Retirement Savings Plan The Bank has a 401(k) plan which covers substantially all employees with six months or more of service. The plan permits all eligible employees to make basic contributions to the plan up to the IRS salary deferral limit. Under the plan, the Bank provided a matching contribution of 50% in 2015 and 2014, up to 6% of base compensation. Employer contributions to the plan amounted to $274,000 in 2015 and $244,000 in 2014. Supplemental Executive Retirement Plan The Company also provides retirement benefits to certain employees under supplemental executive retirement plans. The plans are unfunded and the Company accrues actuarial determined benefit costs over the estimated service period of the employees in the plans. The present value of the benefits accrued under these plans as of December 31, 2015 and 2014 is approximately $5.2 million and $5.0 million, respectively, and is included in other liabilities and accumulated other comprehensive income in the accompanying consolidated balance sheets. Compensation expense related to the supplemental executive retirement plan of $184,000 and $451,000 is included in the accompanying consolidated statements of income for the years ended December 31, 2015 and 2014, respectively. Bank-Owned Life Insurance In connection with the benefit plans, the Bank has life insurance policies on the lives of its executives, directors and divisional officers. The Bank is the owner and beneficiary of the policies. The cash surrender values of the policies total approximately $21.6 million and $21.2 million as of December 31, 2015 and 2014, respectively. The following table sets forth the changes in benefit obligations of the Company’s supplemental executive retirement plan.
The net periodic benefit cost is projected to be $243,000 and actuarial gains of $103,000 are expected to be removed from accumulated other comprehensive income and recognized as a component of net periodic benefit expense for the year ending December 31, 2016.
* Represents management’s expectation as of December 31, 2015 as to when such payments will be made. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share- Based Compensation | Share-Based Compensation The Company’s stock-based incentive plans (the “Stock Plans”) authorize the issuance of an aggregate of 485,873 shares of the Company’s common stock (as adjusted for stock dividends) pursuant to awards that may be granted in the form of stock options to purchase common stock (“Options”) and awards of shares of common stock (“Stock Awards”). The purpose of the Stock Plans is to attract and retain personnel for positions of substantial responsibility and to provide additional incentive to certain officers, directors, employees and other persons to promote the success of the Company. Under the Stock Plans, options have a term of ten years after the date of grant, subject to earlier termination in certain circumstances. Options are granted with an exercise price at the then fair market value of the Company’s common stock. The grant date fair value is calculated using the Black-Scholes option valuation model. As of December 31, 2015, there were 267,886 shares of common stock available for future grants under the Stock Plans, of which 221,686 shares are available for future grant under the 2013 Equity Incentive Plan and 46,200 shares are available for future grant under the 2015 Directors Stock Plan. Stock-based compensation expense related to stock options was $41,000 and $69,000 for the years ended December 31, 2015 and 2014, respectively. Transactions under the Company’s stock option plans during the years ended December 31, 2015 and 2014 are summarized as follows:
There were 43,639 options exercised in 2015. The total intrinsic value (market value on date of exercise less grant price) of options exercised during the year ended December 31, 2015 was $176,000. There were no options exercised in 2014. The following table summarizes stock options outstanding and exercisable at December 31, 2015:
The fair value of each option and the significant weighted average assumptions used to calculate the fair value of the options granted during the years ended December 31, 2015 and 2014 are as follows:
(1) To date, the Company has not paid cash dividends on its common stock. As of December 31, 2015, there was approximately $64,600 of unrecognized compensation cost related to non-vested stock option-based compensation arrangements granted under the Company’s stock incentive plans. That cost is expected to be recognized over the next four years. The following table summarizes the activity in nonvested restricted shares for the years ended December 31, 2015 and 2014:
The value of restricted shares is based upon the closing price of the common stock on the date of grant. The shares generally vest over a four year service period with compensation expense recognized on a straight-line basis. Stock based compensation expense related to stock grants was $590,000 and $516,000 for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, there was approximately $1.1 million of unrecognized compensation cost related to non-vested stock grants that will be recognized over the next three years. |
Commitments and Contingencies |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies As of December 31, 2015, future minimum rental payments under non-cancelable operating leases are as follows:
Rent expense aggregated $1.5 million and $1.4 million for the years ended December 31, 2015 and 2014, respectively. Commitments With Off-Balance Sheet Risk The consolidated balance sheet does not reflect various commitments relating to financial instruments which are used in the normal course of business. Management does not anticipate that the settlement of those financial instruments will have a material adverse effect on the Company’s financial condition. These instruments include commitments to extend credit and letters of credit. These financial instruments carry various degrees of credit risk, which is defined as the possibility that a loss may occur from the failure of another party to perform according to the terms of the contract. As these off-balance sheet financial instruments have essentially the same credit risk involved in extending loans, the Bank generally uses the same credit and collateral policies in making these commitments and conditional obligations as it does for on-balance sheet investments. Additionally, as some commitments and conditional obligations are expected to expire without being drawn or returned, the contractual amounts do not necessarily represent future cash requirements. Commitments to extend credit are legally binding loan commitments with set expiration dates. They are intended to be disbursed, subject to certain conditions, upon request of the borrower. The Bank receives a fee for providing a commitment. The Bank was committed to advance $290.9 million and $297.1 million to its borrowers as of December 31, 2015 and December 31, 2014, respectively. The Bank issues financial standby letters of credit that are within the scope of ASC Topic 460, “Guarantees.” These are irrevocable undertakings by the Bank to guarantee payment of a specified financial obligation. Most of the Bank’s financial standby letters of credit arise in connection with lending relationships and have terms of one year or less. The maximum potential future payments the Bank could be required to make under these standby letters of credit amounted to $2.1 million at December 31, 2015 and $2.6 million at December 31, 2014. The current amount of the liability as of December 31, 2015 and 2014 for guarantors under standby letters of credit is not material. The Bank also enters into best efforts forward sales commitments to sell residential mortgage loans it has closed (loans held for sale) or that it expects to close (commitments to originate loans held for sale). These commitments are used to reduce the Bank’s market price risk during the period from the commitment date to the sale date. The notional amount of the Bank’s forward sales commitments was approximately $16.9 million at December 31, 2015 and $28.2 million at December 31, 2014. Changes in fair value of the forward sales commitments, and the related loan origination commitments and closed loans, were not significant at December 31, 2015 and 2014. Litigation The Company may, in the ordinary course of business, become a party to litigation involving collection matters, contract claims and other legal proceedings relating to the conduct of its business. The Company may also have various commitments and contingent liabilities which are not reflected in the accompanying consolidated balance sheet. Management is not aware of any present legal proceedings or contingent liabilities and commitments that would have a material impact on the Company’s financial condition or results of operations. |
Other Operating Expenses |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Expenses | Other Operating Expenses The components of other operating expenses for the years ended December 31, 2015 and 2014 are as follows:
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Regulatory Capital Requirements |
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements | Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the Federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s and the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to average assets (Leverage ratio, as defined). As of December 31, 2015, the Company and the Bank met all capital adequacy requirements to which they are subject. To be categorized as adequately capitalized, the Company and the Bank must maintain minimum Common Equity Tier 1, Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. As of December 31, 2015, the Bank's capital ratios exceed the regulatory standards for well-capitalized institutions. Certain bank regulatory limitations exist on the availability of the Bank’s assets for the payment of dividends by the Bank without prior approval of bank regulatory authorities. In July 2013, the Federal Reserve Board and the FDIC approved revisions to their capital adequacy guidelines and prompt corrective action rules that implemented and addressed the revised standards of Basel III and address relevant provisions of the Dodd-Frank Act. The Federal Reserve Board’s final rules and the FDIC’s interim final rules (which became final in April 2014 with no substantive changes) apply to all depository institutions, top-tier bank holding companies with total consolidated assets of $500 million or more, and top-tier savings and loan holding companies (“banking organizations”). Among other things, the rules establish a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets) and increase the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets). Banking organizations are also required to have a total capital ratio of at least 8% (unchanged from current rules) and a Tier 1 leverage ratio of at least 4% (unchanged from current rules). The rules also limit a banking organization’s ability to pay dividends, engage in share repurchases or pay discretionary bonuses if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The rules became effective for the Company and the Bank on January 1, 2015. The capital conservation buffer requirement is being phased in beginning on January 1, 2016 at 0.625% of common equity Tier 1 capital to risk-weighted assets and will increase by that amount each year until fully implemented in January 2019 at 2.5% of common equity Tier 1 capital to risk-weighted assets. Actual capital amounts and ratios for the Company and the Bank as of December 31, 2015 and 2014 are as follows:
Dividend payments by the Bank to the Company are subject to the New Jersey Banking Act of 1948 (the “Banking Act”) and the Federal Deposit Insurance Act (the “FDIA”). Under the Banking Act and the FDIA, the Bank may not pay any dividends if after paying the dividend it would be undercapitalized under applicable capital requirements. In addition to these explicit limitations, the federal regulatory agencies are authorized to prohibit a banking subsidiary or bank holding company from engaging in an unsafe or unsound banking practice. Depending upon the circumstances, the agencies could take the position that paying a dividend would constitute an unsafe or unsound banking practice. It is the policy of the Federal Reserve Board that bank holding companies should pay cash dividends on common stock only out of income available over the immediately preceding year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. The policy provides that bank holding companies should not maintain a level of cash dividend that undermines the bank holding company’s ability to serve as a source of strength to its banking subsidiary. A bank holding company may not pay dividends when it is insolvent. The Federal Reserve Board’s capital adequacy rules also limit a banking organization’s ability to pay dividends if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement is being phased in beginning on January 1, 2016 at 0.625% of common equity Tier 1 capital to risk-weighted assets and will increase by that amount each year until fully implemented in January 2019 at 2.5% of common equity Tier 1 capital to risk-weighted assets. In the event the Company defers payments on the junior subordinated debentures used to fund payments to be made pursuant to the terms of the Capital Securities, the Company would be unable to pay cash dividends on its common stock until the deferred payments are made. |
Shareholders' Equity |
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Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders’ Equity The Company issued a warrant on December 23, 2008 to the United States Department of the Treasury (the “Treasury”) under the Troubled Asset Relief Program (“TARP”) Capital Purchase Program (the “CPP”). This warrant was sold by the Treasury on November 23, 2011 and exchanged for two new warrants which permit the holders thereof to acquire, on an adjusted basis resulting from declarations of stock dividends to holders of common stock since the issuance of the two warrants, 281,733 shares of common stock of the Company at a price of $6.39 per share. Certain terms and conditions of the warrant issued to the Treasury were modified or deleted in the two new warrants, including, without limitation, the deletion of the anti-dilution provision upon certain issuances of the Company’s common stock at or below a specified price relative to the initial exercise price. However, the two warrants still provide for the adjustment of the exercise price and the number of shares of the Company’s common stock issuable upon exercise pursuant to customary anti-dilution provisions, such as upon stock splits or distributions of securities or other assets to holders of the Company’s common stock. The two warrants remain outstanding, are immediately exercisable and continue to have an expiration date of December 23, 2018, which was the expiration date of the warrant originally issued to the Treasury. The Board of Governors of the Federal Reserve System has issued a supervisory letter to bank holding companies that contains guidance on when the board of directors of a bank holding company should eliminate or defer or severely limit dividends including for example when net income available for shareholders for the past four quarters net of dividends paid during that period is not sufficient to fully fund the dividends. The letter also contains guidance on the redemption of stock by bank holding companies which urges bank holding companies to advise the Federal Reserve of any such redemption or repurchase of common stock for cash or other value which results in the net reduction of a bank holding company’s capital at the beginning of the quarter below the capital outstanding at the end of the quarter. On August 3, 2005, the Board of Directors of the Company authorized a common stock repurchase program that allowed for the repurchase of a limited number of the Company’s shares at management’s discretion on the open market. The Company undertook this repurchase program in order to increase shareholder value. During the year ended December 31, 2015, the Company repurchased 31,050 shares for an aggregate price of approximately $359,000. During the year ended December 31, 2014, the Company repurchased 14,072 shares for an aggregate price of approximately $144,000. On January 21, 2016, the Board of Directors of the Company authorized a new common stock repurchase program. Under the new common stock repurchase program, the Company may purchase in open market or privately negotiated transactions up to five (5%) percent of its common shares outstanding on the date of the approval of the stock repurchase program, which limitation will be adjusted for any future stock dividends. This new repurchase program replaces the repurchase program authorized on August 3, 2005. |
Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Disclosures U.S. GAAP has established 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 are as follows:
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and counterparty creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective value or reflective of future values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale. Securities classified as available for sale are reported at fair value utilizing Level 1 and Level 2 inputs. For Level 2 securities, the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. Impaired loans. Loans included in the following table are those which the Company has measured and recognized 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. The fair value consists of the loan balances less specific valuation allowances. Other Real Estate Owned. Foreclosed properties are adjusted to fair value less estimated selling costs at the time of foreclosure in preparation for transfer from portfolio loans to other real estate owned (“OREO”), establishing a new accounting basis. The Company subsequently adjusts the fair value on the OREO utilizing Level 3 inputs on a non-recurring basis to reflect partial write-downs based on the observable market price, current appraised value of the asset or other estimates of fair value. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis at December 31, 2015 and 2014 are as follows:
Impaired loans, measured at fair value and included in the above table, consisted of 9 loans having an aggregate balance of $4.3 million and specific loan loss allowances of $0.3 million at December 31, 2015 and 8 loans having an aggregate balance of $4.0 million and specific loan loss allowances of $0.7 million at December 31, 2014. The following table presents additional qualitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
The fair value of other real estate owned was determined using appraisals, which may be adjusted based on management’s review and changes in market conditions. The following is a summary of fair value versus the carrying value of all the Company’s financial instruments. For the Company and the Bank, as for most financial institutions, the bulk of its assets and liabilities are considered financial instruments. Many of the financial instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimations and present value calculations are used. Changes in assumptions could significantly affect these estimates. Estimated fair values have been determined by using the best available data and an estimation methodology suitable for each category of financial instruments as follows: Cash and Cash Equivalents, Accrued Interest Receivable and Accrued Interest Payable (Carried at Cost). The carrying amounts reported in the balance sheet for cash and cash equivalents, accrued interest receivable and accrued interest payable approximate fair value. Securities Held to Maturity (Carried at Amortized Cost). The fair values of securities held to maturity are determined in the same manner as for securities available for sale. Loans Held For Sale (Carried at Lower of Aggregated Cost or Fair Value). The fair values of loans held for sale are determined, when possible, using prices based on the best efforts commitment by the purchaser of the loan or quoted secondary market prices. If no such quoted market prices exist, fair values are determined using quoted prices for similar loans, adjusted for the specific attributes of the loans. Gross Loans Receivable (Carried at Cost). The fair values of loans, excluding impaired loans subject to specific loss reserves, are estimated using discounted cash flow analyses, and 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. Deposit Liabilities (Carried at Cost). The fair values disclosed for demand deposits (e.g., interest and non-interest demand and savings 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. Borrowings and Subordinated Debentures (Carried at Cost). The carrying amounts of short-term borrowings approximate their fair values. The fair values of long-term FHLB advances and subordinated debentures are estimated using discounted cash flow analysis, based on quoted or estimated interest rates for new borrowings with similar credit risk characteristics, terms and remaining maturity. The estimated fair values, and the recorded book balances, at December 31, 2015 and 2014 are as follows:
Loan commitments and standby letters of credit as of December 31, 2015 and 2014 are based on fees charged for similar agreements; accordingly, the estimated fair value of loan commitments, standby letters of credit, interest rate lock commitment mortgage servicing rights and forward sales commitments are nominal. |
Parent-only Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent-only Financial Information | Parent-only Financial Information The condensed financial statements of 1st Constitution Bancorp (parent company only) are presented below: 1st CONSTITUTION BANCORP Condensed Statements of Financial Condition (Dollars in Thousands)
1st CONSTITUTION BANCORP Consolidated Statements of Income and Comprehensive Income (Dollars in Thousands)
1st CONSTITUTION BANCORP Condensed Statements of Cash Flows (Dollars in Thousands)
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Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following sets forth a condensed summary of the Company’s quarterly results of operations for the years ended December 31, 2015 and 2014:
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the accepted practices within the banking industry. The following is a description of the more significant of these policies and practices. |
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Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 1st Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street Corp. and 249 New York Avenue, LLC. 1st Constitution Capital Trust II, a subsidiary of the Company (“Trust II”), is not included in the Company’s consolidated financial statements as it is a variable interest entity and the Company is not the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation and certain prior period amounts have been reclassified to conform to current year presentation. |
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Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary security impairment, the fair value of other real estate owned, the valuation of deferred tax assets and the fair value of acquired assets and liabilities. |
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Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company and its subsidiaries to concentrations of credit risk primarily consist of investment securities and loans. At December 31, 2015, 49.4% of our investment securities portfolio consisted of U.S. Government and Agency issues and collateralized mortgage obligations collateralized by agency mortgage backed securities. In addition, 37.9% of the portfolio consists of municipal bonds. The remaining 12.7% of our investment securities consisted primarily of corporate debt issues and restricted stock of the Federal Home Loan Bank ("FHLB") of New York. The Bank’s lending activity is primarily concentrated in loans collateralized by real estate located in the State of New Jersey. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in that state. |
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Interest Rate Risk | Interest Rate Risk The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to purchase investment securities and to make loans, the majority of which are secured by real estate. The potential for interest-rate risk exists as a result of the generally shorter duration of interest-sensitive assets compared to the generally longer duration of interest-sensitive liabilities. In a changing interest rate environment, assets held by the Bank will re-price faster than liabilities of the Bank, thereby affecting net interest income. For this reason, management regularly monitors the maturity structure and rate adjustment features of the Bank’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. |
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Investment Securities | Investment Securities Investment Securities which the Company has the intent and ability to hold until maturity are classified as held to maturity and are recorded at cost, adjusted for amortization of premiums and accretion of discounts. Investment Securities which are held for indefinite periods of time, which management intends to use as part of its asset/liability management strategy, or that may be sold in response to changes in interest rates, changes in prepayment risk, increased capital requirements or other similar factors, are classified as available for sale and are carried at fair value, except for restricted stock of the FHLB of New York which is carried at cost. Unrealized gains and losses on such securities are recorded as a separate component of shareholders’ equity. Realized gains and losses, which are computed using the specific identification method, are recognized on a trade date basis. If the fair value of a security is less than its amortized cost, the security is deemed to be impaired. Management evaluates all securities with unrealized losses quarterly to determine if such impairments are temporary or other-than-temporary in accordance with the Accounting Standards Codification (“ASC”) of the Financial Accounting Standards Board (“FASB”). Temporary impairments on available for sale securities are recognized, on a tax-effected basis, through other comprehensive income (“OCI”) with offsetting adjustments to the carrying value of the security and the balance of related deferred taxes. Temporary impairments of held to maturity securities are not recorded in the consolidated financial statements; however, information concerning the amount and duration of impairments on held to maturity securities is disclosed. Other-than-temporary impairments ("OTTI") on all equity securities and on debt securities that the Company has decided to sell, or will, more likely than not, be required to sell prior to the full recovery of fair value to a level equal to or exceeding amortized cost, are recognized in earnings. If neither of these conditions regarding the likelihood of sale for a debt security apply, the OTTI is bifurcated into credit-related and noncredit-related components. Credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on a debt security fall below its amortized cost. The noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related OTTI in earnings. Noncredit-related OTTI on debt securities are recognized in OCI. For held to maturity debt securities, the amount of any OTTI recorded in OCI is amortized prospectively over the remaining lives of the securities based on the timing of future estimated cash flows related to those securities. Premiums and discounts on all securities are amortized/accreted to maturity by use of the level-yield method considering the impact of principal amortization and prepayments. Federal law requires a member institution of the FHLB system to hold restricted stock of its district FHLB according to a predetermined formula. The Bank’s investment in the restricted stock of the FHLB of New York, while included in investment securities available for sale, is carried at cost. Management evaluates the FHLB restricted stock for impairment in accordance with U.S. GAAP. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management believes no impairment charge is necessary related to the FHLB stock as of December 31, 2015. |
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Bank Owned Life Insurance | Bank-Owned Life Insurance The Company invests in bank-owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by the Company on a chosen group of employees. The Company is the owner and beneficiary of the policies. This pool of insurance, due to the advantages of the Bank, is profitable to the Company. This profitability offsets a portion of current and future benefit costs and is intended to provide a funding source for the payment of future benefits. The Bank’s deposits fund BOLI and the earnings from BOLI are recognized as non-interest income. |
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Loans and Loans Held For Sale | Loans and Loans Held For Sale Loans that management intends to hold to maturity are stated at the principal amount outstanding, net of unearned income. Unearned income is recognized over the lives of the respective loans, principally using the effective interest method. Interest income is generally not accrued on loans, including impaired loans, where interest or principal is 90 days or more past due, unless the loans are adequately secured and in the process of collection, or on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations. When it is probable that, based upon current information, the Bank will not collect all amounts due under the contractual terms of the loan, the loan is reported as impaired. Smaller balance homogeneous type loans, such as residential loans and loans to individuals, which are collectively evaluated, are generally excluded from consideration for impairment. Loan impairment is measured based upon the present value of the expected future cash flows discounted at the loan’s effective interest rate or the underlying fair value of collateral for collateral dependent loans. When a loan, including an impaired loan, is placed on non-accrual, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Non-accrual loans are generally not returned to accruing status until principal and interest payments have been brought current and full collectibility is reasonably assured. Cash receipts on non-accrual and impaired loans are applied to principal, unless the loan is deemed fully collectible. Loans held for sale are carried at the lower of aggregated cost or fair value. The fair value of loans held for sale are determined, when possible, using quoted secondary market prices. If no such quoted market prices exist, fair values are determined using quoted prices for similar loans, adjusted for the specific attributes of the loans. Realized gains and losses on loans held for sale are recognized at settlement date and are determined based on the cost, including deferred net loan origination fees and the costs of the specific loans sold. Residential mortgage loans are sold servicing released. The Bank accounts for its transfers and servicing of financial assets in accordance with ASC Topic 860, “Transfers and Servicing” ("ASC Topic 860"). The Bank originates residential mortgages under a definitive plan to sell those loans with servicing generally released. Residential mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Bank also originates commercial loans of which a portion are guaranteed by the SBA. The guaranteed portion of the loans is generally sold into the secondary market. Gains and losses on sales are also accounted for in accordance with ASC Topic 860. The Bank enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding “rate lock commitments”. Rate lock commitments on residential mortgage loans that are intended to be sold are considered to be derivatives. Time elapsing between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 120 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The market value of rate lock commitments and best efforts commitments is not readily ascertainable with precision because rate lock commitments and best efforts commitments are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments based upon the forward sales price that is obtained in the best efforts commitment at the time the borrower locks in the interest rate on the loan while taking into consideration the probability that the rate lock commitments will close. Due to high correlation between rate lock commitments and best efforts commitments, no gain or loss occurs on the rate lock commitments. Rate lock commitments and related derivative instruments were not deemed to be significant at December 31, 2015 and 2014 and therefore, not recorded on the balance sheet at December 31, 2015 and 2014. ASC Topic 460, “Guarantees,” requires a guarantor entity, at the inception of a guarantee covered by the measurement provisions of the interpretation, to record a liability for the fair value of the obligation undertaken in issuing the guarantee. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial performance of a customer to a third party. Those guarantees are primarily issued to support contracts entered into by customers. Most guarantees extend for one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank defines the fair value of these letters of credit as the fees paid by the customer or similar fees collected on similar instruments. The Bank amortizes the fees collected over the life of the instrument. The Bank generally obtains collateral, such as real estate or liens on customer assets for these types of commitments. The Bank’s potential liability would be reduced by any proceeds obtained in liquidation of the collateral held. The Bank had standby letters of credit for customers aggregating $2.1 million and $2.6 million at December 31, 2015 and 2014, respectively. These letters of credit are primarily related to real estate lending and the approximate value of underlying collateral upon liquidation is expected to be sufficient to cover this maximum potential exposure at December 31, 2015. |
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Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level sufficient to absorb estimated credit losses in the loan portfolio as of the date of the financial statements. The allowance for loan losses is a valuation reserve available for losses incurred or inherent in the loan portfolio and other extensions of credit. The determination of the adequacy of the allowance for loan losses is a critical accounting policy of the Company. All, or part, of the principal balance of commercial and commercial real estate loans and construction loans are charged off against the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. Loans are placed in a nonaccrual status when the ultimate collectability of principal or interest in whole, or in part, is in doubt. Past-due loans contractually past-due 90 days or more for either principal or interest are also placed in nonaccrual status unless they are both well secured and in the process of collection. Impaired loans are evaluated individually. Purchased Credit-Impaired (“PCI”) loans are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e.; the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans or the “accretable yield”, is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference”, are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and result in an increase in yield on a prospective basis. The following is our charge-off policy for our loan segments: Commercial, Commercial Real Estate and Construction Loans are generally fully or partially charged down to the fair value of collateral securing the asset when:
Consumer Consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. |
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Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and using the mandated methods by asset type for income tax purposes. Building, furniture and fixtures, equipment and leasehold improvements are depreciated or amortized over the estimated useful lives of the assets or lease terms, as applicable. Estimated useful lives of buildings are forty years, furniture and fixtures and equipment are three to fifteen years, and leasehold improvements are generally three to ten years. Expenditures for maintenance and repairs are charged to expense as incurred. The Company accounts for impairment of long lived assets in accordance with ASC Topic 360, “Property, Plant, and Equipment,” which requires recognition and measurement for the impairment of long lived assets to be held and used or to be disposed of by sale. |
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Derivative Contracts | Derivative Contracts Derivative contracts, as required by ASC Topic 815, “Derivatives and Hedging,” are carried at fair value as either assets or liabilities in the balance sheet with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders’ equity, net of related income tax effects for contracts that are classified as cash flow hedges. Gains and losses on derivative contracts are recognized upon realization utilizing the specific identification method. |
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Income Taxes | Income Taxes There are two components of income tax expense or benefit: current and deferred. Current income tax expense or benefit approximates cash to be paid or refunded for taxes for the applicable period. Deferred tax assets and liabilities are recognized due to differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in the financial statements. Deferred tax assets are subject to management’s judgment based upon available evidence that future realizations are likely. If management determines that the Company may not be able to realize some or all of the net deferred tax asset in the future, a charge to income tax expense may be required to increase the valuation reserve of the net deferred tax asset. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is recognized for the change in deferred tax liabilities. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements in accordance with ASC Topic 740, “Income Taxes,” which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has not identified any significant income tax uncertainties through the evaluation of its income tax positions for the years ended December 31, 2015 and 2014 and has not recognized any liabilities for tax uncertainties as of December 31, 2015 and 2014. Our policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense; such amounts were not significant during the years ended December 31, 2015 and 2014. The tax years subject to examination by the taxing authorities are, for federal and state purposes, the years ended December 31, 2015, 2014, 2013 and 2012. |
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Other Real Estate Owned (OREO) | Other Real Estate Owned ("OREO") OREO obtained through loan foreclosures or the receipt of deeds-in-lieu of foreclosure is recorded at the fair value of the related property, as determined by current appraisals less estimated costs to sell at the initial transfer from the loan portfolio. Write-downs on these properties, which occur after the initial transfer from the loan portfolio, are recorded as operating expenses. Costs of holding such properties are charged to expense in the current period. Gains, to the extent realized, and losses on the disposition of these properties are reflected in current operations. |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable net assets acquired in accordance with the purchase method of accounting. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or more often if events or circumstances indicated that there may be impairment, in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” Goodwill is tested for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. Core deposit intangibles are a measure of the value of checking and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles are amortized over their estimated lives (ranging from five to ten years) and identifiable intangible assets are evaluated for impairment if events and circumstances indicate a possible impairment. Any impairment loss related to goodwill and other intangible assets is reflected as other non-interest expense in the statement of income in the period in which the impairment was determined. No assurance can be given that future impairment tests will not result in a charge to earnings. See Note 9 – Goodwill and Intangible Assets for additional information. |
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Share-Based Compensation | Share-Based Compensation The Company recognizes compensation expense for stock awards and options in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The expense of stock-based compensation is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is usually the vesting period. The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each stock option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. See Note 16 – Share-Based Compensation for additional information. |
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Benefit Plans | Benefit Plans The Company provides certain retirement savings benefits to employees under a 401(k) plan. The Company’s contributions to the 401(k) plan are expensed as incurred. The Company also provides retirement benefits to certain employees under supplemental executive retirement plans. The plans are unfunded and the Company accrues actuarial determined benefit costs over the estimated service period of the employees in the plans. In accordance with ASC Topic 715, “Compensation – Retirement Benefits,” the Company recognizes the unfunded status of these postretirement plans as a liability in its consolidated balance sheets and recognizes changes in that unfunded status in the year in which the changes occur through other comprehensive income. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, interest and non-interest bearing amounts due from banks, Federal funds sold and short-term investments. Generally, Federal funds are sold and short-term investments are made for a one or two-day period. For purposes of the Consolidated Statements of Cash Flows, accounts affected by the Rumson acquisition are presented net of the assets and liabilities acquired. Assets and liabilities acquired are presented in the Supplemental Disclosures of Cash Flow Information. |
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Reclassifications | Reclassifications Certain reclassifications have been made to the prior period amounts to conform with the current period presentation. Such reclassification had no impact on net income or total shareholders’ equity. |
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Advertising Costs | Advertising Costs It is the Company’s policy to expense advertising costs in the period in which they are incurred. |
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Earnings Per Common Share | Earnings Per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding, as adjusted for the assumed exercise of dilutive common stock warrants and common stock options using the treasury stock method. |
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Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, other-than-temporary non-credit related security impairments, unrealized gains and losses on cash flows hedges, and changes in the funded status of benefit plans. |
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Variable Interest Entities | Variable Interest Entities Management has determined that Trust II qualifies as a variable interest entity under ASC Topic 810, “Consolidation.” Trust II issued mandatorily redeemable preferred stock to investors, loaned the proceeds to the Company and holds, as its sole asset, subordinated debentures issued by the Company. As a qualified variable interest entity, Trust II’s Balance Sheet and Statement of Operations have never been consolidated with those of the Company. In March 2005, the Federal Reserve Board ("FRB") adopted a final rule that would continue to allow the inclusion of trust preferred securities in Tier 1 capital, but with stricter quantitative limits. Under the final rule, after a five-year transition period, the aggregate amount of trust preferred securities and certain other capital elements would be limited to 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit could be included in Tier 2 capital, subject to restrictions. Based on the final rule, the Company has included all of its $18.0 million in trust preferred securities in Tier 1 capital at December 31, 2015 and 2014. |
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Segment Information | Segment Information U.S. GAAP establishes 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-maker in deciding how to allocate and assess resources and performance. The Company’s chief operating decision-maker is the President and Chief Executive Officer. The Company has applied the aggregation criteria for its operating segments to create one reportable segment, “Community Banking.” The Company’s Community Banking segment consists of construction, commercial, retail and mortgage banking operations. The Community Banking segment is managed as a single strategic unit, which generates revenue from a variety of products and services provided by the Company. Construction, commercial, retail and mortgage banking lending is dependent upon the ability of the Company to fund itself with retail deposits and other borrowings and to manage interest rate, liquidity and credit risk as a single unit. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU Update 2016-02: Leases In February 2016, the FASB issued ASU 2016-02 "Leases." 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 lessee. 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. 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. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. ASU Update 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The guidance in the ASU, among other things, requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. ASU Update 2015-16 Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," to require adjustments to provisional amounts that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update would require an entity to disclose (either on the face of the income statement or in the notes) the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 and for all other entities for fiscal years beginning after December 31, 2015 and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The amendments in this update should be applied prospectively to measurement-period adjustments that occur after the effective date of this update. The Company does not expect that the adoption of this guidance will have a material impact on the Company's consolidated financial statements. ASU 2014-9 Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers (Topic 606).” The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are in the scope of other standards. This ASU, which does not apply to financial instruments, is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. The Company does not anticipate a material impact on the Company's consolidated financial statements related to this guidance. ASU 2014-12 Accounting for Share-Based-Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period (a consensus of the FAS Emerging Issues Task Force). In June 2014, the FASB issued ASU 2014-12, "Accounting for Share-Based-Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period," which requires that a performance target included in a share-based payment award that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This update is effective for interim and annual periods beginning after December 15, 2015. The amendments can be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following tables illustrate the reconciliation of the numerators and denominators of the basic and diluted earnings per common share (EPS) calculations. Dilutive securities in the tables below exclude common stock options and warrants with exercise prices that exceed the average market price of the Company’s common stock during the periods presented. Inclusion of these common stock options and warrants would be anti-dilutive to the diluted earnings per common share calculation.
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Acquisition of Rumson-Fair Haven Bank and Trust Company (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the final fair value of the acquired assets and liabilities.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Amortized cost, carrying value, gross unrealized gains and losses, and the fair value by security type are as follows:
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Held-to-maturity Securities |
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Investments Classified by Contractual Maturity Date | The following table sets forth certain information regarding the amortized cost, carrying value, fair value, weighted average yields and contractual maturities of the Company's investment portfolio as of December 31, 2015. 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. Restricted stock is included in “Available for sale - Due in one year or less.”
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Investment Securities, Continuous Unrealized Loss Position, Fair Value | Gross unrealized losses on available for sale and held to maturity securities and the fair value of the related securities aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and 2014 are as follows:
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Loans and Loans Held for Sale (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans are as follows:
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Allowance for Loan Losses and Credit Quality Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables | The following table provides an aging of the loan portfolio by loan class at December 31, 2014:
The following table provides an aging of the loan portfolio by loan class at December 31, 2015:
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Allowance for Credit Losses on Financing Receivables | The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at December 31, 2015 and 2014, respectively.
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Impaired Financing Receivables |
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Loans Purchased, With Evidence of Credit Deterioration | The following table presents additional information regarding purchased credit impaired loans for the years ended December 31, 2015 and 2014:
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Credit Impaired Loans Purchased, Change In Amortizable Yield | The following table presents changes in accretable discount for purchased credit impaired loans for the years ended December 31, 2015 and 2014:
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Remaining Estimated Accretable Discount | The following table presents the years for the scheduled remaining accretable discount that will accrete to income based on the Company’s most recent estimates of cash flows for PCI loans:
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Troubled Debt Restructurings on Financing Receivables | The following table is a breakdown of troubled debt restructurings, all of which are classified as impaired, which occurred during the years ended December 31, 2015 and 2014. During 2015
During 2014
The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in process of foreclosure:
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Commercial Portfolio Segment [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | The following table provides a breakdown of the loan portfolio by credit quality indictor at December 31, 2015:
The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2014:
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Other [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators |
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Related Parties (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Activity related to loans to directors, executive officers and their affiliated interests during 2015 and 2014 is as follows:
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Premises and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Premises and equipment consist of the following:
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Other Real Estate Owned ("OREO") (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate, Roll Forward | Activity related to other real estate owned for the years ended December 31, 2015 and 2014 is as follows:
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Goodwill and Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets are summarized as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Scheduled amortization of the core deposits intangible is as follows:
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Deposits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposit Liabilities | Deposits at December 31, 2015 and 2014 are summarized as follows:
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Scheduled Maturities of Time Deposits | At December 31, 2015, certificates of deposit have contractual maturities as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are summarized as follows:
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Schedule of Effective Income Tax Rate Reconciliation | A comparison of income tax expense at the Federal statutory rate in 2015 and 2014 to the Company’s provision for income taxes is as follows:
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Schedule of Deferred Tax Assets and Liabilities | The tax effects of existing temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:
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Comprehensive Income and Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) that are included in shareholders' equity and the related tax effects are as follows:
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Components of Accumulated Other Comprehensive Loss | Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax:
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Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations | The following table sets forth the changes in benefit obligations of the Company’s supplemental executive retirement plan.
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Schedule of Net Periodic Benefit Cost Not yet Recognized |
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Schedule of Assumptions Used |
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Schedule of Expected Benefit Payments |
* Represents management’s expectation as of December 31, 2015 as to when such payments will be made. |
Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Transactions under the Company’s stock option plans during the years ended December 31, 2015 and 2014 are summarized as follows:
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Schedule of Options Outstanding | The following table summarizes stock options outstanding and exercisable at December 31, 2015:
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Fair Value Inputs, Assets, Quantitative Information | The fair value of each option and the significant weighted average assumptions used to calculate the fair value of the options granted during the years ended December 31, 2015 and 2014 are as follows:
(1) To date, the Company has not paid cash dividends on its common stock. |
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Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the activity in nonvested restricted shares for the years ended December 31, 2015 and 2014:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2015, future minimum rental payments under non-cancelable operating leases are as follows:
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Other Operating Expenses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Operating Cost and Expense, by Component | The components of other operating expenses for the years ended December 31, 2015 and 2014 are as follows:
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Regulatory Capital Requirements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual capital amounts and ratios for the Company and the Bank as of December 31, 2015 and 2014 are as follows:
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Fair Value Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
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Fair Value Measurements, Nonrecurring | Financial assets and financial liabilities measured at fair value on a non-recurring basis at December 31, 2015 and 2014 are as follows:
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents additional qualitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
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Fair Value, by Balance Sheet Grouping | The estimated fair values, and the recorded book balances, at December 31, 2015 and 2014 are as follows:
|
Parent-only Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Financial Condition |
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Consolidated Statements of Income and Comprehensive Income |
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Condensed Statements of Cash Flows |
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Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
The following sets forth a condensed summary of the Company’s quarterly results of operations for the years ended December 31, 2015 and 2014:
|
Summary of Significant Accounting Policies (Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
Basic earnings per common share: | ||||||||||||||||
Net income (in Dollars) | $ 1,627 | $ 2,462 | $ 2,315 | $ 2,260 | $ 2,016 | $ 2,138 | $ (440) | $ 642 | $ 8,664 | $ 4,356 | ||||||
Weighted-average shares, basic | 7,901,278 | 7,735,303.17 | ||||||||||||||
Basic earnings per share (in Dollars per share) | $ 0.21 | [1] | $ 0.31 | [1] | $ 0.30 | [1] | $ 0.29 | [1] | $ 0.26 | $ 0.27 | $ (0.06) | $ 0.09 | $ 1.10 | $ 0.56 | ||
Effect of dilutive securities: | ||||||||||||||||
Stock options and warrants | 174,474 | 143,882.865 | ||||||||||||||
Diluted EPS: | ||||||||||||||||
Net income plus assumed conversion (in Dollars) | $ 8,664 | $ 4,356 | ||||||||||||||
Weighted-average shares, diluted | 8,075,752 | 7,879,186 | ||||||||||||||
Diluted earnings per share (in Dollars per share) | $ 0.20 | [1] | $ 0.30 | [1] | $ 0.29 | [1] | $ 0.28 | [1] | $ 0.25 | $ 0.27 | $ (0.06) | $ 0.09 | $ 1.07 | $ 0.55 | ||
|
Acquisition of Rumson-Fair Haven Bank and Trust Company (Details) - Rumson Fair Haven Bank And Trust Company [Member] $ / shares in Units, $ in Thousands |
Feb. 07, 2014
USD ($)
$ / shares
shares
|
---|---|
Business Acquisition [Line Items] | |
Number shares per exchanged share (in Shares) | 0.7772 |
Share price (in Dollars per share) | $ / shares | $ 7.50 |
Percentage of aggregate merger consideration that consisted of cash | 60.00% |
Percentage of aggregate merger consideration that consisted of common stock | 40.00% |
Shares of common stock issued in transaction | 1,019,223 |
Amount of cash paid in transaction | $ | $ 14,770 |
Acquisition of Rumson-Fair Haven Bank and Trust Company (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands |
Feb. 07, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Recognized amounts of identifiable assets and liabilities assumed at fair value: | |||
Goodwill | $ 11,853 | $ 11,853 | |
Rumson Fair Haven Bank And Trust Company [Member] | |||
Consideration paid: | |||
Company stock issued | $ 11,161 | ||
Cash payment | 14,770 | ||
Total consideration paid | 25,931 | ||
Recognized amounts of identifiable assets and liabilities assumed at fair value: | |||
Cash and cash equivalents | 36,145 | ||
Securities available for sale | 30,024 | ||
Loans | 143,714 | ||
Premises and equipment, net | 1,913 | ||
Identifiable intangible assets | 1,189 | ||
Bank-owned life insurance | 4,471 | ||
Accrued interest receivable and other assets | 1,738 | ||
Deposits | (189,490) | ||
Borrowings | (11,030) | ||
Other liabilities | (832) | ||
Total identifiable assets | 17,842 | ||
Goodwill | $ 8,089 |
Investment Securities (Narrative) (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
security
financial_institution
|
Dec. 31, 2009
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities pledged to collateralize borrowings and municipal deposits | $ 69,800 | $ 101,600 | |
Other than temporary impairment | $ 865 | ||
Other than temporary impairment loss, portion recognized in earnings | 364 | ||
Other than temporary impairment loss, portion recognized in other comprehensive income (loss) | $ 501 | ||
Trust preferred debt securities - single issuer [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of corporate trust preferred securities | security | 4 | ||
Number of issuers | financial_institution | 2 | ||
Trust preferred debt securities - pooled [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of issuers | financial_institution | 2 |
Loans and Loans Held for Sale (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Receivables [Abstract] | ||
Amount of residential mortgage loans held for sale | $ 6.0 | $ 8.4 |
Allowance for Loan Losses and Credit Quality Disclosures (Consumer Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Total amount of loans | $ 682,121 | $ 654,297 |
Loans to Individuals [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total amount of loans | 23,074 | 23,156 |
Loans to Individuals [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total amount of loans | 22,811 | 22,893 |
Loans to Individuals [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total amount of loans | 263 | 263 |
Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total amount of loans | 233 | 199 |
Other [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total amount of loans | $ 233 | $ 199 |
Allowance for Loan Losses and Credit Quality Disclosures (Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Receivables [Abstract] | ||
Outstanding balance | $ 1,964 | $ 2,705 |
Carrying amount | $ 1,600 | $ 2,024 |
Allowance for Loan Losses and Credit Quality Disclosures (Changes in Accretable Discount for Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of year | $ 135 | $ 0 |
Acquisition of impaired loans | 0 | 241 |
Accretion of discount | (62) | (106) |
Balance at end of year | 73 | 135 |
Non-accretable difference at end of year | $ 215 | $ 546 |
Allowance for Loan Losses and Credit Quality Disclosures (Estimate of the Remaining Accretable Discount) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Receivables [Abstract] | |||
2016 | $ 30 | ||
2017 | 22 | ||
2018 | 8 | ||
Thereafter | 13 | ||
Total | $ 73 | $ 135 | $ 0 |
Allowance for Loan Losses and Credit Quality Disclosures (Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure) (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015
USD ($)
loan
|
Dec. 31, 2014
USD ($)
loan
|
|
Receivables [Abstract] | ||
Number of loans | loan | 5 | 1 |
Recorded Investment | $ | $ 1,008 | $ 33 |
Allowance for Loan Losses and Credit Quality Disclosures (Troubled Debt Restructurings) (Details) - Commercial Business [Member] $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015
USD ($)
contract
|
Dec. 31, 2014
USD ($)
contract
|
|
Troubled Debt Restructurings: | ||
Number of Contracts | contract | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 288 | $ 162 |
Post-Modification Outstanding Recorded Investment | $ 288 | $ 162 |
Related Parties (Activity in Loans to Related Parties) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of year | $ 1,376 | $ 1,587 |
Loans granted | 16 | 206 |
Repayments of loans | (522) | (417) |
Balance, end of year | 870 | 1,376 |
Related party deposits | $ 9,000 | $ 7,900 |
Premises and Equipment (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1.0 | $ 1.1 |
Other Real Estate Owned ("OREO") (Activity Related to Other Real Estate Owned) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Real Estate [Roll Forward] | ||
Balance, beginning of year | $ 5,710 | $ 2,136 |
Transfers into real estate owned | 2,357 | 3,995 |
Transfers to other assets | 0 | (66) |
Sale of real estate owned | (6,027) | (243) |
Loss on sale of real estate owned | (692) | 0 |
Write-down of real estate owned | (382) | (112) |
Balance, end of year | $ 966 | $ 5,710 |
Other Real Estate Owned ("OREO") (Details) |
Dec. 31, 2015
Property
|
---|---|
Real Estate [Abstract] | |
Number of properties | 1 |
Goodwill and Intangible Assets (Schedule of Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 11,853 | $ 11,853 |
Core deposits intangible | 1,431 | 1,858 |
Total | $ 13,284 | $ 13,711 |
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 428 | $ 456 |
Goodwill and Intangible Assets (Scheduled Amortization) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 | $ 406 | |
2017 | 384 | |
2018 | 305 | |
2019 | 110 | |
2020 | 88 | |
Thereafter | 138 | |
Core deposits intangible | $ 1,431 | $ 1,858 |
Deposits (Schedule of Deposits) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Banking and Thrift [Abstract] | ||
Non-interest bearing | $ 159,918 | $ 162,281 |
Interest bearing | 284,547 | 297,679 |
Savings | 196,324 | 190,817 |
Certificates of deposit | 145,968 | 166,984 |
Total deposits | $ 786,757 | $ 817,761 |
Deposits (Maturities of Time Deposits) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Banking and Thrift [Abstract] | ||
2016 | $ 84,436 | |
2017 | 35,448 | |
2018 | 16,392 | |
2019 | 3,611 | |
2020 | 6,081 | |
Time Deposits | $ 145,968 | $ 166,984 |
Borrowings (Details) $ in Millions |
Dec. 31, 2015
USD ($)
advance
|
Dec. 31, 2014
USD ($)
advance
|
---|---|---|
Federal Home Loan Bank, Advances [Line Items] | ||
Balance of borrowings | $ 58.9 | $ 25.1 |
Number of advances | advance | 3 | 3 |
Total amount of FHLB advances | $ 20.3 | $ 20.7 |
Federal Home Loan Bank, Advances, Convertible Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rate percentage | 4.08% | |
Amount of fixed rate convertible advance | $ 10.0 | |
Rumson Fair Haven Bank And Trust Company [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Number of advances | advance | 2 | |
Total amount of advances assumed as a result of the RFHB merger | $ 10.0 | |
Interest rate percentage | 4.50% | |
Amount of premium | $ 1.0 | |
Combined carrying amount | 10.3 | |
Overnight Funds [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Overnight funds purchased | $ 38.6 | $ 4.4 |
Redeemable Subordinated Debentures (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
financial_institution
| |
Subordinated Borrowing [Line Items] | |
Amount of trust preferred securities | $ 18,000 |
Amount invested in Trust II | 557 |
Amount of floating rate junior subordinated debentures | $ 18,557 |
Interest rate at period end | 2.162% |
Number of financial institution holding companies | financial_institution | 50 |
London Interbank Offered Rate (LIBOR) [Member] | |
Subordinated Borrowing [Line Items] | |
Basis point spread on floating interest rate | 1.65% |
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Federal- | ||||||||||
Current | $ 3,199 | $ 894 | ||||||||
Deferred | 8 | 18 | ||||||||
Federal income tax expense (benefit) | 3,207 | 912 | ||||||||
State- | ||||||||||
Current | 704 | 322 | ||||||||
Deferred | 151 | (161) | ||||||||
State income tax expense (benefit) | 855 | 161 | ||||||||
Income tax expense (benefit) | $ 747 | $ 1,148 | $ 1,112 | $ 1,055 | $ 838 | $ 917 | $ (728) | $ 46 | $ 4,062 | $ 1,073 |
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | ||||||||||
Federal income tax | $ 4,327 | $ 1,846 | ||||||||
Add (deduct) effect of: | ||||||||||
State income taxes net of federal income tax effect | 564 | 106 | ||||||||
Tax-exempt interest income | (724) | (785) | ||||||||
Bank-owned life insurance | (203) | (192) | ||||||||
Other items, net | 98 | 98 | ||||||||
Income tax expense (benefit) | $ 747 | $ 1,148 | $ 1,112 | $ 1,055 | $ 838 | $ 917 | $ (728) | $ 46 | $ 4,062 | $ 1,073 |
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets (liabilities): | ||
Write-downs and expenses of OREO | $ 0 | $ 145 |
Allowance for loan losses | 3,020 | 2,766 |
Unrealized gain on securities available for sale | (113) | (151) |
Supplemental executive retirement plan liability | 2,060 | 2,003 |
Other than temporary impairment loss | 170 | 170 |
Depreciation | 482 | 367 |
Nonaccrual interest | 231 | 227 |
Pension liability | (75) | (202) |
Other | 324 | 500 |
Acquisition accounting adjustments | 441 | 709 |
Net deferred tax assets, included in other assets | $ 6,540 | $ 6,534 |
Comprehensive Income and Accumulated Other Comprehensive Income (Details) - Changes in the Components of AOCI - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | $ 248 | $ (2,248) |
Other comprehensive income (loss) before reclassifications | (218) | 2,501 |
Amounts reclassified from accumulated other comprehensive income (loss) | (160) | (5) |
Total other comprehensive (loss) income | (378) | 2,496 |
Accumulated other comprehensive income (loss), end of period | (130) | 248 |
Unrealized Holding (Losses) Gains on Available for Sale Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | 276 | (1,933) |
Other comprehensive income (loss) before reclassifications | (186) | 2,208 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 1 |
Total other comprehensive (loss) income | (186) | 2,209 |
Accumulated other comprehensive income (loss), end of period | 90 | 276 |
Unrealized Impairment Loss On Held to Maturity Security [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | (331) | (331) |
Accumulated other comprehensive income (loss), end of period | (331) | (331) |
Unfunded Pension Liability [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | 303 | 16 |
Other comprehensive income (loss) before reclassifications | (32) | 293 |
Amounts reclassified from accumulated other comprehensive income (loss) | (160) | (6) |
Total other comprehensive (loss) income | (192) | 287 |
Accumulated other comprehensive income (loss), end of period | $ 111 | $ 303 |
Benefit Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | ||
Service period | 6 months | |
Matching contribution percentage | 50.00% | 50.00% |
Maximum contribution as a percentage of base compensation (up to 6%) | 6.00% | 6.00% |
Employer contributions | $ 274 | $ 244 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Compensation expense | 184 | 451 |
Cash surrender value of policies | 21,600 | 21,200 |
Projected net periodic benefit cost | 243 | |
Actuarial gains to be recognized as a component of net periodic benefit expense | 103 | |
Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Present value of benefits accrued under plans | $ 5,200 | $ 5,000 |
Benefit Plans (Changes in Benefit Obligations) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Change in Benefit Obligation | ||||
Beginning January 1 | $ 4,511 | $ 4,538 | ||
Service cost | 267 | 262 | ||
Interest cost | 183 | 199 | ||
Actuarial (gain) loss | 53 | (488) | ||
Benefits paid | (43) | 0 | ||
Ending December 31 | 4,971 | 4,511 | ||
Amount Recognized in Consolidated Balance Sheets | ||||
Liability for pension | 4,511 | 4,538 | $ 4,971 | $ 4,511 |
Net actuarial gain included in accumulated other comprehensive income | 186 | 505 | ||
Prior service cost included in accumulated other comprehensive income | 0 | 0 | ||
Net recognized pension liability | 5,157 | 5,016 | ||
Information for pension plans with an accumulated benefit obligation in excess of plan assets | ||||
Projected benefit obligation | $ 4,511 | $ 4,538 | 4,971 | 4,511 |
Accumulated benefit obligation | $ 4,699 | $ 4,092 |
Benefit Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 267 | $ 262 |
Interest cost | 183 | 199 |
Amortization of prior service cost | 0 | 0 |
Recognized net actuarial gain | (266) | (10) |
Net periodic benefit expense | $ 184 | $ 451 |
Benefit Plans (Weighted-Average Assumptions) (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | ||
Discount Rate | 4.00% | 4.90% |
Salary Scale | 4.00% | 4.00% |
Benefit Plans (Expected Benefit Payments) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
[1] | ||
---|---|---|---|---|
Compensation and Retirement Disclosure [Abstract] | ||||
2016 | $ 1,368 | |||
2017 | 4,245 | |||
2018 | 0 | |||
2019 | 0 | |||
2020 | 0 | |||
2021-2025 | $ 0 | |||
|
Share-Based Compensation (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for grant | 485,873 | |
Shares of common stock available for future grants | 267,886 | |
Stock based compensation expense | $ 41,000 | $ 69,000 |
Number shares exercised | 43,639 | 0 |
Total intrinsic value of options exercised | $ 176,000 | |
Unrecognized compensation cost related to non-vested stock-option based compensation arrangements | $ 64,600 | |
2013 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock available for future grants | 221,686 | |
2006 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock available for future grants | 46,200 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of stock options | 10 years | |
Period that cost is expected to be recognized | 4 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 590,000 | $ 516,000 |
Period that cost is expected to be recognized | 3 years | |
Vesting period | 4 years | |
Unrecognized compensation cost | $ 1,100,000 |
Share-Based Compensation (Share-based Compensation Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding | 246,880 | 259,747 |
Granted | 13,892 | 12,899 |
Exercised | (43,639) | 0 |
Forfeited | (27,788) | (8,711) |
Expired | (11,751) | (17,055) |
Outstanding | 177,594 | 246,880 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, weighted average exercise price | $ 7.80 | $ 7.99 |
Granted, weighted average exercise price | 10.10 | 10.00 |
Exercised, weighted average exercise price | 6.68 | 0.00 |
Forfeited, weighted average exercise price | 10.55 | 11.62 |
Expired, weighted average exercise price | 11.89 | 10.44 |
Outstanding, weighted average exercise price | $ 7.41 | $ 7.80 |
Outstanding, weighted average remaining contractual term | 5 years 2 months 12 days | 5 years 3 months 18 days |
Outstanding, aggregate intrinsic value | $ 861 | $ 607 |
Number of Shares, Exercisable at December 31, 2015 | 143,942 | |
Weighted Average Exercise Price, Exercisable at December 31, 2015 | $ 8.80 | |
Weighted Average Remaining Contractual Term (years), Exercisable at December 31, 2015 | 4 years 255 days | |
Aggregate Intrinsic Value, Exercisable at December 31, 2015 | $ 707 |
Share-Based Compensation (Stock Options Outstanding and Exercisable) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options (in Shares) | 177,594 | 246,880 | 259,747 |
Outstanding options, average life in years | 5 years 2 months 12 days | ||
Outstanding options, average exercise price | $ 7.41 | ||
Exercisable options (in Shares) | 143,942 | ||
Exercisable options, average life in years | 4 years 255 days | ||
Exercisable options, average exercise price | $ 8.80 | ||
$5.92 to $6.21 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price range, lower limit | 5.92 | ||
Exercise price range, upper limit | $ 6.21 | ||
Outstanding options (in Shares) | 59,845 | ||
Outstanding options, average life in years | 5 years 9 months 18 days | ||
Outstanding options, average exercise price | $ 5.59 | ||
Exercisable options (in Shares) | 47,876 | ||
Exercisable options, average life in years | 5 years 9 months 18 days | ||
Exercisable options, average exercise price | $ 6.15 | ||
$6.79 to $10.75 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price range, lower limit | 6.79 | ||
Exercise price range, upper limit | $ 10.75 | ||
Outstanding options (in Shares) | 84,801 | ||
Outstanding options, average life in years | 4 years 10 months 24 days | ||
Outstanding options, average exercise price | $ 7.37 | ||
Exercisable options (in Shares) | 75,024 | ||
Exercisable options, average life in years | 4 years 7 months 6 days | ||
Exercisable options, average exercise price | $ 8.05 | ||
$11.51 to $13.77 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price range, lower limit | 11.51 | ||
Exercise price range, upper limit | $ 13.77 | ||
Outstanding options (in Shares) | 32,948 | ||
Outstanding options, average life in years | 4 years 10 months 24 days | ||
Outstanding options, average exercise price | $ 10.85 | ||
Exercisable options (in Shares) | 21,042 | ||
Exercisable options, average life in years | 2 years 9 months 18 days | ||
Exercisable options, average exercise price | $ 12.95 |
Share-Based Compensation (Fair Value Inputs, Assets, Quantitative Information) (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Fair value of options granted | $ 3.86 | $ 4.75 | ||
Risk-free rate of return | 1.99% | 1.65% | ||
Expected option life in years | 7 years | 7 years | ||
Expected volatility | 30.66% | 38.01% | ||
Expected dividends | [1] | 0.00% | 0.00% | |
|
Share-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested | 148,634 | 150,480 |
Granted | 70,515 | 70,450 |
Vested | (60,930) | (72,296) |
Forfeited | (14,340) | 0 |
Non-vested | 143,879 | 148,634 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Non-vested, average grant-date fair value | $ 7.16 | $ 5.98 |
Granted, average grant-date fair value | 10.66 | 10.17 |
Vested, average grant-date fair value | 8.99 | 7.01 |
Forfeited, average grant-date fair value | 8.61 | 0.00 |
Non-vested, average grant-date fair value | $ 8.32 | $ 7.16 |
Commitments and Contingencies (Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 1,255 |
2017 | 1,074 |
2018 | 901 |
2019 | 713 |
2020 | 508 |
Thereafter | 2,050 |
Future minimum rental payments under non-cancelable operating leases | $ 6,501 |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 1.5 | $ 1.4 |
Amount committed to advance to borrowers | 290.9 | 297.1 |
Maximum potential future payments under standby letters of credit | 2.1 | 2.6 |
Forward sales commitments [Member] | ||
Derivative [Line Items] | ||
Notional amount of forward sales commitments | $ 16.9 | $ 28.2 |
Other Operating Expenses (Components of Other Operating Expenses) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | $ 5,649 | $ 5,119 |
Marketing [Member] | ||
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | 282 | 197 |
Equipment [Member] | ||
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | 839 | 870 |
Telephone [Member] | ||
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | 449 | 422 |
Regulatory, Professional and Other Consulting Fees [Member] | ||
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | 1,681 | 1,360 |
Amortization of Intangible Assets [Member] | ||
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | 428 | 456 |
Other Expenses [Member] | ||
Components of Other Operating Expenses [Line Items] | ||
Other operating expenses | $ 1,970 | $ 1,814 |
Regulatory Capital Requirements (Compliance With Regulatory Capital Requirements Under Banking Regulations) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 (CETI), actual amount (in Dollars) | $ 83,994 | |
Common equity Tier 1 (CETI), actual ratio | 10.03% | |
Common equity Tier 1 (CETI), amount for capital adequacy purposes (in Dollars) | $ 37,628 | |
Common equity Tier 1 (CETI), ratio for capital adequacy purposes | 4.50% | |
Total Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 109,554 | $ 98,309 |
Total Capital to Risk Weighted Assets, actual ratio | 13.08% | 12.28% |
Total Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 66,894 | $ 64,045 |
Total Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 8.00% | 8.00% |
Tier I Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 101,994 | $ 91,384 |
Tier I Capital to Risk Weighted Assets, actual ratio | 12.18% | 11.41% |
Tier I Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 50,170 | $ 32,023 |
Tier I Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 6.00% | 4.00% |
Tier I Capital to Average Assets, actual amount (in Dollars) | $ 101,994 | $ 91,384 |
Tier I Capital to Average Assets, actual ratio | 10.80% | 9.53% |
Tier I Capital to Average Assets, amount for capital adequacy purposes (in Dollars) | $ 37,765 | $ 38,348 |
Tier I Capital to Average Assets, ratio for capital adequacy purposes | 4.00% | 4.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 (CETI), actual amount (in Dollars) | $ 99,631 | |
Common equity Tier 1 (CETI), actual ratio | 11.90% | |
Common equity Tier 1 (CETI), amount for capital adequacy purposes (in Dollars) | $ 37,628 | |
Common equity Tier 1 (CETI), ratio for capital adequacy purposes | 4.50% | |
Common equity Tier 1 (CETI), amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 54,431 | |
Common equity Tier 1 (CETI, ratio to be well capitalized under prompt corrective action provisions | 6.50% | |
Total Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 107,191 | $ 96,048 |
Total Capital to Risk Weighted Assets, actual ratio | 12.80% | 12.00% |
Total Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 66,894 | $ 64,045 |
Total Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 83,739 | $ 80,056 |
Total Capital to Risk Weighted Assets, ratio to be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Tier I Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 99,631 | $ 89,123 |
Tier I Capital to Risk Weighted Assets, actual ratio | 11.90% | 11.13% |
Tier I Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 50,170 | $ 32,023 |
Tier I Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 6.00% | 4.00% |
Tier I Capital to Risk Weighted Assets, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 66,991 | $ 48,034 |
Tier I Capital to Risk Weighted Assets, ratio to be well capitalized under prompt corrective action provisions | 8.00% | 6.00% |
Tier I Capital to Average Assets, actual amount (in Dollars) | $ 99,631 | $ 89,123 |
Tier I Capital to Average Assets, actual ratio | 10.55% | 9.30% |
Tier I Capital to Average Assets, amount for capital adequacy purposes (in Dollars) | $ 37,765 | $ 38,348 |
Tier I Capital to Average Assets, ratio for capital adequacy purposes | 4.00% | 4.00% |
Tier I Capital to Average Assets, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 47,211 | $ 47,935 |
Tier I Capital to Average Assets, ratio to be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 21, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Class of Stock [Line Items] | |||
Number or new warrants | 2 | ||
Number of shares repurchased | 31,050 | 14,072 | |
Cost to repurchase shares (in Dollars) | $ 359 | $ 144 | |
Subsequent Event [Member] | |||
Class of Stock [Line Items] | |||
Percentage of common shares outstanding authorized to be repurchased | 5.00% | ||
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares of stock of the company permitted to acquire upon exchange of warrants | 281,733 | ||
Price of common stock upon exchange of warrants (in Dollars per share) | $ 6.39 |
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Recurring Basis) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | $ 94,724 | $ 80,161 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 14,043 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 80,627 | 80,075 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 54 | 86 |
US Treasury securities and obligations of US Government sponsored corporations (GSE) and agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 5,481 | 1,524 |
US Treasury securities and obligations of US Government sponsored corporations (GSE) and agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
US Treasury securities and obligations of US Government sponsored corporations (GSE) and agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 5,481 | 1,524 |
Residential collateralized mortgage obligations- GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 8,287 | 4,533 |
Residential collateralized mortgage obligations- GSE [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 8,287 | 4,533 |
Residential mortgage backed securities - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 32,635 | 27,771 |
Residential mortgage backed securities - GSE [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 32,635 | 27,771 |
Obligations of state and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 21,436 | 21,703 |
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 21,436 | 21,703 |
Trust preferred debt securities - single issuer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 2,136 | 2,069 |
Trust preferred debt securities - single issuer [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 2,136 | 2,069 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 20,422 | 19,521 |
Corporate debt securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 14,043 | |
Corporate debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 6,379 | 19,521 |
Other debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 1,025 | 1,280 |
Other debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 971 | 1,194 |
Other debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 54 | 86 |
Restricted stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 3,302 | 1,760 |
Restricted stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | $ 3,302 | $ 1,760 |
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Non-recurring Basis) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 3,960 | $ 3,883 |
Other real estate owned | 966 | 5,710 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,960 | 3,883 |
Other real estate owned | $ 966 | $ 5,710 |
Fair Value Disclosures (Narrative) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
loan
|
Dec. 31, 2014
USD ($)
loan
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, aggregate balance | $ 8,780 | $ 10,473 |
Impaired loans, related allowance | $ 326 | $ 741 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans | loan | 9 | 8 |
Impaired loans, aggregate balance | $ 4,300 | $ 4,000 |
Impaired loans, related allowance | $ 300 | $ 700 |
Fair Value Disclosures (Fair Value Qualitative Information) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Impaired loans (in Dollars) | $ 3,960 | $ 3,883 | |||||
Other real estate owned (in Dollars) | 966 | 5,710 | |||||
Impaired Loans [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Impaired loans (in Dollars) | $ 3,960 | $ 3,883 | |||||
Valuation Techniques | [1] | Appraisal of collateral (1) | Appraisal of collateral (1) | ||||
Unobservable Input | [2] | Appraisal adjustments (2) | Appraisal adjustments (2) | ||||
Impaired Loans [Member] | Minimum [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Range | 11.00% | 8.00% | |||||
Weighted average | (11.00%) | (8.00%) | |||||
Range | 11.00% | 8.00% | |||||
Weighted average | (11.00%) | (8.00%) | |||||
Impaired Loans [Member] | Maximum [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Range | 44.00% | 17.00% | |||||
Weighted average | (44.00%) | (17.00%) | |||||
Range | 44.00% | 17.00% | |||||
Weighted average | (44.00%) | (17.00%) | |||||
Impaired Loans [Member] | Weighted Average [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Range | 29.60% | 10.66% | |||||
Weighted average | (29.60%) | (10.66%) | |||||
Range | 29.60% | 10.66% | |||||
Weighted average | (29.60%) | (10.66%) | |||||
Other Real Estate Owned [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Valuation Techniques | [1] | Appraisal of collateral (1) | Appraisal of collateral (1) | ||||
Unobservable Input | [2] | Appraisal adjustments (2) | Appraisal adjustments (2) | ||||
Other real estate owned (in Dollars) | $ 966 | $ 5,710 | |||||
Other Real Estate Owned [Member] | Minimum [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Range | 0.00% | ||||||
Weighted average | 0.00% | ||||||
Range | 0.00% | ||||||
Weighted average | 0.00% | ||||||
Other Real Estate Owned [Member] | Maximum [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Range | 39.00% | ||||||
Weighted average | (39.00%) | ||||||
Range | 39.00% | ||||||
Weighted average | (39.00%) | ||||||
Other Real Estate Owned [Member] | Weighted Average [Member] | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Range | 11.00% | 25.10% | |||||
Weighted average | (11.00%) | (25.10%) | |||||
Range | 11.00% | 25.10% | |||||
Weighted average | (11.00%) | (25.10%) | |||||
|
Fair Value Disclosures (Estimated Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 11,368 | $ 14,545 |
Cash and cash equivalents, fair value | 11,368 | 14,545 |
Securities available for sale: | 94,724 | 80,161 |
Securities held to maturity | 123,261 | 143,638 |
Held to maturity, fair value | 127,157 | 148,476 |
Loans held for sale | 5,997 | 8,372 |
Loans held for sale, fair value | 6,115 | 8,500 |
Loans | 674,561 | 647,372 |
Loans, fair value | 688,279 | 656,153 |
Accrued interest receivable | 2,853 | 3,096 |
Accrued interest receivable, fair value | 2,853 | 3,096 |
Deposits | (786,757) | (817,761) |
Deposits, fair value | (786,594) | (818,265) |
Borrowings | (58,896) | (25,107) |
Borrowings, fair value | (59,347) | (25,838) |
Redeemable subordinated debentures | (18,557) | (18,557) |
Redeemable subordinated debentures, fair value | (18,557) | (18,557) |
Accrued interest payable | (846) | (907) |
Accrued interest payable, fair value | (846) | (907) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 11,368 | 14,545 |
Securities available for sale: | 14,043 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale: | 80,627 | 80,075 |
Held to maturity, fair value | 127,157 | 148,476 |
Loans held for sale, fair value | 6,115 | 8,500 |
Accrued interest receivable, fair value | 2,853 | 3,096 |
Deposits, fair value | (786,594) | (818,265) |
Borrowings, fair value | (59,347) | (25,838) |
Redeemable subordinated debentures, fair value | (18,557) | (18,557) |
Accrued interest payable, fair value | (846) | (907) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale: | 54 | 86 |
Loans, fair value | $ 688,279 | $ 656,153 |
Parent-only Financial Information (Details) - Condensed Statements of Financial Condition - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Assets: | |||
Investment securities available for sale, at fair value | $ 94,724 | $ 80,161 | |
Other assets | 8,285 | 7,583 | |
Total assets | 967,991 | 956,779 | |
Liabilities And Shareholders’ Equity | |||
Subordinated debentures | 18,557 | 18,557 | |
Shareholders’ equity | 95,960 | 87,110 | $ 68,357 |
Total liabilities and shareholders’ equity | 967,991 | 956,779 | |
Parent Company [Member] | |||
Assets: | |||
Cash | 77 | 66 | |
Investment securities available for sale, at fair value | 557 | 557 | |
Investment in subsidiaries | 111,597 | 102,848 | |
Other assets | 2,286 | 2,196 | |
Total assets | 114,517 | 105,667 | |
Liabilities And Shareholders’ Equity | |||
Subordinated debentures | 18,557 | 18,557 | |
Shareholders’ equity | 95,960 | 87,110 | |
Total liabilities and shareholders’ equity | $ 114,517 | $ 105,667 |
Parent-only Financial Information (Details) - Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income: | ||||||||||
Interest | $ 9,861 | $ 10,832 | $ 10,565 | $ 9,687 | $ 9,668 | $ 10,133 | $ 9,564 | $ 7,996 | $ 40,945 | $ 37,361 |
Total Income | 9,861 | 10,832 | 10,565 | 9,687 | 9,668 | 10,133 | 9,564 | 7,996 | 40,945 | 37,361 |
Expense: | ||||||||||
Interest | 1,170 | 1,169 | 1,153 | 1,144 | 1,187 | 1,186 | 1,186 | 1,099 | 4,636 | 4,658 |
Total Expense | 1,170 | 1,169 | 1,153 | 1,144 | 1,187 | 1,186 | 1,186 | 1,099 | 4,636 | 4,658 |
Loss before income taxes and equity in undistributed income of subsidiaries | 2,374 | 3,610 | 3,427 | 3,315 | 2,854 | 3,055 | (1,168) | 688 | 12,726 | 5,429 |
Federal income tax benefit | 747 | 1,148 | 1,112 | 1,055 | 838 | 917 | (728) | 46 | 4,062 | 1,073 |
Net income | $ 1,627 | $ 2,462 | $ 2,315 | $ 2,260 | $ 2,016 | $ 2,138 | $ (440) | $ 642 | 8,664 | 4,356 |
Comprehensive Income | 8,286 | 6,852 | ||||||||
Parent Company [Member] | ||||||||||
Income: | ||||||||||
Interest | 11 | 11 | ||||||||
Total Income | 11 | 11 | ||||||||
Expense: | ||||||||||
Interest | 366 | 355 | ||||||||
Total Expense | 366 | 355 | ||||||||
Loss before income taxes and equity in undistributed income of subsidiaries | (354) | (344) | ||||||||
Federal income tax benefit | (121) | (117) | ||||||||
Loss before equity in undistributed income of subsidiaries | (233) | (227) | ||||||||
Equity in undistributed income of subsidiaries | 8,897 | 4,583 | ||||||||
Net income | 8,664 | 4,356 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | (378) | 2,496 | ||||||||
Comprehensive Income | $ 8,286 | $ 6,852 |
Parent-only Financial Information (Details) - Condensed Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating Activities: | ||||||||||
Net income | $ 1,627 | $ 2,462 | $ 2,315 | $ 2,260 | $ 2,016 | $ 2,138 | $ (440) | $ 642 | $ 8,664 | $ 4,356 |
Adjustments: | ||||||||||
(Increase) decrease in other assets | (1,812) | 620 | ||||||||
Net cash provided by operating activities | 14,650 | 16,920 | ||||||||
Cash Flows From Investing Activities: | ||||||||||
Net cash used in investing activities | (20,545) | (65,661) | ||||||||
Cash Flows From Financing Activities: | ||||||||||
Purchase of treasury stock, net | (359) | (144) | ||||||||
Net cash provided by (used in) financing activities | 2,718 | (5,992) | ||||||||
Net increase in cash | (3,177) | (54,733) | ||||||||
Cash at beginning of year | 14,545 | 14,545 | ||||||||
Cash at end of year | 11,368 | 14,545 | 11,368 | 14,545 | ||||||
Parent Company [Member] | ||||||||||
Operating Activities: | ||||||||||
Net income | 8,664 | 4,356 | ||||||||
Adjustments: | ||||||||||
(Increase) decrease in other assets | (92) | 27 | ||||||||
Equity in undistributed income of subsidiaries | (8,897) | (4,583) | ||||||||
Net cash provided by operating activities | (325) | (200) | ||||||||
Cash Flows From Investing Activities: | ||||||||||
Investment in subsidiary | (186) | (460) | ||||||||
Net cash used in investing activities | (186) | (460) | ||||||||
Cash Flows From Financing Activities: | ||||||||||
Issuance of common stock, net | 550 | 815 | ||||||||
Purchase of treasury stock, net | (28) | (144) | ||||||||
Net cash provided by (used in) financing activities | 522 | 671 | ||||||||
Net increase in cash | 11 | 11 | ||||||||
Cash at beginning of year | $ 66 | $ 55 | 66 | 55 | ||||||
Cash at end of year | $ 77 | $ 66 | $ 77 | $ 66 |
Quarterly Financial Data (Unaudited) (Details) - Condensed Summary of Quarterly Results of Operations - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
Summary of Operations | ||||||||||||||||
Total Income | $ 9,861 | $ 10,832 | $ 10,565 | $ 9,687 | $ 9,668 | $ 10,133 | $ 9,564 | $ 7,996 | $ 40,945 | $ 37,361 | ||||||
Total Expense | 1,170 | 1,169 | 1,153 | 1,144 | 1,187 | 1,186 | 1,186 | 1,099 | 4,636 | 4,658 | ||||||
Net interest income | 8,691 | 9,663 | 9,412 | 8,543 | 8,481 | 8,947 | 8,378 | 6,897 | 36,309 | 32,703 | ||||||
Provision for loan losses | 500 | 100 | 0 | 500 | 500 | 650 | 4,100 | 500 | 1,100 | 5,750 | ||||||
Net interest income after provision | ||||||||||||||||
Net interest income after provision for loan losses | 8,191 | 9,563 | 9,412 | 8,043 | 7,981 | 8,297 | 4,278 | 6,397 | 35,209 | 26,953 | ||||||
Non-interest income | 1,620 | 1,427 | 1,988 | 2,237 | 1,670 | 1,916 | 1,413 | 1,815 | 7,272 | 6,814 | ||||||
Non-interest expense | 7,437 | 7,380 | 7,973 | 6,965 | 6,797 | 7,158 | 6,859 | 7,524 | 29,755 | 28,338 | ||||||
Income before income taxes | 2,374 | 3,610 | 3,427 | 3,315 | 2,854 | 3,055 | (1,168) | 688 | 12,726 | 5,429 | ||||||
Income taxes | 747 | 1,148 | 1,112 | 1,055 | 838 | 917 | (728) | 46 | 4,062 | 1,073 | ||||||
Net income | $ 1,627 | $ 2,462 | $ 2,315 | $ 2,260 | $ 2,016 | $ 2,138 | $ (440) | $ 642 | $ 8,664 | $ 4,356 | ||||||
Net income (loss) per common share : | ||||||||||||||||
Basic (in Dollars per share) | $ 0.21 | [1] | $ 0.31 | [1] | $ 0.30 | [1] | $ 0.29 | [1] | $ 0.26 | $ 0.27 | $ (0.06) | $ 0.09 | $ 1.10 | $ 0.56 | ||
Diluted (in Dollars per share) | $ 0.20 | [1] | $ 0.30 | [1] | $ 0.29 | [1] | $ 0.28 | [1] | $ 0.25 | $ 0.27 | $ (0.06) | $ 0.09 | $ 1.07 | $ 0.55 | ||
|
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