MAINE | 01-0404322 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
MAIN STREET, DAMARISCOTTA, MAINE | 04543 |
(Address of principal executive offices) | (Zip code) |
Note 10 - Financial Derivative Instruments | |
Item 4 - Controls and Procedures | |
Dollars in thousands, | As of and for the nine months ended September 30, | As of and for the quarters ended September 30, | ||||||||||||||
except for per share amounts | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Summary of Operations | ||||||||||||||||
Interest Income | $ | 40,159 | $ | 37,772 | $ | 13,283 | $ | 12,833 | ||||||||
Interest Expense | 7,950 | 7,481 | 2,754 | 2,322 | ||||||||||||
Net Interest Income | 32,209 | 30,291 | 10,529 | 10,511 | ||||||||||||
Provision for Loan Losses | 1,125 | 1,100 | 375 | 200 | ||||||||||||
Non-Interest Income | 9,439 | 9,467 | 3,469 | 2,975 | ||||||||||||
Non-Interest Expense | 21,850 | 21,952 | 7,405 | 7,707 | ||||||||||||
Net Income | 13,689 | 12,437 | 4,562 | 4,188 | ||||||||||||
Per Common Share Data | ||||||||||||||||
Basic Earnings per Share | $ | 1.28 | $ | 1.17 | $ | 0.43 | $ | 0.39 | ||||||||
Diluted Earnings per Share | 1.27 | 1.16 | 0.42 | 0.39 | ||||||||||||
Cash Dividends Declared | 0.68 | 0.65 | 0.23 | 0.22 | ||||||||||||
Book Value per Common Share | 16.31 | 15.55 | 16.31 | 15.55 | ||||||||||||
Tangible Book Value per Common Share2 | 13.53 | 12.75 | 13.53 | 12.75 | ||||||||||||
Market Value | 23.97 | 19.10 | 23.97 | 19.10 | ||||||||||||
Financial Ratios | ||||||||||||||||
Return on Average Equity1 | 10.48 | % | 10.05 | % | 10.24 | % | 9.97 | % | ||||||||
Return on Average Tangible Common Equity1,2 | 12.67 | % | 12.29 | % | 12.33 | % | 12.18 | % | ||||||||
Return on Average Assets1 | 1.15 | % | 1.11 | % | 1.12 | % | 1.09 | % | ||||||||
Average Equity to Average Assets | 10.94 | % | 11.05 | % | 10.99 | % | 10.88 | % | ||||||||
Average Tangible Equity to Average Assets2 | 9.06 | % | 9.03 | % | 9.12 | % | 8.92 | % | ||||||||
Net Interest Margin Tax-Equivalent1,2 | 3.08 | % | 3.09 | % | 2.98 | % | 3.11 | % | ||||||||
Dividend Payout Ratio | 53.13 | % | 55.56 | % | 53.49 | % | 56.41 | % | ||||||||
Allowance for Loan Losses/Total Loans | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||
Non-Performing Loans to Total Loans | 0.69 | % | 0.83 | % | 0.69 | % | 0.83 | % | ||||||||
Non-Performing Assets to Total Assets | 0.49 | % | 0.65 | % | 0.49 | % | 0.65 | % | ||||||||
Efficiency Ratio2 | 50.19 | % | 53.76 | % | 50.25 | % | 53.88 | % | ||||||||
At Period End | ||||||||||||||||
Total Assets | $ | 1,635,088 | $ | 1,539,672 | $ | 1,635,088 | $ | 1,539,672 | ||||||||
Total Loans | 1,028,992 | 963,151 | 1,028,992 | 963,151 | ||||||||||||
Total Investment Securities | 485,111 | 475,167 | 485,111 | 475,167 | ||||||||||||
Total Deposits | 1,173,749 | 1,058,365 | 1,173,749 | 1,058,365 | ||||||||||||
Total Shareholders' Equity | 175,994 | 167,141 | 175,994 | 167,141 |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 23,456,000 | $ | 14,299,000 | $ | 19,169,000 | |||||
Interest bearing deposits in other banks | 15,098,000 | 4,013,000 | 301,000 | ||||||||
Securities available for sale | 282,293,000 | 223,039,000 | 215,933,000 | ||||||||
Securities to be held to maturity (fair value of $195,797,000 at September 30, 2016, $243,123,000 at December 31, 2015 and $248,344,000 at September 30, 2015) | 188,770,000 | 240,023,000 | 245,322,000 | ||||||||
Restricted equity securities, at cost | 14,048,000 | 14,257,000 | 13,912,000 | ||||||||
Loans held for sale | 1,228,000 | 349,000 | 200,000 | ||||||||
Loans | 1,028,992,000 | 988,638,000 | 963,151,000 | ||||||||
Less allowance for loan losses | 10,298,000 | 9,916,000 | 9,677,000 | ||||||||
Net loans | 1,018,694,000 | 978,722,000 | 953,474,000 | ||||||||
Accrued interest receivable | 5,079,000 | 4,912,000 | 5,189,000 | ||||||||
Premises and equipment, net | 21,779,000 | 21,816,000 | 21,704,000 | ||||||||
Other real estate owned | 855,000 | 1,532,000 | 1,916,000 | ||||||||
Goodwill | 29,805,000 | 29,805,000 | 29,805,000 | ||||||||
Other assets | 33,983,000 | 32,043,000 | 32,747,000 | ||||||||
Total assets | $ | 1,635,088,000 | $ | 1,564,810,000 | $ | 1,539,672,000 | |||||
Liabilities | |||||||||||
Demand deposits | $ | 158,476,000 | $ | 130,566,000 | $ | 128,555,000 | |||||
NOW deposits | 295,708,000 | 242,638,000 | 246,155,000 | ||||||||
Money market deposits | 76,685,000 | 92,994,000 | 95,217,000 | ||||||||
Savings deposits | 218,425,000 | 206,009,000 | 199,131,000 | ||||||||
Certificates of deposit | 424,455,000 | 370,982,000 | 389,307,000 | ||||||||
Total deposits | 1,173,749,000 | 1,043,189,000 | 1,058,365,000 | ||||||||
Borrowed funds – short term | 137,970,000 | 222,323,000 | 152,233,000 | ||||||||
Borrowed funds – long term | 130,128,000 | 115,134,000 | 145,136,000 | ||||||||
Other liabilities | 17,247,000 | 16,666,000 | 16,797,000 | ||||||||
Total liabilities | 1,459,094,000 | 1,397,312,000 | 1,372,531,000 | ||||||||
Shareholders' equity | |||||||||||
Common stock, one cent par value per share | 108,000 | 108,000 | 107,000 | ||||||||
Additional paid-in capital | 60,500,000 | 59,862,000 | 59,667,000 | ||||||||
Retained earnings | 112,900,000 | 106,673,000 | 105,273,000 | ||||||||
Accumulated other comprehensive income (loss) | |||||||||||
Net unrealized gain on securities available for sale | 2,708,000 | 1,123,000 | 2,318,000 | ||||||||
Net unrealized loss on securities transferred from available for sale to held to maturity | (124,000 | ) | (112,000 | ) | (99,000 | ) | |||||
Net unrealized gain on cash flow hedging derivative instruments | 58,000 | — | — | ||||||||
Net unrealized loss on postretirement benefit costs | (156,000 | ) | (156,000 | ) | (125,000 | ) | |||||
Total shareholders' equity | 175,994,000 | 167,498,000 | 167,141,000 | ||||||||
Total liabilities & shareholders' equity | $ | 1,635,088,000 | $ | 1,564,810,000 | $ | 1,539,672,000 | |||||
Common Stock | |||||||||||
Number of shares authorized | 18,000,000 | 18,000,000 | 18,000,000 | ||||||||
Number of shares issued and outstanding | 10,788,329 | 10,753,855 | 10,747,495 | ||||||||
Book value per common share | $ | 16.31 | $ | 15.58 | $ | 15.55 | |||||
Tangible book value per common share | $ | 13.53 | $ | 12.78 | $ | 12.75 |
For the nine months ended September 30, | For the quarter ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income | |||||||||||||||
Interest and fees on loans (includes year-to-date tax-exempt income of $487,000 in 2016 and $434,000 in September 30, 2015) | $ | 29,759,000 | $ | 27,247,000 | $ | 10,021,000 | $ | 9,235,000 | |||||||
Interest on deposits with other banks | 17,000 | 16,000 | 9,000 | 3,000 | |||||||||||
Interest and dividends on investments (includes year-to-date tax-exempt income of $3,761,000 in 2016 and $3,891,000 in 2015) | 10,383,000 | 10,509,000 | 3,253,000 | 3,595,000 | |||||||||||
Total interest income | 40,159,000 | 37,772,000 | 13,283,000 | 12,833,000 | |||||||||||
Interest expense | |||||||||||||||
Interest on deposits | 4,382,000 | 3,995,000 | 1,538,000 | 1,236,000 | |||||||||||
Interest on borrowed funds | 3,568,000 | 3,486,000 | 1,216,000 | 1,086,000 | |||||||||||
Total interest expense | 7,950,000 | 7,481,000 | 2,754,000 | 2,322,000 | |||||||||||
Net interest income | 32,209,000 | 30,291,000 | 10,529,000 | 10,511,000 | |||||||||||
Provision for loan losses | 1,125,000 | 1,100,000 | 375,000 | 200,000 | |||||||||||
Net interest income after provision for loan losses | 31,084,000 | 29,191,000 | 10,154,000 | 10,311,000 | |||||||||||
Non-interest income | |||||||||||||||
Investment management and fiduciary income | 1,805,000 | 1,706,000 | 591,000 | 548,000 | |||||||||||
Service charges on deposit accounts | 1,711,000 | 1,801,000 | 528,000 | 564,000 | |||||||||||
Net securities gains | 668,000 | 1,396,000 | 137,000 | 1,000 | |||||||||||
Mortgage origination and servicing income, net of amortization | 1,534,000 | 1,093,000 | 896,000 | 388,000 | |||||||||||
Other operating income | 3,721,000 | 3,471,000 | 1,317,000 | 1,474,000 | |||||||||||
Total non-interest income | 9,439,000 | 9,467,000 | 3,469,000 | 2,975,000 | |||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 11,136,000 | 10,944,000 | 3,931,000 | 3,784,000 | |||||||||||
Occupancy expense | 1,735,000 | 1,772,000 | 589,000 | 556,000 | |||||||||||
Furniture and equipment expense | 2,416,000 | 2,324,000 | 819,000 | 772,000 | |||||||||||
FDIC insurance premiums | 631,000 | 667,000 | 210,000 | 221,000 | |||||||||||
Amortization of identified intangibles | 32,000 | 47,000 | 10,000 | 11,000 | |||||||||||
Other operating expense | 5,900,000 | 6,198,000 | 1,846,000 | 2,363,000 | |||||||||||
Total non-interest expense | 21,850,000 | 21,952,000 | 7,405,000 | 7,707,000 | |||||||||||
Income before income taxes | 18,673,000 | 16,706,000 | 6,218,000 | 5,579,000 | |||||||||||
Income tax expense | 4,984,000 | 4,269,000 | 1,656,000 | 1,391,000 | |||||||||||
NET INCOME | $ | 13,689,000 | $ | 12,437,000 | $ | 4,562,000 | $ | 4,188,000 | |||||||
Basic earnings per common share | $ | 1.28 | $ | 1.17 | $ | 0.43 | $ | 0.39 | |||||||
Diluted earnings per common share | $ | 1.27 | $ | 1.16 | $ | 0.42 | $ | 0.39 | |||||||
Other comprehensive income (loss) net of tax | |||||||||||||||
Net unrealized gain (loss) on securities available for sale | 1,585,000 | (204,000 | ) | (1,292,000 | ) | 1,330,000 | |||||||||
Net unrealized gain (loss) on securities transferred from available for sale to held to maturity, net of amortization | (12,000 | ) | (51,000 | ) | 9,000 | (15,000 | ) | ||||||||
Net unrealized gain on cash flow hedging derivative instruments | 58,000 | — | 193,000 | — | |||||||||||
Other comprehensive income (loss) | 1,631,000 | (255,000 | ) | (1,090,000 | ) | 1,315,000 | |||||||||
Comprehensive income | $ | 15,320,000 | $ | 12,182,000 | $ | 3,472,000 | $ | 5,503,000 |
Common stock and additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Total shareholders' equity | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Balance at December 31, 2014 | 10,724,359 | $ | 59,389,000 | $ | 99,816,000 | $ | 2,349,000 | $ | 161,554,000 | ||||||||||
Net income | — | — | 12,437,000 | — | 12,437,000 | ||||||||||||||
Net unrealized loss on securities available for sale, net of tax | — | — | — | (204,000 | ) | (204,000 | ) | ||||||||||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | — | — | — | (51,000 | ) | (51,000 | ) | ||||||||||||
Comprehensive income | — | — | 12,437,000 | (255,000 | ) | 12,182,000 | |||||||||||||
Cash dividends declared ($0.65 per share) | — | — | (6,980,000 | ) | — | (6,980,000 | ) | ||||||||||||
Equity compensation expense | — | 222,000 | — | — | 222,000 | ||||||||||||||
Payment to repurchase common stock | (10,138 | ) | (180,000 | ) | — | — | (180,000 | ) | |||||||||||
Issuance of restricted stock | 13,650 | — | — | — | — | ||||||||||||||
Proceeds from sale of common stock | 19,624 | 343,000 | — | — | 343,000 | ||||||||||||||
Balance at September 30, 2015 | 10,747,495 | $ | 59,774,000 | $ | 105,273,000 | $ | 2,094,000 | $ | 167,141,000 | ||||||||||
Balance at December 31, 2015 | 10,753,855 | $ | 59,970,000 | $ | 106,673,000 | $ | 855,000 | $ | 167,498,000 | ||||||||||
Net income | — | — | 13,689,000 | — | 13,689,000 | ||||||||||||||
Net unrealized gain on securities available for sale, net of tax | — | — | — | 1,585,000 | 1,585,000 | ||||||||||||||
Net unrealized gain on cash flow hedging derivative instruments | — | — | — | 58,000 | 58,000 | ||||||||||||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | — | — | — | (12,000 | ) | (12,000 | ) | ||||||||||||
Comprehensive income | — | — | 13,689,000 | 1,631,000 | 15,320,000 | ||||||||||||||
Cash dividends declared ($0.68 per share) | — | — | (7,333,000 | ) | — | (7,333,000 | ) | ||||||||||||
Equity compensation expense | — | 215,000 | — | — | 215,000 | ||||||||||||||
Payment to repurchase common stock | (7,053 | ) | — | (129,000 | ) | — | (129,000 | ) | |||||||||||
Tax benefit from vesting of restricted stock | — | 32,000 | — | — | 32,000 | ||||||||||||||
Issuance of restricted stock | 21,847 | — | — | — | — | ||||||||||||||
Proceeds from sale of common stock | 19,680 | 391,000 | — | — | 391,000 | ||||||||||||||
Balance at September 30, 2016 | 10,788,329 | $ | 60,608,000 | $ | 112,900,000 | $ | 2,486,000 | $ | 175,994,000 |
For the nine months ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 13,689,000 | $ | 12,437,000 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation | 1,302,000 | 1,276,000 | |||||
Change in deferred taxes | (237,000 | ) | 334,000 | ||||
Provision for loan losses | 1,125,000 | 1,100,000 | |||||
Loans originated for resale | (37,790,000 | ) | (23,504,000 | ) | |||
Proceeds from sales and transfers of loans | 37,765,000 | 23,794,000 | |||||
Net gain on sales of loans | (854,000 | ) | (490,000 | ) | |||
Net gain on sale or call of securities | (668,000 | ) | (1,396,000 | ) | |||
Net amortization of premiums on investments | 1,668,000 | 634,000 | |||||
Net (gain) loss on sale of other real estate owned | (168,000 | ) | 2,000 | ||||
Provision for losses on other real estate owned | 89,000 | 236,000 | |||||
Equity compensation expense | 215,000 | 222,000 | |||||
Tax benefit from vesting of restricted stock | 32,000 | — | |||||
Net increase in other assets and accrued interest | (2,115,000 | ) | (1,486,000 | ) | |||
Net (decrease) increase in other liabilities | (159,000 | ) | 978,000 | ||||
Amortization of investment in limited partnership | 146,000 | 199,000 | |||||
Net acquisition amortization | 32,000 | 47,000 | |||||
Net cash provided by operating activities | 14,072,000 | 14,383,000 | |||||
Cash flows from investing activities | |||||||
(Increase) decrease in interest-bearing deposits in other banks | (11,085,000 | ) | 3,258,000 | ||||
Proceeds from sales of securities available for sale | 10,305,000 | 35,466,000 | |||||
Proceeds from maturities, payments and calls of securities available for sale | 49,088,000 | 25,481,000 | |||||
Proceeds from maturities, payments and calls of securities to be held to maturity | 82,900,000 | 36,367,000 | |||||
Proceeds from sales of other real estate owned | 1,340,000 | 2,587,000 | |||||
Purchases of securities available for sale | (117,307,000 | ) | (91,297,000 | ) | |||
Purchases of securities to be held to maturity | (31,549,000 | ) | (5,644,000 | ) | |||
Investment in bank-owned life insurance | — | (10,000,000 | ) | ||||
Redemption of restricted equity securities | 209,000 | — | |||||
Net increase in loans | (41,681,000 | ) | (48,310,000 | ) | |||
Capital expenditures | (1,265,000 | ) | (371,000 | ) | |||
Proceeds from disposal of premises and equipment | — | 10,000 | |||||
Net cash used by investing activities | (59,045,000 | ) | (52,453,000 | ) | |||
Cash flows from financing activities | |||||||
Net increase in demand, savings, and money market accounts | 77,087,000 | 91,740,000 | |||||
Net increase (decrease) in certificates of deposit | 53,473,000 | (58,194,000 | ) | ||||
Net (decrease) increase in short-term borrowings | (104,359,000 | ) | 2,453,000 | ||||
Advances on long-term borrowings | 35,000,000 | 55,000,000 | |||||
Repayment on long-term borrowings | — | (40,000,000 | ) | ||||
Payment to repurchase common stock | (129,000 | ) | (180,000 | ) | |||
Proceeds from sale of common stock | 391,000 | 343,000 | |||||
Dividends paid | (7,333,000 | ) | (6,980,000 | ) | |||
Net cash provided by financing activities | 54,130,000 | 44,182,000 | |||||
Net increase in cash and cash equivalents | 9,157,000 | 6,112,000 | |||||
Cash and cash equivalents at beginning of period | 14,299,000 | 13,057,000 | |||||
Cash and cash equivalents at end of period | $ | 23,456,000 | $ | 19,169,000 | |||
Interest paid | $ | 7,877,000 | $ | 7,564,000 | |||
Income taxes paid | 4,682,000 | 2,915,000 | |||||
Non-cash transactions | |||||||
Net transfer from loans to other real estate owned | $ | 584,000 | $ | 956,000 |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value (Estimated) | ||||||||||||
Securities available for sale | |||||||||||||||
Mortgage-backed securities | $ | 258,179,000 | $ | 3,848,000 | $ | (513,000 | ) | $ | 261,514,000 | ||||||
State and political subdivisions | 16,689,000 | 795,000 | — | 17,484,000 | |||||||||||
Other equity securities | 3,258,000 | 55,000 | (18,000 | ) | 3,295,000 | ||||||||||
$ | 278,126,000 | $ | 4,698,000 | $ | (531,000 | ) | $ | 282,293,000 | |||||||
Securities to be held to maturity | |||||||||||||||
U.S. Government-sponsored agencies | $ | 891,000 | $ | 15,000 | $ | — | $ | 906,000 | |||||||
Mortgage-backed securities | 34,186,000 | 1,386,000 | (34,000 | ) | 35,538,000 | ||||||||||
State and political subdivisions | 149,393,000 | 5,830,000 | (170,000 | ) | 155,053,000 | ||||||||||
Corporate securities | 4,300,000 | — | — | 4,300,000 | |||||||||||
$ | 188,770,000 | $ | 7,231,000 | $ | (204,000 | ) | $ | 195,797,000 | |||||||
Restricted equity securities | |||||||||||||||
Federal Home Loan Bank Stock | $ | 13,011,000 | $ | — | $ | — | $ | 13,011,000 | |||||||
Federal Reserve Bank Stock | 1,037,000 | — | — | 1,037,000 | |||||||||||
$ | 14,048,000 | $ | — | $ | — | $ | 14,048,000 |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value (Estimated) | ||||||||||||
Securities available for sale | |||||||||||||||
Mortgage-backed securities | $ | 194,563,000 | $ | 1,509,000 | $ | (962,000 | ) | $ | 195,110,000 | ||||||
State and political subdivisions | 23,367,000 | 1,201,000 | (62,000 | ) | 24,506,000 | ||||||||||
Other equity securities | 3,381,000 | 48,000 | (6,000 | ) | 3,423,000 | ||||||||||
$ | 221,311,000 | $ | 2,758,000 | $ | (1,030,000 | ) | $ | 223,039,000 | |||||||
Securities to be held to maturity | |||||||||||||||
U.S. Government-sponsored agencies | $ | 71,000,000 | $ | 40,000 | $ | (2,284,000 | ) | $ | 68,756,000 | ||||||
Mortgage-backed securities | 42,193,000 | 1,305,000 | (136,000 | ) | 43,362,000 | ||||||||||
State and political subdivisions | 122,530,000 | 4,200,000 | (25,000 | ) | 126,705,000 | ||||||||||
Corporate securities | 4,300,000 | — | — | 4,300,000 | |||||||||||
$ | 240,023,000 | $ | 5,545,000 | $ | (2,445,000 | ) | $ | 243,123,000 | |||||||
Restricted equity securities | |||||||||||||||
Federal Home Loan Bank Stock | $ | 13,220,000 | $ | — | $ | — | $ | 13,220,000 | |||||||
Federal Reserve Bank Stock | 1,037,000 | — | — | 1,037,000 | |||||||||||
$ | 14,257,000 | $ | — | $ | — | $ | 14,257,000 |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value (Estimated) | ||||||||||||
Securities available for sale | |||||||||||||||
Mortgage-backed securities | $ | 184,865,000 | $ | 2,921,000 | $ | (276,000 | ) | $ | 187,510,000 | ||||||
State and political subdivisions | 24,372,000 | 1,104,000 | (186,000 | ) | 25,290,000 | ||||||||||
Other equity securities | 3,129,000 | 40,000 | (36,000 | ) | 3,133,000 | ||||||||||
$ | 212,366,000 | $ | 4,065,000 | $ | (498,000 | ) | $ | 215,933,000 | |||||||
Securities to be held to maturity | |||||||||||||||
U.S. Government-sponsored agencies | $ | 75,991,000 | $ | 22,000 | $ | (1,571,000 | ) | $ | 74,442,000 | ||||||
Mortgage-backed securities | 45,287,000 | 1,744,000 | (53,000 | ) | 46,978,000 | ||||||||||
State and political subdivisions | 123,744,000 | 3,031,000 | (151,000 | ) | 126,624,000 | ||||||||||
Corporate securities | 300,000 | — | — | 300,000 | |||||||||||
$ | 245,322,000 | $ | 4,797,000 | $ | (1,775,000 | ) | $ | 248,344,000 | |||||||
Restricted equity securities | |||||||||||||||
Federal Home Loan Bank Stock | $ | 12,875,000 | $ | — | $ | — | $ | 12,875,000 | |||||||
Federal Reserve Bank Stock | 1,037,000 | — | — | 1,037,000 | |||||||||||
$ | 13,912,000 | $ | — | $ | — | $ | 13,912,000 |
Securities available for sale | Securities to be held to maturity | ||||||||||||||
Amortized Cost | Fair Value (Estimated) | Amortized Cost | Fair Value (Estimated) | ||||||||||||
Due in 1 year or less | $ | 973,000 | $ | 974,000 | $ | 1,772,000 | $ | 1,783,000 | |||||||
Due in 1 to 5 years | 3,020,000 | 3,106,000 | 13,428,000 | 13,782,000 | |||||||||||
Due in 5 to 10 years | 22,843,000 | 23,503,000 | 39,832,000 | 41,423,000 | |||||||||||
Due after 10 years | 248,032,000 | 251,415,000 | 133,738,000 | 138,809,000 | |||||||||||
Equity securities | 3,258,000 | 3,295,000 | — | — | |||||||||||
$ | 278,126,000 | $ | 282,293,000 | $ | 188,770,000 | $ | 195,797,000 |
Securities available for sale | Securities to be held to maturity | ||||||||||||||
Amortized Cost | Fair Value (Estimated) | Amortized Cost | Fair Value (Estimated) | ||||||||||||
Due in 1 year or less | $ | 527,000 | $ | 530,000 | $ | 1,814,000 | $ | 1,850,000 | |||||||
Due in 1 to 5 years | 7,562,000 | 7,727,000 | 6,306,000 | 6,514,000 | |||||||||||
Due in 5 to 10 years | 19,647,000 | 20,055,000 | 58,397,000 | 60,196,000 | |||||||||||
Due after 10 years | 190,194,000 | 191,304,000 | 173,506,000 | 174,563,000 | |||||||||||
Equity securities | 3,381,000 | 3,423,000 | — | — | |||||||||||
$ | 221,311,000 | $ | 223,039,000 | $ | 240,023,000 | $ | 243,123,000 |
Securities available for sale | Securities to be held to maturity | ||||||||||||||
Amortized Cost | Fair Value (Estimated) | Amortized Cost | Fair Value (Estimated) | ||||||||||||
Due in 1 year or less | $ | 926,000 | $ | 937,000 | $ | 1,362,000 | $ | 1,378,000 | |||||||
Due in 1 to 5 years | 8,867,000 | 9,077,000 | 6,861,000 | 7,140,000 | |||||||||||
Due in 5 to 10 years | 9,459,000 | 9,872,000 | 49,095,000 | 50,778,000 | |||||||||||
Due after 10 years | 189,985,000 | 192,914,000 | 188,004,000 | 189,048,000 | |||||||||||
Equity securities | 3,129,000 | 3,133,000 | — | — | |||||||||||
$ | 212,366,000 | $ | 215,933,000 | $ | 245,322,000 | $ | 248,344,000 |
For the nine months ended September 30, | For the quarter ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Proceeds from sales of securities | $ | 10,305,000 | $ | 35,466,000 | $ | 1,351,000 | $ | 1,000 | |||||||
Gross realized gains | 668,000 | 1,396,000 | 137,000 | 1,000 | |||||||||||
Gross realized losses | — | — | — | — | |||||||||||
Net gain | $ | 668,000 | $ | 1,396,000 | $ | 137,000 | $ | 1,000 | |||||||
Related income taxes | $ | 234,000 | $ | 489,000 | $ | 48,000 | $ | — |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | ||||||||||||||||||
Mortgage-backed securities | $ | 79,118,000 | $ | (468,000 | ) | $ | 2,407,000 | $ | (79,000 | ) | $ | 81,525,000 | $ | (547,000 | ) | ||||||||
State and political subdivisions | 13,666,000 | (170,000 | ) | — | — | 13,666,000 | (170,000 | ) | |||||||||||||||
Other equity securities | 10,000 | (2,000 | ) | 107,000 | (16,000 | ) | 117,000 | (18,000 | ) | ||||||||||||||
$ | 92,794,000 | $ | (640,000 | ) | $ | 2,514,000 | $ | (95,000 | ) | $ | 95,308,000 | $ | (735,000 | ) |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | ||||||||||||||||||
U.S. Government-sponsored agencies | $ | 45,311,000 | $ | (1,469,000 | ) | $ | 17,185,000 | $ | (815,000 | ) | $ | 62,496,000 | $ | (2,284,000 | ) | ||||||||
Mortgage-backed securities | 120,915,000 | (1,027,000 | ) | 910,000 | (71,000 | ) | 121,825,000 | (1,098,000 | ) | ||||||||||||||
State and political subdivisions | 2,528,000 | (24,000 | ) | 2,901,000 | (63,000 | ) | 5,429,000 | (87,000 | ) | ||||||||||||||
Other equity securities | 64,000 | (5,000 | ) | 52,000 | (1,000 | ) | 116,000 | (6,000 | ) | ||||||||||||||
$ | 168,818,000 | $ | (2,525,000 | ) | $ | 21,048,000 | $ | (950,000 | ) | $ | 189,866,000 | $ | (3,475,000 | ) |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | ||||||||||||||||||
U.S. Government-sponsored agencies | $ | 46,621,000 | $ | (1,015,000 | ) | $ | 17,444,000 | $ | (556,000 | ) | $ | 64,065,000 | $ | (1,571,000 | ) | ||||||||
Mortgage-backed securities | 30,713,000 | (266,000 | ) | 989,000 | (63,000 | ) | 31,702,000 | (329,000 | ) | ||||||||||||||
State and political subdivisions | 14,417,000 | (207,000 | ) | 2,374,000 | (130,000 | ) | 16,791,000 | (337,000 | ) | ||||||||||||||
Other equity securities | 264,000 | (34,000 | ) | 51,000 | (2,000 | ) | 315,000 | (36,000 | ) | ||||||||||||||
$ | 92,015,000 | $ | (1,522,000 | ) | $ | 20,858,000 | $ | (751,000 | ) | $ | 112,873,000 | $ | (2,273,000 | ) |
September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||||||||
Commercial | ||||||||||||||||||
Real estate | $ | 297,808,000 | 28.9 | % | $ | 269,462,000 | 27.3 | % | $ | 268,741,000 | 27.9 | % | ||||||
Construction | 18,828,000 | 1.8 | % | 24,881,000 | 2.5 | % | 23,624,000 | 2.5 | % | |||||||||
Other | 131,198,000 | 12.8 | % | 128,341,000 | 13.0 | % | 119,097,000 | 12.4 | % | |||||||||
Municipal | 26,153,000 | 2.5 | % | 19,751,000 | 2.0 | % | 21,377,000 | 2.2 | % | |||||||||
Residential | ||||||||||||||||||
Term | 403,159,000 | 39.2 | % | 403,030,000 | 40.7 | % | 385,145,000 | 39.9 | % | |||||||||
Construction | 14,269,000 | 1.4 | % | 8,451,000 | 0.9 | % | 12,029,000 | 1.2 | % | |||||||||
Home equity line of credit | 111,994,000 | 10.9 | % | 110,202,000 | 11.1 | % | 109,390,000 | 11.4 | % | |||||||||
Consumer | 25,583,000 | 2.5 | % | 24,520,000 | 2.5 | % | 23,748,000 | 2.5 | % | |||||||||
Total | $ | 1,028,992,000 | 100.0 | % | $ | 988,638,000 | 100.0 | % | $ | 963,151,000 | 100.0 | % |
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | All Past Due | Current | Total | 90+ Days & Accruing | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | — | $ | 385,000 | $ | 1,101,000 | $ | 1,486,000 | $ | 296,322,000 | $ | 297,808,000 | $ | — | |||||||||||||
Construction | — | — | — | — | 18,828,000 | 18,828,000 | — | ||||||||||||||||||||
Other | 573,000 | 18,000 | 53,000 | 644,000 | 130,554,000 | 131,198,000 | — | ||||||||||||||||||||
Municipal | — | — | — | — | 26,153,000 | 26,153,000 | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 414,000 | 3,896,000 | 1,925,000 | 6,235,000 | 396,924,000 | 403,159,000 | — | ||||||||||||||||||||
Construction | — | — | — | — | 14,269,000 | 14,269,000 | — | ||||||||||||||||||||
Home equity line of credit | 310,000 | 49,000 | 708,000 | 1,067,000 | 110,927,000 | 111,994,000 | — | ||||||||||||||||||||
Consumer | 124,000 | 124,000 | 62,000 | 310,000 | 25,273,000 | 25,583,000 | 7,000 | ||||||||||||||||||||
Total | $ | 1,421,000 | $ | 4,472,000 | $ | 3,849,000 | $ | 9,742,000 | $ | 1,019,250,000 | $ | 1,028,992,000 | $ | 7,000 |
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | All Past Due | Current | Total | 90+ Days & Accruing | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 603,000 | $ | — | $ | 281,000 | $ | 884,000 | $ | 268,578,000 | $ | 269,462,000 | $ | — | |||||||||||||
Construction | 35,000 | — | 238,000 | 273,000 | 24,608,000 | 24,881,000 | — | ||||||||||||||||||||
Other | 303,000 | — | 25,000 | 328,000 | 128,013,000 | 128,341,000 | 25,000 | ||||||||||||||||||||
Municipal | — | — | — | — | 19,751,000 | 19,751,000 | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 450,000 | 2,098,000 | 2,639,000 | 5,187,000 | 397,843,000 | 403,030,000 | 100,000 | ||||||||||||||||||||
Construction | 368,000 | — | — | 368,000 | 8,083,000 | 8,451,000 | — | ||||||||||||||||||||
Home equity line of credit | 261,000 | 255,000 | 592,000 | 1,108,000 | 109,094,000 | 110,202,000 | — | ||||||||||||||||||||
Consumer | 102,000 | 26,000 | 11,000 | 139,000 | 24,381,000 | 24,520,000 | 11,000 | ||||||||||||||||||||
Total | $ | 2,122,000 | $ | 2,379,000 | $ | 3,786,000 | $ | 8,287,000 | $ | 980,351,000 | $ | 988,638,000 | $ | 136,000 |
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | All Past Due | Current | Total | 90+ Days & Accruing | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 193,000 | $ | 863,000 | $ | — | $ | 1,056,000 | $ | 267,685,000 | $ | 268,741,000 | $ | — | |||||||||||||
Construction | — | 31,000 | 208,000 | 239,000 | 23,385,000 | 23,624,000 | — | ||||||||||||||||||||
Other | 10,000 | — | — | 10,000 | 119,087,000 | 119,097,000 | — | ||||||||||||||||||||
Municipal | — | — | — | — | 21,377,000 | 21,377,000 | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 982,000 | 3,012,000 | 2,956,000 | 6,950,000 | 378,195,000 | 385,145,000 | — | ||||||||||||||||||||
Construction | — | — | — | — | 12,029,000 | 12,029,000 | — | ||||||||||||||||||||
Home equity line of credit | 577,000 | — | 618,000 | 1,195,000 | 108,195,000 | 109,390,000 | — | ||||||||||||||||||||
Consumer | 146,000 | 52,000 | 110,000 | 308,000 | 23,440,000 | 23,748,000 | 109,000 | ||||||||||||||||||||
Total | $ | 1,908,000 | $ | 3,958,000 | $ | 3,892,000 | $ | 9,758,000 | $ | 953,393,000 | $ | 963,151,000 | $ | 109,000 |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Commercial | |||||||||||
Real estate | $ | 1,222,000 | $ | 915,000 | $ | 1,220,000 | |||||
Construction | — | 238,000 | 208,000 | ||||||||
Other | 412,000 | 66,000 | 114,000 | ||||||||
Municipal | — | — | — | ||||||||
Residential | |||||||||||
Term | 4,475,000 | 5,260,000 | 5,491,000 | ||||||||
Construction | — | — | — | ||||||||
Home equity line of credit | 851,000 | 893,000 | 948,000 | ||||||||
Consumer | 170,000 | — | — | ||||||||
Total | $ | 7,130,000 | $ | 7,372,000 | $ | 7,981,000 |
For the nine months ended September 30, 2016 | For the quarter ended September 30, 2016 | ||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Recognized Interest Income | Average Recorded Investment | Recognized Interest Income | |||||||||||||||||||||
With No Related Allowance | |||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 5,530,000 | $ | 5,601,000 | $ | — | $ | 6,559,000 | $ | 186,000 | $ | 5,540,000 | $ | 41,000 | |||||||||||||
Construction | — | — | — | 43,000 | 1,000 | 10,000 | — | ||||||||||||||||||||
Other | 754,000 | 801,000 | — | 1,016,000 | 33,000 | 883,000 | 12,000 | ||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 11,675,000 | 12,830,000 | — | 10,830,000 | 340,000 | 11,183,000 | 131,000 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity line of credit | 1,334,000 | 1,705,000 | — | 1,171,000 | 26,000 | 1,080,000 | 13,000 | ||||||||||||||||||||
Consumer | 55,000 | 96,000 | — | 6,000 | 3,000 | 18,000 | 3,000 | ||||||||||||||||||||
$ | 19,348,000 | $ | 21,033,000 | $ | — | $ | 19,625,000 | $ | 589,000 | $ | 18,714,000 | $ | 200,000 | ||||||||||||||
With an Allowance Recorded | |||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 4,912,000 | $ | 5,094,000 | $ | 381,000 | $ | 3,940,000 | $ | 130,000 | $ | 4,899,000 | $ | 59,000 | |||||||||||||
Construction | 788,000 | 788,000 | 99,000 | 834,000 | 27,000 | 788,000 | 9,000 | ||||||||||||||||||||
Other | 500,000 | 503,000 | 68,000 | 312,000 | 21,000 | 519,000 | 9,000 | ||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 2,456,000 | 2,667,000 | 318,000 | 3,529,000 | 79,000 | 2,929,000 | 13,000 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity line of credit | 66,000 | 68,000 | 32,000 | 75,000 | 1,000 | 80,000 | — | ||||||||||||||||||||
Consumer | 115,000 | 115,000 | 51,000 | 51,000 | 2,000 | 115,000 | 2,000 | ||||||||||||||||||||
$ | 8,837,000 | $ | 9,235,000 | $ | 949,000 | $ | 8,741,000 | $ | 260,000 | $ | 9,330,000 | $ | 92,000 | ||||||||||||||
Total | |||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 10,442,000 | $ | 10,695,000 | $ | 381,000 | $ | 10,499,000 | $ | 316,000 | $ | 10,439,000 | $ | 100,000 | |||||||||||||
Construction | 788,000 | 788,000 | 99,000 | 877,000 | 28,000 | 798,000 | 9,000 | ||||||||||||||||||||
Other | 1,254,000 | 1,304,000 | 68,000 | 1,328,000 | 54,000 | 1,402,000 | 21,000 | ||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 14,131,000 | 15,497,000 | 318,000 | 14,359,000 | 419,000 | 14,112,000 | 144,000 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity line of credit | 1,400,000 | 1,773,000 | 32,000 | 1,246,000 | 27,000 | 1,160,000 | 13,000 | ||||||||||||||||||||
Consumer | 170,000 | 211,000 | 51,000 | 57,000 | 5,000 | 133,000 | 5,000 | ||||||||||||||||||||
$ | 28,185,000 | $ | 30,268,000 | $ | 949,000 | $ | 28,366,000 | $ | 849,000 | $ | 28,044,000 | $ | 292,000 |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Recognized Interest Income | |||||||||||||||
With No Related Allowance | |||||||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 7,173,000 | $ | 7,496,000 | $ | — | $ | 8,990,000 | $ | 301,000 | |||||||||
Construction | 30,000 | 30,000 | — | 3,000 | 1,000 | ||||||||||||||
Other | 1,163,000 | 1,210,000 | — | 1,893,000 | 76,000 | ||||||||||||||
Municipal | — | — | — | — | — | ||||||||||||||
Residential | |||||||||||||||||||
Term | 11,122,000 | 12,157,000 | — | 10,480,000 | 415,000 | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Home equity line of credit | 1,401,000 | 2,054,000 | — | 1,400,000 | 43,000 | ||||||||||||||
Consumer | — | — | — | 42,000 | 3,000 | ||||||||||||||
$ | 20,889,000 | $ | 22,947,000 | $ | — | $ | 22,808,000 | $ | 839,000 | ||||||||||
With an Allowance Recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 3,544,000 | $ | 3,627,000 | $ | 89,000 | $ | 3,066,000 | $ | 149,000 | |||||||||
Construction | 996,000 | 996,000 | 302,000 | 1,153,000 | 44,000 | ||||||||||||||
Other | 71,000 | 77,000 | 8,000 | 256,000 | 5,000 | ||||||||||||||
Municipal | — | — | — | — | — | ||||||||||||||
Residential | |||||||||||||||||||
Term | 3,966,000 | 4,193,000 | 326,000 | 5,228,000 | 180,000 | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Home equity line of credit | 65,000 | 66,000 | 29,000 | 187,000 | 3,000 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
$ | 8,642,000 | $ | 8,959,000 | $ | 754,000 | $ | 9,890,000 | $ | 381,000 | ||||||||||
Total | |||||||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 10,717,000 | $ | 11,123,000 | $ | 89,000 | $ | 12,056,000 | $ | 450,000 | |||||||||
Construction | 1,026,000 | 1,026,000 | 302,000 | 1,156,000 | 45,000 | ||||||||||||||
Other | 1,234,000 | 1,287,000 | 8,000 | 2,149,000 | 81,000 | ||||||||||||||
Municipal | — | — | — | — | — | ||||||||||||||
Residential | |||||||||||||||||||
Term | 15,088,000 | 16,350,000 | 326,000 | 15,708,000 | 595,000 | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Home equity line of credit | 1,466,000 | 2,120,000 | 29,000 | 1,587,000 | 46,000 | ||||||||||||||
Consumer | — | — | — | 42,000 | 3,000 | ||||||||||||||
$ | 29,531,000 | $ | 31,906,000 | $ | 754,000 | $ | 32,698,000 | $ | 1,220,000 |
For the nine months ended September 30, 2015 | For the quarter ended September 30, 2015 | ||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Recognized Interest Income | Average Recorded Investment | Recognized Interest Income | |||||||||||||||||||||
With No Related Allowance | |||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 7,976,000 | $ | 8,444,000 | $ | — | $ | 9,410,000 | $ | 247,000 | $ | 8,310,000 | $ | 65,000 | |||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Other | 1,660,000 | 1,728,000 | — | 2,077,000 | 76,000 | 1,698,000 | 34,000 | ||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 10,096,000 | 11,006,000 | — | 10,482,000 | 268,000 | 9,852,000 | 95,000 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity line of credit | 1,484,000 | 2,135,000 | — | 1,383,000 | 36,000 | 1,498,000 | 21,000 | ||||||||||||||||||||
Consumer | — | — | — | 56,000 | 3,000 | 62,000 | — | ||||||||||||||||||||
$ | 21,216,000 | $ | 23,313,000 | $ | — | $ | 23,408,000 | $ | 630,000 | $ | 21,420,000 | $ | 215,000 | ||||||||||||||
With an Allowance Recorded | |||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 3,252,000 | $ | 3,332,000 | $ | 71,000 | $ | 2,969,000 | $ | 108,000 | $ | 3,294,000 | $ | 37,000 | |||||||||||||
Construction | 996,000 | 996,000 | 282,000 | 1,206,000 | 38,000 | 996,000 | 13,000 | ||||||||||||||||||||
Other | 76,000 | 83,000 | 8,000 | 317,000 | 4,000 | 152,000 | — | ||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 5,180,000 | 5,485,000 | 435,000 | 5,375,000 | 166,000 | 5,429,000 | 46,000 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity line of credit | 66,000 | 67,000 | 30,000 | 227,000 | 2,000 | 67,000 | — | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | ||||||||||||||||||||
$ | 9,570,000 | $ | 9,963,000 | $ | 826,000 | $ | 10,094,000 | $ | 318,000 | $ | 9,938,000 | $ | 96,000 | ||||||||||||||
Total | |||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Real estate | $ | 11,228,000 | $ | 11,776,000 | $ | 71,000 | $ | 12,379,000 | $ | 355,000 | $ | 11,604,000 | $ | 102,000 | |||||||||||||
Construction | 996,000 | 996,000 | 282,000 | 1,206,000 | 38,000 | 996,000 | 13,000 | ||||||||||||||||||||
Other | 1,736,000 | 1,811,000 | 8,000 | 2,394,000 | 80,000 | 1,850,000 | 34,000 | ||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||||
Term | 15,276,000 | 16,491,000 | 435,000 | 15,857,000 | 434,000 | 15,281,000 | 141,000 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity line of credit | 1,550,000 | 2,202,000 | 30,000 | 1,610,000 | 38,000 | 1,565,000 | 21,000 | ||||||||||||||||||||
Consumer | — | — | — | 56,000 | 3,000 | 62,000 | — | ||||||||||||||||||||
$ | 30,786,000 | $ | 33,276,000 | $ | 826,000 | $ | 33,502,000 | $ | 948,000 | $ | 31,358,000 | $ | 311,000 |
• | The borrower demonstrates financial difficulty; common indicators include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender, and |
• | The Company has granted a concession; common concession types include maturity date extension, interest rate adjustments to below market pricing, and deferment of payments. |
Number of Loans | Balance | Specific Reserves | ||||||||
Commercial | ||||||||||
Real estate | 11 | $ | 9,221,000 | $ | 116,000 | |||||
Construction | 1 | 788,000 | 99,000 | |||||||
Other | 7 | 841,000 | 5,000 | |||||||
Municipal | — | — | — | |||||||
Residential | ||||||||||
Term | 53 | 10,626,000 | 272,000 | |||||||
Construction | — | — | — | |||||||
Home equity line of credit | 3 | 549,000 | — | |||||||
Consumer | — | — | — | |||||||
75 | $ | 22,025,000 | $ | 492,000 |
Number of Loans | Balance | Specific Reserves | ||||||||
Commercial | ||||||||||
Real estate | 15 | $ | 10,350,000 | $ | 85,000 | |||||
Construction | 1 | 788,000 | 94,000 | |||||||
Other | 11 | 1,168,000 | 1,000 | |||||||
Municipal | — | — | — | |||||||
Residential | ||||||||||
Term | 53 | 10,875,000 | 275,000 | |||||||
Construction | — | — | — | |||||||
Home equity line of credit | 4 | 742,000 | — | |||||||
Consumer | — | — | — | |||||||
84 | $ | 23,923,000 | $ | 455,000 |
Number of Loans | Balance | Specific Reserves | ||||||||
Commercial | ||||||||||
Real estate | 16 | $ | 10,696,000 | $ | 69,000 | |||||
Construction | 1 | 788,000 | 76,000 | |||||||
Other | 13 | 1,621,000 | 1,000 | |||||||
Municipal | — | — | — | |||||||
Residential | ||||||||||
Term | 53 | 10,837,000 | 378,000 | |||||||
Construction | — | — | — | |||||||
Home equity line of credit | 5 | 773,000 | — | |||||||
Consumer | — | — | — | |||||||
88 | $ | 24,715,000 | $ | 524,000 |
Number of Loans | Balance | Specific Reserves | ||||||||
Commercial | ||||||||||
Real estate | — | $ | — | $ | — | |||||
Construction | — | — | — | |||||||
Other | — | — | — | |||||||
Municipal | — | — | — | |||||||
Residential | ||||||||||
Term | 8 | 1,060,000 | 78,000 | |||||||
Construction | — | — | — | |||||||
Home equity line of credit | — | — | — | |||||||
Consumer | — | — | — | |||||||
8 | $ | 1,060,000 | $ | 78,000 |
Number of Loans | Balance | Specific Reserves | ||||||||
Commercial | ||||||||||
Real estate | — | $ | — | $ | — | |||||
Construction | — | — | — | |||||||
Other | — | — | — | |||||||
Municipal | — | — | — | |||||||
Residential | ||||||||||
Term | 10 | 1,593,000 | 96,000 | |||||||
Construction | — | — | — | |||||||
Home equity line of credit | — | — | — | |||||||
Consumer | — | — | — | |||||||
10 | $ | 1,593,000 | $ | 96,000 |
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Specific Reserves | |||||||||||
Commercial | ||||||||||||||
Real estate | — | $ | — | $ | — | $ | — | |||||||
Construction | — | — | — | — | ||||||||||
Other | — | — | — | — | ||||||||||
Municipal | — | — | — | — | ||||||||||
Residential | ||||||||||||||
Term | 1 | 111,000 | 108,000 | — | ||||||||||
Construction | — | — | — | — | ||||||||||
Home equity line of credit | — | — | — | — | ||||||||||
Consumer | — | — | — | — | ||||||||||
1 | $ | 111,000 | $ | 108,000 | $ | — |
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Specific Reserves | |||||||||||
Commercial | ||||||||||||||
Real estate | — | $ | — | $ | — | $ | — | |||||||
Construction | — | — | — | — | ||||||||||
Other | — | — | — | — | ||||||||||
Municipal | — | — | — | — | ||||||||||
Residential | ||||||||||||||
Term | 1 | 111,000 | 108,000 | — | ||||||||||
Construction | — | — | — | — | ||||||||||
Home equity line of credit | — | — | — | — | ||||||||||
Consumer | — | — | — | — | ||||||||||
1 | $ | 111,000 | $ | 108,000 | $ | — |
As of September 30, 2016 | Specific Reserves on Loans Evaluated Individually for Impairment | General Reserves on Loans Based on Historical Loss Experience | Reserves for Qualitative Factors | Unallocated Reserves | Total Reserves | ||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 381,000 | $ | 1,303,000 | $ | 2,355,000 | $ | — | $ | 4,039,000 | |||||||||
Construction | 99,000 | 81,000 | 147,000 | — | 327,000 | ||||||||||||||
Other | 68,000 | 577,000 | 1,043,000 | — | 1,688,000 | ||||||||||||||
Municipal | — | — | 18,000 | — | 18,000 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 318,000 | 571,000 | 470,000 | — | 1,359,000 | ||||||||||||||
Construction | — | 20,000 | 17,000 | — | 37,000 | ||||||||||||||
Home equity line of credit | 32,000 | 457,000 | 385,000 | — | 874,000 | ||||||||||||||
Consumer | 51,000 | 318,000 | 249,000 | — | 618,000 | ||||||||||||||
Unallocated | — | — | — | 1,338,000 | 1,338,000 | ||||||||||||||
$ | 949,000 | $ | 3,327,000 | $ | 4,684,000 | $ | 1,338,000 | $ | 10,298,000 |
As of December 31, 2015 | Specific Reserves on Loans Evaluated Individually for Impairment | General Reserves on Loans Based on Historical Loss Experience | Reserves for Qualitative Factors | Unallocated Reserves | Total Reserves | ||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 89,000 | $ | 893,000 | $ | 2,138,000 | $ | — | $ | 3,120,000 | |||||||||
Construction | 302,000 | 82,000 | 196,000 | — | 580,000 | ||||||||||||||
Other | 8,000 | 425,000 | 1,019,000 | — | 1,452,000 | ||||||||||||||
Municipal | — | — | 17,000 | — | 17,000 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 326,000 | 613,000 | 452,000 | — | 1,391,000 | ||||||||||||||
Construction | — | 14,000 | 10,000 | — | 24,000 | ||||||||||||||
Home equity line of credit | 29,000 | 500,000 | 364,000 | — | 893,000 | ||||||||||||||
Consumer | — | 331,000 | 235,000 | — | 566,000 | ||||||||||||||
Unallocated | — | — | — | 1,873,000 | 1,873,000 | ||||||||||||||
$ | 754,000 | $ | 2,858,000 | $ | 4,431,000 | $ | 1,873,000 | $ | 9,916,000 |
As of September 30, 2015 | Specific Reserves on Loans Evaluated Individually for Impairment | General Reserves on Loans Based on Historical Loss Experience | Reserves for Qualitative Factors | Unallocated Reserves | Total Reserves | ||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 71,000 | $ | 1,094,000 | $ | 1,986,000 | $ | — | $ | 3,151,000 | |||||||||
Construction | 282,000 | 98,000 | 178,000 | — | 558,000 | ||||||||||||||
Other | 8,000 | 486,000 | 882,000 | — | 1,376,000 | ||||||||||||||
Municipal | — | — | 16,000 | — | 16,000 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 435,000 | 300,000 | 430,000 | — | 1,165,000 | ||||||||||||||
Construction | — | 9,000 | 13,000 | — | 22,000 | ||||||||||||||
Home equity line of credit | 30,000 | 530,000 | 341,000 | — | 901,000 | ||||||||||||||
Consumer | — | 346,000 | 216,000 | — | 562,000 | ||||||||||||||
Unallocated | — | — | — | 1,926,000 | 1,926,000 | ||||||||||||||
$ | 826,000 | $ | 2,863,000 | $ | 4,062,000 | $ | 1,926,000 | $ | 9,677,000 |
• | General economic conditions. |
• | Credit quality trends with emphasis on loan delinquencies, nonaccrual levels and classified loans. |
• | Recent loss experience in particular segments of the portfolio. |
• | Loan volumes and concentrations, including changes in mix. |
• | Other factors, including changes in quality of the loan origination; loan policy changes; changes in credit risk management processes; Bank regulatory and external loan review examination results. |
Commercial Real Estate | Commercial Construction | Commercial Other | Municipal Loans | All Risk- Rated Loans | |||||||||||||||
1 Strong | $ | 2,000 | $ | — | $ | 721,000 | $ | — | $ | 723,000 | |||||||||
2 Above Average | 24,225,000 | 53,000 | 9,546,000 | 24,592,000 | 58,416,000 | ||||||||||||||
3 Satisfactory | 72,082,000 | 824,000 | 24,032,000 | 1,561,000 | 98,499,000 | ||||||||||||||
4 Average | 133,835,000 | 12,764,000 | 67,811,000 | — | 214,410,000 | ||||||||||||||
5 Watch | 41,120,000 | 5,187,000 | 24,189,000 | — | 70,496,000 | ||||||||||||||
6 OAEM | 9,360,000 | — | 1,957,000 | — | 11,317,000 | ||||||||||||||
7 Substandard | 17,184,000 | — | 2,942,000 | — | 20,126,000 | ||||||||||||||
8 Doubtful | — | — | — | — | — | ||||||||||||||
Total | $ | 297,808,000 | $ | 18,828,000 | $ | 131,198,000 | $ | 26,153,000 | $ | 473,987,000 |
Commercial Real Estate | Commercial Construction | Commercial Other | Municipal Loans | All Risk- Rated Loans | |||||||||||||||
1 Strong | $ | 6,000 | $ | — | $ | 1,256,000 | $ | — | $ | 1,262,000 | |||||||||
2 Above Average | 29,176,000 | 56,000 | 7,506,000 | 18,321,000 | 55,059,000 | ||||||||||||||
3 Satisfactory | 52,821,000 | 2,057,000 | 28,787,000 | 1,430,000 | 85,095,000 | ||||||||||||||
4 Average | 122,071,000 | 18,070,000 | 67,301,000 | — | 207,442,000 | ||||||||||||||
5 Watch | 36,075,000 | 4,490,000 | 18,135,000 | — | 58,700,000 | ||||||||||||||
6 OAEM | 9,742,000 | — | 2,410,000 | — | 12,152,000 | ||||||||||||||
7 Substandard | 19,571,000 | 208,000 | 2,946,000 | — | 22,725,000 | ||||||||||||||
8 Doubtful | — | — | — | — | — | ||||||||||||||
Total | $ | 269,462,000 | $ | 24,881,000 | $ | 128,341,000 | $ | 19,751,000 | $ | 442,435,000 |
Commercial Real Estate | Commercial Construction | Commercial Other | Municipal Loans | All Risk- Rated Loans | |||||||||||||||
1 Strong | $ | 8,000 | $ | — | $ | 788,000 | $ | — | $ | 796,000 | |||||||||
2 Above Average | 26,881,000 | 58,000 | 8,753,000 | 19,892,000 | 55,584,000 | ||||||||||||||
3 Satisfactory | 50,944,000 | 2,389,000 | 29,253,000 | 1,485,000 | 84,071,000 | ||||||||||||||
4 Average | 127,903,000 | 16,711,000 | 55,625,000 | — | 200,239,000 | ||||||||||||||
5 Watch | 36,213,000 | 3,749,000 | 19,457,000 | — | 59,419,000 | ||||||||||||||
6 OAEM | 8,477,000 | — | 1,836,000 | — | 10,313,000 | ||||||||||||||
7 Substandard | 18,315,000 | 717,000 | 3,385,000 | — | 22,417,000 | ||||||||||||||
8 Doubtful | — | — | — | — | — | ||||||||||||||
Total | $ | 268,741,000 | $ | 23,624,000 | $ | 119,097,000 | $ | 21,377,000 | $ | 432,839,000 |
Commercial | Municipal | Residential | Home Equity Line of Credit | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Real Estate | Construction | Other | Term | Construction | ||||||||||||||||||||||||||
For the nine months ended September 30, 2016 | ||||||||||||||||||||||||||||||
Beginning balance | $ | 3,120,000 | $ | 580,000 | $ | 1,452,000 | $ | 17,000 | $ | 1,391,000 | $ | 24,000 | $ | 893,000 | $ | 566,000 | $ | 1,873,000 | $ | 9,916,000 | ||||||||||
Charge offs | 33,000 | 75,000 | 167,000 | — | 338,000 | — | 147,000 | 246,000 | — | 1,006,000 | ||||||||||||||||||||
Recoveries | — | 4,000 | 80,000 | — | 88,000 | — | 3,000 | 88,000 | — | 263,000 | ||||||||||||||||||||
Provision (credit) | 952,000 | (182,000 | ) | 323,000 | 1,000 | 218,000 | 13,000 | 125,000 | 210,000 | (535,000 | ) | 1,125,000 | ||||||||||||||||||
Ending balance | $ | 4,039,000 | $ | 327,000 | $ | 1,688,000 | $ | 18,000 | $ | 1,359,000 | $ | 37,000 | $ | 874,000 | $ | 618,000 | $ | 1,338,000 | $ | 10,298,000 | ||||||||||
For the three months ended September 30, 2016 | ||||||||||||||||||||||||||||||
Beginning balance | $ | 3,955,000 | $ | 318,000 | $ | 1,778,000 | $ | 17,000 | $ | 1,365,000 | $ | 34,000 | $ | 880,000 | $ | 635,000 | $ | 1,216,000 | $ | 10,198,000 | ||||||||||
Charge offs | — | 17,000 | 137,000 | — | 72,000 | — | 25,000 | 89,000 | — | 340,000 | ||||||||||||||||||||
Recoveries | — | 4,000 | 24,000 | — | 14,000 | — | 1,000 | 22,000 | — | 65,000 | ||||||||||||||||||||
Provision | 84,000 | 22,000 | 23,000 | 1,000 | 52,000 | 3,000 | 18,000 | 50,000 | 122,000 | 375,000 | ||||||||||||||||||||
Ending balance | $ | 4,039,000 | $ | 327,000 | $ | 1,688,000 | $ | 18,000 | $ | 1,359,000 | $ | 37,000 | $ | 874,000 | $ | 618,000 | $ | 1,338,000 | $ | 10,298,000 | ||||||||||
Allowance for loan losses as of September 30, 2016 | ||||||||||||||||||||||||||||||
Ending balance specifically evaluated for impairment | $ | 381,000 | $ | 99,000 | $ | 68,000 | $ | — | $ | 318,000 | $ | — | $ | 32,000 | $ | 51,000 | $ | — | $ | 949,000 | ||||||||||
Ending balance collectively evaluated for impairment | $ | 3,658,000 | $ | 228,000 | $ | 1,620,000 | $ | 18,000 | $ | 1,041,000 | $ | 37,000 | $ | 842,000 | $ | 567,000 | $ | 1,338,000 | $ | 9,349,000 | ||||||||||
Related loan balances as of September 30, 2016 | ||||||||||||||||||||||||||||||
Ending balance | $ | 297,808,000 | $ | 18,828,000 | $ | 131,198,000 | $ | 26,153,000 | $ | 403,159,000 | $ | 14,269,000 | $ | 111,994,000 | $ | 25,583,000 | $ | — | $ | 1,028,992,000 | ||||||||||
Ending balance specifically evaluated for impairment | $ | 10,442,000 | $ | 788,000 | $ | 1,254,000 | $ | — | $ | 14,131,000 | $ | — | $ | 1,400,000 | $ | 170,000 | $ | — | $ | 28,185,000 | ||||||||||
Ending balance collectively evaluated for impairment | $ | 287,366,000 | $ | 18,040,000 | $ | 129,944,000 | $ | 26,153,000 | $ | 389,028,000 | $ | 14,269,000 | $ | 110,594,000 | $ | 25,413,000 | $ | — | $ | 1,000,807,000 |
Commercial | Municipal | Residential | Home Equity Line of Credit | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Real Estate | Construction | Other | Term | Construction | ||||||||||||||||||||||||||||||
For the year ended December 31, 2015 | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,532,000 | $ | 823,000 | $ | 1,505,000 | $ | 15,000 | $ | 1,185,000 | $ | 20,000 | $ | 1,060,000 | $ | 542,000 | $ | 1,662,000 | $ | 10,344,000 | ||||||||||||||
Charge offs | 280,000 | 9,000 | 732,000 | — | 420,000 | — | 582,000 | 350,000 | — | 2,373,000 | ||||||||||||||||||||||||
Recoveries | 2,000 | 1,000 | 88,000 | — | 152,000 | — | 31,000 | 121,000 | — | 395,000 | ||||||||||||||||||||||||
Provision (credit) | (134,000 | ) | (235,000 | ) | 591,000 | 2,000 | 474,000 | 4,000 | 384,000 | 253,000 | 211,000 | 1,550,000 | ||||||||||||||||||||||
Ending balance | $ | 3,120,000 | $ | 580,000 | $ | 1,452,000 | $ | 17,000 | $ | 1,391,000 | $ | 24,000 | $ | 893,000 | $ | 566,000 | $ | 1,873,000 | $ | 9,916,000 | ||||||||||||||
Allowance for loan losses as of December 31, 2015 | ||||||||||||||||||||||||||||||||||
Ending balance specifically evaluated for impairment | $ | 89,000 | $ | 302,000 | $ | 8,000 | $ | — | $ | 326,000 | $ | — | $ | 29,000 | $ | — | $ | — | $ | 754,000 | ||||||||||||||
Ending balance collectively evaluated for impairment | $ | 3,031,000 | $ | 278,000 | $ | 1,444,000 | $ | 17,000 | $ | 1,065,000 | $ | 24,000 | $ | 864,000 | $ | 566,000 | $ | 1,873,000 | $ | 9,162,000 | ||||||||||||||
Related loan balances as of December 31, 2015 | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 269,462,000 | $ | 24,881,000 | $ | 128,341,000 | $ | 19,751,000 | $ | 403,030,000 | $ | 8,451,000 | $ | 110,202,000 | $ | 24,520,000 | $ | — | $ | 988,638,000 | ||||||||||||||
Ending balance specifically evaluated for impairment | $ | 10,717,000 | $ | 1,026,000 | $ | 1,234,000 | $ | — | $ | 15,088,000 | $ | — | $ | 1,466,000 | $ | — | $ | — | $ | 29,531,000 | ||||||||||||||
Ending balance collectively evaluated for impairment | $ | 258,745,000 | $ | 23,855,000 | $ | 127,107,000 | $ | 19,751,000 | $ | 387,942,000 | $ | 8,451,000 | $ | 108,736,000 | $ | 24,520,000 | $ | — | $ | 959,107,000 |
Commercial | Municipal | Residential | Home Equity Line of Credit | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Real Estate | Construction | Other | Term | Construction | ||||||||||||||||||||||||||
For the nine months ended September 30, 2015 | ||||||||||||||||||||||||||||||
Beginning balance | $ | 3,532,000 | $ | 823,000 | $ | 1,505,000 | $ | 15,000 | $ | 1,185,000 | $ | 20,000 | $ | 1,060,000 | $ | 542,000 | $ | 1,662,000 | $ | 10,344,000 | ||||||||||
Charge offs | 254,000 | 9,000 | 732,000 | — | 187,000 | — | 532,000 | 282,000 | — | 1,996,000 | ||||||||||||||||||||
Recoveries | 1,000 | — | 66,000 | — | 37,000 | — | 31,000 | 94,000 | — | 229,000 | ||||||||||||||||||||
Provision (credit) | (128,000 | ) | (256,000 | ) | 537,000 | 1,000 | 130,000 | 2,000 | 342,000 | 208,000 | 264,000 | 1,100,000 | ||||||||||||||||||
Ending balance | $ | 3,151,000 | $ | 558,000 | $ | 1,376,000 | $ | 16,000 | $ | 1,165,000 | $ | 22,000 | $ | 901,000 | $ | 562,000 | $ | 1,926,000 | $ | 9,677,000 | ||||||||||
For the three months ended September 30, 2015 | ||||||||||||||||||||||||||||||
Beginning balance | $ | 2,943,000 | $ | 705,000 | $ | 1,671,000 | $ | 16,000 | $ | 1,184,000 | $ | 27,000 | $ | 918,000 | $ | 580,000 | $ | 1,864,000 | $ | 9,908,000 | ||||||||||
Charge offs | 132,000 | — | 246,000 | — | 38,000 | — | 24,000 | 77,000 | — | 517,000 | ||||||||||||||||||||
Recoveries | 1,000 | — | 51,000 | — | 4,000 | — | 1,000 | 29,000 | — | 86,000 | ||||||||||||||||||||
Provision (credit) | 339,000 | (147,000 | ) | (100,000 | ) | — | 15,000 | (5,000 | ) | 6,000 | 30,000 | 62,000 | 200,000 | |||||||||||||||||
Ending balance | $ | 3,151,000 | $ | 558,000 | $ | 1,376,000 | $ | 16,000 | $ | 1,165,000 | $ | 22,000 | $ | 901,000 | $ | 562,000 | $ | 1,926,000 | $ | 9,677,000 | ||||||||||
Allowance for loan losses as of September 30, 2015 | ||||||||||||||||||||||||||||||
Ending balance specifically evaluated for impairment | $ | 71,000 | $ | 282,000 | $ | 8,000 | $ | — | $ | 435,000 | $ | — | $ | 30,000 | $ | — | $ | — | $ | 826,000 | ||||||||||
Ending balance collectively evaluated for impairment | $ | 3,080,000 | $ | 276,000 | $ | 1,368,000 | $ | 16,000 | $ | 730,000 | $ | 22,000 | $ | 871,000 | $ | 562,000 | $ | 1,926,000 | $ | 8,851,000 | ||||||||||
Related loan balances as of September 30, 2015 | ||||||||||||||||||||||||||||||
Ending balance | $ | 268,741,000 | $ | 23,624,000 | $ | 119,097,000 | $ | 21,377,000 | $ | 385,145,000 | $ | 12,029,000 | $ | 109,390,000 | $ | 23,748,000 | $ | — | $ | 963,151,000 | ||||||||||
Ending balance specifically evaluated for impairment | $ | 11,228,000 | $ | 996,000 | $ | 1,736,000 | $ | — | $ | 15,276,000 | $ | — | $ | 1,550,000 | $ | — | $ | — | $ | 30,786,000 | ||||||||||
Ending balance collectively evaluated for impairment | $ | 257,513,000 | $ | 22,628,000 | $ | 117,361,000 | $ | 21,377,000 | $ | 369,869,000 | $ | 12,029,000 | $ | 107,840,000 | $ | 23,748,000 | $ | — | $ | 932,365,000 |
Year Granted | Vesting Term (In Years) | Shares | Remaining Term (In Years) | |
2012 | 5.0 | 7,996 | 0.2 | |
2013 | 5.0 | 14,776 | 1.2 | |
2014 | 5.0 | 10,422 | 2.2 | |
2015 | 5.0 | 12,023 | 3.2 | |
2016 | 1.0 | 6,832 | 0.2 | |
2016 | 5.0 | 15,015 | 4.2 | |
67,064 | 2.2 |
Income (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
For the nine months ended September 30, 2016 | ||||||||||
Net income as reported | $ | 13,689,000 | ||||||||
Basic EPS: Income available to common shareholders | 13,689,000 | 10,709,901 | $ | 1.28 | ||||||
Effect of dilutive securities: restricted stock and warrants | 110,492 | |||||||||
Diluted EPS: Income available to common shareholders plus assumed conversions | $ | 13,689,000 | 10,820,393 | $ | 1.27 | |||||
For the nine months ended September 30, 2015 | ||||||||||
Net income as reported | $ | 12,437,000 | ||||||||
Basic EPS: Income available to common shareholders | 12,437,000 | 10,671,573 | $ | 1.17 | ||||||
Effect of dilutive securities: restricted stock and warrants | 80,706 | |||||||||
Diluted EPS: Income available to common shareholders plus assumed conversions | $ | 12,437,000 | 10,752,279 | $ | 1.16 |
Income (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
For the quarter ended September 30, 2016 | ||||||||||
Net income as reported | $ | 4,562,000 | ||||||||
Basic EPS: Income available to common shareholders | 4,562,000 | 10,718,873 | $ | 0.43 | ||||||
Effect of dilutive securities: restricted stock and warrants | 125,495 | |||||||||
Diluted EPS: Income available to common shareholders plus assumed conversions | $ | 4,562,000 | 10,844,368 | $ | 0.42 | |||||
For the quarter ended September 30, 2015 | ||||||||||
Net income as reported | $ | 4,188,000 | ||||||||
Basic EPS: Income available to common shareholders | 4,188,000 | 10,677,922 | $ | 0.39 | ||||||
Effect of dilutive securities: restricted stock and warrants | 95,278 | |||||||||
Diluted EPS: Income available to common shareholders plus assumed conversions | $ | 4,188,000 | 10,773,200 | $ | 0.39 |
Outstanding | In-the-Money | Out-of-the-Money | ||||
For the three and nine months ended September 30, 2016 | ||||||
Warrants to private parties | 226,819 | 226,819 | — | |||
Total | 226,819 | 226,819 | — | |||
For the three and nine months ended September 30, 2015 | ||||||
Warrants issued to Treasury | 226,819 | 226,819 | — | |||
Total | 226,819 | 226,819 | — |
At or for the nine months ended September 30, | |||||||
2016 | 2015 | ||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of year | $ | 1,967,000 | $ | 1,928,000 | |||
Service cost | — | — | |||||
Interest cost | 63,000 | 54,000 | |||||
Benefits paid | (90,000 | ) | (78,000 | ) | |||
Benefit obligation at end of period | $ | 1,940,000 | $ | 1,904,000 | |||
Funded status | |||||||
Benefit obligation at end of period | $ | (1,940,000 | ) | $ | (1,904,000 | ) | |
Unamortized loss | 240,000 | 192,000 | |||||
Accrued benefit cost at end of period | $ | (1,700,000 | ) | $ | (1,712,000 | ) |
For the nine months ended September 30, | For the quarter ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Components of net periodic benefit cost | |||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 63,000 | 54,000 | 21,000 | 18,000 | |||||||||||
Net periodic benefit cost | $ | 63,000 | $ | 54,000 | $ | 21,000 | $ | 18,000 |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Unamortized net actuarial loss | $ | (240,000 | ) | $ | (240,000 | ) | $ | (192,000 | ) | ||
Deferred tax benefit at 35% | 84,000 | 84,000 | 67,000 | ||||||||
Net unrecognized postretirement benefits included in accumulated other comprehensive income (loss) | $ | (156,000 | ) | $ | (156,000 | ) | $ | (125,000 | ) |
For the nine months ended September 30, | For the quarter ended September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Balance at beginning of period | $ | 1,123,000 | $ | 2,522,000 | $ | 4,000,000 | $ | 988,000 | ||||
Unrealized gains (losses) arising during the period | 3,106,000 | 1,082,000 | (1,851,000 | ) | 2,047,000 | |||||||
Reclassification of realized gains during the period | (668,000 | ) | (1,396,000 | ) | (137,000 | ) | (1,000 | ) | ||||
Related deferred taxes | (853,000 | ) | 110,000 | 696,000 | (716,000 | ) | ||||||
Net change | 1,585,000 | (204,000 | ) | (1,292,000 | ) | 1,330,000 | ||||||
Balance at end of period | $ | 2,708,000 | $ | 2,318,000 | $ | 2,708,000 | $ | 2,318,000 |
For the nine months ended September 30, | For the quarter ended September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Balance at beginning of period | $ | (112,000 | ) | $ | (48,000 | ) | $ | (133,000 | ) | $ | (84,000 | ) |
Amortization of net unrealized gains (losses) | (18,000 | ) | (78,000 | ) | 14,000 | (51,000 | ) | |||||
Related deferred taxes | 6,000 | 27,000 | (5,000 | ) | 36,000 | |||||||
Net change | (12,000 | ) | (51,000 | ) | 9,000 | (15,000 | ) | |||||
Balance at end of period | $ | (124,000 | ) | $ | (99,000 | ) | $ | (124,000 | ) | $ | (99,000 | ) |
For the nine months ended September 30, | For the quarter ended September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Balance at beginning of period | $ | — | $ | — | $ | (135,000 | ) | $ | — | |||
Unrealized gains on cash flow hedging derivatives arising during the period | 90,000 | — | 298,000 | — | ||||||||
Related deferred taxes | (32,000 | ) | — | (105,000 | ) | — | ||||||
Net change | 58,000 | — | 193,000 | — | ||||||||
Balance at end of period | $ | 58,000 | $ | — | $ | 58,000 | $ | — |
For the nine months ended September 30, | For the quarter ended September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Unrecognized postretirement benefits at beginning of period | $ | (156,000 | ) | $ | (125,000 | ) | $ | (156,000 | ) | $ | (125,000 | ) |
Amortization of unrecognized transition obligation | — | — | — | — | ||||||||
Change in unamortized net actuarial gain (loss) | — | — | — | — | ||||||||
Related deferred taxes | — | — | — | — | ||||||||
Unrecognized postretirement benefits at end of period | $ | (156,000 | ) | $ | (125,000 | ) | $ | (156,000 | ) | $ | (125,000 | ) |
As of September 30 | |||||||||||||
2016 | 2015 | ||||||||||||
Notional Amount | Effective Date | Maturity Date | Variable Index Received | Fixed Rate Paid | Fair Value(1) | Fair Value(1) | |||||||
$ | 30,000,000 | June 28, 2016 | June 28, 2021 | 1-Month USD LIBOR | 0.940 | % | $ | 28,000 | $ | — | |||
$ | 20,000,000 | June 27, 2016 | June 27, 2021 | 1-Month USD LIBOR | 0.893 | % | $ | 62,000 | — | ||||
$ | 50,000,000 | $ | 90,000 | $ | — |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Mortgage servicing rights | $ | 5,718,000 | $ | 5,747,000 | $ | 6,398,000 | |||||
Accumulated amortization | (4,560,000 | ) | (4,619,000 | ) | (5,287,000 | ) | |||||
Impairment reserve | (87,000 | ) | (35,000 | ) | (16,000 | ) | |||||
$ | 1,071,000 | $ | 1,093,000 | $ | 1,095,000 |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Certificates of deposit < $100,000 | $ | 192,424,000 | $ | 158,529,000 | $ | 141,946,000 | |||||
Certificates $100,000 to $250,000 | 183,991,000 | 175,077,000 | 204,707,000 | ||||||||
Certificates $250,000 and over | 48,040,000 | 37,376,000 | 42,654,000 | ||||||||
$ | 424,455,000 | $ | 370,982,000 | $ | 389,307,000 |
At September 30, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Securities available for sale | |||||||||||||||
Mortgage-backed securities | $ | — | $ | 261,514,000 | $ | — | $ | 261,514,000 | |||||||
State and political subdivisions | — | 17,484,000 | — | 17,484,000 | |||||||||||
Other equity securities | — | 3,295,000 | — | 3,295,000 | |||||||||||
Total Securities available for sale | — | 282,293,000 | — | 282,293,000 | |||||||||||
Interest rate swap agreements | — | 90,000 | — | 90,000 | |||||||||||
Total assets | $ | — | $ | 282,383,000 | $ | — | $ | 282,383,000 |
At December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Securities available for sale | |||||||||||||||
Mortgage-backed securities | $ | — | $ | 195,110,000 | $ | — | $ | 195,110,000 | |||||||
State and political subdivisions | — | 24,506,000 | — | 24,506,000 | |||||||||||
Other equity securities | — | 3,423,000 | — | 3,423,000 | |||||||||||
Total assets | $ | — | $ | 223,039,000 | $ | — | $ | 223,039,000 |
At September 30, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Securities available for sale | |||||||||||||||
Mortgage-backed securities | $ | — | $ | 187,510,000 | $ | — | $ | 187,510,000 | |||||||
State and political subdivisions | — | 25,290,000 | — | 25,290,000 | |||||||||||
Other equity securities | — | 3,133,000 | — | 3,133,000 | |||||||||||
Total assets | $ | — | $ | 215,933,000 | $ | — | $ | 215,933,000 |
At September 30, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Other real estate owned | $ | — | $ | 855,000 | $ | — | $ | 855,000 | |||||||
Impaired loans | — | 1,311,000 | — | 1,311,000 | |||||||||||
Total assets | $ | — | $ | 2,166,000 | $ | — | $ | 2,166,000 |
At December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Other real estate owned | $ | — | $ | 1,532,000 | $ | — | $ | 1,532,000 | |||||||
Impaired loans | — | 699,000 | — | 699,000 | |||||||||||
Total assets | $ | — | $ | 2,231,000 | $ | — | $ | 2,231,000 |
At September 30, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Other real estate owned | $ | — | $ | 1,916,000 | $ | — | $ | 1,916,000 | |||||||
Impaired loans | — | 1,413,000 | — | 1,413,000 | |||||||||||
Total assets | $ | — | $ | 3,329,000 | $ | — | $ | 3,329,000 |
Carrying value | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets | |||||||||||||||||||
Cash and cash equivalents | $ | 23,456,000 | $ | 23,456,000 | $ | 23,456,000 | $ | — | $ | — | |||||||||
Interest bearing deposits in other banks | 15,098,000 | 15,098,000 | 15,098,000 | — | — | ||||||||||||||
Securities available for sale | 282,293,000 | 282,293,000 | — | 282,293,000 | — | ||||||||||||||
Securities to be held to maturity | 188,770,000 | 195,797,000 | — | 195,797,000 | — | ||||||||||||||
Restricted equity securities | 14,048,000 | 14,048,000 | — | 14,048,000 | — | ||||||||||||||
Loans held for sale | 1,228,000 | 1,228,000 | — | 1,228,000 | — | ||||||||||||||
Loans (net of allowance for loan losses) | |||||||||||||||||||
Commercial | |||||||||||||||||||
Real estate | 293,167,000 | 289,015,000 | — | 544,000 | 288,471,000 | ||||||||||||||
Construction | 18,452,000 | 18,191,000 | — | — | 18,191,000 | ||||||||||||||
Other | 129,258,000 | 129,143,000 | — | — | 129,143,000 | ||||||||||||||
Municipal | 26,132,000 | 27,270,000 | — | — | 27,270,000 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 401,597,000 | 409,916,000 | — | 703,000 | 409,213,000 | ||||||||||||||
Construction | 14,226,000 | 14,170,000 | — | — | 14,170,000 | ||||||||||||||
Home equity line of credit | 110,989,000 | 110,220,000 | — | — | 110,220,000 | ||||||||||||||
Consumer | 24,873,000 | 24,724,000 | — | 64,000 | 24,660,000 | ||||||||||||||
Total loans | 1,018,694,000 | 1,022,649,000 | — | 1,311,000 | 1,021,338,000 | ||||||||||||||
Mortgage servicing rights | 1,071,000 | 1,683,000 | — | 1,683,000 | — | ||||||||||||||
Interest rate swap agreements | 90,000 | 90,000 | — | 90,000 | — | ||||||||||||||
Accrued interest receivable | 5,079,000 | 5,079,000 | — | 5,079,000 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Demand deposits | $ | 158,476,000 | $ | 163,498,000 | $ | — | $ | 163,498,000 | $ | — | |||||||||
NOW deposits | 295,708,000 | 296,393,000 | — | 296,393,000 | — | ||||||||||||||
Money market deposits | 76,685,000 | 71,714,000 | — | 71,714,000 | — | ||||||||||||||
Savings deposits | 218,425,000 | 206,331,000 | — | 206,331,000 | — | ||||||||||||||
Local certificates of deposit | 211,402,000 | 213,622,000 | — | 213,622,000 | — | ||||||||||||||
National certificates of deposit | 213,053,000 | 213,332,000 | — | 213,332,000 | — | ||||||||||||||
Total deposits | 1,173,749,000 | 1,164,890,000 | — | 1,164,890,000 | — | ||||||||||||||
Repurchase agreements | 87,970,000 | 87,246,000 | — | 87,246,000 | — | ||||||||||||||
Federal Home Loan Bank advances | 180,128,000 | 181,918,000 | — | 181,918,000 | — | ||||||||||||||
Total borrowed funds | 268,098,000 | 269,164,000 | — | 269,164,000 | — | ||||||||||||||
Accrued interest payable | 508,000 | 508,000 | — | 508,000 | — |
Carrying value | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets | |||||||||||||||||||
Cash and cash equivalents | $ | 14,299,000 | $ | 14,299,000 | $ | 14,299,000 | $ | — | $ | — | |||||||||
Interest bearing deposits in other banks | 4,013,000 | 4,013,000 | 4,013,000 | — | — | ||||||||||||||
Securities available for sale | 223,039,000 | 223,039,000 | — | 223,039,000 | — | ||||||||||||||
Securities to be held to maturity | 240,023,000 | 243,123,000 | — | 243,123,000 | — | ||||||||||||||
Restricted equity securities | 14,257,000 | 14,257,000 | — | 14,257,000 | — | ||||||||||||||
Loans held for sale | 349,000 | 349,000 | — | 349,000 | — | ||||||||||||||
Loans (net of allowance for loan losses) | |||||||||||||||||||
Commercial | |||||||||||||||||||
Real estate | 265,616,000 | 262,763,000 | — | — | 262,763,000 | ||||||||||||||
Construction | 24,166,000 | 23,906,000 | — | — | 23,906,000 | ||||||||||||||
Other | 126,551,000 | 126,141,000 | — | — | 126,141,000 | ||||||||||||||
Municipal | 19,730,000 | 20,331,000 | — | — | 20,331,000 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 401,315,000 | 405,315,000 | — | — | 405,315,000 | ||||||||||||||
Construction | 8,421,000 | 8,379,000 | — | — | 8,379,000 | ||||||||||||||
Home equity line of credit | 109,101,000 | 108,118,000 | — | 699,000 | 107,419,000 | ||||||||||||||
Consumer | 23,822,000 | 23,754,000 | — | — | 23,754,000 | ||||||||||||||
Total loans | 978,722,000 | 978,707,000 | — | 699,000 | 978,008,000 | ||||||||||||||
Mortgage servicing rights | 1,093,000 | 1,915,000 | — | 1,915,000 | — | ||||||||||||||
Accrued interest receivable | 4,912,000 | 4,912,000 | — | 4,912,000 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Demand deposits | $ | 130,566,000 | $ | 125,651,000 | $ | — | $ | 125,651,000 | $ | — | |||||||||
NOW deposits | 242,638,000 | 224,627,000 | — | 224,627,000 | — | ||||||||||||||
Money market deposits | 92,994,000 | 82,050,000 | — | 82,050,000 | — | ||||||||||||||
Savings deposits | 206,009,000 | 181,010,000 | — | 181,010,000 | — | ||||||||||||||
Local certificates of deposit | 201,420,000 | 201,013,000 | — | 201,013,000 | — | ||||||||||||||
National certificates of deposit | 169,562,000 | 169,617,000 | — | 169,617,000 | — | ||||||||||||||
Total deposits | 1,043,189,000 | 983,968,000 | — | 983,968,000 | — | ||||||||||||||
Repurchase agreements | 87,103,000 | 82,168,000 | — | 82,168,000 | — | ||||||||||||||
Federal Home Loan Bank advances | 250,354,000 | 250,027,000 | — | 250,027,000 | — | ||||||||||||||
Total borrowed funds | 337,457,000 | 332,195,000 | — | 332,195,000 | — | ||||||||||||||
Accrued interest payable | 435,000 | 435,000 | — | 435,000 | — |
Carrying value | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets | |||||||||||||||||||
Cash and cash equivalents | $ | 19,169,000 | $ | 19,169,000 | $ | 19,169,000 | $ | — | $ | — | |||||||||
Interest bearing deposits in other banks | 301,000 | 301,000 | 301,000 | — | — | ||||||||||||||
Securities available for sale | 215,933,000 | 215,933,000 | — | 215,933,000 | — | ||||||||||||||
Securities to be held to maturity | 245,322,000 | 248,344,000 | — | 248,344,000 | — | ||||||||||||||
Restricted equity securities | 13,912,000 | 13,912,000 | — | 13,912,000 | — | ||||||||||||||
Loans held for sale | 200,000 | 200,000 | — | 200,000 | — | ||||||||||||||
Loans (net of allowance for loan losses) | |||||||||||||||||||
Commercial | |||||||||||||||||||
Real estate | 264,807,000 | 262,197,000 | — | — | 262,197,000 | ||||||||||||||
Construction | 22,927,000 | 22,701,000 | — | — | 22,701,000 | ||||||||||||||
Other | 117,379,000 | 117,427,000 | — | — | 117,427,000 | ||||||||||||||
Municipal | 21,357,000 | 21,907,000 | — | — | 21,907,000 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 383,691,000 | 390,392,000 | — | 1,413,000 | 388,979,000 | ||||||||||||||
Construction | 12,002,000 | 11,960,000 | — | — | 11,960,000 | ||||||||||||||
Home equity line of credit | 108,265,000 | 107,589,000 | — | — | 107,589,000 | ||||||||||||||
Consumer | 23,046,000 | 23,117,000 | — | — | 23,117,000 | ||||||||||||||
Total loans | 953,474,000 | 957,290,000 | — | 1,413,000 | 955,877,000 | ||||||||||||||
Mortgage servicing rights | 1,095,000 | 2,014,000 | — | 2,014,000 | — | ||||||||||||||
Accrued interest receivable | 5,189,000 | 5,189,000 | — | 5,189,000 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Demand deposits | $ | 128,555,000 | $ | 124,979,000 | $ | — | $ | 124,979,000 | $ | — | |||||||||
NOW deposits | 246,155,000 | 230,680,000 | — | 230,680,000 | — | ||||||||||||||
Money market deposits | 95,217,000 | 84,535,000 | — | 84,535,000 | — | ||||||||||||||
Savings deposits | 199,131,000 | 176,791,000 | — | 176,791,000 | — | ||||||||||||||
Local certificates of deposit | 195,607,000 | 196,663,000 | — | 196,663,000 | — | ||||||||||||||
National certificates of deposit | 193,700,000 | 193,774,000 | — | 193,774,000 | — | ||||||||||||||
Total deposits | 1,058,365,000 | 1,007,422,000 | — | 1,007,422,000 | — | ||||||||||||||
Repurchase agreements | 100,498,000 | 95,078,000 | — | 95,078,000 | — | ||||||||||||||
Federal Home Loan Bank advances | 196,871,000 | 197,795,000 | — | 197,795,000 | — | ||||||||||||||
Total borrowed funds | 297,369,000 | 292,873,000 | — | 292,873,000 | — | ||||||||||||||
Accrued interest payable | 499,000 | 499,000 | — | 499,000 | — |
For the nine months ended September 30, | For the quarter ended September 30, | ||||||||||||||
Dollars in thousands | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net interest income as presented | $ | 32,209 | $ | 30,291 | $ | 10,529 | $ | 10,511 | |||||||
Effect of tax-exempt income | 2,291 | 2,332 | 785 | 775 | |||||||||||
Net interest income, tax equivalent | $ | 34,500 | $ | 32,623 | $ | 11,314 | $ | 11,286 |
For the nine months ended September 30, | For the quarter ended September 30, | ||||||||||||||
Dollars in thousands | 2016 | 2015 | 2016 | 2015 | |||||||||||
Non-interest expense, as presented | $ | 21,850 | $ | 21,952 | $ | 7,405 | $ | 7,707 | |||||||
Net interest income, as presented | 32,209 | 30,291 | 10,529 | 10,511 | |||||||||||
Effect of tax-exempt income | 2,291 | 2,332 | 785 | 775 | |||||||||||
Non-interest income, as presented | 9,439 | 9,467 | 3,469 | 2,975 | |||||||||||
Effect of non-interest tax-exempt income | 267 | 136 | 89 | 45 | |||||||||||
Net securities gains | (668 | ) | (1,396 | ) | (137 | ) | (1 | ) | |||||||
Adjusted net interest income plus non-interest income | $ | 43,538 | $ | 40,830 | $ | 14,735 | $ | 14,305 | |||||||
Non-GAAP efficiency ratio | 50.19 | % | 53.76 | % | 50.25 | % | 53.88 | % | |||||||
GAAP efficiency ratio | 52.46 | % | 55.21 | % | 52.90 | % | 57.15 | % |
For the nine months ended September 30, | For the quarter ended September 30, | ||||||||||||||
Dollars in thousands | 2016 | 2015 | 2016 | 2015 | |||||||||||
Average shareholders' equity as presented | $ | 174,415 | $ | 165,421 | $ | 177,312 | $ | 166,571 | |||||||
Less average intangible assets | (30,092 | ) | (30,137 | ) | (30,082 | ) | (30,125 | ) | |||||||
Average tangible shareholders' common equity | $ | 144,323 | $ | 135,284 | $ | 147,230 | $ | 136,446 |
For the nine months ended | ||||||||||||
September 30, 2016 | September 30, 2015 | |||||||||||
Dollars in thousands | Amount of interest | Average Yield/Rate | Amount of interest | Average Yield/Rate | ||||||||
Interest on earning assets | ||||||||||||
Interest-bearing deposits | $ | 17 | 0.40 | % | $ | 16 | 0.25 | % | ||||
Investments | 12,412 | 3.51 | % | 12,607 | 3.71 | % | ||||||
Loans held for sale | 20 | 3.74 | % | 12 | 3.71 | % | ||||||
Loans | 30,001 | 3.94 | % | 27,469 | 3.88 | % | ||||||
Total interest income | 42,450 | 3.79 | % | 40,104 | 3.80 | % | ||||||
Interest expense | ||||||||||||
Deposits | 4,382 | 0.60 | % | 3,995 | 0.58 | % | ||||||
Other borrowings | 3,568 | 1.59 | % | 3,486 | 1.62 | % | ||||||
Total interest expense | 7,950 | 0.83 | % | 7,481 | 0.83 | % | ||||||
Net interest income | $ | 34,500 | $ | 32,623 | ||||||||
Interest rate spread | 2.95 | % | 2.97 | % | ||||||||
Net interest margin | 3.08 | % | 3.09 | % |
For the quarters ended | ||||||||||||
September 30, 2016 | September 30, 2015 | |||||||||||
Dollars in thousands | Amount of interest | Average Yield/Rate | Amount of interest | Average Yield/Rate | ||||||||
Interest on earning assets | ||||||||||||
Interest-bearing deposits | $ | 9 | 0.83 | % | $ | 3 | 0.29 | % | ||||
Investments | 3,940 | 3.33 | % | 4,290 | 3.58 | % | ||||||
Loans held for sale | 7 | 2.55 | % | 5 | 3.71 | % | ||||||
Loans | 10,112 | 3.90 | % | 9,310 | 3.84 | % | ||||||
Total interest-earning assets | 14,068 | 3.71 | % | 13,608 | 3.74 | % | ||||||
Interest expense | ||||||||||||
Deposits | 1,538 | 0.61 | % | 1,236 | 0.52 | % | ||||||
Other borrowings | 1,216 | 1.76 | % | 1,086 | 1.51 | % | ||||||
Total interest expense | 2,754 | 0.86 | % | 2,322 | 0.75 | % | ||||||
Net interest income | $ | 11,314 | $ | 11,286 | ||||||||
Interest rate spread | 2.85 | % | 2.99 | % | ||||||||
Net interest margin | 2.98 | % | 3.11 | % |
For the nine months ended September 30, 2016 compared to 2015 | |||||||||||||||
Dollars in thousands | Volume | Rate | Rate/Volume1 | Total | |||||||||||
Interest on earning assets | |||||||||||||||
Interest-bearing deposits | $ | (5 | ) | $ | 10 | $ | (4 | ) | $ | 1 | |||||
Investment securities | 491 | (660 | ) | (26 | ) | (195 | ) | ||||||||
Loans held for sale | 8 | — | — | 8 | |||||||||||
Loans | 2,023 | 474 | 35 | 2,532 | |||||||||||
Change in interest income | 2,517 | (176 | ) | 5 | 2,346 | ||||||||||
Interest expense | |||||||||||||||
Deposits | 247 | 132 | 8 | 387 | |||||||||||
Other borrowings | 145 | (60 | ) | (3 | ) | 82 | |||||||||
Change in interest expense | 392 | 72 | 5 | 469 | |||||||||||
Change in net interest income | $ | 2,125 | $ | (248 | ) | $ | — | $ | 1,877 |
For the quarter ended September 30, 2016 compared to 2015 | |||||||||||||||
Dollars in thousands | Volume | Rate | Rate/Volume1 | Total | |||||||||||
Interest on earning assets | |||||||||||||||
Interest-bearing deposits | $ | — | $ | 5 | $ | 1 | $ | 6 | |||||||
Investment securities | (43 | ) | (310 | ) | 3 | (350 | ) | ||||||||
Loans held for sale | 5 | (2 | ) | (1 | ) | 2 | |||||||||
Loans | 691 | 103 | 8 | 802 | |||||||||||
Change in interest income | 653 | (204 | ) | 11 | 460 | ||||||||||
Interest expense | |||||||||||||||
Deposits | 80 | 208 | 14 | 302 | |||||||||||
Other borrowings | (43 | ) | 181 | (8 | ) | 130 | |||||||||
Change in interest expense | 37 | 389 | 6 | 432 | |||||||||||
Change in net interest income | $ | 616 | $ | (593 | ) | $ | 5 | $ | 28 |
For the nine months ended | For the quarters ended | ||||||||||||||
Dollars in thousands | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 17,856 | $ | 14,907 | $ | 23,933 | $ | 15,736 | |||||||
Interest-bearing deposits in other banks | 5,693 | 8,610 | 4,331 | 4,061 | |||||||||||
Securities available for sale | 236,179 | 182,944 | 261,422 | 214,641 | |||||||||||
Securities to be held to maturity | 221,230 | 257,306 | 195,281 | 247,373 | |||||||||||
Restricted equity securities, at cost | 14,444 | 13,912 | 14,436 | 13,912 | |||||||||||
Loans held for sale | 714 | 432 | 1,092 | 535 | |||||||||||
Loans | 1,016,958 | 947,209 | 1,032,567 | 961,192 | |||||||||||
Allowance for loan losses | (10,203 | ) | (10,066 | ) | (10,300 | ) | (9,841 | ) | |||||||
Net loans | 1,006,755 | 937,143 | 1,022,267 | 951,351 | |||||||||||
Accrued interest receivable | 5,339 | 5,083 | 5,097 | 4,963 | |||||||||||
Premises and equipment | 21,376 | 22,197 | 21,158 | 21,922 | |||||||||||
Other real estate owned | 1,379 | 2,565 | 903 | 2,273 | |||||||||||
Goodwill | 29,805 | 29,805 | 29,805 | 29,805 | |||||||||||
Other assets | 32,893 | 22,757 | 33,862 | 23,803 | |||||||||||
Total Assets | $ | 1,593,663 | $ | 1,497,661 | $ | 1,613,587 | $ | 1,530,375 | |||||||
Liabilities & Shareholders' Equity | |||||||||||||||
Demand deposits | $ | 127,587 | $ | 110,420 | $ | 144,067 | $ | 122,999 | |||||||
NOW deposits | 247,409 | 211,070 | 258,354 | 224,913 | |||||||||||
Money market deposits | 76,445 | 100,649 | 75,120 | 100,668 | |||||||||||
Savings deposits | 207,967 | 182,108 | 212,709 | 195,028 | |||||||||||
Certificates of deposit | 444,871 | 426,089 | 455,915 | 420,333 | |||||||||||
Total deposits | 1,104,279 | 1,030,336 | 1,146,165 | 1,063,941 | |||||||||||
Borrowed funds – short term | 170,047 | 143,077 | 137,970 | 152,233 | |||||||||||
Borrowed funds – long term | 130,128 | 145,136 | 136,620 | 133,762 | |||||||||||
Dividends payable | 961 | 1,093 | 997 | 1,146 | |||||||||||
Other liabilities | 13,833 | 12,598 | 14,523 | 12,722 | |||||||||||
Total Liabilities | 1,419,248 | 1,332,240 | 1,436,275 | 1,363,804 | |||||||||||
Shareholders' Equity: | |||||||||||||||
Common stock | 108 | 107 | 108 | 107 | |||||||||||
Additional paid-in capital | 60,152 | 59,361 | 60,368 | 59,548 | |||||||||||
Retained earnings | 111,535 | 104,137 | 113,722 | 105,742 | |||||||||||
Net unrealized gain on securities available-for-sale | 2,913 | 2,014 | 3,438 | 1,388 | |||||||||||
Net unrealized loss on securities transferred from available for sale to held to maturity | (124 | ) | (73 | ) | (130 | ) | (89 | ) | |||||||
Net unrealized loss on cash flow hedging derivative instruments | (13 | ) | — | (38 | ) | — | |||||||||
Net unrealized loss on postretirement benefit costs | (156 | ) | (125 | ) | (156 | ) | (125 | ) | |||||||
Total Shareholders' Equity | 174,415 | 165,421 | 177,312 | 166,571 | |||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,593,663 | $ | 1,497,661 | $ | 1,613,587 | $ | 1,530,375 |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Securities available for sale | |||||||||||
Mortgage-backed securities | $ | 261,514 | $ | 195,110 | $ | 187,510 | |||||
State and political subdivisions | 17,484 | 24,506 | 25,290 | ||||||||
Other equity securities | 3,295 | 3,423 | 3,133 | ||||||||
$ | 282,293 | $ | 223,039 | $ | 215,933 | ||||||
Securities to be held to maturity | |||||||||||
U.S. government-sponsored agencies | $ | 891 | $ | 71,000 | $ | 75,991 | |||||
Mortgage-backed securities | 34,186 | 42,193 | 45,287 | ||||||||
State and political subdivisions | 149,393 | 122,530 | 123,744 | ||||||||
Corporate securities | 4,300 | 4,300 | 300 | ||||||||
$ | 188,770 | $ | 240,023 | $ | 245,322 | ||||||
Restricted equity securities | |||||||||||
Federal Home Loan Bank Stock | $ | 13,011 | $ | 13,220 | $ | 12,875 | |||||
Federal Reserve Bank Stock | 1,037 | 1,037 | 1,037 | ||||||||
$ | 14,048 | $ | 14,257 | $ | 13,912 | ||||||
Total securities | $ | 485,111 | $ | 477,319 | $ | 475,167 |
Available For Sale | Held to Maturity | |||||||||||||
Dollars in thousands | Fair Value | Yield to maturity | Amortized Cost | Yield to maturity | ||||||||||
U.S. Government-Sponsored Agencies | ||||||||||||||
Due in 1 year or less | $ | — | 0.00 | % | $ | — | 0.00 | % | ||||||
Due in 1 to 5 years | — | 0.00 | % | — | 0.00 | % | ||||||||
Due in 5 to 10 years | — | 0.00 | % | — | 0.00 | % | ||||||||
Due after 10 years | — | 0.00 | % | 891 | 5.57 | % | ||||||||
Total | — | 0.00 | % | 891 | 5.57 | % | ||||||||
Mortgage-Backed Securities | ||||||||||||||
Due in 1 year or less | 974 | 3.76 | % | 127 | 5.90 | % | ||||||||
Due in 1 to 5 years | 2,528 | 3.11 | % | 7,164 | 2.64 | % | ||||||||
Due in 5 to 10 years | 21,648 | 2.91 | % | 10,953 | 2.92 | % | ||||||||
Due after 10 years | 236,364 | 2.22 | % | 15,942 | 3.95 | % | ||||||||
Total | 261,514 | 2.29 | % | 34,186 | 3.35 | % | ||||||||
State & Political Subdivisions | ||||||||||||||
Due in 1 year or less | — | 0.00 | % | 1,345 | 7.03 | % | ||||||||
Due in 1 to 5 years | 578 | 6.14 | % | 6,264 | 6.18 | % | ||||||||
Due in 5 to 10 years | 1,855 | 6.23 | % | 24,879 | 5.89 | % | ||||||||
Due after 10 years | 15,051 | 5.65 | % | 116,905 | 4.72 | % | ||||||||
Total | 17,484 | 5.73 | % | 149,393 | 5.00 | % | ||||||||
Corporate Securities | ||||||||||||||
Due in 1 year or less | — | 0.00 | % | 300 | 1.00 | % | ||||||||
Due in 1 to 5 years | — | 0.00 | % | — | 0.00 | % | ||||||||
Due in 5 to 10 years | — | 0.00 | % | 4,000 | 5.50 | % | ||||||||
Due after 10 years | — | 0.00 | % | — | 0.00 | % | ||||||||
Total | — | 0.00 | % | 4,300 | 5.19 | % | ||||||||
Equity Securities | 3,295 | 2.19 | % | — | 0.00 | % | ||||||||
$ | 282,293 | 2.50 | % | $ | 188,770 | 4.71 | % |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Dollars in thousands | Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | Fair Value (Estimated) | Unrealized Losses | |||||||||||||||||
Mortgage-backed securities | $ | 79,118 | $ | (468 | ) | $ | 2,407 | $ | (79 | ) | $ | 81,525 | $ | (547 | ) | ||||||||
State and political subdivisions | 13,666 | (170 | ) | — | — | 13,666 | (170 | ) | |||||||||||||||
Other equity securities | 10 | (2 | ) | 107 | (16 | ) | 117 | (18 | ) | ||||||||||||||
$ | 92,794 | $ | (640 | ) | $ | 2,514 | $ | (95 | ) | $ | 95,308 | $ | (735 | ) |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||
Commercial | ||||||||||||||||||
Real estate | $ | 297,808 | 28.9 | % | $ | 269,462 | 27.3 | % | $ | 268,741 | 27.9 | % | ||||||
Construction | 18,828 | 1.8 | % | 24,881 | 2.5 | % | 23,624 | 2.5 | % | |||||||||
Other | 131,198 | 12.8 | % | 128,341 | 13.0 | % | 119,097 | 12.4 | % | |||||||||
Municipal | 26,153 | 2.5 | % | 19,751 | 2.0 | % | 21,377 | 2.2 | % | |||||||||
Residential | ||||||||||||||||||
Term | 403,159 | 39.2 | % | 403,030 | 40.7 | % | 385,145 | 39.9 | % | |||||||||
Construction | 14,269 | 1.4 | % | 8,451 | 0.9 | % | 12,029 | 1.2 | % | |||||||||
Home equity line of credit | 111,994 | 10.9 | % | 110,202 | 11.1 | % | 109,390 | 11.4 | % | |||||||||
Consumer | 25,583 | 2.5 | % | 24,520 | 2.5 | % | 23,748 | 2.5 | % | |||||||||
Total loans | $ | 1,028,992 | 100.0 | % | $ | 988,638 | 100.0 | % | $ | 963,151 | 100.0 | % |
Dollars in thousands | < 1 Year | 1 - 5 Years | 5 - 10 Years | > 10 Years | Total | ||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 3,179 | $ | 10,797 | $ | 26,759 | $ | 257,073 | $ | 297,808 | |||||||||
Construction | 53 | 5,709 | 2,243 | 10,823 | 18,828 | ||||||||||||||
Other | 8,636 | 37,242 | 29,972 | 55,348 | 131,198 | ||||||||||||||
Municipal | 16 | 5,683 | 10,482 | 9,972 | 26,153 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 677 | 5,735 | 12,532 | 384,215 | 403,159 | ||||||||||||||
Construction | 169 | 702 | 55 | 13,343 | 14,269 | ||||||||||||||
Home equity line of credit | 177 | 682 | 1,770 | 109,365 | 111,994 | ||||||||||||||
Consumer | 7,226 | 5,120 | 2,985 | 10,252 | 25,583 | ||||||||||||||
Total loans | $ | 20,133 | $ | 71,670 | $ | 86,798 | $ | 850,391 | $ | 1,028,992 |
Fixed-Rate | Adjustable-Rate | Total | ||||||||||||||||
Dollars in thousands | Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||
Commercial | ||||||||||||||||||
Real estate | $ | 35,806 | 3.5 | % | $ | 262,002 | 25.4 | % | $ | 297,808 | 28.9 | % | ||||||
Construction | 4,999 | 0.5 | % | 13,829 | 1.3 | % | 18,828 | 1.8 | % | |||||||||
Other | 50,163 | 4.9 | % | 81,035 | 7.9 | % | 131,198 | 12.8 | % | |||||||||
Municipal | 24,398 | 2.3 | % | 1,755 | 0.2 | % | 26,153 | 2.5 | % | |||||||||
Residential | ||||||||||||||||||
Term | 279,764 | 27.2 | % | 123,395 | 12.0 | % | 403,159 | 39.2 | % | |||||||||
Construction | 13,758 | 1.4 | % | 511 | 0.0 | % | 14,269 | 1.4 | % | |||||||||
Home equity line of credit | 822 | 0.1 | % | 111,172 | 10.8 | % | 111,994 | 10.9 | % | |||||||||
Consumer | 20,264 | 2.0 | % | 5,319 | 0.5 | % | 25,583 | 2.5 | % | |||||||||
Total loans | $ | 429,974 | 41.9 | % | $ | 599,018 | 58.1 | % | $ | 1,028,992 | 100.0 | % |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||
Commercial | ||||||||||||||||||
Real estate | $ | 4,039 | 28.9 | % | $ | 3,120 | 27.3 | % | $ | 3,151 | 27.9 | % | ||||||
Construction | 327 | 1.8 | % | 580 | 2.5 | % | 558 | 2.5 | % | |||||||||
Other | 1,688 | 12.8 | % | 1,452 | 13.0 | % | 1,376 | 12.4 | % | |||||||||
Municipal | 18 | 2.5 | % | 17 | 2.0 | % | 16 | 2.2 | % | |||||||||
Residential | ||||||||||||||||||
Term | 1,359 | 39.2 | % | 1,391 | 40.7 | % | 1,165 | 39.9 | % | |||||||||
Construction | 37 | 1.4 | % | 24 | 0.9 | % | 22 | 1.2 | % | |||||||||
Home equity line of credit | 874 | 10.9 | % | 893 | 11.1 | % | 901 | 11.4 | % | |||||||||
Consumer | 618 | 2.5 | % | 566 | 2.5 | % | 562 | 2.5 | % | |||||||||
Unallocated | 1,338 | — | % | 1,873 | — | % | 1,926 | — | % | |||||||||
Total | $ | 10,298 | 100.0 | % | $ | 9,916 | 100.0 | % | $ | 9,677 | 100.0 | % |
Dollars in thousands | Specific Reserves on Loans Evaluated Individually for Impairment | General Reserves on Loans Based on Historical Loss Experience | Reserves for Qualitative Factors | Unallocated Reserves | Total Reserves | ||||||||||||||
Commercial | |||||||||||||||||||
Real estate | $ | 381 | $ | 1,303 | $ | 2,355 | $ | — | $ | 4,039 | |||||||||
Construction | 99 | 81 | 147 | — | 327 | ||||||||||||||
Other | 68 | 577 | 1,043 | — | 1,688 | ||||||||||||||
Municipal | — | — | 18 | — | 18 | ||||||||||||||
Residential | |||||||||||||||||||
Term | 318 | 571 | 470 | — | 1,359 | ||||||||||||||
Construction | — | 20 | 17 | — | 37 | ||||||||||||||
Home equity line of credit | 32 | 457 | 385 | — | 874 | ||||||||||||||
Consumer | 51 | 318 | 249 | — | 618 | ||||||||||||||
Unallocated | — | — | — | 1,338 | 1,338 | ||||||||||||||
$ | 949 | $ | 3,327 | $ | 4,684 | $ | 1,338 | $ | 10,298 |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Balance at the beginning of year | $ | 9,916 | $ | 10,344 | $ | 10,344 | ||||||
Loans charged off: | ||||||||||||
Commercial | ||||||||||||
Real estate | 33 | 280 | 254 | |||||||||
Construction | 75 | 9 | 9 | |||||||||
Other | 167 | 732 | 732 | |||||||||
Municipal | — | — | — | |||||||||
Residential | ||||||||||||
Term | 338 | 420 | 187 | |||||||||
Construction | — | — | — | |||||||||
Home equity line of credit | 147 | 582 | 532 | |||||||||
Consumer | 246 | 350 | 282 | |||||||||
Total | 1,006 | 2,373 | 1,996 | |||||||||
Recoveries on loans previously charged off | ||||||||||||
Commercial | ||||||||||||
Real estate | — | 2 | 1 | |||||||||
Construction | 4 | 1 | — | |||||||||
Other | 80 | 88 | 66 | |||||||||
Municipal | — | — | — | |||||||||
Residential | ||||||||||||
Term | 88 | 152 | 37 | |||||||||
Construction | — | — | — | |||||||||
Home equity line of credit | 3 | 31 | 31 | |||||||||
Consumer | 88 | 121 | 94 | |||||||||
Total | 263 | 395 | 229 | |||||||||
Net loans charged off | 743 | 1,978 | 1,767 | |||||||||
Provision for loan losses | 1,125 | 1,550 | 1,100 | |||||||||
Balance at end of period | $ | 10,298 | $ | 9,916 | $ | 9,677 | ||||||
Ratio of net loans charged off to average loans outstanding1 | 0.10 | % | 0.21 | % | 0.25 | % | ||||||
Ratio of allowance for loan losses to total loans outstanding | 1.00 | % | 1.00 | % | 1.00 | % |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Commercial | |||||||||||
Real estate | $ | 1,222 | $ | 915 | $ | 1,220 | |||||
Construction | — | 238 | 208 | ||||||||
Other | 412 | 66 | 114 | ||||||||
Municipal | — | — | — | ||||||||
Residential | |||||||||||
Term | 4,475 | 5,260 | 5,491 | ||||||||
Construction | — | — | — | ||||||||
Home equity line of credit | 851 | 893 | 948 | ||||||||
Consumer | 170 | — | — | ||||||||
Total nonperforming loans | $ | 7,130 | $ | 7,372 | $ | 7,981 |
• | The borrower demonstrates financial difficulty; common indicators include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender, and |
• | The Bank has granted a concession; common concession types include maturity date extension, interest rate adjustments to below market pricing, and deferment of payments. |
Balance in Thousands of Dollars | Number of Loans | Aggregate Balance | |||
Total at December 31, 2015 | 84 | $ | 23,923 | ||
Added in 2016 | — | — | |||
Removed in 2016 | (9 | ) | (1,033 | ) | |
Repayments in 2016 | — | (865 | ) | ||
Total at September 30, 2016 | 75 | $ | 22,025 |
In thousands of dollars | Performing As Modified | 30+ Days Past Due and Accruing | On Nonaccrual | All TDRs | ||||||||
Commercial | ||||||||||||
Real estate | $ | 9,221 | $ | — | $ | — | $ | 9,221 | ||||
Construction | 788 | — | — | 788 | ||||||||
Other | 841 | — | — | 841 | ||||||||
Municipal | — | — | — | — | ||||||||
Residential | ||||||||||||
Term | 9,160 | 495 | 971 | 10,626 | ||||||||
Construction | — | — | — | — | ||||||||
Home equity line of credit | 549 | — | — | 549 | ||||||||
Consumer | — | — | — | — | ||||||||
$ | 20,559 | $ | 495 | $ | 971 | $ | 22,025 | |||||
Percent of balance | 93.3 | % | 2.2 | % | 4.4 | % | 100.0 | % | ||||
Number of loans | 64 | 2 | 9 | 75 | ||||||||
Associated specific reserve | $ | 414 | $ | 43 | $ | 35 | $ | 492 |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Commercial | |||||||||||
Real estate | $ | 10,442 | $ | 10,717 | $ | 11,228 | |||||
Construction | 788 | 1,026 | 996 | ||||||||
Other | 1,254 | 1,234 | 1,736 | ||||||||
Municipal | — | — | — | ||||||||
Residential | |||||||||||
Term | 14,131 | 15,088 | 15,276 | ||||||||
Construction | — | — | — | ||||||||
Home equity line of credit | 1,400 | 1,466 | 1,550 | ||||||||
Consumer | 170 | — | — | ||||||||
Total | $ | 28,185 | $ | 29,531 | $ | 30,786 |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Commercial | ||||||||||||
Real estate | $ | 1,486 | $ | 884 | $ | 1,056 | ||||||
Construction | — | 273 | 239 | |||||||||
Other | 644 | 328 | 10 | |||||||||
Municipal | — | — | — | |||||||||
Residential | ||||||||||||
Term | 6,235 | 5,187 | 6,950 | |||||||||
Construction | — | 368 | — | |||||||||
Home equity line of credit | 1,067 | 1,108 | 1,195 | |||||||||
Consumer | 310 | 139 | 308 | |||||||||
Total | $ | 9,742 | $ | 8,287 | $ | 9,758 | ||||||
Loans 30-89 days past due to total loans | 0.57 | % | 0.46 | % | 0.61 | % | ||||||
Loans 90+ days past due and accruing to total loans | 0.00 | % | 0.01 | % | 0.01 | % | ||||||
Loans 90+ days past due on non-accrual to total loans | 0.37 | % | 0.37 | % | 0.39 | % | ||||||
Total past due loans to total loans | 0.95 | % | 0.84 | % | 1.01 | % |
Dollars in thousands | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Carrying Value | |||||||||||
Commercial | |||||||||||
Real estate | $ | — | $ | — | $ | — | |||||
Construction | 28 | 28 | 81 | ||||||||
Other | 352 | 706 | 931 | ||||||||
Municipal | — | — | — | ||||||||
Residential | |||||||||||
Term | 637 | 960 | 1,313 | ||||||||
Construction | — | — | — | ||||||||
Home equity line of credit | — | — | — | ||||||||
Consumer | — | — | — | ||||||||
Total | $ | 1,017 | $ | 1,694 | $ | 2,325 | |||||
Related Allowance | |||||||||||
Commercial | |||||||||||
Real estate | $ | — | $ | — | $ | — | |||||
Construction | 11 | 11 | 45 | ||||||||
Other | 92 | 77 | 67 | ||||||||
Municipal | — | — | — | ||||||||
Residential | |||||||||||
Term | 59 | 74 | 297 | ||||||||
Construction | — | — | — | ||||||||
Home equity line of credit | — | — | — | ||||||||
Consumer | — | — | — | ||||||||
Total | $ | 162 | $ | 162 | $ | 409 | |||||
Net Value | |||||||||||
Commercial | |||||||||||
Real estate | $ | — | $ | — | $ | — | |||||
Construction | 17 | 17 | 36 | ||||||||
Other | 260 | 629 | 864 | ||||||||
Municipal | — | — | — | ||||||||
Residential | |||||||||||
Term | 578 | 886 | 1,016 | ||||||||
Construction | — | — | — | ||||||||
Home equity line of credit | — | — | — | ||||||||
Consumer | — | — | — | ||||||||
Total | $ | 855 | $ | 1,532 | $ | 1,916 |
As of September 30, 2016 | Leverage | Tier 1 | Common Equity Tier 1 | Total Risk-Based | ||||||||
Bank | 8.88 | % | 15.07 | % | 15.07 | % | 16.18 | % | ||||
Company | 9.06 | % | 15.38 | % | 15.38 | % | 16.49 | % | ||||
Adequately capitalized ratio | 4.00 | % | 6.00 | % | 4.50 | % | 8.00 | % | ||||
Adequately capitalized ratio plus capital conservation buffer | 4.00 | % | 8.50 | % | 7.00 | % | 10.50 | % | ||||
Well capitalized ratio (Bank only) | 5.00 | % | 8.00 | % | 6.50 | % | 10.00 | % |
As of December 31, 2015 | Leverage | Tier 1 | Common Equity Tier 1 | Total Risk-Based | ||||||||
Bank | 8.82 | % | 14.45 | % | 14.45 | % | 15.53 | % | ||||
Company | 8.81 | % | 14.70 | % | 14.70 | % | 15.78 | % | ||||
Adequately capitalized ratio | 4.00 | % | 6.00 | % | 4.50 | % | 8.00 | % | ||||
Adequately capitalized ratio plus capital conservation buffer | 4.00 | % | 8.50 | % | 7.00 | % | 10.50 | % | ||||
Well capitalized ratio (Bank only) | 5.00 | % | 8.00 | % | 6.50 | % | 10.00 | % |
Dollars in thousands | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||
Borrowed funds | $ | 268,098 | $ | 137,970 | $ | 40,000 | $ | 65,000 | $ | 25,128 | |||||||||
Operating leases | 442 | 164 | 208 | 31 | 39 | ||||||||||||||
Certificates of deposit | 424,455 | 267,201 | 72,091 | 85,163 | — | ||||||||||||||
Total | $ | 692,995 | $ | 405,335 | $ | 112,299 | $ | 150,194 | $ | 25,167 | |||||||||
Total loan commitments and unused lines of credit | $ | 176,062 | $ | 176,062 | $ | — | $ | — | $ | — |
0-90 | 90-365 | 1-5 | 5+ | |||||||||||||
Dollars in thousands | Days | Days | Years | Years | ||||||||||||
Investment securities at amortized cost (HTM) and fair value (AFS) | $ | 40,294 | $ | 78,668 | $ | 210,449 | $ | 141,652 | ||||||||
Restricted stock, at cost | 13,011 | — | — | 1,037 | ||||||||||||
Loans held for sale | — | — | — | 1,228 | ||||||||||||
Loans | 394,731 | 170,654 | 359,070 | 104,537 | ||||||||||||
Other interest-earning assets | — | 22,124 | — | — | ||||||||||||
Non-rate-sensitive assets | 25,379 | — | — | 72,254 | ||||||||||||
Total assets | 473,415 | 271,446 | 569,519 | 320,708 | ||||||||||||
Interest-bearing deposits | 273,767 | 64,778 | 156,662 | 500,061 | ||||||||||||
Borrowed funds | 117,970 | 20,000 | 105,000 | 25,128 | ||||||||||||
Non-rate-sensitive liabilities and equity | 1,900 | 5,700 | 32,350 | 331,772 | ||||||||||||
Total liabilities and equity | 393,637 | 90,478 | 294,012 | 856,961 | ||||||||||||
Period gap | $ | 79,778 | $ | 180,968 | $ | 275,507 | $ | (536,253 | ) | |||||||
Percent of total assets | 4.88 | % | 11.07 | % | 16.85 | % | (32.80 | ) | % | |||||||
Cumulative gap (current) | $ | 79,778 | $ | 260,746 | $ | 536,253 | $ | — | ||||||||
Percent of total assets | 4.88 | % | 15.95 | % | 32.80 | % | — | % |
Changes in Net Interest Income | September 30, 2016 | December 31, 2015 |
Year 1 | ||
Projected change if rates decrease by 1.0% | -1.23% | -0.97% |
Projected change if rates increase by 2.0% | 0.43% | -1.94% |
Year 2 | ||
Projected change if rates decrease by 1.0% | -0.52% | -2.80% |
Projected change if rates increase by 2.0% | 6.37% | -1.59% |
Month | Shares Purchased | Average Price Per Share | Total shares purchased as part of publicly announced repurchase plans | Maximum number of shares that may be purchased under the plans | ||||
January 2016 | 1,434 | 18.45 | 0 | 0 | ||||
February 2016 | 4,761 | 18.74 | 0 | 0 | ||||
March 2016 | 741 | 19.06 | 0 | 0 | ||||
April 2016 | — | — | 0 | 0 | ||||
May 2016 | 117 | 20.28 | 0 | 0 | ||||
June 2016 | — | — | 0 | 0 | ||||
July 2016 | — | — | 0 | 0 | ||||
August 2016 | — | — | 0 | 0 | ||||
September 2016 | — | — | 0 | 0 | ||||
Total | 7,053 | 18.71 | 0 | 0 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 01, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | First Bancorp, Inc /ME/ | |
Entity Central Index Key | 0000765207 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,791,668 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Assets | |||
Securities to be held to maturity | $ 195,797 | $ 243,123 | $ 248,344 |
Shareholders' equity | |||
Common stock, par value per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement [Abstract] | ||||
Interest and fees on loans (tax-exempt income) | $ 487 | $ 434 | $ 487 | $ 434 |
Interest and dividends on investments (tax-exempt income) | $ 3,761 | $ 3,891 | $ 3,761 | $ 3,891 |
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (usd per share) | $ 0.68 | $ 0.65 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The First Bancorp, Inc. ("the Company") is a financial holding company that owns all of the common stock of First National Bank ("the Bank"). The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions and balances are eliminated in consolidation. The income reported for the 2016 period is not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and notes included in the Company's annual report on Form 10-K for the year ended December 31, 2015. Subsequent Events Events occurring subsequent to September 30, 2016, have been evaluated as to their potential impact to the financial statements. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2016:
The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2015:
The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2015:
The following table summarizes the contractual maturities of investment securities at September 30, 2016:
The following table summarizes the contractual maturities of investment securities at December 31, 2015:
The following table summarizes the contractual maturities of investment securities at September 30, 2015:
At September 30, 2016, securities with a fair value of $249,162,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a fair value of $201,879,000 as of December 31, 2015 and $221,072,000 at September 30, 2015, pledged for the same purposes. Gains and losses on the sale of securities available for sale are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received. The following table shows securities gains and losses for the nine months and quarters ended September 30, 2016 and 2015:
Management reviews securities with unrealized losses for other than temporary impairment. As of September 30, 2016, there were 71 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 13 had been temporarily impaired for 12 months or more. At the present time, there have been no material changes in the credit quality of these securities resulting in other than temporary impairment, and in Management's opinion, no additional write-down for other-than-temporary impairment is warranted. Information regarding securities temporarily impaired as of September 30, 2016 is summarized below:
As of December 31, 2015, there were 78 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 15 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2015 is summarized below:
As of September 30, 2015, there were 88 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 14 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of September 30, 2015 is summarized below:
During the third quarter of 2014, the Company transferred securities with a total amortized cost of $89,780,000 with a corresponding fair value of $89,757,000 from available for sale to held to maturity. The net unrealized loss, net of taxes, on these securities at the date of the transfer was $15,000. The net unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive income (loss), net of tax and is amortized over the remaining lives of the securities as an adjustment of the yield. The amortization of the net unrealized loss reported in accumulated other comprehensive income (loss) will offset the effect on interest income of the discount for the transferred securities. The remaining unamortized balance of the net unrealized losses for the securities transferred from available for sale to held to maturity was $124,000 at September 30, 2016. These securities were transferred as a part of the Company's overall investment and balance sheet strategies. The Bank is a member of the Federal Home Loan Bank ("FHLB") of Boston, a cooperatively owned wholesale bank for housing and finance in the six New England States. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. The Bank uses the FHLB for much of its wholesale funding needs. As of September 30, 2016 and 2015, and December 31, 2015, the Bank's investment in FHLB stock totaled $13,011,000, $12,875,000 and $13,220,000, respectively. FHLB stock is a non-marketable equity security and therefore is reported at cost, which equals par value. The Company periodically evaluates its investment in FHLB stock for impairment based on, among other factors, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through September 30, 2016. The Bank will continue to monitor its investment in FHLB stock. |
Loans |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The following table shows the composition of the Company's loan portfolio as of September 30, 2016 and 2015 and at December 31, 2015:
Loan balances include net deferred loan costs of $4,648,000 as of September 30, 2016, $3,686,000 as of December 31, 2015, and $3,452,000 as of September 30, 2015. Pursuant to collateral agreements, qualifying first mortgage loans, which totaled $262,001,000 at September 30, 2016, $279,463,000 at December 31, 2015, and $281,925,000 at September 30, 2015, were used to collateralize borrowings from the FHLB. In addition, commercial, construction and home equity loans totaling $261,416,000 at September 30, 2016, $243,578,000 at December 31, 2015, and $251,937,000 at September 30, 2015, were used to collateralize a standby line of credit at the Federal Reserve Bank of Boston that is currently unused. For all loan classes, loans over 30 days past due are considered delinquent. Information on the past-due status of loans by class of financing receivable as of September 30, 2016, is presented in the following table:
Information on the past-due status of loans by class of financing receivable as of December 31, 2015, is presented in the following table:
Information on the past-due status of loans by class of financing receivable as of September 30, 2015, is presented in the following table:
For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future. Cash payments received on non-accrual loans, which are included in impaired loans, are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected or when it otherwise becomes well secured and in the process of collection. Information on nonaccrual loans as of September 30, 2016 and 2015 and at December 31, 2015 is presented in the following table:
Impaired loans include troubled debt restructured and loans placed on non-accrual. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an impaired loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an impaired loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off. A breakdown of impaired loans by class of financing receivable as of and for the period ended September 30, 2016 is presented in the following table:
Substantially all interest income recognized on impaired loans for all classes of financing receivables was recognized on a cash basis as received. A breakdown of impaired loans by class of financing receivable as of and for the year ended December 31, 2015 is presented in the following table:
A breakdown of impaired loans by class of financing receivable as of and for the period ended September 30, 2015 is presented in the following table:
Troubled Debt Restructured A troubled debt restructured ("TDR") constitutes a restructuring of debt if the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. To determine whether or not a loan should be classified as a TDR, Management evaluates a loan based upon the following criteria:
As of September 30, 2016, the Company had 75 loans with a value of $22,025,000 that have been classified as TDRs. This compares to 84 loans with a value of $23,923,000 and 88 loans with a value of $24,715,000 classified as TDRs as of December 31, 2015 and September 30, 2015, respectively. The impairment carried as a specific reserve in the allowance for loan losses is calculated by present valuing the expected cash flows on the loan at the original interest rate, or, for collateral-dependent loans, using the fair value of the collateral less costs to sell. The following table shows TDRs by class and the specific reserve as of September 30, 2016:
The following table shows TDRs by class and the specific reserve as of December 31, 2015:
The following table shows TDRs by class and the specific reserve as of September 30, 2015:
As of September 30, 2016, eight of the loans classified as TDRs with a total balance of $1,060,000 were more than 30 days past due. None of these loans had been placed on TDR status in the previous 12 months. The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of September 30, 2016:
As of September 30, 2015, 10 of the loans classified as TDRs with a total balance of $1,593,000 were more than 30 days past due. None of these loans had been placed on TDR status in the previous 12 months. The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of September 30, 2015:
For the nine months ended September 30, 2016, no loans were placed on TDR status. This compares to one loan placed on TDR status with a post-modification outstanding balance of $108,000 for the nine months ended September 30, 2015. This was considered a TDR because concessions had been granted to borrowers experiencing financial difficulties. Concessions include reductions in interest rates, principal and/or interest forbearance, payment extensions, or combinations thereof. The following table shows loans placed on TDR status in the nine months ended September 30, 2015, by class of loan and the associated specific reserve included in the allowance for loan losses as of September 30, 2015:
For the quarter ended September 30, 2016 no loans were placed on TDR status. This compares to one loan placed on TDR status with a post-modification outstanding balance of $108,000 for the quarter ended September 30, 2015. This was considered a TDRs because concessions had been granted to borrowers experiencing financial difficulties. Concessions include reductions in interest rates, principal and/or interest forbearance, payment extensions, or combinations thereof. The following table shows loans placed on TDR status in the three months ended September 30, 2015, by class of loan and the associated specific reserve included in the allowance for loan losses as of September 30, 2015:
As of September 30, 2016, Management is aware of six loans classified as TDRs that are involved in bankruptcy with an outstanding balance of $1,062,000. There were also nine loans with an outstanding balance of $971,000 that were classified as TDRs and on non-accrual status. Three loans with an outstanding balance of $222,000, that were classified as TDRs, were in the process of foreclosure. Residential Mortgage Loans in Process of Foreclosure As of September 30, 2016, there were 13 mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $1,508,000; this compares to 18 mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $2,038,000 as of September 30, 2015. |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses The Company provides for loan losses through the establishment of an allowance for loan losses which represents an estimated reserve for existing losses in the loan portfolio. A systematic methodology is used for determining the allowance that includes a quarterly review process, risk rating changes, and adjustments to the allowance. The loan portfolio is classified in eight classes and credit risk is evaluated separately in each class. The appropriate level of the allowance is evaluated continually based on a review of significant loans, with a particular emphasis on nonaccruing, past due, and other loans that may require special attention. Other factors include general conditions in local and national economies; loan portfolio composition and asset quality indicators; and internal factors such as changes in underwriting policies, credit administration practices, experience, ability and depth of lending management, among others. The allowance consists of four elements: (1) specific reserves for loans evaluated individually for impairment; (2) general reserves for each portfolio segment based on historical loan loss experience, (3) qualitative reserves judgmentally adjusted for local and national economic conditions, concentrations, portfolio composition, volume and severity of delinquencies and nonaccrual loans, trends of criticized and classified loans, changes in credit policies and underwriting standards, credit administration practices, and other factors as applicable for each portfolio segment; and (4) unallocated reserves. All outstanding loans are considered in evaluating the appropriateness of the allowance. A breakdown of the allowance for loan losses as of September 30, 2016, December 31, 2015, and September 30, 2015, by class of financing receivable and allowance element, is presented in the following tables:
Qualitative adjustment factors are taken into consideration when determining reserve estimates. These adjustment factors are based upon Management's evaluation of various current conditions, including those listed below.
The qualitative portion of the allowance for loan losses was 0.46% of related loans as of September 30, 2016 and 0.45% as of December 31, 2015. The qualitative portion increased $253,000 between December 31, 2015 and September 30, 2016 due to an increase in loans outstanding. Due to the increased commercial loan volume this year and potential weaknesses in a small number of credits which are currently performing, the Company is carrying a $1,000,000 overlay in pooled reserves. The unallocated component of the allowance totaled $1,338,000 at September 30, 2016, or 13.0% of the total reserve, up slightly from the second quarter 2016. This compares to $1,873,000 or 18.9% as of December 31, 2015. Management feels the change in the unallocated is consistent with improvement in credit quality. The allowance for loan losses as a percent of total loans stood at 1.00% as of September 30, 2016. This compares to 1.00% of total loans as of December 31, 2015 and September 30, 2015. Commercial loans are comprised of three major classes, commercial real estate loans, commercial construction loans and other commercial loans. Commercial real estate is primarily comprised of loans to small businesses collateralized by owner-occupied real estate, while other commercial is primarily comprised of loans to small businesses collateralized by plant and equipment, commercial fishing vessels and gear, and limited inventory-based lending. Commercial real estate loans typically have a maximum loan-to-value of 80% based upon current appraisal information at the time the loan is made. Municipal loans are comprised of loans to municipalities in Maine for capitalized expenditures, construction projects or tax-anticipation notes. All municipal loans are considered general obligations of the municipality and as such are collateralized by the taxing ability of the municipality for repayment of debt. Construction, land and land development loans, both commercial and residential, comprise a small portion of the portfolio, and at 21.9% of capital are below the regulatory limit of 100.0% of capital at September 30, 2016. Construction loans and non-owner-occupied commercial real estate loans are at 102.9% of total capital, below the regulatory limit of 300.0% of capital at September 30, 2016. The process of establishing the allowance with respect to the commercial loan portfolio begins when a loan officer initially assigns each loan a risk rating, using established credit criteria. Approximately 50% of the outstanding loans and commitments are subject to review and validation annually by an independent consulting firm, as well as periodically by the Company's internal credit review function. The methodology employs Management's judgment as to the level of losses on existing loans based on internal review of the loan portfolio, including an analysis of a borrower's current financial position, and the consideration of current and anticipated economic conditions and their potential effects on specific borrowers and or lines of business. In determining the Company's ability to collect certain loans, Management also considers the fair value of underlying collateral. The risk rating system has eight levels, defined as follows: 1 Strong Credits rated "1" are characterized by borrowers fully responsible for the credit with excellent capacity to pay principal and interest. Loans rated "1" may be secured with acceptable forms of liquid collateral. 2 Above Average Credits rated "2" are characterized by borrowers that have better than average liquidity, capitalization, earnings and/or cash flow with a consistent record of solid financial performance. 3 Satisfactory Credits rated "3" are characterized by borrowers with favorable liquidity, profitability and financial condition with adequate cash flow to pay debt service. 4 Average Credits rated "4" are characterized by borrowers that present risk more than 1, 2 and 3 rated loans and merit an ordinary level of ongoing monitoring. Financial condition is on par or somewhat below industry averages while cash flow is generally adequate to meet debt service requirements. 5 Watch Credits rated "5" are characterized by borrowers that warrant greater monitoring due to financial condition or unresolved and identified risk factors. 6 Other Assets Especially Mentioned (OAEM) Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. OAEM have potential weaknesses which may, if not checked or corrected, weaken the asset or inadequately protect the Company's credit position at some future date. 7 Substandard Loans in this category are inadequately protected by the paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. 8 Doubtful Loans classified "Doubtful" have the same weaknesses as those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of September 30, 2016:
The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of December 31, 2015:
The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of September 30, 2015:
Commercial loans are generally charged off when all or a portion of the principal amount is determined to be uncollectible. This determination is based on circumstances specific to a borrower including repayment ability, analysis of collateral and other factors as applicable. Residential loans are comprised of two classes: term loans, which include traditional amortizing home mortgages, and construction loans, which include loans for owner-occupied residential construction. Residential loans typically have a 75% to 80% loan to value based upon current appraisal information at the time the loan is made. Home equity loans and lines of credit are typically written to the same underwriting standards. Consumer loans are primarily amortizing loans to individuals collateralized by automobiles, pleasure craft and recreation vehicles, typically with a maximum loan to value of 80% to 90% of the purchase price of the collateral. Consumer loans also include a small amount of unsecured short-term time notes to individuals. Residential loans, consumer loans and home equity lines of credit are segregated into homogeneous pools with similar risk characteristics. Trends and current conditions are analyzed and historical loss experience is adjusted accordingly. Quantitative and qualitative adjustment factors for these segments are consistent with those for the commercial and municipal classes. Certain loans in the residential, home equity lines of credit and consumer classes identified as having the potential for further deterioration are analyzed individually to confirm impairment status, and to determine the need for a specific reserve; however there is no formal rating system used for these classes. Consumer loans greater than 120 days past due are generally charged off. Residential loans 90 days or more past due are placed on non-accrual status unless the loans are both well secured and in the process of collection. One- to four-family residential real estate loans and home equity loans are written down or charged-off no later than 180 days past due, or for residential real estate secured loans having a borrower in bankruptcy, within 60 days of receipt of notification of filing from the bankruptcy court, whichever is sooner. This is subject to completion of a current assessment of the value of the collateral with any outstanding loan balance in excess of the fair value of the property, less costs to sell, written down or charged-off. There were no changes to the Company's accounting policies or methodology used to estimate the allowance for loan losses during the nine months ended September 30, 2016. The following table presents allowance for loan losses activity by class for the nine months and quarter ended September 30, 2016, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2016:
The following table presents allowance for loan losses activity by class for the year-ended December 31, 2015 and allowance for loan loss balances by class and related loan balances by class as of December 31, 2015:
The following table presents allowance for loan losses activity by class for the nine months and quarter ended September 30, 2015, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2015:
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options and Stock-Based Compensation | Stock Options and Stock-Based Compensation At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of our business. Such grants and awards will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2010 Plan will qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2010 Plan will qualify as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and will satisfy NASDAQ guidelines relating to equity compensation. As of September 30, 2016, 108,710 shares of restricted stock had been granted under the 2010 Plan, of which 67,064 shares remain restricted as of September 30, 2016 as detailed in the following table:
The compensation cost related to these restricted stock grants is $1,140,000 and will be recognized over the vesting terms of each grant. In the nine months ended September 30, 2016, $215,000 of expense was recognized for these restricted shares, leaving $540,000 in unrecognized expense as of September 30, 2016. In the nine months ended September 30, 2015, $222,000 of expense was recognized for restricted shares, leaving $419,000 in unrecognized expense as of September 30, 2015. The Company established a shareholder-approved stock option plan in 1995 (the "1995 Plan"), under which the Company granted options to employees for 600,000 shares of common stock. Only incentive stock options were granted under the 1995 Plan. The option price of each option grant was determined by the Options Committee of the Board of Directors, and in no instance was less than the fair market value on the date of the grant. An option's maximum term was ten years from the date of grant, with 50% of the options granted vesting two years from the date of grant and the remaining 50% vesting five years from the date of grant. As of January 16, 2005, all options under the 1995 Plan had been granted, and as of January 16, 2015, all options granted under the 1995 plan had been exercised or expired. |
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Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Preferred and Common Stock | Preferred and Common Stock Preferred Stock On January 9, 2009, the Company issued $25,000,000 in Fixed Rate Cumulative Perpetual Preferred Stock, Series A, to the U.S. Treasury ("Treasury') under the Capital Purchase Program ("the CPP Shares"). The CPP Shares qualified as Tier 1 capital on the Company's books for regulatory purposes and ranked senior to the Company's common stock and senior or at an equal level in the Company's capital structure to any other shares of preferred stock the Company may issue in the future. In three separate transactions in 2012 and 2013, the Company repurchased all of the CPP shares from the Treasury. Incident to such issuance of the CPP shares, the Company issued to the Treasury warrants (the "Warrants") to purchase up to 225,904 shares of the Company's common stock at a price per share of $16.60 (subject to adjustment). The Warrants (and any shares of common stock issuable pursuant to the Warrants) are freely transferable by the Treasury to third parties. The Warrants have a term of ten years and could be exercised by the Treasury or a subsequent holder at any time or from time to time during their term. To the extent they had not previously been exercised, the Warrants will expire after ten years. The Warrants were unchanged as a result of the CPP Shares repurchase transactions. In May 2015, the Treasury sold all of the Warrants to private parties. In accordance with the contractual terms of the Warrants, the number of shares issuable upon exercise of the warrants and strike price were adjusted at the time of the sale. As a result of this transaction, the number of issuable shares under the Warrants now stands at 226,819 shares with a strike price of $16.53 per share. Common Stock Proceeds from sale of common stock totaled $391,000 and $343,000 for the nine months ended September 30, 2016 and 2015, respectively. |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (EPS) for the nine months ended September 30, 2016 and 2015:
The following table sets forth the computation of basic and diluted EPS for the quarters ended September 30, 2016 and 2015.
All earnings per share calculations have been made using the weighted average number of shares outstanding during the period. The potentially dilutive securities are unvested shares of restricted stock granted to certain key members of Management and the warrants. The number of dilutive shares is calculated using the treasury method, assuming that all warrants were exercisable at the end of each period. Warrants that are out-of-the-money are not considered in the calculation of dilutive earnings per share as the effect would be anti-dilutive. The following table presents the number of warrants outstanding as of September 30, 2016 and 2015 and the amount for which the average market price at period end is above or below the strike price:
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Employee Benefit Plans |
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General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan The Bank has a defined contribution plan available to substantially all employees who have completed 3 months of service. Employees may contribute up to Internal Revenue Service ("IRS") determined limits and the Bank may match employee contributions not to exceed 3.0% of compensation depending on contribution level. Subject to a vote of the Board of Directors, the Bank may also make a profit-sharing contribution to the Plan. Such contribution equaled 2.0% of each eligible employee's compensation in 2015. The amount for 2016 has not been established. The expense related to the 401(k) plan was $338,000 and $333,000 for the nine months ended September 30, 2016 and 2015, respectively. Deferred Compensation and Supplemental Retirement Benefits The Bank also provides unfunded, non-qualified deferred compensation payable over two years, as well as unfunded supplemental retirement benefits for certain officers, payable in installments over 20 years upon retirement or death. The agreements consist of individual contracts with differing characteristics that, when taken together, do not constitute a postretirement plan. The costs for these benefits are recognized over the service periods of the participating officers in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 712 "Compensation – Nonretirement Postemployment Benefits". The expense of these supplemental retirement benefits was $161,000 for the nine months ended September 30, 2016 and $234,000 for the same period in 2015. As of September 30, 2016, the associated accrued liability included in other liabilities in the balance sheet was $3,072,000 compared to $3,088,000 and $3,074,000 at December 31, 2015 and September 30, 2015, respectively. Post-Retirement Benefit Plans The Bank sponsors two post-retirement benefit plans. One plan currently provides a subsidy for health insurance premiums to certain retired employees and a future subsidy for seven active employees who were age 50 and over in 1996. These subsidies are based on years of service and range between $40 and $1,200 per month per person. The other plan provides life insurance coverage to certain retired employees and health insurance for retired directors. None of these plans are pre-funded. The Company utilizes FASB ASC Topic 712 to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. The following table sets forth the accumulated postretirement benefit obligation and funded status:
The following table sets forth the net periodic pension cost:
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) are as follows:
A weighted average discount rate of 4.25% was used in determining the accumulated benefit obligation and the net periodic benefit cost. The assumed health care cost trend rate is 7.0%. The measurement date for benefit obligations was as of year-end for prior years presented. The expected benefit payments for all of 2016 are $121,000. Plan expense for 2016 is estimated to be $85,000. A 1% change in trend assumptions would create an approximate change in the same direction of $100,000 in the accumulated benefit obligation, $7,000 in the interest cost and $1,000 in the service cost. |
Other Comprehensive Income (Loss) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following table summarizes activity in the unrealized gain or loss on available for sale securities included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
The reclassification of realized gains is included in the net securities gains line of the consolidated statements of income and comprehensive income and the tax effect is included in the income tax expense line of the same statement. The following table summarizes activity in the unrealized loss on securities transferred from available for sale to held to maturity included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
The following table presents the effect of the Company's derivative financial instruments included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
The following table summarizes activity in the unrealized gain or loss on postretirement benefits included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
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Financial Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Derivative Instruments | Financial Derivative Instruments As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so that changes in interest rates do not have a significant effect on net interest income. The Company recognizes its derivative instruments in the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. In 2016, interest rate swaps were contracted to limit the Company’s exposure to rising interest rates on short-term liabilities indexed to one-month London Inter-bank Offered Rates (LIBOR). The interest rate swaps were designated as cash flow hedges. The details of the interest rate swap agreements are as follows:
(1) Presented within other assets in the consolidated balance sheet. The Company would reclassify unrealized gains or losses accounted for within accumulated other comprehensive income (loss) into earnings if the interest rate swaps were to become ineffective or the swaps were to terminate. In the next 12 months, the Company does not believe it will be required to reclassify any unrealized gains or losses accounted for within accumulated other comprehensive income (loss) into earnings as a result of ineffectiveness or swap termination. Amounts paid or received under the swaps are reported in interest expense in the statement of income, and in interest paid in the statement of cash flows. |
Mortgage Servicing Rights |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Servicing Rights | Mortgage Servicing Rights FASB ASC Topic 860 "Transfers and Servicing" requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. The Company's servicing assets and servicing liabilities are reported using the amortization method and carried at the lower of amortized cost or fair value by strata. In evaluating the carrying values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. The model utilizes several assumptions, the most significant of which is loan prepayments, calculated using a three-months moving average of weekly prepayment data published by the Public Securities Association (PSA) and modeled against the serviced loan portfolio, and the discount rate to discount future cash flows. As of September 30, 2016, the prepayment assumption using the PSA model was 271, which translates into an anticipated prepayment rate of 16.24%. The discount rate is the quarterly average 10 year U.S. Treasury plus 3.79%. Other assumptions include delinquency rates, foreclosure rates, servicing cost inflation, and annual unit loan cost. All assumptions are adjusted periodically to reflect current circumstances. Amortization of mortgage servicing rights, as well as write-offs due to prepayments of the related mortgage loans, are recorded as a charge against mortgage servicing fee income. For the nine months ended September 30, 2016 and 2015, servicing rights capitalized totaled $370,000 and $358,000, respectively. Servicing rights capitalized for the three-month periods ended September 30, 2016 and 2015, were $197,000 and $131,000 respectively. Servicing rights amortized for the nine months ended September 30, 2016 and 2015, were $339,000 and $337,000, respectively. The fair value of servicing rights was $1,683,000, $1,915,000 and $2,014,000 at September 30, 2016, December 31, 2015 and September 30, 2015, respectively. The Bank serviced loans for others totaling $241,028,000, $223,610,000 and $218,624,000 at September 30, 2016, December 31, 2015, and September 30, 2015, respectively. Mortgage servicing rights are included in other assets and detailed in the following table:
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Income Taxes |
9 Months Ended |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes FASB ASC Topic 740 "Income Taxes" defines the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company's financial statements. Topic 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company is currently open to audit under the statute of limitations by the IRS for the years ended December 31, 2013 through 2015. |
Certificates of Deposit |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of Deposit | Certificates of Deposit The following table represents the breakdown of certificates of deposit at September 30, 2016 and 2015, and at December 31, 2015:
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Reclassifications |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Reclassifications | Reclassifications Certain items from the prior year were reclassified in the financial statements to conform with the current year presentation. These do not have a material impact on the consolidated balance sheet or statement of income and comprehensive income presentations. |
Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Certain assets and liabilities are recorded at fair value to provide additional insight into the Company's quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available for sale are recorded at fair value on a recurring basis. Other assets, such as, other real estate owned and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows. Level 1 - Valuation is based upon quoted prices for identical instruments in active markets. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation includes use of discounted cash flow models and similar techniques. The fair value methods and assumptions for the Company's financial instruments and other assets measured at fair value are set forth below. Cash, Cash Equivalents and Interest-Bearing Deposits in Other Banks The carrying values of cash equivalents, due from banks and federal funds sold approximate their relative fair values. As such, the Company classifies these financial instruments as Level 1. Investment Securities The fair values of investment securities are estimated by independent providers using a market approach with observable inputs, including matrix pricing and recent transactions. In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company's principal markets. The Company's principal markets for its securities portfolios are the secondary institutional markets, with an exit price that is predominantly reflective of bid level pricing in those markets. Fair values are calculated based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. If these considerations had been incorporated into the fair value estimates, the aggregate fair value could have been changed. The carrying values of restricted equity securities approximate fair values. As such, the Company classifies investment securities as Level 2. Loans Held for Sale Loans held for sale are recorded at the lower of aggregate carrying value or fair value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies mortgage loans held for sale as Level 2. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. The fair values of performing loans are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest risk inherent in the loan. The estimates of maturity are based on the Company's historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions, and the effects of estimated prepayments. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Management has made estimates of fair value using discount rates that it believes to be reasonable. However, because there is no market for many of these financial instruments, Management has no basis to determine whether the fair value presented above would be indicative of the value negotiated in an actual sale. As such, the Company classifies loans as Level 3, except for certain collateral-dependent impaired loans. Fair values of impaired loans are based on estimated cash flows and are discounted using a rate commensurate with the risk associated with the estimated cash flows, or if collateral dependent, discounted to the appraised value of the collateral as determined by reference to sale prices of similar properties, less costs to sell. As such, the Company classifies collateral dependent impaired loans for which a specific reserve results in a fair value measure as Level 2. All other impaired loans are classified as Level 3. Other Real Estate Owned Real estate acquired through foreclosure is initially recorded at fair value. The fair value of other real estate owned is based on property appraisals and an analysis of similar properties currently available. As such, the Company records other real estate owned as nonrecurring Level 2. Mortgage Servicing Rights Mortgage servicing rights represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method and compared to fair value for impairment. In evaluating the fair values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. As such, the Company classifies mortgage servicing rights as Level 2. Accrued Interest Receivable The fair value estimate of this financial instrument approximates the carrying value as this financial instrument has a short maturity. It is the Company's policy to stop accruing interest on loans for which it is probable that the interest is not collectible. Therefore, this financial instrument has been adjusted for estimated credit loss. As such, the Company classifies accrued interest receivable as Level 2. Deposits The fair value of deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. As such, the Company classifies deposits as Level 2. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposits compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company's net assets could increase. Borrowed Funds The fair value of borrowed funds is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently available for borrowings of similar remaining maturities. As such, the Company classifies borrowed funds as Level 2. Derivatives The fair value of interest rate swaps is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2016, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings. Accrued Interest Payable The fair value estimate approximates the carrying amount as this financial instrument has a short maturity. The Company classifies accrued interest payable as Level 2. Off-Balance-Sheet Instruments Off-balance-sheet instruments include loan commitments. Fair values for loan commitments have not been presented as the future revenue derived from such financial instruments is not significant. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These values do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on Management's judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial instruments include the deferred tax asset, premises and equipment, and other real estate owned. In addition, tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present the balances of assets and that were measured at fair value on a recurring basis as of September 30, 2016, December 31, 2015 and September 30, 2015.
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance of $162,000, $162,000 and $409,000 at September 30, 2016, December 31, 2015, and September 30, 2015, respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $496,000, $292,000 and $394,000 at September 30, 2016, December 31, 2015, and September 30, 2015, respectively.
Fair Value of Financial Instruments FASB ASC Topic 825 "Financial Instruments" requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, if the fair values can be reasonably determined. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The carrying amount and estimated fair values for financial instruments as of September 30, 2016 were as follows:
The carrying amounts and estimated fair values for financial instruments as of December 31, 2015 were as follows:
The carrying amount and estimated fair values for financial instruments as of September 30, 2015 were as follows:
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Impact of Recently Issued Accounting Standards |
9 Months Ended |
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Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of U.S. GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The ASU will not have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Management is reviewing the guidance in the ASU to determine whether it will have a material effect on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model, requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. |
Financial Derivative Instruments (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments | As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so that changes in interest rates do not have a significant effect on net interest income. The Company recognizes its derivative instruments in the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. In 2016, interest rate swaps were contracted to limit the Company’s exposure to rising interest rates on short-term liabilities indexed to one-month London Inter-bank Offered Rates (LIBOR). The interest rate swaps were designated as cash flow hedges. |
Reclassifications (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Reclassifications | Reclassifications Certain items from the prior year were reclassified in the financial statements to conform with the current year presentation. These do not have a material impact on the consolidated balance sheet or statement of income and comprehensive income presentations. |
Fair Value (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Certain assets and liabilities are recorded at fair value to provide additional insight into the Company's quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available for sale are recorded at fair value on a recurring basis. Other assets, such as, other real estate owned and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows. Level 1 - Valuation is based upon quoted prices for identical instruments in active markets. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation includes use of discounted cash flow models and similar techniques. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC Topic 825 "Financial Instruments" requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, if the fair values can be reasonably determined. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. |
Impact of Recently Issued Accounting Standards (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of U.S. GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The ASU will not have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Management is reviewing the guidance in the ASU to determine whether it will have a material effect on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model, requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. |
Investment Securities (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available For Sale, Held-to-Maturity, and Restricted Equity Securities | The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2016:
The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2015:
The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2015:
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Contractual Maturities of Investment Securities | The following table summarizes the contractual maturities of investment securities at September 30, 2016:
The following table summarizes the contractual maturities of investment securities at December 31, 2015:
The following table summarizes the contractual maturities of investment securities at September 30, 2015:
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Schedule of Securities Gains and Losses | The following table shows securities gains and losses for the nine months and quarters ended September 30, 2016 and 2015:
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Schedule of Temporary Impairment Losses | Information regarding securities temporarily impaired as of September 30, 2016 is summarized below:
As of December 31, 2015, there were 78 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 15 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2015 is summarized below:
As of September 30, 2015, there were 88 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 14 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of September 30, 2015 is summarized below:
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Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Loan Portfolio | The following table shows the composition of the Company's loan portfolio as of September 30, 2016 and 2015 and at December 31, 2015:
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Past Due Loans Aging | Information on the past-due status of loans by class of financing receivable as of September 30, 2016, is presented in the following table:
Information on the past-due status of loans by class of financing receivable as of December 31, 2015, is presented in the following table:
Information on the past-due status of loans by class of financing receivable as of September 30, 2015, is presented in the following table:
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Nonaccrual Loans | Information on nonaccrual loans as of September 30, 2016 and 2015 and at December 31, 2015 is presented in the following table:
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Impaired Loans by class of financing receivable | A breakdown of impaired loans by class of financing receivable as of and for the period ended September 30, 2016 is presented in the following table:
Substantially all interest income recognized on impaired loans for all classes of financing receivables was recognized on a cash basis as received. A breakdown of impaired loans by class of financing receivable as of and for the year ended December 31, 2015 is presented in the following table:
A breakdown of impaired loans by class of financing receivable as of and for the period ended September 30, 2015 is presented in the following table:
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Troubled Debt Restructurings on Financing Receivables | The following table shows loans placed on TDR status in the nine months ended September 30, 2015, by class of loan and the associated specific reserve included in the allowance for loan losses as of September 30, 2015:
The following table shows loans placed on TDR status in the three months ended September 30, 2015, by class of loan and the associated specific reserve included in the allowance for loan losses as of September 30, 2015:
The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of September 30, 2015:
The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of September 30, 2016:
The following table shows TDRs by class and the specific reserve as of September 30, 2016:
The following table shows TDRs by class and the specific reserve as of December 31, 2015:
The following table shows TDRs by class and the specific reserve as of September 30, 2015:
|
Allowance for Loan Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses by class of financing receivable and allowance | A breakdown of the allowance for loan losses as of September 30, 2016, December 31, 2015, and September 30, 2015, by class of financing receivable and allowance element, is presented in the following tables:
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Summary of Risk Ratings for Loans | The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of September 30, 2016:
The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of December 31, 2015:
The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of September 30, 2015:
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Allowance for Loan Losses Transactions | The following table presents allowance for loan losses activity by class for the nine months and quarter ended September 30, 2016, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2016:
The following table presents allowance for loan losses activity by class for the year-ended December 31, 2015 and allowance for loan loss balances by class and related loan balances by class as of December 31, 2015:
The following table presents allowance for loan losses activity by class for the nine months and quarter ended September 30, 2015, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2015:
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Stock Options and Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | As of September 30, 2016, 108,710 shares of restricted stock had been granted under the 2010 Plan, of which 67,064 shares remain restricted as of September 30, 2016 as detailed in the following table:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share (EPS) | The following table sets forth the computation of basic and diluted earnings per share (EPS) for the nine months ended September 30, 2016 and 2015:
The following table sets forth the computation of basic and diluted EPS for the quarters ended September 30, 2016 and 2015.
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Number of options and warrants outstanding and amount above or below the strike price | The following table presents the number of warrants outstanding as of September 30, 2016 and 2015 and the amount for which the average market price at period end is above or below the strike price:
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated post-retirement benefit obligation, funded status, net periodic benefit cost and assumptions used | The following table sets forth the accumulated postretirement benefit obligation and funded status:
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Schedule of net benefit costs | The following table sets forth the net periodic pension cost:
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Schedule of net periodic benefit cost not yet recognized | Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) are as follows:
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Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes activity in the unrealized gain or loss on available for sale securities included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
The following table summarizes activity in the unrealized gain or loss on postretirement benefits included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
The following table summarizes activity in the unrealized loss on securities transferred from available for sale to held to maturity included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
The following table presents the effect of the Company's derivative financial instruments included in other comprehensive income (loss) for the nine months and quarters ended September 30, 2016 and 2015.
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Financial Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The details of the interest rate swap agreements are as follows:
(1) Presented within other assets in the consolidated balance sheet. |
Mortgage Servicing Rights (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Mortgage Servicing Assets | Mortgage servicing rights are included in other assets and detailed in the following table:
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Certificates of Deposit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | The following table represents the breakdown of certificates of deposit at September 30, 2016 and 2015, and at December 31, 2015:
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Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured on recurring basis measured at fair value | The following tables present the balances of assets and that were measured at fair value on a recurring basis as of September 30, 2016, December 31, 2015 and September 30, 2015.
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Assets and liabilities measured on non-recurring basis measured at fair value | The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance of $162,000, $162,000 and $409,000 at September 30, 2016, December 31, 2015, and September 30, 2015, respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $496,000, $292,000 and $394,000 at September 30, 2016, December 31, 2015, and September 30, 2015, respectively.
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Estimated fair value of financial instruments | The carrying amount and estimated fair values for financial instruments as of September 30, 2016 were as follows:
The carrying amounts and estimated fair values for financial instruments as of December 31, 2015 were as follows:
The carrying amount and estimated fair values for financial instruments as of September 30, 2015 were as follows:
|
Investment Securities Amortized Cost and Estimated Fair Value of Restricted Equity Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Restricted Equity Securities [Line Items] | |||
Amortized Cost | $ 14,048 | $ 14,257 | $ 13,912 |
Unrealized Gains | 0 | 0 | 0 |
Unrealized Losses | 0 | 0 | 0 |
Fair Value (Estimated) | 14,048 | 14,257 | 13,912 |
Federal Home Loan Bank Stock | |||
Restricted Equity Securities [Line Items] | |||
Amortized Cost | 13,011 | 13,220 | 12,875 |
Unrealized Gains | 0 | 0 | 0 |
Unrealized Losses | 0 | 0 | 0 |
Fair Value (Estimated) | 13,011 | 13,220 | 12,875 |
Federal Reserve Bank Stock | |||
Restricted Equity Securities [Line Items] | |||
Amortized Cost | 1,037 | 1,037 | 1,037 |
Unrealized Gains | 0 | 0 | 0 |
Unrealized Losses | 0 | 0 | 0 |
Fair Value (Estimated) | $ 1,037 | $ 1,037 | $ 1,037 |
Investment Securities Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of securities | $ 1,351 | $ 1 | $ 10,305 | $ 35,466 |
Gross realized gains | 137 | 1 | 668 | 1,396 |
Gross realized losses | 0 | 0 | 0 | 0 |
Net gain | 137 | 1 | 668 | 1,396 |
Related income taxes | $ 48 | $ 0 | $ 234 | $ 489 |
Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | $ 7,130 | $ 7,372 | $ 7,981 |
Commercial | Real estate | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 1,222 | 915 | 1,220 |
Commercial | Construction | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 0 | 238 | 208 |
Commercial | Other | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 412 | 66 | 114 |
Municipal | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 0 | 0 | 0 |
Residential | Construction | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 0 | 0 | 0 |
Residential | Term | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 4,475 | 5,260 | 5,491 |
Home equity line of credit | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | 851 | 893 | 948 |
Consumer | |||
Schedule of Financing Receivables [Line Items] | |||
Nonaccrual loans | $ 170 | $ 0 | $ 0 |
Preferred and Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Jan. 09, 2009 |
Sep. 30, 2016 |
Sep. 30, 2015 |
May 31, 2015 |
|
Class of Stock [Line Items] | ||||
Number of shares of common stock issuable pursuant to the Warrants, maximum (in shares) | 225,904 | 226,819 | ||
Exercise price of the Warrants (in dollars per share) | $ 16.60 | $ 16.53 | ||
Term of warrants | 10 years | |||
Issuance of common stock for plans | $ 391 | $ 343 | ||
Capital Purchase Program | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock for plans | $ 391 | $ 343 | ||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Proceeds from issuance of CPP Shares | $ 25,000 |
Earnings Per Share - Schedule of Options and Warrants Outstanding (Details) - shares |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Schedule of Outstanding Options And Warrants [Line Items] | ||
Warrants to private parties (in shares) | 226,819 | 226,819 |
Total Dilutive Securities (in shares) | 226,819 | 226,819 |
In-the-Money | ||
Schedule of Outstanding Options And Warrants [Line Items] | ||
Warrants to private parties (in shares) | 226,819 | 226,819 |
Total Dilutive Securities (in shares) | 226,819 | 226,819 |
Out-of-the-Money | ||
Schedule of Outstanding Options And Warrants [Line Items] | ||
Warrants to private parties (in shares) | 0 | 0 |
Total Dilutive Securities (in shares) | 0 | 0 |
Employee Benefit Plans, Accumulated Post-Retirement Benefit Obligation, Funded Status, and Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Change in benefit obligation | ||||||
Benefit obligation at beginning of year | $ 1,967 | $ 1,928 | ||||
Service cost | $ 0 | $ 0 | 0 | 0 | ||
Interest cost | 21 | 18 | 63 | 54 | ||
Benefits paid | (90) | (78) | ||||
Benefit obligation at end of period | 1,940 | 1,904 | 1,940 | 1,904 | ||
Funded status | ||||||
Benefit obligation at end of period | (1,940) | (1,904) | (1,967) | (1,928) | $ (1,940) | $ (1,904) |
Unamortized loss | 240 | 192 | ||||
Accrued benefit cost at end of period | $ (1,700) | $ (1,712) | ||||
Components of net periodic benefit cost | ||||||
Service cost | 0 | 0 | 0 | 0 | ||
Interest cost | 21 | 18 | 63 | 54 | ||
Net periodic benefit cost | $ 21 | $ 18 | $ 63 | $ 54 |
Employee Benefit Plans, Schedule of Net Periodic Benefit Cost Not Yet Recognized (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||
Unamortized net actuarial loss | $ (240) | $ (192) | $ (240) |
Deferred tax benefit at 35% | 84 | 67 | 84 |
Net unrecognized postretirement benefits included in accumulated other comprehensive income (loss) | $ (156) | $ (125) | $ (156) |
Deferred tax benefit, percentage | 35.00% | 35.00% | 35.00% |
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning balance | $ 167,498 | $ 161,554 | ||
Other comprehensive income (loss) | $ (1,090) | $ 1,315 | 1,631 | (255) |
Balance, ending period | 175,994 | 167,141 | 175,994 | 167,141 |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning balance | 4,000 | 988 | 1,123 | 2,522 |
Unrealized gains (losses) arising during the period | (1,851) | 2,047 | 3,106 | 1,082 |
Reclassification of realized gains during the period | (137) | (1) | (668) | (1,396) |
Related deferred taxes | 696 | (716) | (853) | 110 |
Other comprehensive income (loss) | (1,292) | 1,330 | 1,585 | (204) |
Balance, ending period | $ 2,708 | $ 2,318 | $ 2,708 | $ 2,318 |
Other Comprehensive Income (Loss) - Reclassification of Available-for-Sale Securities to Held-to-Maturity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Reclassification of Available-for-Sale Securities to Held-to-maturity Roll Forward [Roll Forward] | ||||
Balance, beginning balance | $ 167,498 | $ 161,554 | ||
Net change | $ (1,090) | $ 1,315 | 1,631 | (255) |
Balance, ending period | 175,994 | 167,141 | 175,994 | 167,141 |
Accumulated Net Gain (Loss) on Securities Transferred from Available-for-Sale to Held-to-Maturity | ||||
Reclassification of Available-for-Sale Securities to Held-to-maturity Roll Forward [Roll Forward] | ||||
Balance, beginning balance | (133) | (84) | (112) | (48) |
Amortization of net unrealized gains (losses) | 14 | (51) | (18) | (78) |
Related deferred taxes | (5) | 36 | 6 | 27 |
Net change | 9 | (15) | (12) | (51) |
Balance, ending period | $ (124) | $ (99) | $ (124) | $ (99) |
Other Comprehensive Income (Loss) - Derivative Instruments Included in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning balance | $ 167,498 | $ 161,554 | ||
Net change | $ (1,090) | $ 1,315 | 1,631 | (255) |
Balance, ending period | 175,994 | 167,141 | 175,994 | 167,141 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning balance | (135) | 0 | 0 | 0 |
Unrealized gains (losses) arising during the period | 298 | 0 | 90 | 0 |
Related deferred taxes | (105) | 0 | (32) | 0 |
Net change | 193 | 0 | 58 | 0 |
Balance, ending period | $ 58 | $ 0 | $ 58 | $ 0 |
Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning balance | $ 167,498 | $ 161,554 | ||
Balance, ending period | $ 175,994 | $ 167,141 | 175,994 | 167,141 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning balance | (156) | (125) | (156) | (125) |
Amortization of unrecognized transition obligation | 0 | 0 | 0 | 0 |
Change in unamortized net actuarial gain (loss) | 0 | 0 | 0 | 0 |
Related deferred taxes | 0 | 0 | 0 | 0 |
Balance, ending period | $ (156) | $ (125) | $ (156) | $ (125) |
Financial Derivative Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Interest Rate Swap June 28 2016 | ||
Derivative [Line Items] | ||
Notional Amount | $ 30,000,000 | |
Fixed Rate Paid | 0.94% | |
Fair Value | $ 28,000 | $ 0 |
Interest Rate Swap June 27 2016 | ||
Derivative [Line Items] | ||
Notional Amount | $ 20,000,000 | |
Fixed Rate Paid | 0.893% | |
Fair Value | $ 62,000 | 0 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amount | 50,000,000 | |
Fair Value | $ 90,000 | $ 0 |
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Transfers and Servicing [Abstract] | |||||
Moving average of weekly prepayment assumption (months) | 3 months | ||||
Prepayment speed | 16.24% | ||||
Average quarterly discount rate | 10 years | ||||
Discount rate adjustment rate | 3.79% | ||||
Origination of Mortgage Servicing Rights (MSRs) | $ 197 | $ 131 | $ 370 | $ 358 | |
Amortization of Mortgage Servicing Rights (MSRs) | 339 | 337 | |||
Mortgage servicing rights | 1,683 | 2,014 | 1,683 | 2,014 | $ 1,915 |
Residential mortgage loans serviced for others, principal | $ 241,028 | $ 218,624 | $ 241,028 | $ 218,624 | $ 223,610 |
Mortgage Servicing Rights Included in Other Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Transfers and Servicing [Abstract] | |||
Mortgage servicing rights | $ 5,718 | $ 5,747 | $ 6,398 |
Accumulated amortization | (4,560) | (4,619) | (5,287) |
Impairment reserve | (87) | (35) | (16) |
Total Servicing asset at fair value | $ 1,071 | $ 1,093 | $ 1,095 |
Certificates of Deposit (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Banking and Thrift [Abstract] | |||
Certificates of deposit less than $100,000 | $ 192,424 | $ 158,529 | $ 141,946 |
Certificates $100,000 to $250,000 | 183,991 | 175,077 | 204,707 |
Certificates $250,000 and over | 48,040 | 37,376 | 42,654 |
Total certificates of deposit | $ 424,455 | $ 370,982 | $ 389,307 |
Fair Value - Additional Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Fair Value Disclosures [Abstract] | |||
Valuation allowance on real estate owned | $ 162 | $ 162 | $ 409 |
Valuation allowance on impaired financing receivable | $ 496 | $ 292 | $ 394 |
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