Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity Registrant Name | NORWOOD FINANCIAL CORP | |
Entity Central Index Key | 0001013272 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,300,881 | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 20,067 | $ 18,039 |
Interest-bearing deposits with banks | 848 | 309 |
Cash and cash equivalents | 20,915 | 18,348 |
Securities available for sale, at fair value | 211,199 | 243,277 |
Loans receivable | 905,582 | 850,182 |
Less: Allowance for loan losses | 8,405 | 8,452 |
Net loans receivable | 897,177 | 841,730 |
Regulatory stock, at cost | 3,137 | 3,926 |
Bank premises and equipment, net | 13,927 | 13,846 |
Bank owned life insurance | 38,562 | 37,932 |
Accrued interest receivable | 3,726 | 3,776 |
Foreclosed real estate owned | 1,572 | 1,115 |
Goodwill | 11,331 | 11,331 |
Other intangibles | 257 | 336 |
Other assets | 14,053 | 8,942 |
TOTAL ASSETS | 1,215,856 | 1,184,559 |
LIABILITIES | ||
Deposits: Non-interest bearing demand | 231,211 | 201,457 |
Deposits: Interest-bearing | 743,222 | 745,323 |
Total deposits | 974,433 | 946,780 |
Short-term borrowings | 52,778 | 53,046 |
Other borrowings | 35,906 | 52,284 |
Accrued interest payable | 2,623 | 1,806 |
Other liabilities | 15,222 | 8,358 |
TOTAL LIABILITIES | 1,080,962 | 1,062,274 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value per share, authorized: 5,000,000 shares; issued: none | ||
Common stock, $0.10 par value per share, authorized: 2019: 20,000,000 shares, 2018: 10,000,000 shares issued: 2019: 6,314,688 shares, 2018: 6,295,113 shares | 632 | 630 |
Surplus | 49,052 | 48,322 |
Retained earnings | 84,522 | 78,434 |
Treasury stock at cost: 2019: 13,807 shares, 2018: 2,470 shares | (455) | (81) |
Accumulated other comprehensive income (loss) | 1,143 | (5,020) |
TOTAL STOCKHOLDERS' EQUITY | 134,894 | 122,285 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,215,856 | $ 1,184,559 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Preferred Stock, No Par Value | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | |
Common Stock, Par Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 20,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 6,314,688 | 6,295,113 |
Treasury Stock, Shares | 13,807 | 2,470 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 10,776 | $ 9,301 | $ 31,074 | $ 26,645 |
Securities | 1,278 | 1,483 | 4,155 | 4,543 |
Other | 5 | 2 | 70 | 63 |
Total Interest Income | 12,059 | 10,786 | 35,299 | 31,251 |
INTEREST EXPENSE | ||||
Deposits | 1,787 | 1,116 | 5,355 | 3,198 |
Short-term borrowings | 135 | 111 | 344 | 201 |
Other borrowings | 246 | 171 | 827 | 442 |
Total interest expense | 2,168 | 1,398 | 6,526 | 3,841 |
NET INTEREST INCOME | 9,891 | 9,388 | 28,773 | 27,410 |
PROVISION FOR LOAN LOSSES | 300 | 375 | 1,050 | 1,350 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,591 | 9,013 | 27,723 | 26,060 |
OTHER INCOME | ||||
Other Income | 1,461 | 1,655 | 4,042 | 4,353 |
Net realized gains on sales of securities | 169 | 13 | 233 | 213 |
Gain on sale of loans, net | 15 | 15 | 125 | 15 |
Earnings and proceeds on bank owned life insurance | 222 | 297 | 630 | 848 |
Other | 109 | 392 | 358 | 716 |
Total Other Income | 1,882 | 1,997 | 5,083 | 5,466 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 3,667 | 3,577 | 10,915 | 10,445 |
Occupancy, furniture & equipment, net | 916 | 910 | 2,780 | 2,659 |
Data processing and related operations | 480 | 368 | 1,400 | 1,027 |
Taxes, other than income | 179 | 153 | 520 | 480 |
Professional fees | 276 | 301 | 752 | 760 |
Federal Deposit Insurance Corporation insurance | (5) | 87 | 150 | 265 |
Foreclosed real estate | 24 | (26) | 37 | 68 |
Amortization of intangibles | 23 | 29 | 79 | 97 |
Other | 1,231 | 1,173 | 3,591 | 3,372 |
Total other expenses | 6,791 | 6,572 | 20,224 | 19,173 |
INCOME BEFORE INCOME TAXES | 4,682 | 4,438 | 12,582 | 12,353 |
INCOME TAX EXPENSE | 775 | 728 | 1,963 | 2,001 |
NET INCOME | $ 3,907 | $ 3,710 | $ 10,619 | $ 10,352 |
BASIC EARNINGS PER SHARE | $ 0.62 | $ 0.59 | $ 1.70 | $ 1.66 |
DILUTED EARNINGS PER SHARE | $ 0.62 | $ 0.58 | $ 1.68 | $ 1.64 |
Service Charges And Fees [Member] | ||||
OTHER INCOME | ||||
Other Income | $ 1,200 | $ 1,129 | $ 3,283 | $ 3,211 |
Income From Fiduciary Activities [Member] | ||||
OTHER INCOME | ||||
Other Income | $ 167 | $ 151 | $ 454 | $ 463 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 3,907 | $ 3,710 | $ 10,619 | $ 10,352 |
Investment securities available for sale: | ||||
Unrealized holding gain (loss) | 1,059 | (1,830) | 8,034 | (7,160) |
Tax effect | (224) | 384 | (1,688) | 1,503 |
Reclassification of investment securities gains recognized in net income | (169) | (13) | (233) | (213) |
Tax effect | 37 | 3 | 50 | 45 |
Other comprehensive income (loss) | 703 | (1,456) | 6,163 | (5,825) |
Comprehensive Income | $ 4,610 | $ 2,254 | $ 16,782 | $ 4,527 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance at Dec. 31, 2017 | $ 626 | $ 47,431 | $ 70,426 | $ (77) | $ (2,667) | $ 115,739 |
Beginning balance, shares at Dec. 31, 2017 | 6,256,063 | 2,608 | ||||
Net income | 10,352 | 10,352 | ||||
Other comprehensive income (loss) | (5,825) | (5,825) | ||||
Cash dividends declared | (4,133) | (4,133) | ||||
Compensation expense related to restricted stock | 154 | 154 | ||||
Acquisition of treasury stock | $ (179) | (179) | ||||
Acquisition of treasury stock, shares | 5,446 | |||||
Stock options exercised | $ 2 | 325 | $ 68 | 395 | ||
Stock options exercised, shares | 18,450 | 2,325 | ||||
Compensation expense related to stock options | 177 | 177 | ||||
Ending balance, shares at Sep. 30, 2018 | 6,274,513 | 5,729 | ||||
Ending balance at Sep. 30, 2018 | $ 628 | 48,087 | 76,645 | $ (188) | (8,492) | 116,680 |
Beginning balance at Jun. 30, 2018 | $ 627 | 47,815 | 74,315 | $ (188) | (7,036) | 115,533 |
Beginning balance, shares at Jun. 30, 2018 | 6,266,388 | 5,729 | ||||
Net income | 3,710 | 3,710 | ||||
Other comprehensive income (loss) | (1,456) | (1,456) | ||||
Cash dividends declared | (1,380) | (1,380) | ||||
Compensation expense related to restricted stock | 52 | 52 | ||||
Acquisition of treasury stock | ||||||
Stock options exercised | $ 1 | 161 | 162 | |||
Stock options exercised, shares | 8,125 | |||||
Compensation expense related to stock options | 59 | 59 | ||||
Ending balance, shares at Sep. 30, 2018 | 6,274,513 | 5,729 | ||||
Ending balance at Sep. 30, 2018 | $ 628 | 48,087 | 76,645 | $ (188) | (8,492) | 116,680 |
Beginning balance at Dec. 31, 2018 | $ 630 | 48,322 | 78,434 | $ (81) | (5,020) | 122,285 |
Beginning balance, shares at Dec. 31, 2018 | 6,295,113 | 2,470 | ||||
Net income | 10,619 | 10,619 | ||||
Other comprehensive income (loss) | 6,163 | 6,163 | ||||
Cash dividends declared | (4,531) | (4,531) | ||||
Compensation expense related to restricted stock | 217 | 217 | ||||
Acquisition of treasury stock | $ (374) | (374) | ||||
Acquisition of treasury stock, shares | 11,337 | |||||
Stock options exercised | $ 2 | 357 | $ 359 | |||
Stock options exercised, shares | 19,575 | 19,575 | ||||
Compensation expense related to stock options | 156 | $ 156 | ||||
Ending balance, shares at Sep. 30, 2019 | 6,314,688 | 13,807 | ||||
Ending balance at Sep. 30, 2019 | $ 632 | 49,052 | 84,522 | $ (455) | 1,143 | 134,894 |
Beginning balance at Jun. 30, 2019 | $ 630 | 48,741 | 82,127 | $ (455) | 440 | 131,483 |
Beginning balance, shares at Jun. 30, 2019 | 6,304,413 | 13,807 | ||||
Net income | 3,907 | 3,907 | ||||
Other comprehensive income (loss) | 703 | 703 | ||||
Cash dividends declared | (1,512) | (1,512) | ||||
Compensation expense related to restricted stock | 72 | 72 | ||||
Acquisition of treasury stock | ||||||
Stock options exercised | $ 2 | 187 | 189 | |||
Stock options exercised, shares | 10,275 | |||||
Compensation expense related to stock options | 52 | 52 | ||||
Ending balance, shares at Sep. 30, 2019 | 6,314,688 | 13,807 | ||||
Ending balance at Sep. 30, 2019 | $ 632 | $ 49,052 | $ 84,522 | $ (455) | $ 1,143 | $ 134,894 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||||
Cash dividends declared | $ 0.24 | $ 0.22 | $ 0.72 | $ 0.66 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 10,619 | $ 10,352 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,050 | 1,350 |
Depreciation | 739 | 665 |
Amortization of intangible assets | 79 | 97 |
Deferred income taxes | (176) | (198) |
Net amortization of securities premiums and discounts | 1,104 | 1,308 |
Net realized gain on sales of securities | (232) | (213) |
Earnings and proceeds on life insurance policies | (630) | (848) |
Gain on sales and write-downs of fixed assets and foreclosed real estate owned, net | (67) | (42) |
Net gain on sale of loans | (125) | (15) |
Loans originated for sale | (2,767) | (752) |
Proceeds from sale of loans originated for sale | 2,846 | 767 |
Compensation expense related to stock options | 156 | 177 |
Compensation expense related to restricted stock | 217 | 154 |
Decrease (increase) in accrued interest receivable | 50 | (76) |
Increase in accrued interest payable | 817 | 271 |
Other, net | 1,017 | 1,062 |
Net cash provided by operating activities | 14,697 | 14,059 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales | 22,862 | 17,745 |
Proceeds from maturities and principal reductions on mortgage-backed securities | 21,211 | 22,848 |
Purchases | (5,066) | (15,458) |
Purchase of regulatory stock | (2,963) | (3,865) |
Redemption of regulatory stock | 3,752 | 4,109 |
Net increase in loans | (57,891) | (56,275) |
Purchase of premises and equipment | (1,056) | (598) |
Proceeds from sales of foreclosed real estate owned | 312 | 696 |
Proceeds from sales of bank premises and equipment | 246 | 0 |
Net cash used in investing activities | (18,593) | (30,798) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 27,653 | 10,330 |
Net (decrease) increase in short-term borrowings | (268) | 10,290 |
Repayments of other borrowings | (22,378) | (9,296) |
Proceeds from other borrowings | 6,000 | 10,000 |
Stock options exercised | 359 | 395 |
Purchase of treasury stock | (374) | (179) |
Cash dividends paid | (4,529) | (4,130) |
Net cash provided by financing activities | 6,463 | 17,410 |
Increase in cash and cash equivalents | 2,567 | 671 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 18,348 | 16,697 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 20,915 | 17,368 |
Supplemental Disclosures of Cash Flow Information | ||
Interest on deposits and borrowings | 5,709 | 3,570 |
Income taxes paid, net of refunds | 1,447 | 1,547 |
Supplemental Schedule of Noncash Investing Activities: | ||
Transfers of loans to foreclosed real estate and repossession of other assets | 1,478 | 333 |
Dividends payable | $ 1,512 | $ 1,379 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., and WTRO Properties, Inc. All significant intercompany transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the consolidated financial position and results of operations of the Company. The operating results for the three month and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other future interim period. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2 . Revenue Recognition Management has determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, and fees from financial guarantees are not within the scope of ASC 606. As a result, no changes were made during the period related to those sources of revenue. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30: Three months ended September 30, (dollars in thousands) Noninterest Income 2019 2018 In-scope of Topic 606: Service charges on deposit accounts $ 72 $ 66 ATM fees 106 108 Overdraft fees 323 372 Safe deposit box rental 22 23 Loan related service fees 228 152 Debit card fees 370 358 Fiduciary activities 167 151 Commissions on mutual funds and annuities 30 51 Other income 143 374 Noninterest Income ( in-scope of Topic 606 ) 1,461 1,655 Out-of-scope of Topic 606: Net realized gains on sales of securities 169 13 Loan servicing fees 15 17 Gains on sales of loans 15 15 Earnings on and proceeds from bank-owned life insurance 222 297 Noninterest Income ( out-of-scope of Topic 606 ) 421 342 Total Noninterest Income $ 1,882 $ 1,997 Nine months ended September 30, (dollars in thousands) Noninterest Income 2019 2018 In-scope of Topic 606: Service charges on deposit accounts $ 205 $ 195 ATM fees 287 299 Overdraft fees 1,017 1,137 Safe deposit box rental 71 76 Loan related service fees 451 387 Debit card fees 1,067 991 Fiduciary activities 454 463 Commissions on mutual funds and annuities 111 154 Other income 379 651 Noninterest Income ( in-scope of Topic 606 ) 4,042 4,353 Out-of-scope of Topic 606: Net realized gains on sales of securities 233 213 Loan servicing fees 53 37 Gains on sales of loans 125 15 Earnings on and proceeds from bank-owned life insurance 630 848 Noninterest Income ( out-of-scope of Topic 606 ) 1,041 1,113 Total Noninterest Income $ 5,083 $ 5,466 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method. The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share. (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Weighted average shares outstanding 6,296 6,264 6,293 6,259 Less: Unvested restricted shares (35) (30) (35) (30) Basic EPS weighted average shares outstanding 6,261 6,234 6,258 6,229 Basic EPS weighted average shares outstanding 6,261 6,234 6,258 6,229 Add: Dilutive effect of stock options and restricted shares 48 70 50 72 Diluted EPS weighted average shares outstanding 6,309 6,304 6,308 6,301 For the three and nine month periods ended September 30, 2 019, there were 6 0,650 stock options that w ere anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of Norwood common stock of $31.61 per share as of September 30, 2019. For the three and nine month periods ended September 30, 2018, there were no stock options that would be anti-dilutive to the earnings per share calculations based upon the closing price of Norwood common stock of $39.16 per share on September 30, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Stock Based Compensation [Abstract] | |
Stock-Based Compensation | 4. Stock-Based Compensation No awards were granted during the nine-month period ended September 30, 2019. As of September 30, 2019, there was $52,000 of total unrecognized compensation cost related to non-vested options granted in 2018 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2019. Compensation costs related to stock options amounted to $156,000 and $177,000 during the nine-month periods ended September 30, 2019 and 2018, respectively. A summary of the Company’s stock option activity for the nine-month period ended September 30, 2019 is as follows: Weighted Average Exercise Weighted Average Aggregate Price Remaining Intrinsic Value Options Per Share Contractual Term ($000) Outstanding at January 1, 2019 208,700 $ 22.54 5.9 Yrs. $ 2,183 Granted - - - - Exercised (19,575) 18.32 3.5 Yrs. 283 Forfeited - - - - Outstanding at September 30, 2019 189,125 $ 22.98 5.4 Yrs. $ 1,691 Exercisable at September 30, 2019 160,225 $ 21.29 4.7 Yrs. $ 1,691 Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option. The market price was $31.61 per share as of September 30, 201 9 and $33.00 per share as of December 31, 2018. A summary of the Company’s restricted stock activity for the nine-month periods ended September 30, 2019 and 2018 is as follows: 2019 2018 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Restricted Stock Fair Value Restricted Stock Fair Value Non-vested, January 1, 34,615 $ 27.82 30,415 $ 24.46 Granted - - - - Vested - - - - Forfeited - - - - Non-vested, September 30, 34,615 $ 27.82 30,415 $ 24.46 The expected future c ompensation expense relating to the 34,615 shares of non-vested restrict ed stock outstanding as of September 30, 2019 is $746,000 . This cost will be recognized over the remaining vesting period of 4.25 years. Compensation costs related to restricted stock amounted to $217,000 and $154,000 during the nine-month periods ended September 30, 2019 and 2018, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 5. Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) (in thousands) by component net of tax for the three months and nine months ended September 30, 2019 and 2018: Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2019 $ 440 Other comprehensive income before reclassification 835 Amount reclassified from accumulated other comprehensive loss (132) Total other comprehensive income 703 Balance as of September 30, 2019 $ 1,143 Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2018 $ (7,036) Other comprehensive loss before reclassification (1,446) Amount reclassified from accumulated other comprehensive loss (10) Total other comprehensive loss (1,456) Balance as of September 30, 2018 $ (8,492) Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2018 $ (5,020) Other comprehensive income before reclassification 6,346 Amount reclassified from accumulated other comprehensive loss (183) Total other comprehensive income 6,163 Balance as of September 30, 2019 $ 1,143 Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2017 $ (2,667) Other comprehensive loss before reclassification (5,657) Amount reclassified from accumulated other comprehensive loss (168) Total other comprehensive loss (5,825) Balance as of September 30, 2018 $ (8,492) (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents significant amounts reclassified out of each component of accumulated other comprehensive loss (in thousands) for the three months and nine months ended September 30, 2019 and 2018: Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statements Details about other comprehensive income Income (Loss) (a) of Income Three months ended September 30, 2019 2018 Unrealized gains on available for sale securities $ 169 $ 13 Net realized gains on sales of securities (37) (3) Income tax expense $ 132 $ 10 Nine months ended September 30, 2019 2018 Unrealized gains on available for sale securities $ 233 $ 213 Net realized gains on sales of securities (50) (45) Income tax expense $ 183 $ 168 (a) Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial Ins
Off-Balance Sheet Financial Instruments and Gurantees | 9 Months Ended |
Sep. 30, 2019 | |
Off-Balance Sheet Financial Instruments and Gurantees [Abstract] | |
Off-Balance Sheet Financial Instruments and Gurantees | 6. Off-Balance Sheet Financial Instruments and Guarantees The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. A summary of the Bank’s financial instrument commitments is as follows: (in thousands) September 30, 2019 2018 Commitments to grant loans $ 49,806 $ 51,225 Unfunded commitments under lines of credit 65,854 78,024 Standby letters of credit 3,687 4,410 $ 119,347 $ 133,659 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer and generally consists of real estate. The Bank does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit written are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank, generally, holds collateral and/or personal guarantees supporting these commitments. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of September 30, 2019 for guarantees under standby letters of credit issued is not material. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2019 | |
Securities [Abstract] | |
Securities | 7. Securities The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale were as follows: September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 78,145 $ 1,396 $ (14) $ 79,527 Corporate obligations 6,200 5 (4) 6,201 Mortgage-backed securities- government sponsored entities 126,087 346 (962) 125,471 Total debt securities $ 210,432 $ 1,747 $ (980) $ 211,199 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 99,218 $ 385 $ (1,990) $ 97,613 Corporate obligations 8,896 - (256) 8,640 Mortgage-backed securities-government sponsored entities 142,197 25 (5,198) 137,024 Total debt securities $ 250,311 $ 410 $ (7,444) $ 243,277 The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands): September 30, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 7,697 $ (12) $ 481 $ (2) $ 8,178 $ (14) Corporate obligations - - 3,109 (4) 3,109 (4) Mortgage-backed securities-government sponsored entities 25,071 (118) 64,124 (844) 89,195 (962) $ 32,768 $ (130) $ 67,714 $ (850) $ 100,482 $ (980) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 19,140 $ (390) $ 56,740 $ (1,600) $ 75,880 $ (1,990) Corporate obligations 2,045 (21) 6,595 (235) 8,640 (256) Mortgage-backed securities-government sponsored entities 8,444 (22) 122,950 (5,176) 131,394 (5,198) $ 29,629 $ (433) $ 186,285 $ (7,011) $ 215,914 $ (7,444) At September 30, 2019, the Company had 30 debt securities in an unrealized loss position in the less than twelve months category and 58 debt securities in the twelve months or more category. In Management’s opinion the unrealized losses reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2019. Management believes that all unrealized losses represent temporary impairment of the securities as the Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis. The amortized cost and fair value of debt securities as of September 30, 2019 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Available for Sale Amortized Cost Fair Value (In Thousands) Due in one year or less $ 4,365 $ 4,378 Due after one year through five years 17,693 17,705 Due after five years through ten years 33,194 33,365 Due after ten years 29,093 30,280 84,345 85,728 Mortgage-backed securities-government sponsored entities 126,087 125,471 $ 210,432 $ 211,199 Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands): Three Months Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Gross realized gains $ 169 $ 13 $ 233 $ 213 Gross realized losses - - - - Net realized gain $ 169 $ 13 $ 233 $ 213 Proceeds from sales of securities $ 19,326 $ 3,162 $ 22,862 $ 17,745 Securities with a carrying value of $179,075,000 and $169,984,000 at September 30, 2019 and 2018, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Loans Receivable and Allowance for Loan Losses | 8. Loans Receivable and Allowance for Loan Losses Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands): September 30, 2019 December 31, 2018 Real Estate Loans: Residential $ 230,624 25.5 % $ 235,523 27.7 % Commercial 384,376 42.4 374,790 44.1 Construction 18,267 2.0 17,445 2.0 Commercial, financial and agricultural 126,835 14.0 110,542 13.0 Consumer loans to individuals 145,547 16.1 112,002 13.2 Total loans 905,649 100.0 % 850,302 100.0 % Deferred fees, net (67) (120) Total loans receivable 905,582 850,182 Allowance for loan losses (8,405) (8,452) Net loans receivable $ 897,177 $ 841,730 The following table presents information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): September 30, 2019 December 31, 2018 Outstanding Balance $ 946 $ 1,055 Carrying Amount $ 807 $ 886 As a result of the acquisition of Delaware Bancshares, Inc. (“Delaware”), the Company added $1,397,000 of loans that were accounted for in accordance with ASC 310-30. Based on a review of the loans acquired by senior lending management, which included an analysis of credit deterioration of the loans since origination, the Company recorded a specific credit fair value adjustment of $499,000 . For loans that were acquired with specific evidence of deterioration in credit quality, loan losses will be accounted for through a reduction of the specific reserve and will not impact the allowance for loan losses until actual losses exceed the allotted reserves. For loans acquired without a deterioration of credit quality, losses incurred will result in adjustments to the allowance for loan losses through the allowance for loan loss adequacy calculation. The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. We do not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring. Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of September 30, 2019 and December 31, 2018, foreclosed real estate owned totaled $1,572,000 and $1,115,000, respectively. During the nine months ended September 30, 2019, the Company acquired three properties via deed-in-lieu transactions which have subsequently been sold, and foreclosed on one commercial property with a carrying value of $608,000 . The Co mpany also disposed of three properties that were previously transferred to foreclosed real estate owned with a carrying value of $151,000 through the sale of the properties. As of September 30, 2019, the Company has initiated formal foreclosure proceedings on three properties classified as consumer residential mortgages with an aggregate carrying value of $300,000 . The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated: Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total September 30, 2019 (In thousands) Individually evaluated for impairment $ - $ 514 $ - $ - $ - $ 514 Loans acquired with deteriorated credit quality 577 230 - - - 807 Collectively evaluated for impairment 230,047 383,632 18,267 126,835 145,547 904,328 Total Loans $ 230,624 $ 384,376 $ 18,267 $ 126,835 $ 145,547 $ 905,649 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2018 Individually evaluated for impairment $ - $ 1,319 $ - $ - $ - $ 1,319 Loans acquired with deteriorated credit quality 630 256 - - - 886 Collectively evaluated for impairment 234,893 373,215 17,445 110,542 112,002 848,097 Total Loans $ 235,523 $ 374,790 $ 17,445 $ 110,542 $ 112,002 $ 850,302 The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Unpaid Recorded Principal Associated Investment Balance Allowance September 30, 2019 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 514 $ 1,101 $ - Subtotal 514 1,101 - Total: Real Estate Loans: Commercial 514 1,101 - Total Impaired Loans $ 514 $ 1,101 $ - Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2018 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 1,319 $ 1,747 $ - Subtotal 1,319 1,747 - Total: Real Estate Loans: Commercial 1,319 1,747 - Total Impaired Loans $ 1,319 $ 1,747 $ - The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the three -month periods ended September 30, 2019 and 2018, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2019 2018 2019 2018 Real Estate Loans: Residential $ - $ 23 $ - $ - Commercial 633 1,217 - 15 Total $ 633 $ 1,240 $ - $ 15 The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the nine-month periods ended September 30, 2019 and 2018, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2019 2018 2019 2018 Real Estate Loans: Residential $ - $ 23 $ - $ - Commercial 759 1,195 24 45 Total $ 759 $ 1,218 $ 24 $ 45 Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. As of September 30, 2019 and December 31, 2018, troubled debt restructured loans totaled $102,000 and $1.1 million, respectively , with no specific reserve. For the nine-month period ended September 30, 2019, there were no new loans identified as troubled debt restructurings. During 2019, the Company recognized a charge-off of $451,000 on a loan that was previously identified as a troubled debt restructuring. The loan was transferred to foreclosed real estate during the first quarter of 2019 with a carrying value of $608,000 . For the nine-month period ended September 30, 2018, there were no new loans identified as troubled debt restructurings nor did the Company recognize any write-down on loans that were previously identified as a troubled debt restructuring. Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $1,500,000 and over to assign or re-affirm risk ratings. Loans in the Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of September 30, 2019 and December 31, 2018 (in thousands): Special Doubtful Pass Mention Substandard or Loss Total September 30, 2019 Commercial real estate loans $ 368,796 $ 12,301 $ 3,279 $ - $ 384,376 Commercial loans 126,371 252 212 - 126,835 Total $ 495,167 $ 12,553 $ 3,491 $ - $ 511,211 Special Doubtful Pass Mention Substandard or Loss Total December 31, 2018 Commercial real estate loans $ 360,838 $ 7,918 $ 6,034 $ - $ 374,790 Commercial loans 109,966 82 494 - 110,542 Total $ 470,804 $ 8,000 $ 6,528 $ - $ 485,332 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of September 30, 2019 and December 31, 2018 (in thousands): Performing Nonperforming Total September 30, 2019 Residential real estate loans $ 229,857 $ 767 $ 230,624 Construction 18,267 - 18,267 Consumer loans 145,490 57 145,547 Total $ 393,614 $ 824 $ 394,438 Performing Nonperforming Total December 31, 2018 Residential real estate loans $ 234,725 $ 798 $ 235,523 Construction 17,445 - 17,445 Consumer loans 112,002 - 112,002 Total $ 364,172 $ 798 $ 364,970 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of September 30, 2019 and December 31, 2018 (in thousands): Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans September 30, 2019 Real Estate loans Residential $ 228,976 $ 692 $ 189 $ - $ 767 $ 1,648 $ 230,624 Commercial 383,667 114 54 - 541 709 384,376 Construction 18,267 - - - - - 18,267 Commercial loans 126,795 14 - - 26 40 126,835 Consumer loans 145,161 183 146 - 57 386 145,547 Total $ 902,866 $ 1,003 $ 389 $ - $ 1,391 $ 2,783 $ 905,649 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans December 31, 2018 Real Estate loans Residential $ 234,201 $ 373 $ 151 $ - $ 798 $ 1,322 $ 235,523 Commercial 372,617 1,043 788 - 342 2,173 374,790 Construction 17,445 - - - - - 17,445 Commercial loans 110,191 320 31 - - 351 110,542 Consumer loans 111,796 171 35 - - 206 112,002 Total $ 846,250 $ 1,907 $ 1,005 $ - $ 1,140 $ 4,052 $ 850,302 Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for loan losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance. As of September 30, 2019, the allocation of the allowance pertaining to commercial real estate loans is $889,000 lower than the allocation as of December 31, 2018. This decrease is due primarily to a reduction in the historical factor which decreased from 0.42% as of December 31, 2018 to 0.21% at September 30, 2019. Also contributing to the reduced reserve balance is a decrease in the qualitative factor related to the annualized growth rate and large balance loans, which was partially offset by an increase due to a declining economy . Increases in other loan categories reflect loan growth and replenishment of the allowance due to charge offs. The following table presents the allowance for loan losses by the classes of the loan portfolio: (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2018 $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 Charge Offs (90) (615) - (254) (246) (1,205) Recoveries 20 18 - 31 39 108 Provision for loan losses 310 (292) 14 454 564 1,050 Ending balance, September 30, 2019 $ 1,568 $ 4,566 $ 107 $ 943 $ 1,221 $ 8,405 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,568 $ 4,566 $ 107 $ 943 $ 1,221 $ 8,405 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2019 $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 Charge Offs (15) - - (20) (111) (146) Recoveries 5 4 - 10 4 23 Provision for loan losses 131 (132) (5) 57 249 300 Ending balance, September 30, 2019 $ 1,568 $ 4,566 $ 107 $ 943 $ 1,221 $ 8,405 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2017 $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 Charge Offs (85) (244) - (246) (189) (764) Recoveries 2 33 - - 25 60 Provision for loan losses 185 205 4 497 459 1,350 Ending balance, September 30, 2018 $ 1,374 $ 5,259 $ 94 $ 714 $ 839 $ 8,280 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,374 $ 5,259 $ 94 $ 714 $ 839 $ 8,280 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2018 $ 1,455 $ 5,247 $ 128 $ 690 $ 806 $ 8,326 Charge Offs (10) (110) - (241) (72) (433) Recoveries - 2 - - 10 12 Provision for loan losses (71) 120 (34) 265 95 375 Ending balance, September 30, 2018 $ 1,374 $ 5,259 $ 94 $ 714 $ 839 $ 8,280 The Company’s primary business activity as of September 30, 2019 was with customers located in northeastern Pennsylvania and the New York counties of Delaware and Sullivan. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to honor their contracts is influenced by the region’s economy. As of September 30, 2019, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $80.7 million of loans outstanding, or 8.9% of total loans outstanding, and the hospitality/lodging industry with loans outstanding of $65.0 million, or 7.2% of loans outstanding. During 2019, the Company did not recognize any charge offs in the named concentrations. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value of Assets and Liabilities [Abstract] | |
Fair Value of Assets and Liabilities | 9. Fair Value of Assets and Liabilities Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis”. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 14 of the Company’s 2018 Form 10-K. In accordance with ASU 2016-01, the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk. Loans are considered a Level 3 classification. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2019 and December 31, 2018 are as follows: Fair Value Measurement Using Reporting Date Description Total Level 1 Level 2 Level 3 (In thousands) September 30, 2019 Available for Sale: States and political subdivisions $ 79,527 $ - $ 79,527 $ - Corporate obligations 6,201 - 6,201 - Mortgage-backed securities-government sponsored entities 125,471 - 125,471 - Total $ 211,199 $ - $ 211,199 $ - Description Total Level 1 Level 2 Level 3 (In thousands) December 31, 2018 Available for Sale: States and political subdivisions $ 97,613 $ - $ 97,613 $ - Corporate obligations 8,640 - 8,640 - Mortgage-backed securities-government sponsored entities 137,024 - 137,024 - Total $ 243,277 $ - $ 243,277 $ - Securities: The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2019 and December 31, 2018 are as follows: Fair Value Measurement Using Reporting Date (In thousands) Description Total Level 1 Level 2 Level 3 September 30, 2019 Impaired Loans $ 514 $ - $ - $ 514 Foreclosed Real Estate Owned 1,572 - - 1,572 December 31, 2018 Impaired Loans $ 1,319 $ - $ - $ 1,319 Foreclosed Real Estate Owned 1,115 - - 1,115 Impaired loans (generally carried at fair value): The Company measures impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the lowest level of input that is significant to the fair value measurements. As of September 30, 2019, the fair value investment in impaired loans totaled $514,000 which included five loan relationships that did not require a valuation allowance since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of September 30, 2019, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $587,000 over the life of the loans. As of December 31, 2018, the fair value investment in impaired loans totaled $1,319,000 which included six loans which did not require a valuation allowance since the estimated realizable value of the collateral exceeded the recorded investment in the loan. As of December 31, 2018, the Company had recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $428,000 over the life of the loans. Foreclosed real estate owned (carried at fair value): Real estate properties acquired through loan foreclosures, or by deed in lieu of loan foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) September 30, 2019 Impaired loans $ 311 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 -10.00% ( 10.00% ) Impaired loans $ 203 Present value of future cash flows Loan discount rate 4.00 -6.97% ( 5.35% ) Foreclosed real estate owned $ 1,572 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 -10.00% ( 8.16% ) Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2018 Impaired loans $ 232 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 -81.54% ( 56.06% ) Impaired loans $ 1,087 Present value of future cash flows Loan discount rate 4.00 -6.00% ( 5.80% ) Foreclosed real estate owned $ 1,115 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 -85.71% ( 7.80% ) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Assets and Liabilities Not Required to be Measured or Reported at Fair Value The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at September 30, 2019 and December 31, 2018. Loans receivable (carried at cost): The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Mortgage servicing rights (generally carried at cost) The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation. Deposit liabilities (carried at cost): The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Other borrowings (carried at cost): Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a fair value that is deemed to represent the transfer price if the liability were assumed by a third party. The estimated fair values of the Bank’s financial instruments not required to be measured or reported at fair value were as follows at September 30, 2019 and December 31, 2018. (In thousands) Fair Value Measurements at September 30, 2019 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 20,915 $ 20,915 $ 20,915 $ - $ - Loans receivable, net 897,177 917,146 - - 917,146 Mortgage servicing rights 180 220 - - 220 Regulatory stock (1) 3,137 3,137 3,137 - - Bank owned life insurance (1) 38,562 38,562 38,562 - - Accrued interest receivable (1) 3,726 3,726 3,726 - - Financial liabilities: Deposits 974,433 977,729 632,151 - 345,045 Short-term borrowings (1) 52,778 52,778 52,778 - - Other borrowings 35,906 36,229 - - 36,229 Accrued interest payable (1) 2,623 2,623 2,623 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 18,348 $ 18,348 $ 18,348 $ - $ - Loans receivable, net 841,730 840,134 - - 840,134 Mortgage servicing rights 178 220 - - 220 Regulatory stock (1) 3,926 3,926 3,926 - - Bank owned life insurance (1) 37,932 37,932 37,932 - - Accrued interest receivable (1) 3,776 3,776 3,776 - - Financial liabilities: Deposits 946,780 945,773 601,604 - 344,169 Short-term borrowings (1) 53,046 53,046 53,046 - - Other borrowings 52,284 52,043 - - 52,043 Accrued interest payable (1) 1,806 1,806 1,806 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - (1) This financial instrument is carried at cost, which approximates the fair value of the instrument. |
New and Recently Adopted Accoun
New and Recently Adopted Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New and Recently Adopted Accounting Pronouncements [Abstract] | |
New and Recently Adopted Accounting Pronouncements | 10. New and Recently Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. ASU 2016-02 was effective for the Company on January 1, 2019. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) - Targeted Improvements,” which, among other things, provides an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB also issued ASU 2018-20, “Leases (Topic 842)- Narrow-Scope Improvements for Lessors,” which provides for certain policy elections and changes lessor accounting for sales and similar taxes and certain lessor costs. Upon adoption of ASU 2016-02, ASU 2018-11 and ASU 2018-20 on January 1, 2019, we recorded recognized a right-of-use assets and related lease liabilities totaling $5.3 million each, which are recorded in other assets and other liabilities, respectively. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities, that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2017, the FASB issued ASU 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan’s interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. This Update is not expected to have a significant impact on the Company’s financial statements. ASU 2018-04, Investments – Debt Securities (Topic 320) and Regulated Operations (Topic 980) – Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, ASU 2018-04 supersedes various SEC paragraphs and adds an SEC paragraph pursuant to the issuance of Staff Accounting Bulletin No. 117. In May 2018, the FASB issued ASU 2018-06, Codification Improvements to Topic 942, Financial Services – Depository and Lending , which supersedes outdated guidance related to the Office of the Comptroller of the Currency (OCC)’s Banking Circular 202, Accounting for Net Deferred Tax Charges (Circular 202), because that guidance has been rescinded by the OCC and no longer is relevant. In August 2018, the FASB issued ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contract s. This Update is intended to improve financial reporting for insurance companies that issue long-duration contracts, such as life insurance, disability income, long-term care, and annuities, by requiring updated assumptions for liability measurement, standardizing the liability discount rate, simplifying and improving the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts by requiring those benefits to be measured at fair value instead of using two different measurement models, simplifying the amortization of deferred acquisition costs, and increasing transparency by improving the effectiveness of disclosures. This Update is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. On October 16, 2019, the FASB voted to defer the effective date for ASC 944 , Financial Services – Insurance , for public business entities that are SEC filers, except for smaller reporting companies, to fiscal years beginning after December 15, 2021, and interim periods within those fiscal years and for all other entities, including smaller reporting companies, to fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The final ASU is expected to be issued in mid-November. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20). This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. In October 2018, the FASB issued ASU 2018-16 , Derivatives and Hedging (Topic 815) . The amendments in this Update permit use of the Overnight Index Swap (OIS) rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (LIBOR) swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. For entities that have not already adopted Update 2017-12 , the amendments in this Update are required to be adopted concurrently with the amendments in Update 2017-12 . For public business entities that already have adopted the amendments in Update 2017-12 , the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities that already have adopted the amendments in Update 2017-12 , the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period upon issuance of this Update if an entity already has adopted Update 2017-12 . This Update is not expected to have a significant impact on the Company’s financial statements. In October, 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810) , which made improvements in 1) applying the variable interest entity (VIE) guidance to private companies under common control and 2) considering indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. Under the amendments in this Update, a private company may elect not to apply VIE guidance to legal entities under common control (including common control leasing arrangements) if both the parent and the legal entity being evaluated for consolidation are not public business entities. In addition, indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. For entities other than private companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this Update are effective for a private company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In November, 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808) , which made the following targeted improvements to generally accepted accounting principles (GAAP) for collaborative arrangements (1) clarified that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account, (2) add unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606 , and (3) require that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other public business entities, the effective date is for fiscal years beginning after December 15, 2020, and for all other entities, the effective date is for fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. Topic 815, Derivatives and Hedging amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. For entities that have adopted the amendments in Update 2017-12, the effective date is as of the beginning of the first annual period beginning after the issuance of this Update. Topic 825, Financial Instruments amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 , which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations . In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification , and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization . Other miscellaneous updates to agree to the electronic Code of Federal Regulations also have been incorporated. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., and WTRO Properties, Inc. All significant intercompany transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the consolidated financial position and results of operations of the Company. The operating results for the three month and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other future interim period. |
Revenue Recognition (Policy)
Revenue Recognition (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Management has determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, and fees from financial guarantees are not within the scope of ASC 606. As a result, no changes were made during the period related to those sources of revenue. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30: Three months ended September 30, (dollars in thousands) Noninterest Income 2019 2018 In-scope of Topic 606: Service charges on deposit accounts $ 72 $ 66 ATM fees 106 108 Overdraft fees 323 372 Safe deposit box rental 22 23 Loan related service fees 228 152 Debit card fees 370 358 Fiduciary activities 167 151 Commissions on mutual funds and annuities 30 51 Other income 143 374 Noninterest Income ( in-scope of Topic 606 ) 1,461 1,655 Out-of-scope of Topic 606: Net realized gains on sales of securities 169 13 Loan servicing fees 15 17 Gains on sales of loans 15 15 Earnings on and proceeds from bank-owned life insurance 222 297 Noninterest Income ( out-of-scope of Topic 606 ) 421 342 Total Noninterest Income $ 1,882 $ 1,997 Nine months ended September 30, (dollars in thousands) Noninterest Income 2019 2018 In-scope of Topic 606: Service charges on deposit accounts $ 205 $ 195 ATM fees 287 299 Overdraft fees 1,017 1,137 Safe deposit box rental 71 76 Loan related service fees 451 387 Debit card fees 1,067 991 Fiduciary activities 454 463 Commissions on mutual funds and annuities 111 154 Other income 379 651 Noninterest Income ( in-scope of Topic 606 ) 4,042 4,353 Out-of-scope of Topic 606: Net realized gains on sales of securities 233 213 Loan servicing fees 53 37 Gains on sales of loans 125 15 Earnings on and proceeds from bank-owned life insurance 630 848 Noninterest Income ( out-of-scope of Topic 606 ) 1,041 1,113 Total Noninterest Income $ 5,083 $ 5,466 |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method. |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Loans Receivable | The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. We do not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Noninterest Income | Three months ended September 30, (dollars in thousands) Noninterest Income 2019 2018 In-scope of Topic 606: Service charges on deposit accounts $ 72 $ 66 ATM fees 106 108 Overdraft fees 323 372 Safe deposit box rental 22 23 Loan related service fees 228 152 Debit card fees 370 358 Fiduciary activities 167 151 Commissions on mutual funds and annuities 30 51 Other income 143 374 Noninterest Income ( in-scope of Topic 606 ) 1,461 1,655 Out-of-scope of Topic 606: Net realized gains on sales of securities 169 13 Loan servicing fees 15 17 Gains on sales of loans 15 15 Earnings on and proceeds from bank-owned life insurance 222 297 Noninterest Income ( out-of-scope of Topic 606 ) 421 342 Total Noninterest Income $ 1,882 $ 1,997 Nine months ended September 30, (dollars in thousands) Noninterest Income 2019 2018 In-scope of Topic 606: Service charges on deposit accounts $ 205 $ 195 ATM fees 287 299 Overdraft fees 1,017 1,137 Safe deposit box rental 71 76 Loan related service fees 451 387 Debit card fees 1,067 991 Fiduciary activities 454 463 Commissions on mutual funds and annuities 111 154 Other income 379 651 Noninterest Income ( in-scope of Topic 606 ) 4,042 4,353 Out-of-scope of Topic 606: Net realized gains on sales of securities 233 213 Loan servicing fees 53 37 Gains on sales of loans 125 15 Earnings on and proceeds from bank-owned life insurance 630 848 Noninterest Income ( out-of-scope of Topic 606 ) 1,041 1,113 Total Noninterest Income $ 5,083 $ 5,466 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Of Weighted Average Shares Outstanding Used In The Computations Of Basic And Diluted Earnings Per Share | (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Weighted average shares outstanding 6,296 6,264 6,293 6,259 Less: Unvested restricted shares (35) (30) (35) (30) Basic EPS weighted average shares outstanding 6,261 6,234 6,258 6,229 Basic EPS weighted average shares outstanding 6,261 6,234 6,258 6,229 Add: Dilutive effect of stock options and restricted shares 48 70 50 72 Diluted EPS weighted average shares outstanding 6,309 6,304 6,308 6,301 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock Based Compensation [Abstract] | |
Summary of Stock Option Activity | Weighted Average Exercise Weighted Average Aggregate Price Remaining Intrinsic Value Options Per Share Contractual Term ($000) Outstanding at January 1, 2019 208,700 $ 22.54 5.9 Yrs. $ 2,183 Granted - - - - Exercised (19,575) 18.32 3.5 Yrs. 283 Forfeited - - - - Outstanding at September 30, 2019 189,125 $ 22.98 5.4 Yrs. $ 1,691 Exercisable at September 30, 2019 160,225 $ 21.29 4.7 Yrs. $ 1,691 |
Summary of Restricted Stock Activity | 2019 2018 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Restricted Stock Fair Value Restricted Stock Fair Value Non-vested, January 1, 34,615 $ 27.82 30,415 $ 24.46 Granted - - - - Vested - - - - Forfeited - - - - Non-vested, September 30, 34,615 $ 27.82 30,415 $ 24.46 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Summary of Changes In Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2019 $ 440 Other comprehensive income before reclassification 835 Amount reclassified from accumulated other comprehensive loss (132) Total other comprehensive income 703 Balance as of September 30, 2019 $ 1,143 Unrealized gains (losses) on available for sale securities (a) Balance as of June 30, 2018 $ (7,036) Other comprehensive loss before reclassification (1,446) Amount reclassified from accumulated other comprehensive loss (10) Total other comprehensive loss (1,456) Balance as of September 30, 2018 $ (8,492) Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2018 $ (5,020) Other comprehensive income before reclassification 6,346 Amount reclassified from accumulated other comprehensive loss (183) Total other comprehensive income 6,163 Balance as of September 30, 2019 $ 1,143 Unrealized gains (losses) on available for sale securities (a) Balance as of December 31, 2017 $ (2,667) Other comprehensive loss before reclassification (5,657) Amount reclassified from accumulated other comprehensive loss (168) Total other comprehensive loss (5,825) Balance as of September 30, 2018 $ (8,492) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Significant Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) | Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statements Details about other comprehensive income Income (Loss) (a) of Income Three months ended September 30, 2019 2018 Unrealized gains on available for sale securities $ 169 $ 13 Net realized gains on sales of securities (37) (3) Income tax expense $ 132 $ 10 Nine months ended September 30, 2019 2018 Unrealized gains on available for sale securities $ 233 $ 213 Net realized gains on sales of securities (50) (45) Income tax expense $ 183 $ 168 (a) Amounts in parentheses indicate debits to net income |
Off-Balance Sheet Financial I_2
Off-Balance Sheet Financial Instruments and Gurantees (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Off-Balance Sheet Financial Instruments and Gurantees [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | (in thousands) September 30, 2019 2018 Commitments to grant loans $ 49,806 $ 51,225 Unfunded commitments under lines of credit 65,854 78,024 Standby letters of credit 3,687 4,410 $ 119,347 $ 133,659 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Securities [Abstract] | |
Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities | September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 78,145 $ 1,396 $ (14) $ 79,527 Corporate obligations 6,200 5 (4) 6,201 Mortgage-backed securities- government sponsored entities 126,087 346 (962) 125,471 Total debt securities $ 210,432 $ 1,747 $ (980) $ 211,199 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Available for Sale: States and political subdivisions $ 99,218 $ 385 $ (1,990) $ 97,613 Corporate obligations 8,896 - (256) 8,640 Mortgage-backed securities-government sponsored entities 142,197 25 (5,198) 137,024 Total debt securities $ 250,311 $ 410 $ (7,444) $ 243,277 |
Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continous Unrealized Loss Position | September 30, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 7,697 $ (12) $ 481 $ (2) $ 8,178 $ (14) Corporate obligations - - 3,109 (4) 3,109 (4) Mortgage-backed securities-government sponsored entities 25,071 (118) 64,124 (844) 89,195 (962) $ 32,768 $ (130) $ 67,714 $ (850) $ 100,482 $ (980) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 19,140 $ (390) $ 56,740 $ (1,600) $ 75,880 $ (1,990) Corporate obligations 2,045 (21) 6,595 (235) 8,640 (256) Mortgage-backed securities-government sponsored entities 8,444 (22) 122,950 (5,176) 131,394 (5,198) $ 29,629 $ (433) $ 186,285 $ (7,011) $ 215,914 $ (7,444) |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Available for Sale Amortized Cost Fair Value (In Thousands) Due in one year or less $ 4,365 $ 4,378 Due after one year through five years 17,693 17,705 Due after five years through ten years 33,194 33,365 Due after ten years 29,093 30,280 84,345 85,728 Mortgage-backed securities-government sponsored entities 126,087 125,471 $ 210,432 $ 211,199 |
Gross Realized Gains and Losses on Sales of Securities Available-for-Sale | Three Months Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Gross realized gains $ 169 $ 13 $ 233 $ 213 Gross realized losses - - - - Net realized gain $ 169 $ 13 $ 233 $ 213 Proceeds from sales of securities $ 19,326 $ 3,162 $ 22,862 $ 17,745 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Composition of the Loan Portfolio | September 30, 2019 December 31, 2018 Real Estate Loans: Residential $ 230,624 25.5 % $ 235,523 27.7 % Commercial 384,376 42.4 374,790 44.1 Construction 18,267 2.0 17,445 2.0 Commercial, financial and agricultural 126,835 14.0 110,542 13.0 Consumer loans to individuals 145,547 16.1 112,002 13.2 Total loans 905,649 100.0 % 850,302 100.0 % Deferred fees, net (67) (120) Total loans receivable 905,582 850,182 Allowance for loan losses (8,405) (8,452) Net loans receivable $ 897,177 $ 841,730 |
Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30 | September 30, 2019 December 31, 2018 Outstanding Balance $ 946 $ 1,055 Carrying Amount $ 807 $ 886 |
Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment | Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total September 30, 2019 (In thousands) Individually evaluated for impairment $ - $ 514 $ - $ - $ - $ 514 Loans acquired with deteriorated credit quality 577 230 - - - 807 Collectively evaluated for impairment 230,047 383,632 18,267 126,835 145,547 904,328 Total Loans $ 230,624 $ 384,376 $ 18,267 $ 126,835 $ 145,547 $ 905,649 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2018 Individually evaluated for impairment $ - $ 1,319 $ - $ - $ - $ 1,319 Loans acquired with deteriorated credit quality 630 256 - - - 886 Collectively evaluated for impairment 234,893 373,215 17,445 110,542 112,002 848,097 Total Loans $ 235,523 $ 374,790 $ 17,445 $ 110,542 $ 112,002 $ 850,302 |
Impaired Loans and Related Interest Income by Loan Portfolio Class | The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Unpaid Recorded Principal Associated Investment Balance Allowance September 30, 2019 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 514 $ 1,101 $ - Subtotal 514 1,101 - Total: Real Estate Loans: Commercial 514 1,101 - Total Impaired Loans $ 514 $ 1,101 $ - Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2018 (in thousands) With no related allowance recorded: Real Estate Loans: Commercial $ 1,319 $ 1,747 $ - Subtotal 1,319 1,747 - Total: Real Estate Loans: Commercial 1,319 1,747 - Total Impaired Loans $ 1,319 $ 1,747 $ - The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the three -month periods ended September 30, 2019 and 2018, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2019 2018 2019 2018 Real Estate Loans: Residential $ - $ 23 $ - $ - Commercial 633 1,217 - 15 Total $ 633 $ 1,240 $ - $ 15 The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the nine-month periods ended September 30, 2019 and 2018, respectively (in thousands): Average Recorded Interest Income Investment Recognized 2019 2018 2019 2018 Real Estate Loans: Residential $ - $ 23 $ - $ - Commercial 759 1,195 24 45 Total $ 759 $ 1,218 $ 24 $ 45 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | Special Doubtful Pass Mention Substandard or Loss Total September 30, 2019 Commercial real estate loans $ 368,796 $ 12,301 $ 3,279 $ - $ 384,376 Commercial loans 126,371 252 212 - 126,835 Total $ 495,167 $ 12,553 $ 3,491 $ - $ 511,211 Special Doubtful Pass Mention Substandard or Loss Total December 31, 2018 Commercial real estate loans $ 360,838 $ 7,918 $ 6,034 $ - $ 374,790 Commercial loans 109,966 82 494 - 110,542 Total $ 470,804 $ 8,000 $ 6,528 $ - $ 485,332 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of September 30, 2019 and December 31, 2018 (in thousands): Performing Nonperforming Total September 30, 2019 Residential real estate loans $ 229,857 $ 767 $ 230,624 Construction 18,267 - 18,267 Consumer loans 145,490 57 145,547 Total $ 393,614 $ 824 $ 394,438 Performing Nonperforming Total December 31, 2018 Residential real estate loans $ 234,725 $ 798 $ 235,523 Construction 17,445 - 17,445 Consumer loans 112,002 - 112,002 Total $ 364,172 $ 798 $ 364,970 |
Loan Portfolio Summarized by the Past Due Status | Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans September 30, 2019 Real Estate loans Residential $ 228,976 $ 692 $ 189 $ - $ 767 $ 1,648 $ 230,624 Commercial 383,667 114 54 - 541 709 384,376 Construction 18,267 - - - - - 18,267 Commercial loans 126,795 14 - - 26 40 126,835 Consumer loans 145,161 183 146 - 57 386 145,547 Total $ 902,866 $ 1,003 $ 389 $ - $ 1,391 $ 2,783 $ 905,649 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans December 31, 2018 Real Estate loans Residential $ 234,201 $ 373 $ 151 $ - $ 798 $ 1,322 $ 235,523 Commercial 372,617 1,043 788 - 342 2,173 374,790 Construction 17,445 - - - - - 17,445 Commercial loans 110,191 320 31 - - 351 110,542 Consumer loans 111,796 171 35 - - 206 112,002 Total $ 846,250 $ 1,907 $ 1,005 $ - $ 1,140 $ 4,052 $ 850,302 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2018 $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 Charge Offs (90) (615) - (254) (246) (1,205) Recoveries 20 18 - 31 39 108 Provision for loan losses 310 (292) 14 454 564 1,050 Ending balance, September 30, 2019 $ 1,568 $ 4,566 $ 107 $ 943 $ 1,221 $ 8,405 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,568 $ 4,566 $ 107 $ 943 $ 1,221 $ 8,405 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2019 $ 1,447 $ 4,694 $ 112 $ 896 $ 1,079 $ 8,228 Charge Offs (15) - - (20) (111) (146) Recoveries 5 4 - 10 4 23 Provision for loan losses 131 (132) (5) 57 249 300 Ending balance, September 30, 2019 $ 1,568 $ 4,566 $ 107 $ 943 $ 1,221 $ 8,405 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2017 $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 Charge Offs (85) (244) - (246) (189) (764) Recoveries 2 33 - - 25 60 Provision for loan losses 185 205 4 497 459 1,350 Ending balance, September 30, 2018 $ 1,374 $ 5,259 $ 94 $ 714 $ 839 $ 8,280 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,374 $ 5,259 $ 94 $ 714 $ 839 $ 8,280 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, June 30, 2018 $ 1,455 $ 5,247 $ 128 $ 690 $ 806 $ 8,326 Charge Offs (10) (110) - (241) (72) (433) Recoveries - 2 - - 10 12 Provision for loan losses (71) 120 (34) 265 95 375 Ending balance, September 30, 2018 $ 1,374 $ 5,259 $ 94 $ 714 $ 839 $ 8,280 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value of Assets and Liabilities [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurement Using Reporting Date Description Total Level 1 Level 2 Level 3 (In thousands) September 30, 2019 Available for Sale: States and political subdivisions $ 79,527 $ - $ 79,527 $ - Corporate obligations 6,201 - 6,201 - Mortgage-backed securities-government sponsored entities 125,471 - 125,471 - Total $ 211,199 $ - $ 211,199 $ - Description Total Level 1 Level 2 Level 3 (In thousands) December 31, 2018 Available for Sale: States and political subdivisions $ 97,613 $ - $ 97,613 $ - Corporate obligations 8,640 - 8,640 - Mortgage-backed securities-government sponsored entities 137,024 - 137,024 - Total $ 243,277 $ - $ 243,277 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | Fair Value Measurement Using Reporting Date (In thousands) Description Total Level 1 Level 2 Level 3 September 30, 2019 Impaired Loans $ 514 $ - $ - $ 514 Foreclosed Real Estate Owned 1,572 - - 1,572 December 31, 2018 Impaired Loans $ 1,319 $ - $ - $ 1,319 Foreclosed Real Estate Owned 1,115 - - 1,115 |
Additional Qualitative Information about Level 3 Assets | Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) September 30, 2019 Impaired loans $ 311 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 -10.00% ( 10.00% ) Impaired loans $ 203 Present value of future cash flows Loan discount rate 4.00 -6.97% ( 5.35% ) Foreclosed real estate owned $ 1,572 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 -10.00% ( 8.16% ) Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2018 Impaired loans $ 232 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 -81.54% ( 56.06% ) Impaired loans $ 1,087 Present value of future cash flows Loan discount rate 4.00 -6.00% ( 5.80% ) Foreclosed real estate owned $ 1,115 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 -85.71% ( 7.80% ) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Fair Value, by Balance Sheet Grouping | Fair Value Measurements at September 30, 2019 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 20,915 $ 20,915 $ 20,915 $ - $ - Loans receivable, net 897,177 917,146 - - 917,146 Mortgage servicing rights 180 220 - - 220 Regulatory stock (1) 3,137 3,137 3,137 - - Bank owned life insurance (1) 38,562 38,562 38,562 - - Accrued interest receivable (1) 3,726 3,726 3,726 - - Financial liabilities: Deposits 974,433 977,729 632,151 - 345,045 Short-term borrowings (1) 52,778 52,778 52,778 - - Other borrowings 35,906 36,229 - - 36,229 Accrued interest payable (1) 2,623 2,623 2,623 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 18,348 $ 18,348 $ 18,348 $ - $ - Loans receivable, net 841,730 840,134 - - 840,134 Mortgage servicing rights 178 220 - - 220 Regulatory stock (1) 3,926 3,926 3,926 - - Bank owned life insurance (1) 37,932 37,932 37,932 - - Accrued interest receivable (1) 3,776 3,776 3,776 - - Financial liabilities: Deposits 946,780 945,773 601,604 - 344,169 Short-term borrowings (1) 53,046 53,046 53,046 - - Other borrowings 52,284 52,043 - - 52,043 Accrued interest payable (1) 1,806 1,806 1,806 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - (1) This financial instrument is carried at cost, which approximates the fair value of the instrument. |
Revenue Recognition (Noninteres
Revenue Recognition (Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noninterest Income (in scope of Topic 606) | $ 1,461 | $ 1,655 | $ 4,042 | $ 4,353 |
Net realized gains on sales of securities | 169 | 13 | 233 | 213 |
Loan servicing fees | 15 | 17 | 53 | 37 |
Gain on sales of loans | 15 | 15 | 125 | 15 |
Earnings on and proceeds from bank-owned life insurance | 222 | 297 | 630 | 848 |
Noninterest Income (out-of-scope of Topic 606) | 421 | 342 | 1,041 | 1,113 |
Total Other Income | 1,882 | 1,997 | 5,083 | 5,466 |
Service Charges On Deposit Accounts [Member] | ||||
Noninterest Income (in scope of Topic 606) | 72 | 66 | 205 | 195 |
ATM Fees [Member] | ||||
Noninterest Income (in scope of Topic 606) | 106 | 108 | 287 | 299 |
Overdraft Fees [Member] | ||||
Noninterest Income (in scope of Topic 606) | 323 | 372 | 1,017 | 1,137 |
Safe Deposit Box Rental [Member] | ||||
Noninterest Income (in scope of Topic 606) | 22 | 23 | 71 | 76 |
Loan Related Service Fees [Member] | ||||
Noninterest Income (in scope of Topic 606) | 228 | 152 | 451 | 387 |
Debit Card [Member] | ||||
Noninterest Income (in scope of Topic 606) | 370 | 358 | 1,067 | 991 |
Fiduciary Activities [Member] | ||||
Noninterest Income (in scope of Topic 606) | 167 | 151 | 454 | 463 |
Commissions On Mutual Funds And Annuities [Member] | ||||
Noninterest Income (in scope of Topic 606) | 30 | 51 | 111 | 154 |
Other Income [Member] | ||||
Noninterest Income (in scope of Topic 606) | $ 143 | $ 374 | $ 379 | $ 651 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 60,650 | 0 | 60,650 | 0 | |
Share price | $ 31.61 | $ 39.16 | $ 31.61 | $ 39.16 | $ 33 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Weighted Average Shares Outstanding Used in the Computations of Basic and Diluted Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding | 6,296 | 6,264 | 6,293 | 6,259 |
Less: Unvested restricted shares | (35) | (30) | (35) | (30) |
Basic EPS weighted average shares outstanding | 6,261 | 6,234 | 6,258 | 6,229 |
Add: Dilutive effect of stock options and restricted shares | 48 | 70 | 50 | 72 |
Diluted EPS weighted average shares outstanding | 6,309 | 6,304 | 6,308 | 6,301 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Granted | 0 | |||
Compensation expense related to stock options | $ 156 | $ 177 | ||
Share price | $ 31.61 | $ 39.16 | $ 33 | |
Non-vested stock outstanding | 34,615 | 30,415 | 34,615 | 30,415 |
Future compensation expense of non-vested restricted stock outstanding | $ 746 | |||
Non-vested restricted stock recognition period | 4 years 3 months | |||
Compensation expense related to restricted stock | $ 217 | $ 154 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 217 | $ 154 | ||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to non-vested options granted | $ 52 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Stock Based Compensation [Abstract] | ||
Options, beginning of year | shares | 208,700 | |
Options, Granted | shares | 0 | |
Options, Exercised | shares | (19,575) | |
Options, Forfeited | shares | 0 | |
Options, end of year | shares | 189,125 | 208,700 |
Options, Exercisable, end of period | shares | 160,225 | |
Weighted Average Exercise Price Per Share, Outstanding, beginning of period | $ / shares | $ 22.54 | |
Weighted Average Exercise Price Per Share, Granted | $ / shares | ||
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 18.32 | |
Weighted Average Exercise Price Per Share, Forfeited | $ / shares | 0 | |
Weighted Average Exercise Price Per Share, Outstanding, end of period | $ / shares | 22.98 | $ 22.54 |
Weighted Average Exercise Price Per Share, Exercisable, end of period | $ / shares | $ 21.29 | |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 4 months 24 days | 5 years 10 months 24 days |
Weighted Average Remaining Contractual Term, Exercised During Period | 3 years 6 months | |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 4 years 8 months 12 days | |
Aggregate Intrinsic Value, Outstanding, beginning of period | $ | $ 2,183 | |
Aggregate Intrinsic Value, Granted in Period | $ | 0 | |
Aggregate Intrinsic Value, Exercised in Period | $ | 283 | |
Aggregate Intrinsic Value, Forfeited in Period | $ | 0 | |
Aggregate Intrinsic Value, Outstanding, end of period | $ | 1,691 | $ 2,183 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 1,691 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Stock Based Compensation [Abstract] | ||
Restricted stock Non-vested, beginning balance | 34,615 | 30,415 |
Restricted stock, granted | 0 | 0 |
Restricted stock, vested | 0 | 0 |
Restricted stock, forfeited | 0 | 0 |
Restricted stock Non-vested, ending balance | 34,615 | 30,415 |
Restricted stock Non-vested, weighted-average grant date fair value, beginning balance | $ 27.82 | $ 24.46 |
Restricted stock, granted, weighted-average grant date fair value | 0 | 0 |
Restricted stock, vested, weighted-average grant date fair value | 0 | 0 |
Restricted stock, forfeited, weighted-average grant date fair value | 0 | 0 |
Restricted stock Non-vested, weighted-average grant date fair value, ending balance | $ 27.82 | $ 24.46 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Summary Of Changes In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (5,020) | |||
Other comprehensive income (loss) | $ 703 | $ (1,456) | 6,163 | $ (5,825) |
Ending balance | 1,143 | 1,143 | ||
Unrealized gains (losses) on available for sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 440 | (7,036) | (5,020) | (2,667) |
Other comprehensive income (loss) before reclassification | 835 | (1,446) | 6,346 | (5,657) |
Other comprehensive income (loss) | 703 | (1,456) | 6,163 | (5,825) |
Ending balance | 1,143 | (8,492) | 1,143 | (8,492) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | 703 | (1,456) | 6,163 | (5,825) |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized gains (losses) on available for sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amount reclassified from accumulated other comprehensive loss | $ (132) | $ (10) | $ (183) | $ (168) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Significant Amounts Reclassified Out Of Each Component Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of securities | $ 169 | $ 13 | $ 233 | $ 213 |
Income tax expense | (775) | (728) | (1,963) | (2,001) |
NET INCOME | 3,907 | 3,710 | 10,619 | 10,352 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | (37) | (3) | (50) | (45) |
NET INCOME | 132 | 10 | 183 | 168 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized gains (losses) on available for sale securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of securities | $ 169 | $ 13 | $ 233 | $ 213 |
Off-Balance Sheet Financial I_3
Off-Balance Sheet Financial Instruments and Gurantees (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 119,347 | $ 133,659 |
Commitments to grant loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 49,806 | 51,225 |
Unfunded commitments under lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 65,854 | 78,024 |
Standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 3,687 | $ 4,410 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | |
Securities [Abstract] | ||
Debt securities in unrealized loss position in the less than twelve months category | security | 30 | |
Debt securities in unrealized loss position in the twelve months or more category | security | 58 | |
Impairment of investments | $ | $ 0 | |
Pledged Financial Instruments, Not Separately Reported, Securities | $ | $ 179,075,000 | $ 169,984,000 |
Securities (Schedule of Amortiz
Securities (Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Available for Sale, Gross Unrealized Gains | $ 0 | $ 0 |
Available for Sale, Gross Unrealized Losses | 0 | 0 |
Available for Sale, Fair Value | 211,199 | 243,277 |
Total Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 210,432 | 250,311 |
Available for Sale, Gross Unrealized Gains | 1,747 | 410 |
Available for Sale, Gross Unrealized Losses | (980) | (7,444) |
Available for Sale, Fair Value | 211,199 | 243,277 |
States and Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 78,145 | 99,218 |
Available for Sale, Gross Unrealized Gains | 1,396 | 385 |
Available for Sale, Gross Unrealized Losses | (14) | (1,990) |
Available for Sale, Fair Value | 79,527 | 97,613 |
Corporate Obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 6,200 | 8,896 |
Available for Sale, Gross Unrealized Gains | 5 | 0 |
Available for Sale, Gross Unrealized Losses | (4) | (256) |
Available for Sale, Fair Value | 6,201 | 8,640 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 126,087 | 142,197 |
Available for Sale, Gross Unrealized Gains | 346 | 25 |
Available for Sale, Gross Unrealized Losses | (962) | (5,198) |
Available for Sale, Fair Value | $ 125,471 | $ 137,024 |
Securities (Schedule of Investm
Securities (Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 32,768 | $ 29,629 |
Less than 12 Months, Unrealized Losses | (130) | (433) |
12 Months or More, Fair Value | 67,714 | 186,285 |
12 Months or More, Unrealized Losses | (850) | (7,011) |
Total, Fair Value | 100,482 | 215,914 |
Total, Unrealized Losses | (980) | (7,444) |
States and Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 7,697 | 19,140 |
Less than 12 Months, Unrealized Losses | (12) | (390) |
12 Months or More, Fair Value | 481 | 56,740 |
12 Months or More, Unrealized Losses | (2) | (1,600) |
Total, Fair Value | 8,178 | 75,880 |
Total, Unrealized Losses | (14) | (1,990) |
Corporate Obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 2,045 |
Less than 12 Months, Unrealized Losses | 0 | (21) |
12 Months or More, Fair Value | 3,109 | 6,595 |
12 Months or More, Unrealized Losses | (4) | (235) |
Total, Fair Value | 3,109 | 8,640 |
Total, Unrealized Losses | (4) | (256) |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 25,071 | 8,444 |
Less than 12 Months, Unrealized Losses | (118) | (22) |
12 Months or More, Fair Value | 64,124 | 122,950 |
12 Months or More, Unrealized Losses | (844) | (5,176) |
Total, Fair Value | 89,195 | 131,394 |
Total, Unrealized Losses | $ (962) | $ (5,198) |
Securities (Schedule of Amort_2
Securities (Schedule of Amortized Cost and Fair Value Of Debt Securities by Contractual Maturity) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Securities [Abstract] | |
Available for Sale, Amortized Cost, Due in one year or less | $ 4,365 |
Available for Sale, Amortized Cost, Due after one year through five years | 17,693 |
Available for Sale, Amortized Cost, Due after five years through ten years | 33,194 |
Available for Sale, Amortized Cost, Due after ten years | 29,093 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 84,345 |
Available for Sale, Amortized Cost, Mortgage-backed securities- government sponsored agencies | 126,087 |
Available for Sale, Amortized Cost, Total | 210,432 |
Available for Sale, Fair Value, Due in one year or less | 4,378 |
Available for Sale, Fair Value, Due after one year through five years | 17,705 |
Available for Sale, Fair Value, Due after five years through ten years | 33,365 |
Available for Sale, Fair Value, Due after ten years | 30,280 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Total | 85,728 |
Available for Sale, Fair Value, Mortgage-backed securities-government sponsored agencies | 125,471 |
Available for Sale, Fair Value, Total | $ 211,199 |
Securities (Gross Realized Gain
Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Securities [Abstract] | ||||
Gross realized gains | $ 169 | $ 13 | $ 233 | $ 213 |
Gross realized losses | 0 | 0 | 0 | 0 |
Net realized gain | 169 | 13 | 233 | 213 |
Proceeds from sale of securities | $ 19,326 | $ 3,162 | $ 22,862 | $ 17,745 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses (Narrative) (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)propertyloan | Sep. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 946,000 | $ 1,055,000 | |
Real Estate Acquired Through Foreclosure | 1,572,000 | 1,115,000 | |
Loans and Leases Receivable, Gross | $ 905,649,000 | $ 850,302,000 | |
Historical loss factor | 0.21% | 0.42% | |
Proceeds from Sale of Foreclosed Assets | $ 312,000 | $ 696,000 | |
Multiple Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 151,000 | ||
Number Of Properties Disposed By Sale | property | 3 | ||
Commercial Rentals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 80,700,000 | ||
Commercial Rentals [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration Risk, Percentage | 8.90% | ||
Hospitality Lodging Industry [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 65,000,000 | ||
Hospitality Lodging Industry [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration Risk, Percentage | 7.20% | ||
Residential Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number Of Properties Under Foreclosure Proceedings | property | 3 | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 300,000 | ||
Loans and Leases Receivable, Gross | 230,624,000 | $ 235,523,000 | |
Commercial Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 384,376,000 | 374,790,000 | |
Allowance for Loan and Lease Losses, Real Estate | 889,000 | ||
Troubled Debt Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Related Allowance | $ 0 | 0 | |
New Loans Identified as Troubled Debt Restructurings, Number of Loans | loan | 0 | 0 | |
Real Estate Acquired Through Foreclosure | $ 608,000 | ||
Number Of Properties Acquired Through Foreclosure | property | 1 | ||
Financing Receivable, Troubled Debt Restructuring | $ 102,000 | $ 1,100,000 | |
Proceeds from Sale of Foreclosed Assets | 451,000 | ||
Delaware Bancshares, Inc. Acquisition [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | 1,397,000 | ||
Assets, Fair Value Adjustment | 499,000 | ||
Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Annual Loan Review threshold, amount | $ 1,500,000 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses (Composition of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 905,649 | $ 850,302 | ||||
Deferred fees, net | (67) | (120) | ||||
Total loans receivable | 905,582 | 850,182 | ||||
Allowance for loan losses | (8,405) | $ (8,228) | (8,452) | $ (8,280) | $ (8,326) | $ (7,634) |
Net loans receivable | $ 897,177 | $ 841,730 | ||||
Percent of Loans | 100.00% | 100.00% | ||||
Residential Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 230,624 | $ 235,523 | ||||
Allowance for loan losses | $ (1,568) | (1,447) | $ (1,328) | (1,374) | (1,455) | (1,272) |
Percent of Loans | 25.50% | 27.70% | ||||
Commercial Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 384,376 | $ 374,790 | ||||
Allowance for loan losses | $ (4,566) | (4,694) | $ (5,455) | (5,259) | (5,247) | (5,265) |
Percent of Loans | 42.40% | 44.10% | ||||
Construction Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 18,267 | $ 17,445 | ||||
Allowance for loan losses | $ (107) | (112) | $ (93) | (94) | (128) | (90) |
Percent of Loans | 2.00% | 2.00% | ||||
Commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 126,835 | $ 110,542 | ||||
Allowance for loan losses | $ (943) | (896) | $ (712) | (714) | (690) | (463) |
Percent of Loans | 14.00% | 13.00% | ||||
Consumer Loans To Individuals [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Loans | $ 145,547 | $ 112,002 | ||||
Allowance for loan losses | $ (1,221) | $ (1,079) | $ (864) | $ (839) | $ (806) | $ (544) |
Percent of Loans | 16.10% | 13.20% |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses (Information Regarding Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans Receivable and Allowance for Loan Losses [Abstract] | ||
Outstanding Balance | $ 946 | $ 1,055 |
Carrying Amount | $ 807 | $ 886 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses (Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 514 | $ 1,319 |
Loans acquired with deteriorated credit quality | 807 | 886 |
Collectively evaluated for impairment | 904,328 | 848,097 |
Total Loans | 905,649 | 850,302 |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 577 | 630 |
Collectively evaluated for impairment | 230,047 | 234,893 |
Total Loans | 230,624 | 235,523 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 514 | 1,319 |
Loans acquired with deteriorated credit quality | 230 | 256 |
Collectively evaluated for impairment | 383,632 | 373,215 |
Total Loans | 384,376 | 374,790 |
Construction Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Collectively evaluated for impairment | 18,267 | 17,445 |
Total Loans | 18,267 | 17,445 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Collectively evaluated for impairment | 126,835 | 110,542 |
Total Loans | 126,835 | 110,542 |
Consumer Loans To Individuals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Collectively evaluated for impairment | 145,547 | 112,002 |
Total Loans | $ 145,547 | $ 112,002 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment, Total | $ 633 | $ 1,240 | $ 759 | $ 1,218 | |
Interest Income Recognized, Total | 0 | 15 | 24 | 45 | |
Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 514 | 514 | $ 1,319 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 514 | 514 | 1,319 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,101 | 1,101 | 1,747 | ||
Unpaid Principal Balance, With an allowance recorded | 1,101 | 1,101 | 1,747 | ||
Associated Allowance | 0 | 0 | 0 | ||
Residential Real Estate Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment, Total | 0 | 23 | 0 | 23 | |
Interest Income Recognized, Total | 0 | 0 | 0 | 0 | |
Commercial Real Estate Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment, Total | 633 | 1,217 | 759 | 1,195 | |
Interest Income Recognized, Total | 0 | $ 15 | 24 | $ 45 | |
Commercial Real Estate Loans [Member] | Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 514 | 514 | 1,319 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 514 | 514 | 1,319 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,101 | 1,101 | 1,747 | ||
Unpaid Principal Balance, With an allowance recorded | 1,101 | 1,101 | 1,747 | ||
Associated Allowance | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 394,438 | $ 364,970 |
Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 511,211 | 485,332 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 495,167 | 470,804 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 12,553 | 8,000 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 3,491 | 6,528 |
Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 393,614 | 364,172 |
Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 824 | 798 |
Commercial Real Estate Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 384,376 | 374,790 |
Commercial Real Estate Loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 368,796 | 360,838 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 12,301 | 7,918 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 3,279 | 6,034 |
Commercial Real Estate Loans [Member] | Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Commercial [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 126,835 | 110,542 |
Commercial [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 126,371 | 109,966 |
Commercial [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 252 | 82 |
Commercial [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 212 | 494 |
Commercial [Member] | Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 230,624 | 235,523 |
Residential Real Estate Loans [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 229,857 | 234,725 |
Residential Real Estate Loans [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 767 | 798 |
Construction Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 18,267 | 17,445 |
Construction Real Estate Loans [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 18,267 | 17,445 |
Construction Real Estate Loans [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | 0 |
Consumer Loans To Individuals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 145,547 | 112,002 |
Consumer Loans To Individuals [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 145,490 | 112,002 |
Consumer Loans To Individuals [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 57 | $ 0 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 902,866 | $ 846,250 |
Non-Accrual | 1,391 | 1,140 |
Total Past Due and Non-Accrual | 2,783 | 4,052 |
Total Loans | 905,649 | 850,302 |
Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,003 | 1,907 |
Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 389 | 1,005 |
Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential Real Estate Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 228,976 | 234,201 |
Non-Accrual | 767 | 798 |
Total Past Due and Non-Accrual | 1,648 | 1,322 |
Total Loans | 230,624 | 235,523 |
Residential Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 692 | 373 |
Residential Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 189 | 151 |
Residential Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 383,667 | 372,617 |
Non-Accrual | 541 | 342 |
Total Past Due and Non-Accrual | 709 | 2,173 |
Total Loans | 384,376 | 374,790 |
Commercial Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 114 | 1,043 |
Commercial Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 54 | 788 |
Commercial Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 18,267 | 17,445 |
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 0 | 0 |
Total Loans | 18,267 | 17,445 |
Construction Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 126,795 | 110,191 |
Non-Accrual | 26 | 0 |
Total Past Due and Non-Accrual | 40 | 351 |
Total Loans | 126,835 | 110,542 |
Commercial [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 14 | 320 |
Commercial [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 31 |
Commercial [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Consumer Loans To Individuals [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 145,161 | 111,796 |
Non-Accrual | 57 | 0 |
Total Past Due and Non-Accrual | 386 | 206 |
Total Loans | 145,547 | 112,002 |
Consumer Loans To Individuals [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 183 | 171 |
Consumer Loans To Individuals [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 146 | 35 |
Consumer Loans To Individuals [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | $ 8,228 | $ 8,326 | $ 8,452 | $ 7,634 |
Charge Offs | (146) | (433) | (1,205) | (764) |
Recoveries | 23 | 12 | 108 | 60 |
Provision for loan losses | 300 | 375 | 1,050 | 1,350 |
Ending balance, | 8,405 | 8,280 | 8,405 | 8,280 |
Ending balance individually evaluated for impairment | 0 | 0 | ||
Ending balance collectively evaluated for impairment | 8,405 | 8,280 | 8,405 | 8,280 |
Residential Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 1,447 | 1,455 | 1,328 | 1,272 |
Charge Offs | (15) | (10) | (90) | (85) |
Recoveries | 5 | 20 | 2 | |
Provision for loan losses | 131 | (71) | 310 | 185 |
Ending balance, | 1,568 | 1,374 | 1,568 | 1,374 |
Ending balance individually evaluated for impairment | 0 | 0 | ||
Ending balance collectively evaluated for impairment | 1,568 | 1,374 | 1,568 | 1,374 |
Commercial Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 4,694 | 5,247 | 5,455 | 5,265 |
Charge Offs | (110) | (615) | (244) | |
Recoveries | 4 | 2 | 18 | 33 |
Provision for loan losses | (132) | 120 | (292) | 205 |
Ending balance, | 4,566 | 5,259 | 4,566 | 5,259 |
Ending balance individually evaluated for impairment | 0 | 0 | ||
Ending balance collectively evaluated for impairment | 4,566 | 5,259 | 4,566 | 5,259 |
Construction Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 112 | 128 | 93 | 90 |
Charge Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | (5) | (34) | 14 | 4 |
Ending balance, | 107 | 94 | 107 | 94 |
Ending balance individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance collectively evaluated for impairment | 107 | 94 | 107 | 94 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 896 | 690 | 712 | 463 |
Charge Offs | (20) | (241) | (254) | (246) |
Recoveries | 10 | 0 | 31 | 0 |
Provision for loan losses | 57 | 265 | 454 | 497 |
Ending balance, | 943 | 714 | 943 | 714 |
Ending balance individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance collectively evaluated for impairment | 943 | 714 | 943 | 714 |
Consumer Loans To Individuals [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance, | 1,079 | 806 | 864 | 544 |
Charge Offs | (111) | (72) | (246) | (189) |
Recoveries | 4 | 10 | 39 | 25 |
Provision for loan losses | 249 | 95 | 564 | 459 |
Ending balance, | 1,221 | 839 | 1,221 | 839 |
Ending balance individually evaluated for impairment | 0 | 0 | ||
Ending balance collectively evaluated for impairment | $ 1,221 | $ 839 | $ 1,221 | $ 839 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Narrative) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans not requiring a valuation allowance | loan | 6 | |
Impaired Loans, Cumulative Charge-Offs | $ | $ 587 | $ 428 |
Number of impaired loans requiring a valuation allowance | loan | 5 | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ | $ 514 | $ 1,319 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 211,199 | $ 243,277 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 211,199 | 243,277 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 211,199 | 243,277 |
States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,527 | 97,613 |
States and Political Subdivisions [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,527 | 97,613 |
States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,527 | 97,613 |
Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,201 | 8,640 |
Corporate Obligations [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,201 | 8,640 |
Corporate Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,201 | 8,640 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 125,471 | 137,024 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 125,471 | 137,024 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 125,471 | $ 137,024 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 514 | $ 1,319 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 514 | 1,319 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 514 | 1,319 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,572 | 1,115 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,572 | $ 1,115 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Additional Qualitative Information about Level 3 Assets) (Details) $ in Thousands | Sep. 30, 2019USD ($)item | Dec. 31, 2018USD ($)item |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ | $ 514 | $ 1,319 |
Impaired Loans [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ | 311 | 232 |
Impaired Loans [Member] | Present value of future cash flows [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ | $ 203 | $ 1,087 |
Impaired Loans [Member] | Minimum [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.1 | 0.1 |
Impaired Loans [Member] | Minimum [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.04 | 0.04 |
Impaired Loans [Member] | Maximum [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.1000 | 0.8154 |
Impaired Loans [Member] | Maximum [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.0697 | 0.06 |
Impaired Loans [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.1000 | 0.5606 |
Impaired Loans [Member] | Weighted Average [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.0535 | 0.058 |
Foreclosed Real Estate Owned [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ | $ 1,572 | $ 1,115 |
Foreclosed Real Estate Owned [Member] | Minimum [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.07 | 0.07 |
Foreclosed Real Estate Owned [Member] | Maximum [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.1000 | 0.8571 |
Foreclosed Real Estate Owned [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | Measurement Input, Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.0816 | 0.078 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | $ 20,915 | $ 18,348 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 917,146 | 840,134 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 220 | 220 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 3,137 | 3,926 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 38,562 | 37,932 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,726 | 3,776 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 977,729 | 945,773 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 52,778 | 53,046 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 36,229 | 52,043 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 2,623 | 1,806 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Cash and cash equivalents | 20,915 | 18,348 | $ 17,368 | $ 16,697 |
Financial assets: Loans receivable, net | 897,177 | 841,730 | ||
Financial assets: Mortgage servicing rights | 180 | 178 | ||
Financial assets: Regulatory stock | 3,137 | 3,926 | ||
Financial assets: Bank owned life insurance | 38,562 | 37,932 | ||
Financial assets: Accrued interest receivable | 3,726 | 3,776 | ||
Financial liabilities: Deposits | 974,433 | 946,780 | ||
Financial liabilities: Short-term borrowings | 52,778 | 53,046 | ||
Financial liabilities: Other borrowings | 35,906 | 52,284 | ||
Financial liabilities: Accrued interest payable | 2,623 | 1,806 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | 20,915 | 18,348 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 3,137 | 3,926 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 38,562 | 37,932 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,726 | 3,776 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 632,151 | 601,604 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 52,778 | 53,046 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 2,623 | 1,806 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 0 | 0 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Loans receivable, net, Fair Value Disclosure | 917,146 | 840,134 | ||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 220 | 220 | ||
Financial assets: Regulatory stock, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Bank owned life insurance, Fair Value Disclosure | 0 | 0 | ||
Financial assets: Accrued interest receivable, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Deposits, Fair Value Disclosure | 345,045 | 344,169 | ||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 0 | 0 | ||
Financial liabilities: Other borrowings, Fair Value Disclosure | 36,229 | 52,043 | ||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 0 | 0 | ||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | $ 0 | $ 0 |
New and Recently Adopted Acco_2
New and Recently Adopted Accounting Pronouncements (Details) - Accounting Standards Update 2016-02 [Member] $ in Millions | Dec. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 5.3 |
Finance Lease, Liability | $ 5.3 |