Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 29, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Entity File Number | 001-38229 | ||
Entity Registrant Name | FIDELITY D & D BANCORP INC | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-3017653 | ||
Entity Address, Address Line One | BLAKELY AND DRINKER STREETS | ||
Entity Address, City or Town | DUNMORE | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 18512 | ||
City Area Code | 570 | ||
Local Phone Number | 342-8281 | ||
Title of 12(b) Security | Common Stock, without par value | ||
Trading Symbol | FDBC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 189.3 | ||
Entity Common Stock, Shares Outstanding | 3,797,646 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement to be used in connection with the 2020 Annual Meeting of Shareholders are incorporated herein by reference in partial response to Part III. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001098151 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 14,583 | $ 16,025 |
Interest-bearing deposits with financial institutions | 1,080 | 1,460 |
Total cash and cash equivalents | 15,663 | 17,485 |
Available-for-sale securities | 185,117 | 182,810 |
Federal Home Loan Bank stock | 4,383 | 6,339 |
Loans and leases, net (allowance for loan losses of $9,747 in 2019; $9,747 in 2018) | 743,663 | 718,317 |
Loans held-for-sale (fair value $1,660 in 2019, $5,789 in 2018) | 1,643 | 5,707 |
Foreclosed assets held-for-sale | 369 | 190 |
Bank premises and equipment, net | 21,557 | 18,920 |
Leased property under finance leases, net | 280 | 333 |
Right-of-use assets | 6,023 | |
Cash surrender value of bank owned life insurance | 23,261 | 20,615 |
Accrued interest receivable | 3,281 | 3,271 |
Goodwill | 209 | 209 |
Other assets | 4,478 | 6,906 |
Total assets | 1,009,927 | 981,102 |
Liabilities: | ||
Deposits: Interest-bearing | 643,714 | 575,452 |
Deposits: Non-interest-bearing | 192,023 | 194,731 |
Total deposits | 835,737 | 770,183 |
Accrued interest payable and other liabilities | 7,674 | 8,956 |
Finance lease obligation | 286 | 336 |
Operating lease liabilities | 6,556 | |
Short-term borrowings | 37,839 | 76,366 |
FHLB advances | 15,000 | 31,704 |
Total liabilities | 903,092 | 887,545 |
Shareholders' equity: | ||
Preferred stock authorized 5,000,000 shares with no par value; none issued | ||
Capital stock, no par value (10,000,000 shares authorized; shares issued and outstanding; 3,781,500 in 2019; and 3,759,426 in 2018) | 30,848 | 29,715 |
Retained earnings | 72,385 | 64,937 |
Accumulated other comprehensive income (loss) | 3,602 | (1,095) |
Total shareholders' equity | 106,835 | 93,557 |
Total liabilities and shareholders' equity | $ 1,009,927 | $ 981,102 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Loans and leases, allowance for loan losses | $ 9,747 | $ 9,747 |
Loans held-for-sale, fair value | $ 1,660 | $ 5,789 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, no par value | ||
Preferred stock, shares issued | 0 | 0 |
Capital stock, no par value | ||
Capital stock, shares authorized | 10,000,000 | 10,000,000 |
Capital stock, shares issued | 3,781,500 | 3,759,426 |
Capital stock, shares outstanding | 3,781,500 | 3,759,426 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans and leases: Taxable | $ 32,364 | $ 29,155 | $ 26,035 |
Loans and leases: Nontaxable | 1,077 | 958 | 860 |
Interest-bearing deposits with financial institutions | 47 | 104 | 48 |
Restricted regulatory securities | 417 | 194 | 135 |
Investment securities: | |||
U.S. government agency and corporations | 3,633 | 3,314 | 2,515 |
States and political subdivisions (nontaxable) | 1,731 | 1,594 | 1,449 |
Other securities | 11 | 22 | |
Total interest income | 39,269 | 35,330 | 31,064 |
Interest expense: | |||
Deposits | 6,176 | 3,811 | 2,750 |
Securities sold under repurchase agreements | 16 | 21 | |
Other short-term borrowings and other | 878 | 667 | 205 |
FHLB advances | 500 | 379 | 247 |
Total interest expense | 7,554 | 4,873 | 3,223 |
Net interest income | 31,715 | 30,457 | 27,841 |
Provision for loan losses | 1,085 | 1,450 | 1,450 |
Net interest income after provision for loan losses | 30,630 | 29,007 | 26,391 |
Other income: | |||
Earnings on bank-owned life insurance | 647 | 598 | 581 |
Gain (loss) on write-down, sale or disposal of: | |||
Loans | 856 | 645 | 878 |
Available-for-sale debt securities | 14 | 10 | (147) |
Equity securities | 44 | ||
Premises and equipment | (13) | (18) | (164) |
Total other income | 10,193 | 9,200 | 8,367 |
Other expenses: | |||
Salaries and employee benefits | 14,761 | 13,678 | 13,072 |
Premises and equipment | 4,124 | 3,775 | 3,838 |
Advertising and marketing | 1,610 | 1,656 | 1,859 |
Professional services | 1,362 | 1,606 | 1,863 |
Data processing and communication | 1,765 | 1,470 | 1,233 |
Automated transaction processing | 877 | 784 | 735 |
Merger-related expenses | 440 | ||
Office supplies and postage | 413 | 399 | 460 |
FDIC assessment | 133 | 267 | 267 |
PA shares tax | 303 | 242 | 262 |
Loan collection | 264 | 132 | 224 |
Other real estate owned | 121 | 177 | 200 |
Other | 748 | 886 | 823 |
Total other expenses | 26,921 | 25,072 | 24,836 |
Income before income taxes | 13,902 | 13,135 | 9,922 |
Provision for income taxes | 2,326 | 2,129 | 1,206 |
Net income | $ 11,576 | $ 11,006 | $ 8,716 |
Per share data: | |||
Net income - basic | $ 3.06 | $ 2.93 | $ 2.35 |
Net income - diluted | 3.03 | 2.90 | 2.33 |
Dividends | $ 1.06 | $ 0.98 | $ 0.88 |
Deposit Account [Member] | |||
Other income: | |||
Other income: revenues from contracts with customers | $ 2,286 | $ 2,244 | $ 2,227 |
Credit and Debit Card [Member] | |||
Other income: | |||
Other income: revenues from contracts with customers | 2,208 | 2,051 | 1,756 |
Fiduciary and Trust [Member] | |||
Other income: | |||
Other income: revenues from contracts with customers | 1,350 | 1,319 | 1,040 |
Investment Advisory, Management and Administrative Service [Member] | |||
Other income: | |||
Other income: revenues from contracts with customers | 946 | 759 | 596 |
Loans [Member] | |||
Other income: | |||
Other income: revenues from contracts with customers | 1,054 | 579 | 728 |
Financial Service, Other [Member] | |||
Other income: | |||
Other income: revenues from contracts with customers | $ 845 | $ 969 | $ 872 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 11,576 | $ 11,006 | $ 8,716 |
Other comprehensive income (loss), before tax: | |||
Unrealized holding gain (loss) on available-for-sale debt securities | 5,960 | (3,127) | 44 |
Reclassification adjustment for net (gains) losses (gains) realized in income | (14) | (10) | 147 |
Net unrealized gain (loss) | 5,946 | (3,137) | 191 |
Tax effect | (1,249) | 659 | (65) |
Unrealized gain (loss), net of tax | 4,697 | (2,478) | 126 |
Other comprehensive income (loss), net of tax | 4,697 | (2,478) | 126 |
Total comprehensive income, net of tax | $ 16,273 | $ 8,528 | $ 8,842 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Capital Stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Total |
Balance at Dec. 31, 2016 | $ 27,155 | $ 52,095 | $ 1,381 | $ 80,631 |
Balance, shares at Dec. 31, 2016 | 2,453,805 | |||
Net income | 8,716 | 8,716 | ||
Other comprehensive income (loss) | 126 | 126 | ||
Effect of adopting ASU | (297) | 297 | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 126 | 126 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 4,085 | |||
Issuance of common stock through Dividend Reinvestment Plan | $ 331 | 331 | ||
Issuance of common stock through Dividend Reinvestment Plan, shares | 7,744 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 9,657 | |||
Issuance of common stock through exercise of stock options and SSARs | $ 416 | 416 | ||
Issuance of common stock through exercise of stock options and SSARs, shares | 16,000 | |||
Stock-based compensation expense | $ 333 | 333 | ||
Issuance of common stock from stock split | 1,243,187 | |||
Cash in lieu of fractional shares paid due to the stock split | (11) | (11) | ||
Cash dividends declared | (3,285) | (3,285) | ||
Balance at Dec. 31, 2017 | $ 28,361 | 57,218 | 1,804 | 87,383 |
Balance, shares at Dec. 31, 2017 | 3,734,478 | |||
Net income | 11,006 | 11,006 | ||
Other comprehensive income (loss) | (2,478) | (2,478) | ||
Effect of adopting ASU | 421 | (421) | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 149 | 149 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 6,783 | |||
Issuance of common stock through Dividend Reinvestment Plan | $ 311 | 311 | ||
Issuance of common stock through Dividend Reinvestment Plan, shares | 5,486 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 9,994 | |||
Issuance of common stock through exercise of stock options and SSARs | $ 14 | 14 | ||
Issuance of common stock through exercise of stock options and SSARs, shares | 2,685 | |||
Stock-based compensation expense | $ 880 | 880 | ||
Cash dividends declared | (3,708) | (3,708) | ||
Balance at Dec. 31, 2018 | $ 29,715 | 64,937 | (1,095) | 93,557 |
Balance, shares at Dec. 31, 2018 | 3,759,426 | |||
Net income | 11,576 | 11,576 | ||
Other comprehensive income (loss) | 4,697 | 4,697 | ||
Effect of adopting ASU | (91) | (91) | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 175 | 175 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 4,535 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 15,574 | |||
Issuance of common stock through exercise of stock options and SSARs, shares | 1,965 | |||
Stock-based compensation expense | $ 958 | 958 | ||
Cash dividends declared | (4,037) | (4,037) | ||
Balance at Dec. 31, 2019 | $ 30,848 | $ 72,385 | $ 3,602 | $ 106,835 |
Balance, shares at Dec. 31, 2019 | 3,781,500 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 11,576 | $ 11,006 | $ 8,716 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 3,301 | 3,029 | 3,113 |
Provision for loan losses | 1,085 | 1,450 | 1,450 |
Deferred income tax expense | 341 | 1,019 | (666) |
Stock-based compensation expense | 817 | 749 | 550 |
Excess tax benefit from exercise of stock options/SSARs | 23 | 28 | 96 |
Proceeds from sale of loans held-for-sale | 52,718 | 32,721 | 43,350 |
Originations of loans held-for-sale | (42,328) | (34,858) | (38,624) |
Earnings from bank-owned life insurance | (647) | (598) | (581) |
Net gain from sales of loans | (856) | (645) | (878) |
Net (gain) loss from sales of investment securities | (14) | (54) | 147 |
Net loss from sale and write-down of foreclosed assets held-for-sale | 44 | 90 | 79 |
Net loss from write-down and disposal of bank premises and equipment | 13 | 18 | 164 |
Operating lease payments | 81 | ||
Change in: | |||
Accrued interest receivable | (10) | (486) | (536) |
Other assets | 420 | (2,503) | (3,989) |
Accrued interest payable and other liabilities | (778) | 2,684 | 1,496 |
Net cash provided by operating activities | 25,786 | 13,650 | 13,887 |
Available-for-sale securities: | |||
Proceeds from sales | 10,952 | 13,514 | 5,970 |
Proceeds from maturities, calls and principal pay-downs | 35,045 | 20,434 | 20,578 |
Purchases | (43,384) | (63,571) | (55,016) |
Decrease (increase) in FHLB stock | 1,956 | (3,507) | (226) |
Net increase in loans and leases | (36,912) | (81,887) | (44,584) |
Principal portion of lease payments received under direct finance leases | 3,170 | ||
Purchase of life insurance policies | (2,000) | (8,000) | |
Purchases of bank premises and equipment | (4,128) | (3,572) | (921) |
Proceeds from sale of bank premises and equipment | 240 | 8 | 6 |
Proceeds from sale of foreclosed assets held-for-sale | 1,065 | 1,462 | 534 |
Net cash used in investing activities | (33,996) | (117,119) | (69,842) |
Cash flows from financing activities: | |||
Net increase in deposits | 65,554 | 40,037 | 12,878 |
Net (decrease) increase in short-term borrowings | (38,527) | 57,864 | 14,278 |
Proceeds from issuance of FHLB advances | 15,000 | 25,704 | |
Repayment of FHLB advances | (16,704) | (4,500) | (4,500) |
Repayment of finance lease obligation | (73) | (38) | |
Proceeds from employee stock purchase plan participants | 175 | 149 | 126 |
Exercise of stock options | 14 | 416 | |
Dividends paid | (4,037) | (3,397) | (2,954) |
Cash paid in lieu of fractional shares | (11) | ||
Net cash provided by financing activities | 6,388 | 105,129 | 45,937 |
Net (decrease) increase in cash and cash equivalents | (1,822) | 1,660 | (10,018) |
Cash and cash equivalents, beginning | 17,485 | 15,825 | 25,843 |
Cash and cash equivalents, ending | 15,663 | 17,485 | 15,825 |
Supplemental Disclosures of Cash Flow Information, Cash payments for: | |||
Interest | 7,440 | 4,689 | 3,058 |
Income tax | 1,950 | 600 | 2,700 |
Supplemental Disclosures of Non-cash Investing Activities: | |||
Net change in unrealized gains on available-for-sale securities | 5,946 | (3,137) | 191 |
Transfers from loans to foreclosed assets held-for-sale | 1,288 | 781 | 280 |
Transfers from loans to loans held-for-sale | 6,038 | 1,204 | $ 3,821 |
Transfers from premises and equipment to other assets held-for-sale | 253 | ||
Right-of-use asset | 6,211 | ||
Lease liability | 6,710 | ||
Goodwill | $ 209 | $ 209 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations and Summary of Signigicant Accounting Policies | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of Fidelity D & D Bancorp, Inc. and its wholly-owned subsidiary, The Fidelity Deposit and Discount Bank (the Bank) (collectively, the Company). All significant inter-company balances and transactions have been eliminated in consolidation. NATURE OF OPERATIONS The Company provides a full range of banking, trust and financial services to individuals, small businesses and corporate customers. Its primary market areas are Lackawanna and Luzerne Counties, Pennsylvania. The Company's primary deposit products are demand deposits and interest-bearing time, money market and savings accounts. It offers a full array of loan products to meet the needs of retail and commercial customers. The Company is subject to regulation by the Federal Deposit Insurance Corporation (FDIC) and the Pennsylvania Department of Banking. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the valuation of investment securities, the determination and the amount of impairment in the securities portfolios, and the related realization of the deferred tax assets related to the allowance for loan losses, other-than-temporary impairment on and valuations of investment securities. In connection with the determination of the allowance for loan losses, management generally obtains independent appraisals for significant properties, utilizes historical loss factors and applies judgement to determine qualitative factor adjustments. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near-term. However, the amount of the change that is reasonably possible cannot be estimated. The Company’s investment securities are comprised of a variety of financial instruments. The fair values of the securities are subject to various risks including changes in the interest rate environment and general economic conditions including illiquid conditions in the capital markets. Due to the increased level of these risks and their potential impact on the fair values of the securities, it is possible that the amounts reported in the accompanying financial statements could materially change in the near-term. Any credit-related impairment is included as a component of non-interest income in the consolidated income statements while non-credit-related impairment is charged to other comprehensive income, net of tax. SIGNIFICANT GROUP CONCENTRATION OF CREDIT RISK The Company originates commercial, consumer, and mortgage loans to customers primarily located in Lackawanna and Luzerne Counties of Pennsylvania. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic sector in which the Company operates. The loan portfolio does not have any significant concentrations from one industry or customer. HELD-TO-MATURITY SECURITIES Debt securities, for which the Company has the positive intent and ability to hold to maturity, are reported at cost. Premiums and discounts a re amortized or accreted, as a component of interest income over the life of the related security as an adjustment to yield using the interest method. The Company did no t have any held-to-maturity securities at December 31, 2019 or 2018 . TRADING SECURITIES Debt securities held principally for resale in the near-term, or trading securities, are recorded at their fair values. Unrealized gains and losses are included in other income. The Company did no t have investment securities held for trading purposes during 2019 or 2018. AVAILABLE-FOR-SALE SECURITIES Available-for-sale (AFS) securities consist of debt and equity securities classified as neither held-to-maturity nor trading and are reported at fair value. Premiums and discounts are amortized or accreted as a component of interest income over the life of the related security as an adjustment to yield using the interest method. Unrealized holding gains and losses, including non-credit-related other-than-temporary impairment (OTTI), on AFS securities are reported as a separate component of shareholders’ equity, net of deferred income taxes, until realized. The net unrealized holding gains and losses are a component of accumulated other comprehensive income. Gains and losses from sales of securities AFS are determined using the specific identification method. FEDERAL HOME LOAN BANK STOCK The Company, is a member of the Federal Home Loan Bank system, and as such is required to maintain an investment in capital stock of the Federal Home Loan Bank of Pittsburgh (FHLB). The amount the Company is required to invest is dependent upon the relative size of outstanding borrowings the Company has with the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. LOANS Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at face value, net of unamortized loan fees and costs and the allowance for loan losses. Interest on residential real estate loans is recorded based on principal pay downs on an actual days basis. Commercial loan interest is accrued on the principal balance on an actual days basis. Interest on consumer loans is determined using the simple interest method. Generally, loans are placed on non-accrual status when principal or interest is past due 90 days or more. When a loan is placed on non-accrual status, all interest previously accrued but not collected is charged against current earnings. Any payments received on non-accrual loans are applied, first to the outstanding loan amounts, then to the recovery of any charged-off loan amounts. Any excess is treated as a recovery of lost interest. A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the Company grants a concession that it would not otherwise grant based on current underwriting standards. Although concessions may be made when modifying a loan, forgiveness of principal is rarely granted. MORTGAGE BANKING OPERATIONS AND MORTGAGE SERVICING RIGHTS The Company sells one-to-four family residential mortgage loans on a servicing retained basis. On a loan sold where servicing was retained, the Company determines at the time of sale the value of the retained servicing rights, which represents the present value of the differential between the contractual servicing fee and adequate compensation, defined as the fee a sub-servicer would require to assume the role of servicer, after considering the estimated effects of prepayments. If material, a portion of the gain on the sale of the loan is recognized due to the value of the servicing rights, and a mortgage servicing asset is recorded. Commitments to sell one-to-four family residential mortgage loans are made primarily during the period between the intent to proceed and the closing of the mortgage loan. The timing of making these sale commitments is dependent upon the timing of the borrower’s election to lock-in the mortgage interest rate and fees prior to loan closing. Most of these sales commitments are made on a best-efforts basis whereby the Company is only obligated to sell the mortgage if the mortgage loan is approved and closed by the Company. Commitments to fund mortgage loans (rate lock commitments) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in gains or losses on sales of loans. The fair value of these derivative instruments was not significant at December 31, 2019 and 2018. Servicing assets are reported in other assets and amortized in proportion to and over the period during which estimated servicing income will be received. Servicing loans for others consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and processing foreclosures. Loan servicing income is recorded when earned and represents servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The Company has fiduciary responsibility for related escrow and custodial funds. Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. For sales of mortgage loans originated by the Company, a portion of the cost of originating the loan is allocated to the servicing retained right based on fair value. Capitalized servicing rights are amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Remaining servicing rights are charged against income upon payoff of the loan. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. LOANS HELD-FOR-SALE Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Unrealized gains are recognized but only to the extent of previous write-downs. AUTOMOBILE LEASING Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest on automobile direct finance leasing is determined using the interest method. Generally, the interest method is used to arrive at a level effective yield over the life of the lease . The lease residual and the lease receivable, net of unearned lease income, are recorded within loans and leases on the balance sheet. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through a provision for loan losses. The allowance represents an amount which, in management’s judgment, will be adequate to absorb losses on existing loans. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of the loans. These evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, collateral value, overall portfolio quality and review of specific loans for impairment. Management applies two primary components during the estimation process to determine proper allowance levels; a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated based on historical charge-off history and qualitative factor adjustments for trends or changes in the loan portfolio. Delinquencies, changes in lending policies and local economic conditions are some of the items used for the qualitative factor adjustments. Loans considered uncollectible are charged against the allowance. Recoveries on loans previously charged off are added to the allowance. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case by case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. The risk characteristics of each of the identified portfolio segments are as follows: Commercial and industrial loans (C&I): C&I loans are primarily based on the identified historic and/or the projected cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower, however, do fluctuate based on changes in the Company’s internal and external environment including management, human and capital resources, economic conditions, competition and regulation. Most C&I loans are secured by business assets being financed such as equipment, accounts receivable, and/or inventory and generally incorporate a secured or unsecured personal guarantee. Unsecured loans may be made on a short-term basis. The ability of the borrower to collect amounts due from its customers and perform under the terms of its loan may be affected by its customers’ economic and financial condition. Commercial real estate loans (CRE): Commercial real estate loans are made to finance the purchase of real estate, refinance existing obligations and/or to provide capital. These commercial real estate loans are generally secured by first lien security interests in the real estate as well as assignment of leases and rents. The real estate may include apartments, hotels, retail stores or plazas and healthcare facilities whether they are owner or non-owner occupied. These loans are typically originated in amounts of no more than 80% of the appraised value of the property. The ability of the borrower to collect amounts due from its customers and perform under the terms of its loan may be affected by its customers’ or lessees customers’ economic and financial condition. Consumer loans: The Company offers home equity installment loans and lines of credit. Risks associated with loans secured by residential properties are generally lower than commercial real estate loans and include general economic risks, such as the strength of the job market, employment stability and the strength of the housing market. Since most loans are secured by a primary or secondary residence or an automobile, the borrower’s continued employment is considered the greatest risk to repayment. The Company also offers a variety of loans to individuals for personal and household purposes. These loans are generally considered to have greater risk than mortgages on real estate because they may be unsecured, or if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value than real estate. Residential mortgage loans: Residential mortgages are secured by a first lien position of the borrower’s residential real estate. These loans have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Since most loans are secured by a primary or secondary residence, the borrower’s continued employment is considered the greatest risk to repayment. Residential mortgages have terms up to thirty years with amortizations varying from 10 to 30 years. The majority of the loans are underwritten according to FNMA and/or FHLB standards. TRANSFER OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: the assets have been isolated from the Company—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership; the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. LOAN FEES AND COSTS Nonrefundable loan origination fees and certain direct loan origination costs are recognized as a component of interest income over the life of the related loans as an adjustment to yield. The unamortized balance of the deferred fees and costs are included as components of the loan balances to which they relate. BANK PREMISES AND EQUIPMENT Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improved property. The Company leases several branches which are classified as operating leases. The Company also leases three stand-alone ATMs which are classified as operating leases and equipment which is classified as capital leases. In most circumstances, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Rent expense is recognized on the straight-line method over the term of the lease. BANK OWNED LIFE INSURANCE The Company maintains bank owned life insurance (BOLI) for a selected group of employees, namely its officers where the Company is the owner and sole beneficiary of the policies. The earnings from the BOLI are recognized as a component of other income in the consolidated statements of income. The BOLI is an asset that can be liquidated, if necessary, with tax consequences. However, the Company intends to hold these policies and, accordingly, the Company has not provided for deferred income taxes on the earnings from the increase in the cash surrender value. EMPLOYEE BENEFITS The Company holds separate supplemental executive retirement (SERP) agreements for certain officers and an amount is credited to each participant’s SERP account monthly while they are actively employed by the bank until retirement. A deferred tax asset is provided for the non-deductible SERP expense. The Company also entered into separate split dollar life insurance arrangements with four executives providing post-retirement benefits and accrues monthly expense for this benefit. Monthly expenses for the SERP and post-retirement split dollar life benefit are recorded as components of salaries and employee benefit expense on the consolidated statements of income. FORECLOSED ASSETS HELD-FOR-SALE Foreclosed assets held-for-sale are carried at the lower of cost or fair value less cost to sell. Foreclosed assets held-for-sale is primarily other real estate owned, but also includes other repossessed assets. Losses from the acquisition of property in full and partial satisfaction of debt are treated as credit losses. Routine holding costs, gains and losses from sales, write-downs for subsequent declines in value and any rental income received are recognized net, as a component of other real estate owned expense in the consolidated statements of income. Gains or losses are recorded when the properties are sold. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, including bank premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment is indicated by that review, the asset is written down to its estimated fair value through a charge to non-interest expense. GOODWILL Goodwill is recorded on the consolidated balance sheets as the excess of liabilities assumed over identifiable assets acquired on the acquisition date. Goodwill is recorded at its net carrying value which represents estimated fair value. The goodwill is deductible for tax purposes over a 15 year period. Goodwill is reviewed for impairment annually as of November 30 and between annual tests when events and circumstances indicate that impairment may have occurred. Goodwill impairment exists when the carrying amount of a reporting unit exceeds its fair value. A qualitative test can be performed to determine whether it is more likely than not that the fair value of the Company is less than its carrying amount, including goodwill. In this qualitative assessment, the Company evaluates events and circumstances which include general banking industry conditions and trends, the overall financial performance of the Company, the performance of the Company’s common stock and key financial performance metrics of the Company. If the qualitative review indicates that it is not more likely than not that the carrying value exceeds its fair value, no further evaluation needs to be performed. If the results of the qualitative review indicate it is more likely than not that the fair value is less than the carrying value, then the Company performs a quantitative impairment test. During 2019, the Company determined it is not more likely than not that the carrying value exceeds its carrying value therefore no quantitative analysis was necessary. STOCK PLANS The Company has two stock-based compensation plans. The Company accounts for these plans under the recognition and measurement accounting principles, which requires the cost of share-based payment transactions be recognized in the financial statements. The stock-based compensation accounting guidance requires that compensation cost for stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. Compensation cost is recognized on a straight-line basis over the requisite service period. When granting stock-settled stock appreciation rights (SSARs), the Company uses Black-Scholes-Merton valuation model to determine fair value on the date of grant. TRUST AND FINANCIAL SERVICE FEES Trust and financial service fees are recorded on the cash basis, which is not materially different from the accrual basis. ADVERTISING COSTS Advertising costs are charged to expense as incurred. LEGAL AND PROFESSIONAL EXPENSES Generally, the Company recognizes legal and professional fees as incurred and are included as a component of professional services expense in the consolidated statements of income. Legal costs incurred that are associated with the collection of outstanding amounts due from delinquent borrowers are included as a component of loan collection expense in the consolidated statements of income. In the event of litigation proceedings brought about by an employee or third party against the Company, expenses for damages will be accrued if the likelihood of the outcome against the Company is probable, the amount can be reasonably estimated and the amount would have a material impact on the financial results of the Company. INCOME TAXES Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The benefit of a tax position is recognized on the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for the years ended December 31, 2019, 2018 or 20 17, respectively. COMPREHENSIVE INCOME (LOSS) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). CASH FLOWS For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. |
Cash
Cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash [Abstract] | |
Cash | 2. CASH The Company is required by the Federal Reserve Bank to maintain average reserve balances based on a percentage of deposits. The amounts of those reserve requirements on December 31, 2019 and 2018 were $0.7 million and $1.4 million, respectively. Deposits with any one financial institution are insured up to $250,000 . From time-to-time, the Company may maintain cash and cash equivalents with certain other financial institutions in excess of the insured amount. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 3. A CCUMULATED OTHER COMPREHENSIVE INCOME The following tables illustrate the changes in accumulated other comprehensive income by component and the details about the components of accumulated other comprehensive income as of and for the periods indicated: As of and for the year ended December 31, 2019 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ (1,095) Other comprehensive income before reclassifications, net of tax 4,708 Amounts reclassified from accumulated other comprehensive income, net of tax (11) Net current-period other comprehensive income 4,697 Ending balance $ 3,602 As of and for the year ended December 31, 2018 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,804 Other comprehensive loss before reclassifications, net of tax (2,470) Amounts reclassified from accumulated other comprehensive income, net of tax (8) Effect of adopting ASU 2016-01, net of tax* (421) Net current-period other comprehensive loss (2,899) Ending balance $ (1,095) *The Company adopted ASU 2016-01 on January 1, 2018. As a result, unrealized gains on equity securities were reclassified from accumulated other comprehensive income to retained earnings. As of and for the year ended December 31, 2017 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,381 Other comprehensive income before reclassifications, net of tax 29 Amounts reclassified from accumulated other comprehensive income, net of tax 97 Effect of adopting ASU 2018-02* 297 Net current-period other comprehensive income 423 Ending balance $ 1,804 *The Company elected to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act at the end of 2017 according to ASU 2018-02. These stranded tax effects were related to the adjustment made to retained earnings at the end of 2017 to re-measure the deferred tax liability for unrealized gains on available for sale securities at the new tax rate effective January 1, 2018. Details about accumulated other comprehensive income components Amount reclassified from accumulated Affected line item in the statement (dollars in thousands) other comprehensive income where net income is presented 2019 2018 2017 Unrealized gains (losses) on AFS debt securities $ 14 $ 10 $ (147) Gain (loss) on sale of investment securities Income tax effect (3) (2) 50 Provision for income taxes Total reclassifications for the period $ 11 $ 8 $ (97) Net income |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities [Abstract] | |
Investment Securities | 4. INVESTMENT SECURITIES Agency – Government-sponsored enterprise (GSE) and Mortgage-backed securities (MBS) - GSE residential Agency – GSE and MBS – GSE residential securities consist of short- to long-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), FNMA, FHLB and Government National Mortgage Association (GNMA). These securities have interest rates that are fixed and adjustable, have varying short to long-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government. Obligations of states and political subdivisions The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues. Amortized cost and fair value of investment securities as of the period indicated are as follows: Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2019 Available-for-sale debt securities: Agency - GSE $ 5,941 $ 218 $ - $ 6,159 Obligations of states and political subdivisions 51,857 2,871 (10) 54,718 MBS - GSE residential 122,759 1,609 (128) 124,240 Total available-for-sale debt securities $ 180,557 $ 4,698 $ (138) $ 185,117 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2018 Available-for-sale debt securities: Agency - GSE $ 5,926 $ 8 $ (17) $ 5,917 Obligations of states and political subdivisions 51,603 1,259 (287) 52,575 MBS - GSE residential 126,667 266 (2,615) 124,318 Total available-for-sale debt securities $ 184,196 $ 1,533 $ (2,919) $ 182,810 The Company adopted ASU 2016-01, Financial Instruments – Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018. The Company sold all of its equity securities during the first half of 2018. Some of the Company’s debt securities are pledged to secure trust funds, public deposits, short-term borrowings, FHLB advances, Federal Reserve Bank of Philadelphia Discount Window borrowings and certain other deposits as required by law. The amortized cost and fair value of debt securities at December 31, 2019 by contractual maturity are shown below: Amortized Fair (dollars in thousands) cost value Available-for-sale securities: Debt securities: Due in one year or less $ 3,499 $ 3,530 Due after one year through five years 6,853 7,136 Due after five years through ten years 1,002 1,003 Due after ten years 46,444 49,208 MBS - GSE residential 122,759 124,240 Total available-for-sale debt securities $ 180,557 $ 185,117 Actual maturities will differ from contractual maturities because issuers and borrowers may have the right to call or repay obligations with or without call or prepayment penalty. Agency – GSE and municipal securities are included based on their original stated maturity. MBS – GSE residential, which are based on weighted-average lives and subject to monthly principal pay-downs, are listed in total. Most of the securities have fixed rates or have predetermined scheduled rate changes and many have call features that allow the issuer to call the security at par before its stated maturity without penalty. Gross realized gains and losses from sales, determined using specific identification, for the periods indicated were as follows: December 31, (dollars in thousands) 2019 2018 2017 Gross realized gain $ 104 $ 114 $ - Gross realized loss (90) (60) (147) Net gain (loss) $ 14 $ 54 $ (147) The following table presents the fair value and gross unrealized losses of investments aggregated by investment type, the length of time and the number of securities that have been in a continuous unrealized loss position as of the period indicated: Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses December 31, 2019 Obligations of states and political subdivisions $ 2,867 $ (10) $ - $ - $ 2,867 $ (10) MBS - GSE residential 5,084 (19) 16,518 (109) 21,602 (128) Total $ 7,951 $ (29) $ 16,518 $ (109) $ 24,469 $ (138) Number of securities 5 12 17 December 31, 2018 Agency - GSE $ 3,937 $ (17) $ - $ - $ 3,937 $ (17) Obligations of states and political subdivisions 6,123 (91) 8,447 (196) 14,570 (287) MBS - GSE residential 25,612 (353) 74,864 (2,262) 100,476 (2,615) Total $ 35,672 $ (461) $ 83,311 $ (2,458) $ 118,983 $ (2,919) Number of securities 31 69 100 The Company had seventeen debt securities in an unrealized loss position at December 31 , 2019, including fourteen mortgage-backed securities and t hree municipal securities. The severity of these unrealized losses based on their underlying cost basis was as follows at December 31 , 2019: 0. 59 % for total MBS-GSE; and 0. 34 % for municipals. Of these securities, twelve mortgage-backed securities had been in an unrealized loss position in excess of 12 months. The changes in the prices on these securities in an unrealized loss position in excess of 12 months are the result of interest rate movement and management believes they are temporary in nature. Management believes the cause of the unrealized losses is related to changes in interest rates, instability in the capital markets or the limited trading activity due to illiquid conditions in the debt market and is not directly related to credit quality. Quarterly, management conducts a formal review of investment securities for the presence of other than temporary impairment (OTTI). The accounting guidance related to OTTI requires the Company to assess whether OTTI is present when the fair value of a debt security is less than its amortized cost as of the balance sheet date. Under those circumstances, OTTI is considered to have occurred if: (1) the entity has the intent to sell the security; (2) more likely than not the entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost. The accounting guidance requires that credit-related OTTI be recognized in earnings while non-credit-related OTTI on securities not expected to be sold be recognized in other comprehensive income (OCI). Non-credit-related OTTI is based on other factors affecting market value, including illiquidity. The Company’s OTTI evaluation process also follows the guidance set forth in topics related to debt securities. The guidance set forth in the pronouncements require the Company to take into consideration current market conditions, fair value in relationship to cost, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, current analysts’ evaluations, all available information relevant to the collectability of debt securities, the ability and intent to hold investments until a recovery of fair value which may be to maturity and other factors when evaluating for the existence of OTTI. The guidance requires that credit-related OTTI be recognized as a realized loss through earnings when there has been an adverse change in the holder’s expected cash flows such that the full amount (principal and interest) will probably not be received. This requirement is consistent with the impairment model in the guidance for accounting for debt securities. For all debt securities, as of December 31 , 2019, the Company applied the criteria provided in the recognition and presentation guidance related to OTTI. That is, management has no intent to sell the securities and nor any conditions were identified by management that, more likely than not, would require the Company to sell the securities before recovery of their amortized cost basis. The results indicated there was no presence of OTTI in the Company’s security portfolio. In addition, management believes the change in fair value is attributable to changes in interest rates . |
Loans And Leases
Loans And Leases | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases [Abstract] | |
Loans And Leases | 5. LOANS AND LEASES The classifications of loans and leases at December 31, 2019 and 2018 are summarized as follows: (dollars in thousands) 2019 2018 Commercial and industrial $ 122,594 $ 126,884 Commercial real estate: Non-owner occupied 99,801 95,515 Owner occupied 130,558 124,092 Construction 4,654 6,761 Consumer: Home equity installment 36,631 32,729 Home equity line of credit 47,282 52,517 Auto loans 105,870 105,576 Direct finance leases 16,355 17,004 Other 5,634 6,314 Residential: Real estate 167,164 145,951 Construction 17,770 15,749 Total 754,313 729,092 Less: Allowance for loan losses (9,747) (9,747) Unearned lease revenue (903) (1,028) Loans and leases, net $ 743,663 $ 718,317 Net deferred loan costs of $3.0 million and $2.6 million have been included in the carrying values of loans at December 31, 2019 and 2018, respectively. Direct finance leases include the lease receivable and the guaranteed lease residual. Unearned lease revenue represents the difference between the lessor’s investment in the property and the gross investment in the lease. Unearned revenue is accrued over the life of the lease using the effective interest method. The Company services real estate loans for investors in the secondary mortgage market which are not included in the accompanying consolidated balance sheets. The approximate unpaid principal balance of mortgages serviced amounted to $302.3 million as of December 31, 2019 and $304.9 million as of December 31, 2018. Mortgage servicing rights amounted to $1.0 million and $1.1 million as of December 31, 2019 and 2018, respectively. Management is responsible for conducting the Company’s credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The Company utilizes an external independent loan review firm that reviews and validates the credit risk program on at least an annual basis. Results of these reviews are presented to management and the board of directors. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. Non-accrual loans The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. C&I and CRE loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged-off when the loan is 90 days or more past due as to principal and interest. The Company considers all non-accrual loans to be impaired loans. Non-accrual loans, segregated by class, at December 31, were as follows: (dollars in thousands) 2019 2018 Commercial and industrial $ 336 $ 156 Commercial real estate: Non-owner occupied 510 472 Owner occupied 1,447 1,634 Consumer: Home equity installment 65 463 Home equity line of credit 294 34 Auto loans 16 25 Residential: Real estate 1,006 1,514 Total $ 3,674 $ 4,298 Troubled Debt Restructuring A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company considers all TDRs to be impaired loans. The Company typically considers the following concessions when modifying a loan, which may include lowering interest rates below the market rate, temporary interest-only payment periods, term extensions at interest rates lower than the current market rate for new debt with similar risk and/or converting revolving credit lines to term loans. The Company typically does not forgive principal when granting a TDR modification. Of the TDRs outstanding as of December 31, 2019 and 2018, when modified, the concessions granted consisted of temporary interest-only payments, extensions of maturity date, or a reduction in the rate of interest to a below-market rate for a contractual period of time. Other than the TDRs that were placed on non-accrual status, the TDRs were performing in accordance with their modified terms. The following presents by class, information related to loans modified in a TDR: Loans modified as TDRs for the twelve months ended: (dollars in thousands) December 31, 2019 December 31, 2018 Recorded Increase in Recorded Increase in Number investment allowance Number investment allowance of (as of (as of of (as of (as of contracts period end) period end) contracts period end) period end) Consumer home equity installment - $ - $ - 1 $ 413 $ 356 Residential real estate - - - 1 316 - Total - $ - $ - 2 $ 729 $ 356 In the above table, the period end balance is inclusive of all partial pay downs and charge-offs since the modification date. For all loans modified in a TDR, the pre-modification recorded investment was the same as the post-modification recorded investment. Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following a modification) during the periods indicated: Loans modified as a TDR within the previous twelve months that subsequently defaulted during the twelve months ended: (dollars in thousands) December 31, 2019 December 31, 2018 Number of Recorded Number of Recorded contracts investment contracts investment Consumer home equity installment - $ - 1 $ 413 Residential real estate - - 1 316 Total - $ - 2 $ 729 In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. The allowance for loan losses (allowance) may be increased, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. An allowance for impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price. If the loan is collateral dependent, the estimated fair value of the collateral is used to establish the allowance. As of December 31, 2019 and 2018, respectively, the allowance for impaired loans that have been modified in a TDR was $0.2 million and $0.8 million, respectively. Past due loans Loans are considered past due when the contractual principal and/or interest is not received by the due date. For loans reported 30-59 days past due, certain categories of loans are reported past due as and when the loan is in arrears for two payments or billing cycles. An aging analysis of past due loans, segregated by class of loans, as of the period indicated is as follows (dollars in thousands): Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2019 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 33 $ 171 $ 336 $ 540 $ 122,054 $ 122,594 $ - Commercial real estate: Non-owner occupied - 70 510 580 99,221 99,801 - Owner occupied 180 89 1,447 1,716 128,842 130,558 - Construction - - - - 4,654 4,654 - Consumer: Home equity installment - 5 65 70 36,561 36,631 - Home equity line of credit 49 - 294 343 46,939 47,282 - Auto loans 316 46 16 378 105,492 105,870 - Direct finance leases 59 79 - 138 15,314 15,452 (2) - Other 15 1 - 16 5,618 5,634 - Residential: Real estate 29 224 1,006 1,259 165,905 167,164 - Construction - - - - 17,770 17,770 - Total $ 681 $ 685 $ 3,674 $ 5,040 $ 748,370 $ 753,410 $ - (1) Includes non-accrual loans. (2) Net of unearned lease revenue of $0.9 million. (3) Includes net deferred loan costs of $3.0 million. Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2018 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 1,711 $ 135 $ 156 $ 2,002 $ 124,882 $ 126,884 $ - Commercial real estate: Non-owner occupied 388 113 472 973 94,542 95,515 - Owner occupied 263 513 1,634 2,410 121,682 124,092 - Construction - - - - 6,761 6,761 - Consumer: Home equity installment 50 182 463 695 32,034 32,729 - Home equity line of credit 725 175 34 934 51,583 52,517 - Auto loans 262 86 25 373 105,203 105,576 - Direct finance leases 116 - - 116 15,860 15,976 (2) - Other 79 10 1 90 6,224 6,314 1 Residential: Real estate 557 573 1,514 2,644 143,307 145,951 - Construction - - - - 15,749 15,749 - Total $ 4,151 $ 1,787 $ 4,299 $ 10,237 $ 717,827 $ 728,064 $ 1 (1) Includes non-accrual loans. (2) Net of unearned lease revenue of $1.0 million. (3) Includes net deferred loan costs of $2.6 million. Impaired loans A loan is considered impaired when, based on current information and events; it is probable that the Company will be unable to collect the payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. At December 31, 2019, impaired loans totaled $4.7 million consisting of $1.0 million in accruing TDRs and $3.7 million in non-accrual loans. At December 31, 2018, impaired loans totaled $6.1 million consisting of $1.8 million in accruing TDRs and $4.3 million in non-accrual loans. As of December 31, 2019, the non-accrual loans included two TDRs to two unrelated borrowers totaling $0.6 million compared with four TDRs to three unrelated borrowers totaling $1.7 million as of December 31, 2018. Impaired loans, segregated by class, as of the period indicated are detailed below: Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2019 Commercial and industrial $ 336 $ 336 $ - $ 336 $ 221 Commercial real estate: Non-owner occupied 1,047 333 591 924 232 Owner occupied 2,336 1,052 972 2,024 194 Consumer: Home equity installment 106 - 65 65 - Home equity line of credit 362 88 206 294 87 Auto loans 32 - 16 16 - Residential: - Real estate 1,053 678 328 1,006 174 Total $ 5,272 $ 2,487 $ 2,178 $ 4,665 $ 908 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2018 Commercial and industrial $ 251 $ 156 $ 24 $ 180 $ 41 Commercial real estate: Non-owner occupied 1,176 715 269 984 36 Owner occupied 3,266 1,473 1,455 2,928 559 Consumer: Home equity installment 496 414 49 463 356 Home equity line of credit 74 33 1 34 16 Auto loans 31 17 8 25 10 Residential: Real estate 2,091 29 1,485 1,514 2 Total $ 7,385 $ 2,837 $ 3,291 $ 6,128 $ 1,020 The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon. December 31, 2019 December 31, 2018 Cash basis Cash basis Average Interest interest Average Interest interest recorded income income recorded income income (dollars in thousands) investment recognized recognized investment recognized recognized Commercial and industrial $ 226 $ 1 $ - $ 192 $ 2 $ - Commercial real estate: Non-owner occupied 914 185 - 1,976 98 - Owner occupied 2,504 40 - 2,578 77 - Construction - - - 107 205 - Consumer: Home equity installment 129 2 - 373 5 - Home equity line of credit 184 - - 140 10 - Auto Loans 39 - - 31 3 - Other - - - 4 - - Residential: Real estate 1,212 19 - 1,322 37 - Total $ 5,208 $ 247 $ - $ 6,723 $ 437 $ - The average recorded investment for the year ended December 31, 2017 was $9.3 million. There was also interest income recognized of $482 thousand and cash basis interest income recognized of $0 . Credit Quality Indicators Commercial and industrial and commercial real estate The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the C&I and CRE portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the C&I and CRE portfolios. The following is a description of each risk rating category the Company uses to classify each of its C&I and CRE loans: Pass Loans in this category have an acceptable level of risk and are graded in a range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be competent, and a reasonable succession plan is evident. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality. Special Mention Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Cash flow may not be sufficient to support total debt service requirements. Substandard Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Other loans that are included in the substandard category can be accruing, as well as loans that are current or past due. Loans 90 days or more past due, unless otherwise fully supported, are classified substandard. Also, borrowers that are bankrupt or have loans categorized as TDRs can be graded substandard. Doubtful Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term. Many of the weaknesses present in a substandard loan exist. Liquidation of collateral, if any, is likely. Any loan graded lower than an eight is considered to be uncollectible and charged-off. Consumer and residential The consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. For these portfolios, the Company utilizes payment activity and history in assessing performance. Non-performing loans are comprised of non-accrual loans and loans past due 90 days or more and accruing. All loans not classified as non-performing are considered performing. The following table presents loans including $3.0 million and $2.6 million of deferred costs, segregated by class, categorized into the appropriate credit quality indicator category as of December 31, 2019 and 2018, respectively: Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2019 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 115,585 $ 2,061 $ 4,948 $ - $ 122,594 Commercial real estate - non-owner occupied 92,016 1,360 6,425 - 99,801 Commercial real estate - owner occupied 121,887 2,065 6,606 - 130,558 Commercial real estate - construction 3,687 17 950 - 4,654 Total commercial $ 333,175 $ 5,503 $ 18,929 $ - $ 357,607 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2019 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 36,566 $ 65 $ 36,631 Home equity line of credit 46,988 294 47,282 Auto loans 105,854 16 105,870 Direct finance leases (1) 15,452 - 15,452 Other 5,634 - 5,634 Total consumer 210,494 375 210,869 Residential Real estate 166,158 1,006 167,164 Construction 17,770 - 17,770 Total residential 183,928 1,006 184,934 Total consumer & residential $ 394,422 $ 1,381 $ 395,803 (1) Net of unearned lease revenue of $ 0.9 million. Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2018 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 125,272 $ 334 $ 1,278 $ - $ 126,884 Commercial real estate - non-owner occupied 90,373 938 4,204 - 95,515 Commercial real estate - owner occupied 116,577 1,685 5,830 - 124,092 Commercial real estate - construction 6,761 - - - 6,761 Total commercial $ 338,983 $ 2,957 $ 11,312 $ - $ 353,252 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2018 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 32,266 $ 463 $ 32,729 Home equity line of credit 52,483 34 52,517 Auto loans 105,551 25 105,576 Direct finance leases (2) 15,976 - 15,976 Other 6,313 1 6,314 Total consumer 212,589 523 213,112 Residential Real estate 144,437 1,514 145,951 Construction 15,749 - 15,749 Total residential 160,186 1,514 161,700 Total consumer & residential $ 372,775 $ 2,037 $ 374,812 (2) Net of unearned lease revenue of $1.0 million. Allowance for loan losses Management continually evaluates the credit quality of the Company’s loan portfolio and performs a formal review of the adequacy of the allowance on a quarterly basis. The allowance reflects management’s best estimate of the amount of credit losses in the loan portfolio. Management’s judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received. Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows: § identification of specific impaired loans by loan category; § identification of specific loans that are not impaired, but have an identified potential for loss; § calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence; § determination of loans with similar credit characteristics within each class of the loan portfolio segment and eliminating the impaired loans; § application of historical loss percentages (trailing twelve-quarter average) to pools to determine the allowance allocation; § application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. § Qualitative factor adjustments include: o levels of and trends in delinquencies and non-accrual loans; o levels of and trends in charge-offs and recoveries; o trends in volume and terms of loans; o changes in risk selection and underwriting standards; o changes in lending policies and legal and regulatory requirements; o experience, ability and depth of lending management; o national and local economic trends and conditions; and o changes in credit concentrations. Allocation of the allowance for different categories of loans is based on the methodology as explained above. A key element of the methodology to determine the allowance is the Company’s credit risk evaluation process, which includes credit risk grading of individual C&I and CRE loans. C&I and CRE loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The credit risk grades for the C&I and CRE loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades. The loss factors applied are based upon the Company’s historical experience as well as what we believe to be best practices and common industry standards. Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs. The changes in allocations in the C&I and CRE loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies. Each quarter, management performs an assessment of the allowance. The Company’s Special Assets Committee meets quarterly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount, if applicable, based on current accounting guidance. The Special Assets Committee’s focus is on ensuring the pertinent facts are considered regarding not only loans considered for specific reserves, but also the collectability of loans that may be past due in payment. The assessment process also includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company’s Credit Administration function have assigned a criticized or classified risk rating. The Company’s policy is to charge-off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged-off at the point in time when the Company deems the balance, or a portion thereof, to be uncollectible. Information related to the change in the allowance for loan losses and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: As of and for the year ended December 31, 2019 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,432 $ 3,901 $ 2,548 $ 1,844 $ 22 $ 9,747 Charge-offs (184) (597) (398) (330) - (1,509) Recoveries 32 317 67 8 - 424 Provision 204 312 (204) 756 17 1,085 Ending balance $ 1,484 $ 3,933 $ 2,013 $ 2,278 $ 39 $ 9,747 Ending balance: individually evaluated for impairment $ 221 $ 426 $ 87 $ 174 $ - $ 908 Ending balance: collectively evaluated for impairment $ 1,263 $ 3,507 $ 1,926 $ 2,104 $ 39 $ 8,839 Loans Receivables: Ending balance (2) $ 122,594 $ 235,013 $ 210,869 (1) $ 184,934 $ - $ 753,410 Ending balance: individually evaluated for impairment $ 336 $ 2,948 $ 375 $ 1,006 $ - $ 4,665 Ending balance: collectively evaluated for impairment $ 122,258 $ 232,065 $ 210,494 $ 183,928 $ - $ 748,745 (1) Net of unearned lease revenue of $0.9 million. (2) Includes $3.0 million of net deferred loan costs. As of and for the year ended December 31, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Charge-offs (196) (268) (391) (371) - (1,226) Recoveries 77 42 211 - - 330 Provision 177 67 665 607 (66) 1,450 Ending balance $ 1,432 $ 3,901 $ 2,548 $ 1,844 $ 22 $ 9,747 Ending balance: individually evaluated for impairment $ 41 $ 595 $ 382 $ 2 $ - $ 1,020 Ending balance: collectively evaluated for impairment $ 1,391 $ 3,306 $ 2,166 $ 1,842 $ 22 $ 8,727 Loans Receivables: Ending balance (2) $ 126,884 $ 226,368 $ 213,112 (1) $ 161,700 $ - $ 728,064 Ending balance: individually evaluated for impairment $ 180 $ 3,912 $ 522 $ 1,514 $ - $ 6,128 Ending balance: collectively evaluated for impairment $ 126,704 $ 222,456 $ 212,590 $ 160,186 $ - $ 721,936 (1) Net of unearned lease revenue of $1.0 million. (2) Includes $2.6 million of net deferred loan costs. As of and for the year ended December 31, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,075 $ 4,706 $ 1,834 $ 1,622 $ 127 $ 9,364 Charge-offs (143) (635) (658) (309) - (1,745) Recoveries 10 47 67 - - 124 Provision 432 (58) 820 295 (39) 1,450 Ending balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Direct finance leases On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) , and subsequent related updates to revise the accounting for leases. Additionally, the Company early adopted ASU 2019-01, Codification Improvements , as of January 1, 2019. See Footnote 19, “Recent accounting pronouncements,” for additional information about adoption of these standards. Lessor accounting was largely unchanged as a result of the standard. Upon adoption of the standard, the lease residual was reclassified from other assets to direct finance leases within loans and leases in the current period and all comparative periods. Additional disclosures required under the standard are included in this section and in Footnote 24, “Leases”. The Company originates direct finance leases through two automobile dealerships. The carrying amount of the Company’s lease receivables, net of unearned income, was $4.7 million and $4.9 million as of December 31, 2019 and 2018, respectively. The residual value of the direct finance leases is fully guaranteed by the dealerships. Residual values amounted to $10.8 million and $11.1 million at December 31, 2019 and 2018, respectively, and are included in the carrying value of direct finance leases. The undiscounted cash flows to be received on an annual basis for the direct finance leases are as follows: (dollars in thousands) Amount 2020 $ 6,505 2021 5,072 2022 3,379 2023 1,299 2024 100 2025 and thereafter - Total future minimum lease payments receivable 16,355 Less: Unearned income (903) Undiscounted cash flows to be received $ 15,452 |
Bank Premises And Equipment
Bank Premises And Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Bank Premises And Equipment [Abstract] | |
Bank Premises And Equipment | 6. BANK PREMISES AND EQUIPMENT Components of bank premises and equipment are summarized as follows: As of December 31, (dollars in thousands) 2019 2018 Land $ 2,865 $ 2,865 Bank premises 14,123 13,902 Furniture, fixtures and equipment 12,523 11,075 Leasehold improvements 9,372 7,263 Construction in process 559 631 Total 39,442 35,736 Less accumulated depreciation and amortization (17,885) (16,816) Bank premises and equipment, net $ 21,557 $ 18,920 Depreciation expense, which includes amortization of leasehold improvements, was $1.5 million, $1.3 million and $1.3 million for the years ended December 31, 2019, 2018 and 2017. The estimated useful life was 40 years for bank premises, 3 to 7 years for furniture and fixtures and for leasehold improvements was the term of the lease. During the first quarter of 2014, the Company received through foreclosure the deed that secured the collateral for a non-owner occupied commercial real estate loan that was on non-accrual status. The loan, in the amount $1.0 million, was transferred from loans to foreclosed assets held-for-sale and then to bank premises. Currently the building has a tenant under a lease agreement expiring in 2021 , but the Company expects to use the property for future facility expansion. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | 7. DEPOSITS The scheduled maturities of certificates of deposit as of December 31, 2019 were as follows: (dollars in thousands) Amount Percent 2020 $ 86,159 74.1 % 2021 18,026 15.5 2022 7,368 6.3 2023 1,145 1.0 2024 2,401 2.1 2025 and thereafter 1,112 1.0 Total $ 116,211 100.0 % Certificates of deposit of $100,000 or more aggregated $70.7 million and $66.9 million as of December 31, 2019 and 2018, respectively. Certificates of deposit of $250,000 or more aggregated $44.5 million and $38.4 million at December 31, 2019 and 2018, respectively. As of December 31, 2019 , investment securities with a combined fair value of $185.1 million and letters of credit with a notional value of $32.3 million were available to be pledged as qualifying collateral to secure public deposits and trust funds. The Company required $99.7 million of the qualifying collateral to secure such deposits as of December 31, 2019 and the balance of $117.7 million was available for other pledging needs . |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Borrowings [Abstract] | |
Short-Term Borrowings | 8. SHORT-TERM BORROWINGS The components of short-term borrowings are summarized as follows: As of December 31, (dollars in thousands) 2019 2018 Overnight borrowings $ 37,839 $ 76,366 The maximum and average amounts of short-term borrowings outstanding and related interest rates as of the periods indicated are as follows: Maximum Weighted- outstanding average at any Average rate during Rate at (dollars in thousands) month end outstanding the year year-end December 31, 2019 Overnight borrowings $ 58,747 $ 35,243 2.49 % 1.81 % Total $ 58,747 $ 35,243 December 31, 2018 Overnight borrowings $ 76,366 $ 27,893 2.38 % 2.62 % Repurchase agreements 22,202 9,666 0.16 - Total $ 98,568 $ 37,559 December 31, 2017 Overnight borrowings $ 46,737 $ 18,399 1.09 % 1.56 % Repurchase agreements 17,179 10,274 0.20 0.18 Total $ 63,916 $ 28,673 Overnight borrowings may include Fed funds purchased from correspondent banks, open repurchase agreements with the FHLB and borrowings at the Discount Window from the Federal Reserve Bank of Philadelphia (FRB). Securities sold under agreements to repurchase, or repurchase agreements, are non-insured interest-bearing liabilities that have a perfected security interest in qualified investment securities of the Company. Repurchase agreements are reflected at the amount of cash received in connection with the transaction. The carrying value of the underlying qualified investment securities was approximately $12.2 million at December 31, 2017. During the fourth quarter of 2018, the Company transferred all of the repurchase agreement accounts to interest-bearing checking accounts. FHLB borrowings are collateralized by a blanket lien on all commercial and residential real estate loans. At December 31, 2019, the Company had approximately $202.8 million available to borrow from the FHLB , $21.0 million from correspondent banks and approximately $94.3 million that it could borrow at the FRB. |
FHLB Advances
FHLB Advances | 12 Months Ended |
Dec. 31, 2019 | |
FHLB Advances [Abstract] | |
FHLB Advances | 9. FHLB ADVANCES During the third quarter of 2018, the Company utilized $15.0 million in borrowings with the FHLB to purchase securities matching a spread expected to produce a suitable after-tax return. The maturity and weighted-average interest rate of FHLB advances as of the periods indicated is as follows: As of December 31, 2019 (dollars in thousands) Amount Rate 2020 $ - - % 2021 5,000 2.95 2022 5,000 2.99 2023 5,000 3.07 2024 - - Total $ 15,000 3.01 % |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2019 | |
Stock Plans [Abstract] | |
Stock Plans | 10. STOCK PLANS The Company has two stock-based compensation plans (the stock compensation plans) from which it can grant stock-based compensation awards and applies the fair value method of accounting for stock-based compensation provided under current accounting guidance. The guidelines require the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. The Company’s stock compensation plans were shareholder-approved and permit the grant of share-based compensation awards to its employees and directors. The Company believes that the stock-based compensation plans will advance the development, growth and financial condition of the Company by providing incentives through participation in the appreciation in the value of the Company’s common stock. In return, the Company hopes to secure, retain and motivate the employees and directors who are responsible for the operation and the management of the affairs of the Company by aligning the interest of its employees and directors with the interest of its shareholders. In the stock compensation plans, employees and directors are eligible to be awarded stock-based compensation grants which can consist of stock options (qualified and non-qualified), stock appreciation rights (SARs) and restricted stock. At the 2012 annual shareholders’ meeting, the Company’s shareholders approved and the Company adopted the 2012 Omnibus Stock Incentive Plan and the 2012 Director Stock Incentive Plan (collectively, the 2012 stock incentive plans). The 2012 stock incentive plans replaced both the expired 2000 Independent Directors Stock Option Plan and the 2000 Stock Incentive Plan (collectively, the 2000 stock incentive plans). Unless terminated by the Company’s board of directors, the 2012 stock incentive plans will expire on and no stock-based awards shall be granted after the year 2022 . In each of the 2012 stock incentive plans, the Company has reserved 750,000 shares of its no-par common stock for future issuance. The Company recognizes share-based compensation expense over the requisite service or vesting period. During 2015, the Company created a Long-Term Incentive Plan (LTIP) that awarded restricted stock and stock-settled stock appreciation rights (SSARs) to senior officers based on the attainment of performance goals. The service requirement is the participant’s continued employment throughout the LTIP with a three -year vesting period. The restricted stock has a two -year post vesting holding period requirement. The SSAR awards have a ten -year term from the date of each grant. The Company granted restricted stock and SSARs in February 2016 based on 2015 performance, in February 2017 based on 2016 performance and in February 2018 based on 2017 performance and 2015-2017 3 -year cumulative performance. During the first quarter of 2019, the Company approved a 1 year LTIP and awarded restricted stock and SSARs to senior officers and managers in February 2019 based on 2018 performance. The following table summarizes the weighted-average fair value and vesting of restricted stock grants awarded during 2019, 2018 and 2017 under the 2012 stock incentive plans: 2019 2018 2017 Weighted- Weighted- Weighted- average average average Shares grant date Shares grant date Shares grant date granted fair value granted fair value granted fair value Director plan 5,600 (3) $ 54.69 8,400 (3) $ 49.50 8,400 (2) $ 26.17 Omnibus plan 7,251 (3) 54.69 10,800 (3) 45.83 4,749 (3) 23.93 Omnibus plan 50 (1) 58.08 50 (1) 49.50 75 (1) 26.17 Total 12,901 $ 54.70 19,250 $ 47.44 13,224 $ 25.36 (1) Vest after 1 year ( 2 ) Vest over 2 years – 50 % each year (3) Vest over 3 years – 33% each year The fair value of the 5,600 and 7,251 shares granted on February 5, 2019 was calculated using the grant date stock price with a discount valuation. The Chaffe model was used to calculate the discount. Since the shares vest over three years and then have a further two -year holding period, the historical volatility of the five years prior to the issue date was used to estimate volatility. The five -year treasury yield was used as the interest rate. The Company does pay a dividend, but since the shareholder will receive the dividends during vesting and the post-vest restriction period, no dividend yield was used in the calculation as not to inflate the discount. The grant date stock price was $59.70 and the discount of 8.393% was calculated using an interest rate of 2.494% and a 5 -year historical volatility of 19.411% . A summary of the status of the Company’s non-vested restricted stock as of and changes during the period indicated are presented in the following table: 2012 Stock incentive plans Director Omnibus Total Weighted- average grant date fair value Non-vested balance at December 31, 2016 8,400 13,562 21,962 $ 20.31 Granted 8,400 4,824 13,224 25.36 Forfeited - - - Vested (8,400) (6,082) (14,482) 20.47 Non-vested balance at December 31, 2017 8,400 12,304 20,704 $ 23.59 Granted 8,400 10,850 19,250 47.44 Forfeited - - - Vested (4,200) (5,794) (9,994) 23.69 Non-vested balance at December 31, 2018 12,600 17,360 29,960 $ 38.99 Granted 5,600 7,301 12,901 54.70 Forfeited - (126) (126) 54.69 Vested (7,000) (8,574) (15,574) 33.81 Non-vested balance at December 31, 2019 11,200 15,961 27,161 $ 49.48 The Company granted 11,073 SSARs under the Omnibus Plan on February 5, 2019. The Company estimated the fair value of SSARs using the Black-Scholes-Merton valuation model on the grant date. The Company used the following assumptions: the risk-free interest rate is the rate equivalent to the expected term of the option interpolated from the U.S. Treasury Yield Curve on the valuation date and historical volatility is calculated by taking the standard deviation of historical returns using weekly and monthly data. The fair value of these SSARs was $16.79 per share, based on a risk-free interest rate of 2.692% , a dividend yield of 1.628% and a volatility of 23.732% using an expected term of ten years. A summary of the status of the Company’s SSARs as of and changes during the period indicated are presented in the following table: Awards Weighted-average grant date fair value Weighted-average remaining contractual term (years) Outstanding December 31, 2016 29,014 $ 3.48 9.1 Granted 24,346 5.06 10.0 Exercised - - Forfeited - - Outstanding December 31, 2017 53,360 $ 4.20 8.5 Granted 38,941 13.73 10.0 Exercised (3,051) 4.03 Forfeited - - Outstanding December 31, 2018 89,250 $ 8.36 8.2 Granted 11,073 16.79 10.0 Exercised (3,059) 3.48 Forfeited - - Outstanding December 31, 2019 97,264 $ 9.47 7.5 Of the SSARs outstanding at December 31, 2019, 52,112 vested and were exercisable. SSARs vest over a three year period – 33% per year. During 2019, there were 3,059 SSARs exercised. The intrinsic value recorded for these SSARs was $10,631 . The tax deduction realized from the exercise of these SSARs was $108,134 resulting in a tax benefit of $22,708 . During 2018, there were 3,051 SSARs exercised. The intrinsic value recorded for these SSARs was $12,288 . The tax deduction realized from the exercise of these SSARs was $122,969 resulting in a tax benefit of $25,823 . Share-based compensation expense is included as a component of salaries and employee benefits in the consolidated statements of income. The following tables illustrate stock-based compensation expense recognized on non-vested equity awards during the years ended December 31, 2019, 2018 and 2017 and the unrecognized stock-based compensation expense as of December 31, 2019: (dollars in thousands) 2019 2018 2017 Stock-based compensation expense: Director stock incentive plan $ 240 $ 237 $ 116 Omnibus stock incentive plan 611 500 194 Employee stock purchase plan 107 143 23 Total stock-based compensation expense $ 958 $ 880 $ 333 In addition, during 2019, 2018 and 2017 the Company reversed accruals of ( $0.1 million), ( $0.1 million) and accrued $0.2 million in stock-based compensation expense for restricted stock and SSARs to be awarded under the Omnibus Plan. As of (dollars in thousands) December 31, 2019 Unrecognized stock-based compensation expense: Director plan $ 364 Omnibus plan 781 Total unrecognized stock-based compensation expense $ 1,145 The unrecognized stock-based compensation expense as of December 31, 2019 will be recognized ratably over the periods ended January 2022 and January 2022 for the Director Plan and the Omnibus Plan, respectively. Transactions under the Company’s stock option plans as of and changes during the periods indicated are presented in the following table: Options Weighted-average exercise price Weighted-average remaining contractual term (years) Outstanding and exercisable, December 31, 2016 22,500 $ 19.12 1.0 Granted - - Exercised (21,750) 19.14 Forfeited - - Outstanding and exercisable, December 31, 2017 750 $ 18.50 0.2 Granted - - Exercised (750) 18.50 Forfeited - - Outstanding and exercisable, December 31, 2018 - $ - - During the first quarter of 2018, there were 750 stock options exercised at a price of $18.50 per share. The intrinsic value of these stock options was $2,585 . The tax deduction realized from the exercise of these options was $22,875 resulting in a tax benefit of $4,804 . During 2017, there were 21,750 stock options exercised at a price of $19.14 per share. The intrinsic value of these stock options was $79,715 . The tax deduction realized from the exercise of these options was $363,392 resulting in a tax benefit of $123,553 . As of December 31 , 2019, there were no stock options outstanding. In addition to the 2012 stock incentive plans, the Company established the 2002 Employee Stock Purchase Plan (the ESPP) and reserved 165,000 shares of its un-issued capital stock for issuance under the plan. The ESPP was designed to promote broad-based employee ownership of the Company’s stock and to motivate employees to improve job performance and enhance the financial results of the Company. Under the ESPP, participation is voluntary whereby employees use automatic payroll withholdings to purchase the Company’s capital stock at a discounted price based on the fair market value of the capital stock as measured on either the commencement or termination dates, as defined. As of December 31 , 2019, 81,019 shares have been issued under the ESPP. The ESPP is considered a compensatory plan and is required to comply with the provisions of current accounting guidance. The Company recognizes compensation expense on its ESPP on the date the shares are purchased, and it is included as a component of salaries and employee benefits in the consolidated statements of income. The Company also established the dividend reinvestment plan (the DRP) for its shareholders. The DRP is designed to avail the Company’s stock at no transactional cost to its shareholders. Cash dividends paid to shareholders who are enrolled in the DRP plus voluntary cash deposits received can be used to purchase shares, directly from the Company, from shares that become available in the open market or in negotiated transactions with third parties. The Company has reserved 750,000 shares of its un-issued capital stock for issuance under the DRP. As of December 31, 2019, there were 591,730 shares available for future issuance. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 11. INCOME TAXES Pursuant to the accounting guidelines related to income taxes, the Company has evaluated its material tax positions as of December 31, 2019 and 2018. Under the “more-likely-than-not” threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. In periods subsequent to December 31, 2019, determinations of potentially adverse material tax positions will be evaluated to determine whether an uncertain tax position may have previously existed or has been originated. In the event an adverse tax position is determined to exist, penalty and interest will be accrued, in accordance with the Internal Revenue Service (IRS) guidelines, and will be recorded as a component of other expenses in the Company’s consolidated statements of income. As of December 31, 2019, there were no unrecognized tax benefits that, if recognized, would significantly affect the Company’s effective tax rate. Also, there were no penalties and interest recognized in the consolidated statements of income in 2019, 2018 and 2017 as a result of management’s evaluation of whether an uncertain tax position may exist nor does the Company foresee a change in its material tax positions that would give rise to the non-recognition of an existing tax benefit during the forthcoming twelve months. Tax returns filed with the IRS are subject to review by law under a three-year statute of limitations. The Company has not received notification from the IRS regarding adverse tax issues for the current year or from tax returns filed for tax years 2018, 2017 or 2016. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The bill reduced the Company’s federal corporate income tax rate from 34% to 21% effective January 1, 2018. An adjustment of $1.1 million was made in December 2017 to re-measure the net deferred tax liability at the new tax rate. The following temporary differences gave rise to the net deferred tax liability, a component of other assets in the consolidated balance sheets, as of the periods indicated: As of December 31, (dollars in thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,047 $ 2,047 Net unrealized losses on available-for-sale securities - 291 Deferred interest from non-accrual assets 149 167 Operating lease liabilities 1,377 - Other 556 697 Total 4,129 3,202 Deferred tax liabilities: Net unrealized gains on available-for-sale securities (958) - Loan fees and costs (1,248) (1,151) Automobile leasing (3,463) (3,393) Operating lease right-of-use assets (1,265) - Depreciation (685) (416) Mortgage loan servicing rights (211) (241) Total (7,830) (5,201) Deferred tax liability, net $ (3,701) $ (1,999) The components of the total provision for income taxes for the years indicated are as follows: Years ended December 31, (dollars in thousands) 2019 2018 2017 Current $ 1,985 $ 1,110 $ 1,872 Deferred 341 1,019 (666) Total provision for income taxes $ 2,326 $ 2,129 $ 1,206 The deferred tax liability at December 31, 2017 included a $1.1 million credit to the provision for income taxes for the effects of the Tax Cuts and Jobs Act. The reconciliation between the expected statutory income tax and the actual provision for income taxes is as follows: Years ended December 31, (dollars in thousands) 2019 2018 2017 Expected provision at the statutory rate $ 2,919 $ 2,758 $ 3,373 Tax-exempt income (592) (567) (845) Bank owned life insurance (136) (126) (198) Nondeductible interest expense 37 18 19 Nondeductible other expenses and other, net 98 43 (59) Tax rate change adjustment - 3 (1,084) Actual provision for income taxes $ 2,326 $ 2,129 $ 1,206 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plan [Abstract] | |
Retirement Plan | 12. RETIREMENT PLAN The Company has a defined contribution profit sharing 401(k) plan covering substantially all of its employees. The plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Contributions to the plan approximated $0.5 million, $0.4 million and $0.4 million in 2019, 2018 and 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 13. FAIR VALUE MEASUREMENTS The accounting guidelines establish a framework for measuring and disclosing information about fair value measurements. The guidelines of fair value reporting instituted a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; Level 3 - inputs are unobservable and are based on the Company’s own assumptions to measure assets and liabilities at fair value. Level 3 pricing for securities may also include unobservable inputs based upon broker-traded transactions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company uses fair value to measure certain assets and, if necessary, liabilities on a recurring basis when fair value is the primary measure for accounting. Thus, the Company uses fair value for AFS securities. Fair value is used on a non-recurring basis to measure certain assets when adjusting carrying values to market values, such as impaired loans, other real estate owned (ORE) and other repossessed assets. The following table represents the carrying amount and estimated fair value of the Company’s financial instruments: December 31, 2019 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 15,663 $ 15,663 $ 15,663 $ - $ - Available-for-sale debt securities 185,117 185,117 - 185,117 - FHLB stock 4,383 4,383 - 4,383 - Loans and leases, net 743,663 735,657 - - 735,657 Loans held-for-sale 1,643 1,660 - 1,660 - Accrued interest receivable 3,281 3,281 - 3,281 - Financial liabilities: Deposits with no stated maturities 719,526 719,526 - 719,526 - Time deposits 116,211 115,993 - 115,993 - Short-term borrowings 37,839 37,839 - 37,839 - FHLB advances 15,000 15,430 - 15,430 - Accrued interest payable 644 644 - 644 - December 31, 2018 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 17,485 $ 17,485 $ 17,485 $ - $ - Available-for-sale debt securities 182,810 182,810 - 182,810 - FHLB stock 6,339 6,339 - 6,339 - Loans and leases, net 718,317 697,729 - - 697,729 Loans held-for-sale 5,707 5,789 - 5,789 - Accrued interest receivable 3,271 3,271 - 3,271 - Financial liabilities: Deposits with no stated maturities 653,897 653,897 - 653,897 - Time deposits 116,286 114,876 - 114,876 - Short-term borrowings 76,366 76,366 - 76,366 - FHLB advances 31,704 31,698 - 31,698 - Accrued interest payable 530 530 - 530 - The carrying value of short-term financial instruments, as listed below, approximates their fair value. These instruments generally have limited credit exposure, no stated or short-term maturities, carry interest rates that approximate market and generally are recorded at amounts that are payable on demand: · Cash and cash equivalents; · Non-interest bearing deposit accounts; · Savings, interest-bearing checking and money market accounts and · Short-term borrowings. Securities: Fair values on investment securities are determined by prices provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Loans and leases: The fair value of accruing loans is estimated by calculating the net present value of the future expected cash flows discounted using the exit price notion. The discount rate is based upon current offering rates, with an additional discount for expected potential charge-offs. Additionally, an environmental general credit risk adjustment is subtracted from the net present value to arrive at the total estimated fair value of the accruing loan portfolio. The carrying value that fair value is compared to is net of the allowance for loan losses and since there is significant judgment included in evaluating credit quality, loans are classified within Level 3 of the fair value hierarchy. Non-accrual loans: Loans which the Company has measured as non-accruing are 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. These loans are classified within Level 3 of the fair value hierarchy. The fair value consists of loan balances less the valuation allowance. Loans held-for-sale: The fair value of loans held-for-sale is estimated using rates currently offered for similar loans and is typically obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank of Pittsburgh (FHLB). Certificates of deposit: The fair value of certificates of deposit is based on discounted cash flows using rates which approximate market rates for deposits of similar maturities. FHLB advances: Fair value is estimated using the rates currently offered for similar borrowings. The following tables illustrate the financial instruments measured at fair value on a recurring basis segregated by hierarchy fair value levels as of the periods indicated: Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2019 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 6,159 $ - $ 6,159 $ - Obligations of states and political subdivisions 54,718 - 54,718 - MBS - GSE residential 124,240 - 124,240 - Total available-for-sale debt securities $ 185,117 $ - $ 185,117 $ - Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2018 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 5,917 $ - $ 5,917 $ - Obligations of states and political subdivisions 52,575 - 52,575 - MBS - GSE residential 124,318 - 124,318 - Total available-for-sale debt securities $ 182,810 $ - $ 182,810 $ - Debt securities in the AFS portfolio are measured at fair value using market quotations provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Assets classified as Level 2 use valuation techniques that are common to bond valuations. That is, in active markets whereby bonds of similar characteristics frequently trade, quotes for similar assets are obtained. For the periods ending December 31, 2019 and December 31, 2018, there were no transfers to or from Level 1 and Level 2 fair value measurements for financial assets measured on a recurring basis. There were no changes in Level 3 financial instruments measured at fair value on a recurring basis as of and for the periods ending December 31, 2019 and December 31, 2018, respectively. The following table illustrates the financial instruments measured at fair value on a non-recurring basis segregated by hierarchy fair value levels as of the periods indicated: Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2019 (Level 1) (Level 2) (Level 3) Impaired loans $ 1,579 $ - $ - $ 1,579 Other real estate owned 350 - - 350 Other repossessed assets 20 - - 20 Total $ 1,949 $ - $ - $ 1,949 Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2018 (Level 1) (Level 2) (Level 3) Impaired loans $ 1,817 $ - $ - $ 1,817 Other real estate owned 184 - - 184 Total $ 2,001 $ - $ - $ 2,001 From time-to-time, the Company may be required to record at fair value financial instruments on a non-recurring basis, such as impaired loans, ORE and other repossessed assets. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting on write downs of individual assets. The following describes valuation methodologies used for financial instruments measured at fair value on a non-recurring basis. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for loan losses, and as such are carried at the lower of net recorded investment or the estimated fair value. Estimates of fair value of the collateral are determined based on a variety of information, including available valuations from certified appraisers for similar assets, present value of discounted cash flows and inputs that are estimated based on commonly used and generally accepted industry liquidation advance rates and estimates and assumptions developed by management. Valuation techniques for impaired loans are typically determined through independent appraisals of the underlying collateral or may be determined through present value of discounted cash flows. Both techniques include various Level 3 inputs which are not identifiable. The valuation technique may be adjusted by management for estimated liquidation expenses and qualitative factors such as economic conditions. If real estate is not the primary source of repayment, present value of discounted cash flows and estimates using generally accepted industry liquidation advance rates and other factors may be utilized to determine fair value. At December 31, 2019 and 2018, the range of liquidation expenses and other valuation adjustments applied to impaired loans ranged from -21.56% to -84.98% and from -16.70% to -57.89% , respectively. The weighted average of liquidation expenses and other valuation adjustments applied to impaired loans amounted to -29.11% as of December 31, 2019 and -44.42% as of December 31, 2018, respectively. Due to the multitude of assumptions, many of which are subjective in nature, and the varying inputs and techniques used to determine fair value, the Company recognizes that valuations could differ across a wide spectrum of techniques employed. Accordingly, fair value estimates for impaired loans are classified as Level 3. For ORE, fair value is generally determined through independent appraisals of the underlying properties which generally include various Level 3 inputs which are not identifiable. Appraisals form the basis for determining the net realizable value from these properties. Net realizable value is the result of the appraised value less certain costs or discounts associated with liquidation which occurs in the normal course of business. Management’s assumptions may include consideration of the location and occupancy of the property, along with current economic conditions. Subsequently, as these properties are actively marketed, the estimated fair values may be periodically adjusted through incremental subsequent write-downs. These write-downs usually reflect decreases in estimated values resulting from sales price observations as well as changing economic and market conditions. At December 31, 2019 and December 31, 2018, the discounts applied to the appraised values of ORE ranged from -26.94% and -89.48% and from -18.47% to -68.96% , respectively. As of December 31, 2019, and December 31, 2018, the weighted average of discount to the appraisal values of ORE amounted to -48.65% and -45.83% , respectively. At December 31, 2019, other repossessed assets consisted of two automobiles, totaling $20 thousand. The Company refers to the National Automobile Dealers Association (NADA) guide to determine a vehicle’s fair value. There were no other repossessed assets at December 31, 2018. Financial Instruments with Off-Balance Sheet Risk The Company 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 standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of the Company’s involvement in particular classes of financial instruments. Because of the nature of these instruments, the fair values of these off-balance sheet items are not material. The notional amount of the Company’s financial instruments with off-balance sheet risk was as follows: December 31, (dollars in thousands) 2019 2018 Off-balance sheet financial instruments: Commitments to extend credit $ 143,558 $ 144,710 Standby letters of credit 7,287 2,690 Commitments to Extend Credit and Standby Letters of Credit The Company’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company on extension of credit, is based on management’s credit assessment of the customer. Financial standby letters of credit are conditional commitments issued by the Company to guarantee performance of a customer to a third party. Those guarantees are issued primarily to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The Company’s performance under the guarantee is required upon presentation by the beneficiary of the financial standby letter of credit. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company was not required to recognize any liability in connection with the issuance of these financial standby letters of credit. The following table summarizes outstanding financial letters of credit as of December 31, 2019: More than Less than one year to Over five (dollars in thousands) one year five years years Total Secured by: Collateral $ 3,149 $ 363 $ 1,007 $ 4,519 Bank lines of credit 2,405 - - 2,405 5,554 363 1,007 6,924 Unsecured 363 - - 363 Total $ 5,917 $ 363 $ 1,007 $ 7,287 The Company has no t incu rred losses on its commitments in 2019, 2018 or 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. EARNINGS PER SHARE Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options and stock-settled stock appreciation rights (SSARs), dilution would occur if Company-issued stock options or SSARs were exercised and converted into common stock. As of the years ended December 31, 2019, 2018 and 2017, there were 32,091 , 29,301 and 14,300 potentially dilutive shares related to issued and unexercised stock options and SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 10,720 , 13,893 and 9,619 potentially dilutive shares related to unvested restricted share grants as of the years ended December 31, 2019, 2018 and 2017, respectively. In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and SSARs and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include amounts received from the exercise of outstanding stock options and compensation cost for future service that the Company has not yet recognized in earnings. The Company does not consider awards from share-based grants in the computation of basic EPS. The following table illustrates the data used in computing basic and diluted EPS for the years indicated: Years ended December 31, 2019 2018 2017 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 11,576 $ 11,006 $ 8,716 Weighted-average common shares outstanding 3,779,582 3,752,704 3,711,490 Basic EPS $ 3.06 $ 2.93 $ 2.35 Diluted EPS: Net income available to common shareholders $ 11,576 $ 11,006 $ 8,716 Weighted-average common shares outstanding 3,779,582 3,752,704 3,711,490 Potentially dilutive common shares 42,811 43,194 23,919 Weighted-average common and potentially dilutive shares outstanding 3,822,393 3,795,898 3,735,409 Diluted EPS $ 3.03 $ 2.90 $ 2.33 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | 15. REGULATORY MATTERS The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Under these guidelines, assets and certain off-balance sheet items are assigned to broad risk categories, each with appropriate weights. The resulting capital ratios represent capital as a percentage of total risk-weighted assets. The guidelines require all banks and bank holding companies to maintain a minimum ratio of total risk-based capital to total risk-weighted assets (Total Risk Adjusted Capital) of 8% , including Tier I common equity to total risk-weighted assets (Tier I Common Equity) of 4.5% , Tier I capital to total risk-weighted assets (Tier I Capital) of 6% and Tier I capital to average total assets (Leverage Ratio) of at least 4% . A capital conservation buffer, comprised of common equity Tier I capital, is also established above the regulatory minimum capital requirements rising up to 2.50% by 2019. As of December 31, 2019 and 2018, the Company and the Bank exceeded all capital adequacy requirements to which it was subject. The following table reflects the actual and required capital and the related capital ratios as of the periods indicated. No amounts were deducted from capital for interest-rate risk in either 2019 or 2018. For capital adequacy To be well capitalized For capital purposes with capital under prompt corrective Actual adequacy purposes conservation buffer* action provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total capital (to risk-weighted assets) Consolidated $ 111,910 15.8% ≥ $ 56,796 8.0% ≥ $ 74,545 10.5% N/A N/A Bank $ 112,188 15.8% ≥ $ 56,791 8.0% ≥ $ 74,538 10.5% ≥ $ 70,989 10.0% Tier 1 common equity (to risk-weighted assets) Consolidated $ 103,024 14.5% ≥ $ 31,948 4.5% ≥ $ 49,696 7.0% N/A N/A Bank $ 103,303 14.6% ≥ $ 31,945 4.5% ≥ $ 49,692 7.0% ≥ $ 46,143 6.5% Tier I capital (to risk-weighted assets) Consolidated $ 103,024 14.5% ≥ $ 42,597 6.0% ≥ $ 60,346 8.5% N/A N/A Bank $ 103,303 14.6% ≥ $ 42,593 6.0% ≥ $ 60,340 8.5% ≥ $ 56,791 8.0% Tier I capital (to average assets) Consolidated $ 103,024 10.4% ≥ $ 39,650 4.0% ≥ $ 39,650 4.0% N/A N/A Bank $ 103,303 10.3% ≥ $ 40,265 4.0% ≥ $ 40,265 4.0% ≥ $ 50,331 5.0% As of December 31, 2018: Total capital (to risk-weighted assets) Consolidated $ 103,201 14.8% ≥ $ 55,975 8.0% ≥ $ 69,094 9.9% N/A N/A Bank $ 103,313 14.8% ≥ $ 55,970 8.0% ≥ $ 69,088 9.9% ≥ $ 69,962 10.0% Tier 1 common equity (to risk-weighted assets) Consolidated $ 94,442 13.5% ≥ $ 31,486 4.5% ≥ $ 44,605 6.4% N/A N/A Bank $ 94,554 13.5% ≥ $ 31,483 4.5% ≥ $ 44,601 6.4% ≥ $ 45,475 6.5% Tier I capital (to risk-weighted assets) Consolidated $ 94,442 13.5% ≥ $ 41,981 6.0% ≥ $ 55,100 7.9% N/A N/A Bank $ 94,554 13.5% ≥ $ 41,977 6.0% ≥ $ 55,095 7.9% ≥ $ 55,970 8.0% Tier I capital (to average assets) Consolidated $ 94,442 9.8% ≥ $ 38,593 4.0% ≥ $ 38,593 4.0% N/A N/A Bank $ 94,554 9.8% ≥ $ 38,591 4.0% ≥ $ 38,591 4.0% ≥ $ 48,238 5.0% * The minimums under Basel III increased by 0.625% (the capital conservation buffer) annually until 2019. The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations and Pennsylvania law limit the amount of dividends that may be paid from the Bank to the Company without prior approval of regulatory agencies. Accordingly, at December 31, 2019, approximately $94.7 million was available for dividend distribution from the Bank to the Company in 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. RELATED PARTY TRANSACTIONS During the ordinary course of business, loans are made to executive officers, directors, greater than 5% shareholders and associates of such persons. These transactions are executed on substantially the same terms and at the rates prevailing at the time for comparable transactions with others. These loans do not involve more than the normal risk of collectability or present other unfavorable features. A summary of loan activity with officers, directors, associates of such persons and shareholders who own more than 5% of the Company’s outstanding shares is as follows: Years ended December 31, (dollars in thousands) 2019 2018 2017 Balance, beginning $ 6,542 $ 6,497 $ 7,849 Additions 1,864 1,314 1,111 Collections (1,641) (1,269) (2,463) Balance, ending $ 6,765 $ 6,542 $ 6,497 As of December 31, 2019, 2018 and 2017, deposits from executive officers and directors approximated $14.8 million, $14.4 million and $14.3 million, respectively. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | 17. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following is a summary of quarterly results of operations for the years indicated: 2019 First Second Third Fourth (dollars in thousands except per share data) quarter quarter quarter quarter Total Interest income $ 9,655 $ 9,657 $ 10,008 $ 9,949 $ 39,269 Interest expense (1,745) (1,863) (2,008) (1,938) (7,554) Net interest income 7,910 7,794 8,000 8,011 31,715 Provision for loan losses (255) (255) (320) (255) (1,085) Gain (loss) on sale of investment securities (4) - (2) 20 14 Other income 2,461 2,489 2,634 2,595 10,179 Other expenses (6,770) (6,435) (6,643) (7,073) (26,921) Income before taxes 3,342 3,593 3,669 3,298 13,902 Provision for income taxes (540) (591) (611) (584) (2,326) Net income $ 2,802 $ 3,002 $ 3,058 $ 2,714 $ 11,576 Net income per share - basic $ 0.74 $ 0.79 $ 0.82 $ 0.71 $ 3.06 Net income per share - diluted $ 0.73 $ 0.79 $ 0.80 $ 0.71 $ 3.03 2018 First Second Third Fourth (dollars in thousands except per share data) quarter quarter quarter quarter Total Interest income $ 8,143 $ 8,535 $ 9,028 $ 9,624 $ 35,330 Interest expense (884) (1,012) (1,317) (1,660) (4,873) Net interest income 7,259 7,523 7,711 7,964 30,457 Provision for loan losses (300) (425) (400) (325) (1,450) Gain (loss) on write-down/sale of investment securities (58) 107 5 - 54 Other income 2,341 2,264 2,278 2,263 9,146 Other expenses (6,208) (6,162) (6,172) (6,530) (25,072) Income before taxes 3,034 3,307 3,422 3,372 13,135 Provision for income taxes (506) (539) (559) (525) (2,129) Net income $ 2,528 $ 2,768 $ 2,863 $ 2,847 $ 11,006 Net income per share - basic $ 0.67 $ 0.74 $ 0.76 $ 0.76 $ 2.93 Net income per share - diluted $ 0.67 $ 0.73 $ 0.75 $ 0.75 $ 2.90 2017 First Second Third Fourth (dollars in thousands except per share data) quarter quarter quarter quarter Total Interest income $ 7,366 $ 7,854 $ 7,928 $ 7,916 $ 31,064 Interest expense (688) (787) (882) (866) (3,223) Net interest income 6,678 7,067 7,046 7,050 27,841 Provision for loan losses (325) (225) (375) (525) (1,450) Loss on sale of investment securities - - - (147) (147) Other income 2,105 2,131 2,248 2,029 8,513 Other expenses (5,797) (6,051) (6,035) (6,953) (24,836) Income before taxes 2,661 2,922 2,884 1,455 9,922 (Provision) credit for income taxes (681) (739) (658) 872 (1,206) Net income $ 1,980 $ 2,183 $ 2,226 $ 2,327 $ 8,716 Net income per share - basic $ 0.53 $ 0.59 $ 0.60 $ 0.63 $ 2.35 Net income per share - diluted $ 0.53 $ 0.59 $ 0.60 $ 0.61 $ 2.33 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Contingencies [Abstract] | |
Contingencies | 18. CONTINGENCIES The nature of the Company’s business generates litigation involving matters arising in the ordinary course of business. However, in the opinion of management of the Company after consulting with the Company’s legal counsel, no legal proceedings are pending, which, if determined adversely to the Company or the Bank, would have a material effect on the Company’s shareholders’ equity or results of operations. No legal proceedings are pending other than ordinary routine litigation incident to the business of the Company and the Bank. In addition, to management’s knowledge, no government authorities have initiated or contemplated any material legal actions against the Company or the Bank. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 19. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (CECL) . The amendments in this update require financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. Previously, when credit losses were measured under GAAP, an entity only considered past events and current conditions when measuring the incurred loss. The amendments in this update broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgement in determining the relevant information and estimation methods that are appropriate under the circumstances. The amendments in this update also require that credit losses on available-for-sale debt securities be presented as an allowance for credit losses rather than a writedown. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326 , which clarifies that receivables arising from operating leases are not within the scope of Topic 326. In December 2018, regulators issued a final rule related to regulatory capital (Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments to Other Regulations) which is intended to provide regulatory capital relief for entities transitioning to CECL. 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 . As it relates to CECL, this guidance amends certain provisions contained in ASU 2016-13, particularly in regards to the inclusion of accrued interest in the definition of amortized cost, as well as clarifying that extension and renewal options that are not unconditionally cancelable by the entity that are included in the original or modified contract should be considered in the entity’s determination of expected credit losses. The amendments in this update are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019 for public companies. Early adoption is permitted beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption (modified-retrospective approach). Upon adoption, the change in this accounting guidance could result in an increase in the Company's allowance for loan losses and require the Company to record loan losses more rapidly. The Company has engaged the services of a qualified third-party service provider to assist management in estimating credit allowances under this standard and is currently evaluating the impact of ASU 2016-13 on its consolidated financial statements. On October 16, 2019, the FASB decided to move forward with finalizing its proposal to defer the effective date for ASU 2016-13 for smaller reporting companies to fiscal years beginning after December 31, 2022, including interim periods within those fiscal periods. Since the Company currently meets the SEC definition of a smaller reporting company, the delay will be applicable to the Company. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 requires the recognition of a right-of-use asset and related lease liability by lessees for leases classified as operating leases under GAAP. The Company made an election to exclude leases less than 12 months from the provisions of this ASU. The Company also elected the “package of practical expedients” which allowed us not to reassess, under the new standard, lease classification, lease identification and initial direct costs. The Company had several lease agreements, such as branch locations, which were considered operating leases, and therefore not recognized on the Company’s consolidated balance sheets. The Company adopted this standard on January 1, 2019 and made an adjustment to add $4.1 million to the consolidated balance sheet as a right-of-use-asset, $4.6 million as a lease liability and reduced equity by ( $0.1 million). There was not any significant effect on the consolidated statements of income. See Footnote 24, Leases, for more information regarding the adoption of this standard. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842) Targeted Improvements to clarify how to apply certain aspects of ASU 2016-02 and to simplify adoption and reduce costs. ASU 2018-11 allows companies the option to apply the provisions of the new lease standard prospectively as of the effective date, without adjusting comparative periods, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company used this additional transition method. The amendments in this update are effective upon adoption of Topic 842. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors to assist stakeholders with implementation questions and issues on certain issues. The amendments in this update are effective upon adoption of Topic 842. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements to clarify three issues brought to the FASB’s attention through interactions with stakeholders: Determining the fair value of the underlying assets by lessors that are not manufacturers or dealers; presentation on the statement of cash flows –sales-type and direct financing leases; and transition disclosures related to Topic 250, Accounting Changes and Error Corrections. The transition and effective date provisions for this update apply to issue 1 and 2. The amendments in this update are effective for the Company for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this standard during the first quarter of 2019 and it did not have any significant effect on the Company’s financial statements. |
Parent Company Only
Parent Company Only | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Only [Abstract] | |
Parent Company Only | 20. PARENT COMPANY ONLY The following is the condensed financial information for Fidelity D & D Bancorp, Inc. on a parent company only basis as of and for the years indicated: Condensed Balance Sheets As of December 31, (dollars in thousands) 2019 2018 Assets: Cash $ 63 $ 232 Investment in subsidiary 107,115 93,669 Other assets 107 106 Total $ 107,285 $ 94,007 Liabilities and shareholders' equity: Liabilities $ 449 $ 450 Capital stock and retained earnings 103,234 94,652 Accumulated other comprehensive income (loss) 3,602 (1,095) Total $ 107,285 $ 94,007 Condensed Income Statements Years ended December 31, (dollars in thousands) 2019 2018 2017 Income: Equity in undistributed earnings of subsidiary $ 8,839 $ 9,273 $ 6,685 Dividends from subsidiary 4,037 2,723 2,574 Gain on sale of investment securities - 44 - Other income - 11 22 Total income 12,876 12,051 9,281 Operating expenses 1,598 1,269 1,094 Income before taxes 11,278 10,782 8,187 Credit for income taxes 298 224 529 Net income $ 11,576 $ 11,006 $ 8,716 Statements of Comprehensive Income Years ended December 31, (dollars in thousands) 2019 2018 2017 Bancorp net loss $ (1,300) $ (990) $ (542) Equity in net income of subsidiary 12,876 11,996 9,258 Net income 11,576 11,006 8,716 Other comprehensive income (loss), before tax: Unrealized holding gains on available-for-sale securities - - 197 Tax effect - - (67) Unrealized gain, net of tax - - 130 Equity in other comprehensive income (loss) of subsidiary 4,697 (2,478) (4) Other comprehensive income (loss), net of tax 4,697 (2,478) 126 Total comprehensive income, net of tax $ 16,273 $ 8,528 $ 8,842 Condensed Statements of Cash Flows Years ended December 31, (dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 11,576 $ 11,006 $ 8,716 Adjustments to reconcile net income to net cash used in operations: Equity in earnings of subsidiary (12,876) (11,996) (9,258) Stock-based compensation expense 817 749 550 Deferred income tax 2 (60) (69) Gain on sale of investment securities - (44) - Changes in other assets and liabilities, net 137 12 (26) Net cash used in operating activities (344) (333) (87) Cash flows provided by investing activities: Dividends received from subsidiary 4,037 2,723 2,574 Proceeds from sales of investment securities - 871 - Net cash provided by investing activities 4,037 3,594 2,574 Cash flows used in financing activities: Dividends paid, net of dividend reinvestment (4,037) (3,397) (2,954) Exercise of stock options - 14 416 Withholdings to purchase capital stock 175 149 126 Cash paid in lieu of fractional shares - - (11) Net cash used in financing activities (3,862) (3,234) (2,423) Net change in cash (169) 27 64 Cash, beginning 232 205 141 Cash, ending $ 63 $ 232 $ 205 |
Business Combination and Pendin
Business Combination and Pending Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination and Pending Acquisition [Abstract] | |
Business Combination and Pending Acquisition | 21. BUSINESS COMBINATION AND PENDING ACQUISITION On March 17, 2017, the Company completed the acquisition of the West Scranton branch of Wayne Bank, the wholly owned banking subsidiary of Norwood Financial Corp., pursuant to the terms of the Branch Purchase and Deposit Assumption Agreement dated September 29, 2016. The Company purchased all of the deposit liabilities associated with the branch, certain loans, and the branch real estate, and immediately closed the branch and consolidated the acquired deposits and loans into its nearby West Scranton branch office. The Company expects this transaction to expand its customer base in West Scranton. The transaction has been accounted for using the acquisition method of accounting. The acquired assets and assumed liabilities were recorded at book value which also represented estimated fair value at the date of acquisition. Management made significant estimates and exercised significant judgement in estimating fair value, but the fair value adjustments were deemed immaterial to the financial statements. The Company recognized $41 thousand of acquisition-related costs during 2017. These costs were expensed as incurred and are presented in non-interest expenses on the consolidated statements of income. Costs incurred in 2017 consist principally of legal fees and other professional fees. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition: (dollars in thousands) March 17, 2017 Cash and cash equivalents $ 11,817 Loans 1,574 Bank premises and equipment 264 Goodwill 209 Accrued interest receivable and other assets 4 Total assets acquired $ 13,868 Deposits $ 13,809 Accrued interest payable and other liabilities 59 Total liabilities assumed $ 13,868 The Company acquired $1.6 million in residential and consumer loans. None of the loans that were acquired had evidence of credit quality deterioration. The Company recorded goodwill associated with the acquisition of the West Scranton branch of Wayne bank totaling $0.2 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did no t recogn ize any impairment during 2019 or 2018. For income tax purposes, goodwill will be deducted over a 15 year period. Pending Acquisition In December 2019, the Company announced an agreement and plan of reorganization to acquire MNB Corporation (“MNB”) in a transaction valued on December 6, 2019 at $78.5 million. Under the terms of the agreement, MNB shareholders will receive as consideration 1.039 shares of Fidelity common stock for each share of MNB common stock that they own as of the closing date. MNB is the holding company of Merchants Bank of Bangor (“Merchants Bank”) which operates 9 retail community banking offices in Northeastern and Eastern Pennsylvania. Subject to the terms and conditions of the agreement, MNB will merge with and into the Company and Merchants Bank will merger with and into the Bank. The merger which is subject to shareholder approval of the Company, MNB shareholder approval, regulatory approvals and other customary closing conditions, is currently expected to close in the second quarter of 2020. In 2019, the Corporation incurred merger-related expenses totaling $440 thousand related to the planned acquisition of MNB Corporation. Non-recurring costs to facilitate the anticipated merger and integrate systems in 2020 are currently estimated to be $2.4 million. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Employee Benefits | 22. EMPLOYEE BENEFITS Bank-Owned Life Insurance (BOLI) The Company has purchased single premium BOLI policies on certain officers. The policies are recorded at their cash surrender values. Increases in cash surrender values are included in non-interest income in the consolidated statements of income. In March 2019, the Company purchased an additional $2.0 million of BOLI. The policies’ cash surrender value totaled $2 3.3 million and $ 20.6 million, respectively, as of December 31, 2019 and 2018 and is reflected as an asset on the consolidated balance sheets. For the years ended December 31, 2019 and 2018, the Company has recorded income of $647 thousand and $598 thousand, respectively. Officer Life Insurance In 2017, the Bank entered into separate split dollar life insurance arrangements (Split Dollar Agreements) with eleven officers. This plan provides each officer a specified death benefit should the officer die while in the Bank’s employ. The Bank paid the insurance premiums in March 2017 and the arrangements were effective in March 2017. In March 2019, the Bank entered into a new Split Dollar Agreement with one officer. The Bank owns the policies and all cash values thereunder. Upon death of the covered employee, the agreed-upon amount of death proceeds from the policies will be paid directly to the insured’s beneficiary. As of December 31, 2019, the policies had total death benefits of $23.3 million of which $4.1 million would have been paid to the officer’s beneficiaries and the remaining $19.2 million would have been paid to the Bank. In addition, four executive officers have the opportunity to retain a split dollar benefit equal to two times their highest base salary after separation from service if the vesting requirements are met. As of December 31, 2019 and 2018, the Company accrued expenses of $107 thousand and $63 thousand for the split dollar benefit. Supplemental Executive Retirement plan (SERP) On March 29, 2017, the Bank entered into separate supplemental executive retirement agreements (individually the “SERP Agreement”) with five officers, pursuant to which the Bank will credit an amount to a SERP account established on each participant’s behalf while they are actively employed by the Bank for each calendar month from March 1, 2017 until retirement. On March 20, 2019, the Bank entered into a SERP Agreement with one officer, pursuant to which the Bank will credit an amount to a SERP account established for the participant’s behalf while they are actively employed by the Bank for each calendar month from March 1, 2019 until normal retirement age. As of December 31, 2019 and 2018, the Company accrued expenses of $1.4 million and $0.9 million in connection with the SERP. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 23. REVENUE RECOGNITION As disclosed in Footnote 19, as of January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The Company has elected to use the modified retrospective approach with prior period financial statements unadjusted and presented with historical revenue recognition methods. The implementation of the new standard had no material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. The majority of the Company’s revenues are generated through interest earned on securities and loans, which is explicitly excluded from the scope of the guidance. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, loan service charges, life insurance earnings, rental income and gains/losses on the sale of loans and securities are not in the scope of the new guidance. The main types of contracts with customers that are in the scope of the new guidance are: · Service charges on deposit accounts – Deposit service charges represent fees charged by the Company for the performance obligation of providing services to a customer’s deposit account. The transaction price for deposit services includes both fixed and variable amounts based on the Company’s fee schedules. Revenue is recognized and payment is received either at a point in time for transactional fees or on a monthly basis for non-transactional fees. · Interchange fees – Interchange fees represent fees charged by the Company for customers using debit cards. The contract is between the Company and the processor and the performance obligation is the ability of customers to use debit cards to make purchases at a point in time. The transaction price is a percentage of debit card usage and the processor pays the Company and revenue is recorded throughout the month as the performance obligations are being met. · Fees from trust fiduciary activities – Trust fees represent fees charged by the Company for the management, custody and/or administration of trusts. These are mostly monthly fees based on the market value of assets in the trust account at the prior month end. Payment is generally received a few weeks after month end through a direct charge to customers’ accounts. Estate fees are recognized and charged as the Company reaches each of six different stages of the estate administration process. · Fees from financial services – Financial service fees represent fees charged by the Company for the performance obligation of providing various services for an investment account. Revenue is recognized twice monthly for fees on sales transactions and on a monthly basis for advisory fees and quarterly for trail fees. · Gain/loss on ORE sales – Gain/loss on the sale of ORE is recognized at the closing date when the sales proceeds are received. In seller-financed ORE transactions, the contract is made subject to our normal underwriting standards and pricing. The Company does not have any obligation or right to repurchase any sales of ORE. Contract balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before the payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity already received payment (or payment is due) from the customer. The Company’s non-interest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company typically does not enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did no t have any significant contract balances. Remaining performance obligations The Company’s performance obligations have an original expected duration of less than one year and follow the relevant guidance for recognizing revenue over time. There is no variable consideration subject to constraint that is not included in information about transaction price. Contract acquisition costs In connection with the adoption of Topic 606, an entity is required to capitalize and subsequently amortize into expense, certain incremental costs of obtaining a contract if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 24 . LEASES ASU 2016-02 Leases (Topic 842) became effective for the Company on January 1, 2019. For all operating lease contracts where the Company is lessee, a right-of-use (ROU) asset and lease liability was recorded as of the effective date. The Company assumed all renewal terms will be exercised when calculating the ROU assets and lease liabilities. For leases existing at the transition date, any prepaid or deferred rent was added to the ROU asset to calculate the lease liability. The discount rate used to calculate the present value of future payments at the transition date was the Company’s incremental borrowing rate. The Company used the FHLB fixed rate borrowing rates on December 29, 2018 as the discount rate at transition. For all classes of underlying assets, the Company has elected not to record short-term leases (leases with a term of 12 months or less) on the balance sheet when the Company is lessee. Instead, the Company will recognize the lease payment on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. For all asset classes, the Company has elected, as a lessee, not to separate nonlease components from lease components and instead to account for each separate lease component and nonlease components associated with that lease component as a single lease component. Management determines if an arrangement is or contains a lease at contract inception. If an arrangement is determined to be or contains a lease, the Company recognizes a ROU asset and a lease liability when the asset is placed in service. The Company’s operating leases, where the Company is lessee, include property, land and equipment. As of December 31, 2019, six of the Company’s branch properties were leased under operating leases. In four of the branch leases, the Company leases the land from an unrelated third party, and the buildings are the Company’s own capital improvement. The Company also leases three standalone ATMs under operating leases. Additionally, the Company has two equipment leases classified as finance leases. The following is an analysis of the leased property under finance leases: Asset Balance at December 31, (dollars in thousands) 2019 2018 Equipment $ 397 $ 375 Less accumulated depreciation and amortization (117) (42) Leased property under finance leases, net $ 280 $ 333 The following is a schedule of future minimum lease payments under finance leases together with the present value of the net minimum lease payments as of December 31, 2019: (dollars in thousands) Amount 2020 $ 82 2021 82 2022 82 2023 56 2024 - 2025 and thereafter - Total minimum lease payments (a) 302 Less amount representing interest (b) (16) Present value of net minimum lease payments $ 286 (a) The future minimum lease payments have not been reduced by estimated executory costs (such as taxes and maintenance) since this amount was deemed immaterial by management. (b) Amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate upon lease inception. As of December 31, 2019, the Company leased its Green Ridge, Pittston, Peckville, Back Mountain, Mountaintop and Abington branches under the terms of operating leases. The Abington branch has variable lease payments which are calculated as a percentage of the national prime rate of interest which are expensed as incurred. (dollars in thousands) December 31, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 75 Interest on lease liabilities 10 Operating lease cost 431 Short-term lease cost 18 Variable lease cost (1) Total lease cost $ 533 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 10 Operating cash flows from operating leases (Fixed payments) $ 349 Operating cash flows from operating leases (Liability reduction) $ 85 Financing cash flows from finance leases $ 73 Right-of-use assets obtained in exchange for new finance lease liabilities $ 6,189 Right-of-use assets obtained in exchange for new operating lease liabilities $ 22 Weighted-average remaining lease term - finance leases 3.67 yrs Weighted average remaining lease term - operating leases 23.88 yrs Weighted-average discount rate - finance leases 3.07% Weighted-average discount rate - operating leases 3.78% During 2019, $498 thousand of the total lease cost is included in premises and equipment expense and $35 thousand is included in other expenses on the consolidated statements of income. Operating lease expense is recognized on a straight-line basis over the lease term. We recognized both the interest expense and amortization expense for finance leases in premises and equipment expense since the interest expense portion was immaterial. The future minimum lease payments for the Company’s branch network and equipment under operating leases that have lease terms in excess of one year as of December 31, 2019 are as follows: (dollars in thousands) Amount 2020 $ 397 2021 402 2022 408 2023 411 2024 413 2025 and thereafter 8,069 Total future minimum lease payments 10,100 Plus variable payment adjustment 97 Less amount representing interest (3,641) Present value of net future minimum lease payments $ 6,556 The Company leases seven properties, where the Company is lessor, under operating leases to unrelated parties. Four are residential properties surrounding the Main Branch that the Company leases on a month-to-month basis and are considered short-term leases. The undiscounted cash flows to be received on an annual basis for the remaining three properties under long-term operating leases are as follows: (dollars in thousands) Amount 2020 $ 194 2021 189 2022 60 2023 48 2024 51 2025 and thereafter 135 Total lease payments to be received $ 677 The Company also indirectly originates automobile leases classified as direct finance leases. See Footnote 5, “Loans and leases”, for more information about the Company’s direct finance leases. Lease income recognized from direct finance leases was included in interest income from loans and leases on the consolidated statements of income. Lease income related to operating leases is included in fees and other revenue on the consolidated statements of income. The Company only receives a variable payment for taxes from one of its lessees, but the amount is immaterial and excluded from rental income. The amount of lease income recognized on the consolidated statements of income was as follows for the periods indicated: For the years ended December 31, (dollars in thousands) 2019 2018 Lease income - direct finance leases Interest income on lease receivables $ 683 $ 580 Lease income - operating leases 239 217 Total lease income $ 922 $ 797 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of Fidelity D & D Bancorp, Inc. and its wholly-owned subsidiary, The Fidelity Deposit and Discount Bank (the Bank) (collectively, the Company). All significant inter-company balances and transactions have been eliminated in consolidation. |
Nature of Operations | NATURE OF OPERATIONS The Company provides a full range of banking, trust and financial services to individuals, small businesses and corporate customers. Its primary market areas are Lackawanna and Luzerne Counties, Pennsylvania. The Company's primary deposit products are demand deposits and interest-bearing time, money market and savings accounts. It offers a full array of loan products to meet the needs of retail and commercial customers. The Company is subject to regulation by the Federal Deposit Insurance Corporation (FDIC) and the Pennsylvania Department of Banking. |
Use of Estimates | USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the valuation of investment securities, the determination and the amount of impairment in the securities portfolios, and the related realization of the deferred tax assets related to the allowance for loan losses, other-than-temporary impairment on and valuations of investment securities. In connection with the determination of the allowance for loan losses, management generally obtains independent appraisals for significant properties, utilizes historical loss factors and applies judgement to determine qualitative factor adjustments. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near-term. However, the amount of the change that is reasonably possible cannot be estimated. The Company’s investment securities are comprised of a variety of financial instruments. The fair values of the securities are subject to various risks including changes in the interest rate environment and general economic conditions including illiquid conditions in the capital markets. Due to the increased level of these risks and their potential impact on the fair values of the securities, it is possible that the amounts reported in the accompanying financial statements could materially change in the near-term. Any credit-related impairment is included as a component of non-interest income in the consolidated income statements while non-credit-related impairment is charged to other comprehensive income, net of tax. |
Significant Group Concentration Of Credit Risk | SIGNIFICANT GROUP CONCENTRATION OF CREDIT RISK The Company originates commercial, consumer, and mortgage loans to customers primarily located in Lackawanna and Luzerne Counties of Pennsylvania. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic sector in which the Company operates. The loan portfolio does not have any significant concentrations from one industry or customer. |
Held-to-Maturity Securities | HELD-TO-MATURITY SECURITIES Debt securities, for which the Company has the positive intent and ability to hold to maturity, are reported at cost. Premiums and discounts a re amortized or accreted, as a component of interest income over the life of the related security as an adjustment to yield using the interest method. The Company did no t have any held-to-maturity securities at December 31, 2019 or 2018 . |
Trading Securities | TRADING SECURITIES Debt securities held principally for resale in the near-term, or trading securities, are recorded at their fair values. Unrealized gains and losses are included in other income. The Company did no t have investment securities held for trading purposes during 2019 or 2018. |
Available-for-Sale Securities | AVAILABLE-FOR-SALE SECURITIES Available-for-sale (AFS) securities consist of debt and equity securities classified as neither held-to-maturity nor trading and are reported at fair value. Premiums and discounts are amortized or accreted as a component of interest income over the life of the related security as an adjustment to yield using the interest method. Unrealized holding gains and losses, including non-credit-related other-than-temporary impairment (OTTI), on AFS securities are reported as a separate component of shareholders’ equity, net of deferred income taxes, until realized. The net unrealized holding gains and losses are a component of accumulated other comprehensive income. Gains and losses from sales of securities AFS are determined using the specific identification method. |
Federal Home Loan Bank Stock | FEDERAL HOME LOAN BANK STOCK The Company, is a member of the Federal Home Loan Bank system, and as such is required to maintain an investment in capital stock of the Federal Home Loan Bank of Pittsburgh (FHLB). The amount the Company is required to invest is dependent upon the relative size of outstanding borrowings the Company has with the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. |
Loans | LOANS Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at face value, net of unamortized loan fees and costs and the allowance for loan losses. Interest on residential real estate loans is recorded based on principal pay downs on an actual days basis. Commercial loan interest is accrued on the principal balance on an actual days basis. Interest on consumer loans is determined using the simple interest method. Generally, loans are placed on non-accrual status when principal or interest is past due 90 days or more. When a loan is placed on non-accrual status, all interest previously accrued but not collected is charged against current earnings. Any payments received on non-accrual loans are applied, first to the outstanding loan amounts, then to the recovery of any charged-off loan amounts. Any excess is treated as a recovery of lost interest. A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the Company grants a concession that it would not otherwise grant based on current underwriting standards. Although concessions may be made when modifying a loan, forgiveness of principal is rarely granted. |
Mortgage Banking Operations And Mortgage Servicing Rights | MORTGAGE BANKING OPERATIONS AND MORTGAGE SERVICING RIGHTS The Company sells one-to-four family residential mortgage loans on a servicing retained basis. On a loan sold where servicing was retained, the Company determines at the time of sale the value of the retained servicing rights, which represents the present value of the differential between the contractual servicing fee and adequate compensation, defined as the fee a sub-servicer would require to assume the role of servicer, after considering the estimated effects of prepayments. If material, a portion of the gain on the sale of the loan is recognized due to the value of the servicing rights, and a mortgage servicing asset is recorded. Commitments to sell one-to-four family residential mortgage loans are made primarily during the period between the intent to proceed and the closing of the mortgage loan. The timing of making these sale commitments is dependent upon the timing of the borrower’s election to lock-in the mortgage interest rate and fees prior to loan closing. Most of these sales commitments are made on a best-efforts basis whereby the Company is only obligated to sell the mortgage if the mortgage loan is approved and closed by the Company. Commitments to fund mortgage loans (rate lock commitments) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in gains or losses on sales of loans. The fair value of these derivative instruments was not significant at December 31, 2019 and 2018. Servicing assets are reported in other assets and amortized in proportion to and over the period during which estimated servicing income will be received. Servicing loans for others consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and processing foreclosures. Loan servicing income is recorded when earned and represents servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The Company has fiduciary responsibility for related escrow and custodial funds. Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. For sales of mortgage loans originated by the Company, a portion of the cost of originating the loan is allocated to the servicing retained right based on fair value. Capitalized servicing rights are amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Remaining servicing rights are charged against income upon payoff of the loan. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. |
Loans Held-for-Sale | LOANS HELD-FOR-SALE Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Unrealized gains are recognized but only to the extent of previous write-downs. |
Automobile Leasing | AUTOMOBILE LEASING Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest on automobile direct finance leasing is determined using the interest method. Generally, the interest method is used to arrive at a level effective yield over the life of the lease . The lease residual and the lease receivable, net of unearned lease income, are recorded within loans and leases on the balance sheet. |
Allowance For Loan Losses | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through a provision for loan losses. The allowance represents an amount which, in management’s judgment, will be adequate to absorb losses on existing loans. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of the loans. These evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, collateral value, overall portfolio quality and review of specific loans for impairment. Management applies two primary components during the estimation process to determine proper allowance levels; a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated based on historical charge-off history and qualitative factor adjustments for trends or changes in the loan portfolio. Delinquencies, changes in lending policies and local economic conditions are some of the items used for the qualitative factor adjustments. Loans considered uncollectible are charged against the allowance. Recoveries on loans previously charged off are added to the allowance. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case by case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. The risk characteristics of each of the identified portfolio segments are as follows: Commercial and industrial loans (C&I): C&I loans are primarily based on the identified historic and/or the projected cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower, however, do fluctuate based on changes in the Company’s internal and external environment including management, human and capital resources, economic conditions, competition and regulation. Most C&I loans are secured by business assets being financed such as equipment, accounts receivable, and/or inventory and generally incorporate a secured or unsecured personal guarantee. Unsecured loans may be made on a short-term basis. The ability of the borrower to collect amounts due from its customers and perform under the terms of its loan may be affected by its customers’ economic and financial condition. Commercial real estate loans (CRE): Commercial real estate loans are made to finance the purchase of real estate, refinance existing obligations and/or to provide capital. These commercial real estate loans are generally secured by first lien security interests in the real estate as well as assignment of leases and rents. The real estate may include apartments, hotels, retail stores or plazas and healthcare facilities whether they are owner or non-owner occupied. These loans are typically originated in amounts of no more than 80% of the appraised value of the property. The ability of the borrower to collect amounts due from its customers and perform under the terms of its loan may be affected by its customers’ or lessees customers’ economic and financial condition. Consumer loans: The Company offers home equity installment loans and lines of credit. Risks associated with loans secured by residential properties are generally lower than commercial real estate loans and include general economic risks, such as the strength of the job market, employment stability and the strength of the housing market. Since most loans are secured by a primary or secondary residence or an automobile, the borrower’s continued employment is considered the greatest risk to repayment. The Company also offers a variety of loans to individuals for personal and household purposes. These loans are generally considered to have greater risk than mortgages on real estate because they may be unsecured, or if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value than real estate. Residential mortgage loans: Residential mortgages are secured by a first lien position of the borrower’s residential real estate. These loans have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Since most loans are secured by a primary or secondary residence, the borrower’s continued employment is considered the greatest risk to repayment. Residential mortgages have terms up to thirty years with amortizations varying from 10 to 30 years. The majority of the loans are underwritten according to FNMA and/or FHLB standards. |
Transfer Of Financial Assets | TRANSFER OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: the assets have been isolated from the Company—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership; the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. |
Loan Fees And Costs | LOAN FEES AND COSTS Nonrefundable loan origination fees and certain direct loan origination costs are recognized as a component of interest income over the life of the related loans as an adjustment to yield. The unamortized balance of the deferred fees and costs are included as components of the loan balances to which they relate. |
Bank Premises And Equipment | BANK PREMISES AND EQUIPMENT Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improved property. The Company leases several branches which are classified as operating leases. The Company also leases three stand-alone ATMs which are classified as operating leases and equipment which is classified as capital leases. In most circumstances, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Rent expense is recognized on the straight-line method over the term of the lease. |
Bank Owned Life Insurance | BANK OWNED LIFE INSURANCE The Company maintains bank owned life insurance (BOLI) for a selected group of employees, namely its officers where the Company is the owner and sole beneficiary of the policies. The earnings from the BOLI are recognized as a component of other income in the consolidated statements of income. The BOLI is an asset that can be liquidated, if necessary, with tax consequences. However, the Company intends to hold these policies and, accordingly, the Company has not provided for deferred income taxes on the earnings from the increase in the cash surrender value. |
Employee Benefits | EMPLOYEE BENEFITS The Company holds separate supplemental executive retirement (SERP) agreements for certain officers and an amount is credited to each participant’s SERP account monthly while they are actively employed by the bank until retirement. A deferred tax asset is provided for the non-deductible SERP expense. The Company also entered into separate split dollar life insurance arrangements with four executives providing post-retirement benefits and accrues monthly expense for this benefit. Monthly expenses for the SERP and post-retirement split dollar life benefit are recorded as components of salaries and employee benefit expense on the consolidated statements of income. |
Foreclosed Assets Held-for-Sale | FORECLOSED ASSETS HELD-FOR-SALE Foreclosed assets held-for-sale are carried at the lower of cost or fair value less cost to sell. Foreclosed assets held-for-sale is primarily other real estate owned, but also includes other repossessed assets. Losses from the acquisition of property in full and partial satisfaction of debt are treated as credit losses. Routine holding costs, gains and losses from sales, write-downs for subsequent declines in value and any rental income received are recognized net, as a component of other real estate owned expense in the consolidated statements of income. Gains or losses are recorded when the properties are sold. |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, including bank premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment is indicated by that review, the asset is written down to its estimated fair value through a charge to non-interest expense. |
Goodwill | GOODWILL Goodwill is recorded on the consolidated balance sheets as the excess of liabilities assumed over identifiable assets acquired on the acquisition date. Goodwill is recorded at its net carrying value which represents estimated fair value. The goodwill is deductible for tax purposes over a 15 year period. Goodwill is reviewed for impairment annually as of November 30 and between annual tests when events and circumstances indicate that impairment may have occurred. Goodwill impairment exists when the carrying amount of a reporting unit exceeds its fair value. A qualitative test can be performed to determine whether it is more likely than not that the fair value of the Company is less than its carrying amount, including goodwill. In this qualitative assessment, the Company evaluates events and circumstances which include general banking industry conditions and trends, the overall financial performance of the Company, the performance of the Company’s common stock and key financial performance metrics of the Company. If the qualitative review indicates that it is not more likely than not that the carrying value exceeds its fair value, no further evaluation needs to be performed. If the results of the qualitative review indicate it is more likely than not that the fair value is less than the carrying value, then the Company performs a quantitative impairment test. During 2019, the Company determined it is not more likely than not that the carrying value exceeds its carrying value therefore no quantitative analysis was necessary. |
Stock Plans | STOCK PLANS The Company has two stock-based compensation plans. The Company accounts for these plans under the recognition and measurement accounting principles, which requires the cost of share-based payment transactions be recognized in the financial statements. The stock-based compensation accounting guidance requires that compensation cost for stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. Compensation cost is recognized on a straight-line basis over the requisite service period. When granting stock-settled stock appreciation rights (SSARs), the Company uses Black-Scholes-Merton valuation model to determine fair value on the date of grant. |
Trust And Financial Service Fees | TRUST AND FINANCIAL SERVICE FEES Trust and financial service fees are recorded on the cash basis, which is not materially different from the accrual basis. |
Advertising Costs | ADVERTISING COSTS Advertising costs are charged to expense as incurred. |
Legal And Professional Expenses | LEGAL AND PROFESSIONAL EXPENSES Generally, the Company recognizes legal and professional fees as incurred and are included as a component of professional services expense in the consolidated statements of income. Legal costs incurred that are associated with the collection of outstanding amounts due from delinquent borrowers are included as a component of loan collection expense in the consolidated statements of income. In the event of litigation proceedings brought about by an employee or third party against the Company, expenses for damages will be accrued if the likelihood of the outcome against the Company is probable, the amount can be reasonably estimated and the amount would have a material impact on the financial results of the Company. |
Income Taxes | INCOME TAXES Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The benefit of a tax position is recognized on the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for the years ended December 31, 2019, 2018 or 20 17, respectively. |
Comprehensive Income (Loss) | COMPREHENSIVE INCOME (LOSS) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). |
Cash Flows | CASH FLOWS For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options and stock-settled stock appreciation rights (SSARs), dilution would occur if Company-issued stock options or SSARs were exercised and converted into common stock. As of the years ended December 31, 2019, 2018 and 2017, there were 32,091 , 29,301 and 14,300 potentially dilutive shares related to issued and unexercised stock options and SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 10,720 , 13,893 and 9,619 potentially dilutive shares related to unvested restricted share grants as of the years ended December 31, 2019, 2018 and 2017, respectively. In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and SSARs and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include amounts received from the exercise of outstanding stock options and compensation cost for future service that the Company has not yet recognized in earnings. The Company does not consider awards from share-based grants in the computation of basic EPS. |
Revenue Recognition (Policy)
Revenue Recognition (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | As disclosed in Footnote 19, as of January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The Company has elected to use the modified retrospective approach with prior period financial statements unadjusted and presented with historical revenue recognition methods. The implementation of the new standard had no material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. The majority of the Company’s revenues are generated through interest earned on securities and loans, which is explicitly excluded from the scope of the guidance. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, loan service charges, life insurance earnings, rental income and gains/losses on the sale of loans and securities are not in the scope of the new guidance. The main types of contracts with customers that are in the scope of the new guidance are: · Service charges on deposit accounts – Deposit service charges represent fees charged by the Company for the performance obligation of providing services to a customer’s deposit account. The transaction price for deposit services includes both fixed and variable amounts based on the Company’s fee schedules. Revenue is recognized and payment is received either at a point in time for transactional fees or on a monthly basis for non-transactional fees. · Interchange fees – Interchange fees represent fees charged by the Company for customers using debit cards. The contract is between the Company and the processor and the performance obligation is the ability of customers to use debit cards to make purchases at a point in time. The transaction price is a percentage of debit card usage and the processor pays the Company and revenue is recorded throughout the month as the performance obligations are being met. · Fees from trust fiduciary activities – Trust fees represent fees charged by the Company for the management, custody and/or administration of trusts. These are mostly monthly fees based on the market value of assets in the trust account at the prior month end. Payment is generally received a few weeks after month end through a direct charge to customers’ accounts. Estate fees are recognized and charged as the Company reaches each of six different stages of the estate administration process. · Fees from financial services – Financial service fees represent fees charged by the Company for the performance obligation of providing various services for an investment account. Revenue is recognized twice monthly for fees on sales transactions and on a monthly basis for advisory fees and quarterly for trail fees. · Gain/loss on ORE sales – Gain/loss on the sale of ORE is recognized at the closing date when the sales proceeds are received. In seller-financed ORE transactions, the contract is made subject to our normal underwriting standards and pricing. The Company does not have any obligation or right to repurchase any sales of ORE. Contract balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before the payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity already received payment (or payment is due) from the customer. The Company’s non-interest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company typically does not enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did no t have any significant contract balances. Remaining performance obligations The Company’s performance obligations have an original expected duration of less than one year and follow the relevant guidance for recognizing revenue over time. There is no variable consideration subject to constraint that is not included in information about transaction price. Contract acquisition costs In connection with the adoption of Topic 606, an entity is required to capitalize and subsequently amortize into expense, certain incremental costs of obtaining a contract if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | As of and for the year ended December 31, 2019 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ (1,095) Other comprehensive income before reclassifications, net of tax 4,708 Amounts reclassified from accumulated other comprehensive income, net of tax (11) Net current-period other comprehensive income 4,697 Ending balance $ 3,602 As of and for the year ended December 31, 2018 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,804 Other comprehensive loss before reclassifications, net of tax (2,470) Amounts reclassified from accumulated other comprehensive income, net of tax (8) Effect of adopting ASU 2016-01, net of tax* (421) Net current-period other comprehensive loss (2,899) Ending balance $ (1,095) *The Company adopted ASU 2016-01 on January 1, 2018. As a result, unrealized gains on equity securities were reclassified from accumulated other comprehensive income to retained earnings. As of and for the year ended December 31, 2017 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,381 Other comprehensive income before reclassifications, net of tax 29 Amounts reclassified from accumulated other comprehensive income, net of tax 97 Effect of adopting ASU 2018-02* 297 Net current-period other comprehensive income 423 Ending balance $ 1,804 *The Company elected to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act at the end of 2017 according to ASU 2018-02. These stranded tax effects were related to the adjustment made to retained earnings at the end of 2017 to re-measure the deferred tax liability for unrealized gains on available for sale securities at the new tax rate effective January 1, 2018. |
Schedule of Reclassifications from Accumulated Other Comprehensive Income | Details about accumulated other comprehensive income components Amount reclassified from accumulated Affected line item in the statement (dollars in thousands) other comprehensive income where net income is presented 2019 2018 2017 Unrealized gains (losses) on AFS debt securities $ 14 $ 10 $ (147) Gain (loss) on sale of investment securities Income tax effect (3) (2) 50 Provision for income taxes Total reclassifications for the period $ 11 $ 8 $ (97) Net income |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities [Abstract] | |
Amortized Cost and Fair Value of Investment Securities | Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2019 Available-for-sale debt securities: Agency - GSE $ 5,941 $ 218 $ - $ 6,159 Obligations of states and political subdivisions 51,857 2,871 (10) 54,718 MBS - GSE residential 122,759 1,609 (128) 124,240 Total available-for-sale debt securities $ 180,557 $ 4,698 $ (138) $ 185,117 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2018 Available-for-sale debt securities: Agency - GSE $ 5,926 $ 8 $ (17) $ 5,917 Obligations of states and political subdivisions 51,603 1,259 (287) 52,575 MBS - GSE residential 126,667 266 (2,615) 124,318 Total available-for-sale debt securities $ 184,196 $ 1,533 $ (2,919) $ 182,810 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity Date | Amortized Fair (dollars in thousands) cost value Available-for-sale securities: Debt securities: Due in one year or less $ 3,499 $ 3,530 Due after one year through five years 6,853 7,136 Due after five years through ten years 1,002 1,003 Due after ten years 46,444 49,208 MBS - GSE residential 122,759 124,240 Total available-for-sale debt securities $ 180,557 $ 185,117 |
Schedule Of Realized Gain (Loss) | December 31, (dollars in thousands) 2019 2018 2017 Gross realized gain $ 104 $ 114 $ - Gross realized loss (90) (60) (147) Net gain (loss) $ 14 $ 54 $ (147) |
Available-for-Sale Securities, Continuous Unrealized Loss Position, Fair Value | Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses December 31, 2019 Obligations of states and political subdivisions $ 2,867 $ (10) $ - $ - $ 2,867 $ (10) MBS - GSE residential 5,084 (19) 16,518 (109) 21,602 (128) Total $ 7,951 $ (29) $ 16,518 $ (109) $ 24,469 $ (138) Number of securities 5 12 17 December 31, 2018 Agency - GSE $ 3,937 $ (17) $ - $ - $ 3,937 $ (17) Obligations of states and political subdivisions 6,123 (91) 8,447 (196) 14,570 (287) MBS - GSE residential 25,612 (353) 74,864 (2,262) 100,476 (2,615) Total $ 35,672 $ (461) $ 83,311 $ (2,458) $ 118,983 $ (2,919) Number of securities 31 69 100 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases [Abstract] | |
Loan Classifications | (dollars in thousands) 2019 2018 Commercial and industrial $ 122,594 $ 126,884 Commercial real estate: Non-owner occupied 99,801 95,515 Owner occupied 130,558 124,092 Construction 4,654 6,761 Consumer: Home equity installment 36,631 32,729 Home equity line of credit 47,282 52,517 Auto loans 105,870 105,576 Direct finance leases 16,355 17,004 Other 5,634 6,314 Residential: Real estate 167,164 145,951 Construction 17,770 15,749 Total 754,313 729,092 Less: Allowance for loan losses (9,747) (9,747) Unearned lease revenue (903) (1,028) Loans and leases, net $ 743,663 $ 718,317 |
Non-Accrual Loans, Segregated by Class | (dollars in thousands) 2019 2018 Commercial and industrial $ 336 $ 156 Commercial real estate: Non-owner occupied 510 472 Owner occupied 1,447 1,634 Consumer: Home equity installment 65 463 Home equity line of credit 294 34 Auto loans 16 25 Residential: Real estate 1,006 1,514 Total $ 3,674 $ 4,298 |
Information Related to Loans Modified in Troubled Debt Restructuring, by Class | Loans modified as TDRs for the twelve months ended: (dollars in thousands) December 31, 2019 December 31, 2018 Recorded Increase in Recorded Increase in Number investment allowance Number investment allowance of (as of (as of of (as of (as of contracts period end) period end) contracts period end) period end) Consumer home equity installment - $ - $ - 1 $ 413 $ 356 Residential real estate - - - 1 316 - Total - $ - $ - 2 $ 729 $ 356 In the above table, the period end balance is inclusive of all partial pay downs and charge-offs since the modification date. For all loans modified in a TDR, the pre-modification recorded investment was the same as the post-modification recorded investment. |
Loans Modified as TDR that Subsequently Defaulted | Loans modified as a TDR within the previous twelve months that subsequently defaulted during the twelve months ended: (dollars in thousands) December 31, 2019 December 31, 2018 Number of Recorded Number of Recorded contracts investment contracts investment Consumer home equity installment - $ - 1 $ 413 Residential real estate - - 1 316 Total - $ - 2 $ 729 In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. |
Past Due Loans | Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2019 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 33 $ 171 $ 336 $ 540 $ 122,054 $ 122,594 $ - Commercial real estate: Non-owner occupied - 70 510 580 99,221 99,801 - Owner occupied 180 89 1,447 1,716 128,842 130,558 - Construction - - - - 4,654 4,654 - Consumer: Home equity installment - 5 65 70 36,561 36,631 - Home equity line of credit 49 - 294 343 46,939 47,282 - Auto loans 316 46 16 378 105,492 105,870 - Direct finance leases 59 79 - 138 15,314 15,452 (2) - Other 15 1 - 16 5,618 5,634 - Residential: Real estate 29 224 1,006 1,259 165,905 167,164 - Construction - - - - 17,770 17,770 - Total $ 681 $ 685 $ 3,674 $ 5,040 $ 748,370 $ 753,410 $ - (1) Includes non-accrual loans. (2) Net of unearned lease revenue of $0.9 million. (3) Includes net deferred loan costs of $3.0 million. Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2018 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 1,711 $ 135 $ 156 $ 2,002 $ 124,882 $ 126,884 $ - Commercial real estate: Non-owner occupied 388 113 472 973 94,542 95,515 - Owner occupied 263 513 1,634 2,410 121,682 124,092 - Construction - - - - 6,761 6,761 - Consumer: Home equity installment 50 182 463 695 32,034 32,729 - Home equity line of credit 725 175 34 934 51,583 52,517 - Auto loans 262 86 25 373 105,203 105,576 - Direct finance leases 116 - - 116 15,860 15,976 (2) - Other 79 10 1 90 6,224 6,314 1 Residential: Real estate 557 573 1,514 2,644 143,307 145,951 - Construction - - - - 15,749 15,749 - Total $ 4,151 $ 1,787 $ 4,299 $ 10,237 $ 717,827 $ 728,064 $ 1 (1) Includes non-accrual loans. (2) Net of unearned lease revenue of $1.0 million. (3) Includes net deferred loan costs of $2.6 million. |
Impaired Loans | Impaired loans, segregated by class, as of the period indicated are detailed below: Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2019 Commercial and industrial $ 336 $ 336 $ - $ 336 $ 221 Commercial real estate: Non-owner occupied 1,047 333 591 924 232 Owner occupied 2,336 1,052 972 2,024 194 Consumer: Home equity installment 106 - 65 65 - Home equity line of credit 362 88 206 294 87 Auto loans 32 - 16 16 - Residential: - Real estate 1,053 678 328 1,006 174 Total $ 5,272 $ 2,487 $ 2,178 $ 4,665 $ 908 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2018 Commercial and industrial $ 251 $ 156 $ 24 $ 180 $ 41 Commercial real estate: Non-owner occupied 1,176 715 269 984 36 Owner occupied 3,266 1,473 1,455 2,928 559 Consumer: Home equity installment 496 414 49 463 356 Home equity line of credit 74 33 1 34 16 Auto loans 31 17 8 25 10 Residential: Real estate 2,091 29 1,485 1,514 2 Total $ 7,385 $ 2,837 $ 3,291 $ 6,128 $ 1,020 The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon. December 31, 2019 December 31, 2018 Cash basis Cash basis Average Interest interest Average Interest interest recorded income income recorded income income (dollars in thousands) investment recognized recognized investment recognized recognized Commercial and industrial $ 226 $ 1 $ - $ 192 $ 2 $ - Commercial real estate: Non-owner occupied 914 185 - 1,976 98 - Owner occupied 2,504 40 - 2,578 77 - Construction - - - 107 205 - Consumer: Home equity installment 129 2 - 373 5 - Home equity line of credit 184 - - 140 10 - Auto Loans 39 - - 31 3 - Other - - - 4 - - Residential: Real estate 1,212 19 - 1,322 37 - Total $ 5,208 $ 247 $ - $ 6,723 $ 437 $ - |
Credit Quality Indicator Loan Categories | Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2019 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 115,585 $ 2,061 $ 4,948 $ - $ 122,594 Commercial real estate - non-owner occupied 92,016 1,360 6,425 - 99,801 Commercial real estate - owner occupied 121,887 2,065 6,606 - 130,558 Commercial real estate - construction 3,687 17 950 - 4,654 Total commercial $ 333,175 $ 5,503 $ 18,929 $ - $ 357,607 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2019 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 36,566 $ 65 $ 36,631 Home equity line of credit 46,988 294 47,282 Auto loans 105,854 16 105,870 Direct finance leases (1) 15,452 - 15,452 Other 5,634 - 5,634 Total consumer 210,494 375 210,869 Residential Real estate 166,158 1,006 167,164 Construction 17,770 - 17,770 Total residential 183,928 1,006 184,934 Total consumer & residential $ 394,422 $ 1,381 $ 395,803 (1) Net of unearned lease revenue of $ 0.9 million. Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2018 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 125,272 $ 334 $ 1,278 $ - $ 126,884 Commercial real estate - non-owner occupied 90,373 938 4,204 - 95,515 Commercial real estate - owner occupied 116,577 1,685 5,830 - 124,092 Commercial real estate - construction 6,761 - - - 6,761 Total commercial $ 338,983 $ 2,957 $ 11,312 $ - $ 353,252 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2018 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 32,266 $ 463 $ 32,729 Home equity line of credit 52,483 34 52,517 Auto loans 105,551 25 105,576 Direct finance leases (2) 15,976 - 15,976 Other 6,313 1 6,314 Total consumer 212,589 523 213,112 Residential Real estate 144,437 1,514 145,951 Construction 15,749 - 15,749 Total residential 160,186 1,514 161,700 Total consumer & residential $ 372,775 $ 2,037 $ 374,812 (2) Net of unearned lease revenue of $1.0 million. |
Schedule of Change in Allowance for Loan Losses and the Recorded Investment in Loans | As of and for the year ended December 31, 2019 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,432 $ 3,901 $ 2,548 $ 1,844 $ 22 $ 9,747 Charge-offs (184) (597) (398) (330) - (1,509) Recoveries 32 317 67 8 - 424 Provision 204 312 (204) 756 17 1,085 Ending balance $ 1,484 $ 3,933 $ 2,013 $ 2,278 $ 39 $ 9,747 Ending balance: individually evaluated for impairment $ 221 $ 426 $ 87 $ 174 $ - $ 908 Ending balance: collectively evaluated for impairment $ 1,263 $ 3,507 $ 1,926 $ 2,104 $ 39 $ 8,839 Loans Receivables: Ending balance (2) $ 122,594 $ 235,013 $ 210,869 (1) $ 184,934 $ - $ 753,410 Ending balance: individually evaluated for impairment $ 336 $ 2,948 $ 375 $ 1,006 $ - $ 4,665 Ending balance: collectively evaluated for impairment $ 122,258 $ 232,065 $ 210,494 $ 183,928 $ - $ 748,745 (1) Net of unearned lease revenue of $0.9 million. (2) Includes $3.0 million of net deferred loan costs. As of and for the year ended December 31, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Charge-offs (196) (268) (391) (371) - (1,226) Recoveries 77 42 211 - - 330 Provision 177 67 665 607 (66) 1,450 Ending balance $ 1,432 $ 3,901 $ 2,548 $ 1,844 $ 22 $ 9,747 Ending balance: individually evaluated for impairment $ 41 $ 595 $ 382 $ 2 $ - $ 1,020 Ending balance: collectively evaluated for impairment $ 1,391 $ 3,306 $ 2,166 $ 1,842 $ 22 $ 8,727 Loans Receivables: Ending balance (2) $ 126,884 $ 226,368 $ 213,112 (1) $ 161,700 $ - $ 728,064 Ending balance: individually evaluated for impairment $ 180 $ 3,912 $ 522 $ 1,514 $ - $ 6,128 Ending balance: collectively evaluated for impairment $ 126,704 $ 222,456 $ 212,590 $ 160,186 $ - $ 721,936 (1) Net of unearned lease revenue of $1.0 million. (2) Includes $2.6 million of net deferred loan costs. As of and for the year ended December 31, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,075 $ 4,706 $ 1,834 $ 1,622 $ 127 $ 9,364 Charge-offs (143) (635) (658) (309) - (1,745) Recoveries 10 47 67 - - 124 Provision 432 (58) 820 295 (39) 1,450 Ending balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 |
Undiscounted Cash Flows to be Received on Annual Basis for Direct Finance Leases | (dollars in thousands) Amount 2020 $ 6,505 2021 5,072 2022 3,379 2023 1,299 2024 100 2025 and thereafter - Total future minimum lease payments receivable 16,355 Less: Unearned income (903) Undiscounted cash flows to be received $ 15,452 |
Bank Premises And Equipment (Ta
Bank Premises And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Bank Premises And Equipment [Abstract] | |
Components of Bank Premises and Equipment | As of December 31, (dollars in thousands) 2019 2018 Land $ 2,865 $ 2,865 Bank premises 14,123 13,902 Furniture, fixtures and equipment 12,523 11,075 Leasehold improvements 9,372 7,263 Construction in process 559 631 Total 39,442 35,736 Less accumulated depreciation and amortization (17,885) (16,816) Bank premises and equipment, net $ 21,557 $ 18,920 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule Of Certificates Of Deposits By Year Of Maturity | (dollars in thousands) Amount Percent 2020 $ 86,159 74.1 % 2021 18,026 15.5 2022 7,368 6.3 2023 1,145 1.0 2024 2,401 2.1 2025 and thereafter 1,112 1.0 Total $ 116,211 100.0 % |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Borrowings [Abstract] | |
Schedule Of Components Of Short-Term Debt | As of December 31, (dollars in thousands) 2019 2018 Overnight borrowings $ 37,839 $ 76,366 |
Schedule Of Short-Term Debt | Maximum Weighted- outstanding average at any Average rate during Rate at (dollars in thousands) month end outstanding the year year-end December 31, 2019 Overnight borrowings $ 58,747 $ 35,243 2.49 % 1.81 % Total $ 58,747 $ 35,243 December 31, 2018 Overnight borrowings $ 76,366 $ 27,893 2.38 % 2.62 % Repurchase agreements 22,202 9,666 0.16 - Total $ 98,568 $ 37,559 December 31, 2017 Overnight borrowings $ 46,737 $ 18,399 1.09 % 1.56 % Repurchase agreements 17,179 10,274 0.20 0.18 Total $ 63,916 $ 28,673 |
FHLB Advances (Tables)
FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FHLB Advances [Abstract] | |
Schedule Of Maturity And Weighted-Average Interest Rates Of FHLB Advances | As of December 31, 2019 (dollars in thousands) Amount Rate 2020 $ - - % 2021 5,000 2.95 2022 5,000 2.99 2023 5,000 3.07 2024 - - Total $ 15,000 3.01 % |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Plans [Abstract] | |
Summary of Weighted-Average Fair-Value and Vesting of Restricted Stock Grants | 2019 2018 2017 Weighted- Weighted- Weighted- average average average Shares grant date Shares grant date Shares grant date granted fair value granted fair value granted fair value Director plan 5,600 (3) $ 54.69 8,400 (3) $ 49.50 8,400 (2) $ 26.17 Omnibus plan 7,251 (3) 54.69 10,800 (3) 45.83 4,749 (3) 23.93 Omnibus plan 50 (1) 58.08 50 (1) 49.50 75 (1) 26.17 Total 12,901 $ 54.70 19,250 $ 47.44 13,224 $ 25.36 (1) Vest after 1 year ( 2 ) Vest over 2 years – 50 % each year (3) Vest over 3 years – 33% each year |
Schedule of Non-Vested Restricted Stock Units Activity | 2012 Stock incentive plans Director Omnibus Total Weighted- average grant date fair value Non-vested balance at December 31, 2016 8,400 13,562 21,962 $ 20.31 Granted 8,400 4,824 13,224 25.36 Forfeited - - - Vested (8,400) (6,082) (14,482) 20.47 Non-vested balance at December 31, 2017 8,400 12,304 20,704 $ 23.59 Granted 8,400 10,850 19,250 47.44 Forfeited - - - Vested (4,200) (5,794) (9,994) 23.69 Non-vested balance at December 31, 2018 12,600 17,360 29,960 $ 38.99 Granted 5,600 7,301 12,901 54.70 Forfeited - (126) (126) 54.69 Vested (7,000) (8,574) (15,574) 33.81 Non-vested balance at December 31, 2019 11,200 15,961 27,161 $ 49.48 |
Schedule of SSARs Activity | Awards Weighted-average grant date fair value Weighted-average remaining contractual term (years) Outstanding December 31, 2016 29,014 $ 3.48 9.1 Granted 24,346 5.06 10.0 Exercised - - Forfeited - - Outstanding December 31, 2017 53,360 $ 4.20 8.5 Granted 38,941 13.73 10.0 Exercised (3,051) 4.03 Forfeited - - Outstanding December 31, 2018 89,250 $ 8.36 8.2 Granted 11,073 16.79 10.0 Exercised (3,059) 3.48 Forfeited - - Outstanding December 31, 2019 97,264 $ 9.47 7.5 Of the SSARs outstanding at December 31, 2019, 52,112 vested and were exercisable. SSARs vest over a three year period – 33% per year. |
Schedule of Compensation Cost for Share-Based Payment Arrangements, Allocation of Share-Based Compensation Costs by Plan | (dollars in thousands) 2019 2018 2017 Stock-based compensation expense: Director stock incentive plan $ 240 $ 237 $ 116 Omnibus stock incentive plan 611 500 194 Employee stock purchase plan 107 143 23 Total stock-based compensation expense $ 958 $ 880 $ 333 In addition, during 2019, 2018 and 2017 the Company reversed accruals of ( $0.1 million), ( $0.1 million) and accrued $0.2 million in stock-based compensation expense for restricted stock and SSARs to be awarded under the Omnibus Plan. |
Schedule of Unrecognized Compensation Cost, Non-Vested Awards | As of (dollars in thousands) December 31, 2019 Unrecognized stock-based compensation expense: Director plan $ 364 Omnibus plan 781 Total unrecognized stock-based compensation expense $ 1,145 The unrecognized stock-based compensation expense as of December 31, 2019 will be recognized ratably over the periods ended January 2022 and January 2022 for the Director Plan and the Omnibus Plan, respectively. |
Summary Of Stock Option Activity | Options Weighted-average exercise price Weighted-average remaining contractual term (years) Outstanding and exercisable, December 31, 2016 22,500 $ 19.12 1.0 Granted - - Exercised (21,750) 19.14 Forfeited - - Outstanding and exercisable, December 31, 2017 750 $ 18.50 0.2 Granted - - Exercised (750) 18.50 Forfeited - - Outstanding and exercisable, December 31, 2018 - $ - - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule Of Deferred Tax Assets And Liabilities | As of December 31, (dollars in thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,047 $ 2,047 Net unrealized losses on available-for-sale securities - 291 Deferred interest from non-accrual assets 149 167 Operating lease liabilities 1,377 - Other 556 697 Total 4,129 3,202 Deferred tax liabilities: Net unrealized gains on available-for-sale securities (958) - Loan fees and costs (1,248) (1,151) Automobile leasing (3,463) (3,393) Operating lease right-of-use assets (1,265) - Depreciation (685) (416) Mortgage loan servicing rights (211) (241) Total (7,830) (5,201) Deferred tax liability, net $ (3,701) $ (1,999) |
Schedule Of Components Of Income Tax Expense Benefit | Years ended December 31, (dollars in thousands) 2019 2018 2017 Current $ 1,985 $ 1,110 $ 1,872 Deferred 341 1,019 (666) Total provision for income taxes $ 2,326 $ 2,129 $ 1,206 |
Schedule Of Effective Income Tax Rate Reconciliation | Years ended December 31, (dollars in thousands) 2019 2018 2017 Expected provision at the statutory rate $ 2,919 $ 2,758 $ 3,373 Tax-exempt income (592) (567) (845) Bank owned life insurance (136) (126) (198) Nondeductible interest expense 37 18 19 Nondeductible other expenses and other, net 98 43 (59) Tax rate change adjustment - 3 (1,084) Actual provision for income taxes $ 2,326 $ 2,129 $ 1,206 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Carrying Amount and Estimated Fair Value by Balance Sheet Grouping | December 31, 2019 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 15,663 $ 15,663 $ 15,663 $ - $ - Available-for-sale debt securities 185,117 185,117 - 185,117 - FHLB stock 4,383 4,383 - 4,383 - Loans and leases, net 743,663 735,657 - - 735,657 Loans held-for-sale 1,643 1,660 - 1,660 - Accrued interest receivable 3,281 3,281 - 3,281 - Financial liabilities: Deposits with no stated maturities 719,526 719,526 - 719,526 - Time deposits 116,211 115,993 - 115,993 - Short-term borrowings 37,839 37,839 - 37,839 - FHLB advances 15,000 15,430 - 15,430 - Accrued interest payable 644 644 - 644 - December 31, 2018 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 17,485 $ 17,485 $ 17,485 $ - $ - Available-for-sale debt securities 182,810 182,810 - 182,810 - FHLB stock 6,339 6,339 - 6,339 - Loans and leases, net 718,317 697,729 - - 697,729 Loans held-for-sale 5,707 5,789 - 5,789 - Accrued interest receivable 3,271 3,271 - 3,271 - Financial liabilities: Deposits with no stated maturities 653,897 653,897 - 653,897 - Time deposits 116,286 114,876 - 114,876 - Short-term borrowings 76,366 76,366 - 76,366 - FHLB advances 31,704 31,698 - 31,698 - Accrued interest payable 530 530 - 530 - |
Financial Instruments Measured at Fair Value on Recurring Basis | Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2019 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 6,159 $ - $ 6,159 $ - Obligations of states and political subdivisions 54,718 - 54,718 - MBS - GSE residential 124,240 - 124,240 - Total available-for-sale debt securities $ 185,117 $ - $ 185,117 $ - Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2018 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 5,917 $ - $ 5,917 $ - Obligations of states and political subdivisions 52,575 - 52,575 - MBS - GSE residential 124,318 - 124,318 - Total available-for-sale debt securities $ 182,810 $ - $ 182,810 $ - |
Fair Value Measurements at Fair Value Segregated by Hierarchy Fair Value Levels | Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2019 (Level 1) (Level 2) (Level 3) Impaired loans $ 1,579 $ - $ - $ 1,579 Other real estate owned 350 - - 350 Other repossessed assets 20 - - 20 Total $ 1,949 $ - $ - $ 1,949 Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2018 (Level 1) (Level 2) (Level 3) Impaired loans $ 1,817 $ - $ - $ 1,817 Other real estate owned 184 - - 184 Total $ 2,001 $ - $ - $ 2,001 |
Schedule Of Fair Value, Off-Balance Sheet Risks | December 31, (dollars in thousands) 2019 2018 Off-balance sheet financial instruments: Commitments to extend credit $ 143,558 $ 144,710 Standby letters of credit 7,287 2,690 |
Supply Commitment | More than Less than one year to Over five (dollars in thousands) one year five years years Total Secured by: Collateral $ 3,149 $ 363 $ 1,007 $ 4,519 Bank lines of credit 2,405 - - 2,405 5,554 363 1,007 6,924 Unsecured 363 - - 363 Total $ 5,917 $ 363 $ 1,007 $ 7,287 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Years ended December 31, 2019 2018 2017 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 11,576 $ 11,006 $ 8,716 Weighted-average common shares outstanding 3,779,582 3,752,704 3,711,490 Basic EPS $ 3.06 $ 2.93 $ 2.35 Diluted EPS: Net income available to common shareholders $ 11,576 $ 11,006 $ 8,716 Weighted-average common shares outstanding 3,779,582 3,752,704 3,711,490 Potentially dilutive common shares 42,811 43,194 23,919 Weighted-average common and potentially dilutive shares outstanding 3,822,393 3,795,898 3,735,409 Diluted EPS $ 3.03 $ 2.90 $ 2.33 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | For capital adequacy To be well capitalized For capital purposes with capital under prompt corrective Actual adequacy purposes conservation buffer* action provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total capital (to risk-weighted assets) Consolidated $ 111,910 15.8% ≥ $ 56,796 8.0% ≥ $ 74,545 10.5% N/A N/A Bank $ 112,188 15.8% ≥ $ 56,791 8.0% ≥ $ 74,538 10.5% ≥ $ 70,989 10.0% Tier 1 common equity (to risk-weighted assets) Consolidated $ 103,024 14.5% ≥ $ 31,948 4.5% ≥ $ 49,696 7.0% N/A N/A Bank $ 103,303 14.6% ≥ $ 31,945 4.5% ≥ $ 49,692 7.0% ≥ $ 46,143 6.5% Tier I capital (to risk-weighted assets) Consolidated $ 103,024 14.5% ≥ $ 42,597 6.0% ≥ $ 60,346 8.5% N/A N/A Bank $ 103,303 14.6% ≥ $ 42,593 6.0% ≥ $ 60,340 8.5% ≥ $ 56,791 8.0% Tier I capital (to average assets) Consolidated $ 103,024 10.4% ≥ $ 39,650 4.0% ≥ $ 39,650 4.0% N/A N/A Bank $ 103,303 10.3% ≥ $ 40,265 4.0% ≥ $ 40,265 4.0% ≥ $ 50,331 5.0% As of December 31, 2018: Total capital (to risk-weighted assets) Consolidated $ 103,201 14.8% ≥ $ 55,975 8.0% ≥ $ 69,094 9.9% N/A N/A Bank $ 103,313 14.8% ≥ $ 55,970 8.0% ≥ $ 69,088 9.9% ≥ $ 69,962 10.0% Tier 1 common equity (to risk-weighted assets) Consolidated $ 94,442 13.5% ≥ $ 31,486 4.5% ≥ $ 44,605 6.4% N/A N/A Bank $ 94,554 13.5% ≥ $ 31,483 4.5% ≥ $ 44,601 6.4% ≥ $ 45,475 6.5% Tier I capital (to risk-weighted assets) Consolidated $ 94,442 13.5% ≥ $ 41,981 6.0% ≥ $ 55,100 7.9% N/A N/A Bank $ 94,554 13.5% ≥ $ 41,977 6.0% ≥ $ 55,095 7.9% ≥ $ 55,970 8.0% Tier I capital (to average assets) Consolidated $ 94,442 9.8% ≥ $ 38,593 4.0% ≥ $ 38,593 4.0% N/A N/A Bank $ 94,554 9.8% ≥ $ 38,591 4.0% ≥ $ 38,591 4.0% ≥ $ 48,238 5.0% * The minimums under Basel III increased by 0.625% (the capital conservation buffer) annually until 2019. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Years ended December 31, (dollars in thousands) 2019 2018 2017 Balance, beginning $ 6,542 $ 6,497 $ 7,849 Additions 1,864 1,314 1,111 Collections (1,641) (1,269) (2,463) Balance, ending $ 6,765 $ 6,542 $ 6,497 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | 2019 First Second Third Fourth (dollars in thousands except per share data) quarter quarter quarter quarter Total Interest income $ 9,655 $ 9,657 $ 10,008 $ 9,949 $ 39,269 Interest expense (1,745) (1,863) (2,008) (1,938) (7,554) Net interest income 7,910 7,794 8,000 8,011 31,715 Provision for loan losses (255) (255) (320) (255) (1,085) Gain (loss) on sale of investment securities (4) - (2) 20 14 Other income 2,461 2,489 2,634 2,595 10,179 Other expenses (6,770) (6,435) (6,643) (7,073) (26,921) Income before taxes 3,342 3,593 3,669 3,298 13,902 Provision for income taxes (540) (591) (611) (584) (2,326) Net income $ 2,802 $ 3,002 $ 3,058 $ 2,714 $ 11,576 Net income per share - basic $ 0.74 $ 0.79 $ 0.82 $ 0.71 $ 3.06 Net income per share - diluted $ 0.73 $ 0.79 $ 0.80 $ 0.71 $ 3.03 2018 First Second Third Fourth (dollars in thousands except per share data) quarter quarter quarter quarter Total Interest income $ 8,143 $ 8,535 $ 9,028 $ 9,624 $ 35,330 Interest expense (884) (1,012) (1,317) (1,660) (4,873) Net interest income 7,259 7,523 7,711 7,964 30,457 Provision for loan losses (300) (425) (400) (325) (1,450) Gain (loss) on write-down/sale of investment securities (58) 107 5 - 54 Other income 2,341 2,264 2,278 2,263 9,146 Other expenses (6,208) (6,162) (6,172) (6,530) (25,072) Income before taxes 3,034 3,307 3,422 3,372 13,135 Provision for income taxes (506) (539) (559) (525) (2,129) Net income $ 2,528 $ 2,768 $ 2,863 $ 2,847 $ 11,006 Net income per share - basic $ 0.67 $ 0.74 $ 0.76 $ 0.76 $ 2.93 Net income per share - diluted $ 0.67 $ 0.73 $ 0.75 $ 0.75 $ 2.90 2017 First Second Third Fourth (dollars in thousands except per share data) quarter quarter quarter quarter Total Interest income $ 7,366 $ 7,854 $ 7,928 $ 7,916 $ 31,064 Interest expense (688) (787) (882) (866) (3,223) Net interest income 6,678 7,067 7,046 7,050 27,841 Provision for loan losses (325) (225) (375) (525) (1,450) Loss on sale of investment securities - - - (147) (147) Other income 2,105 2,131 2,248 2,029 8,513 Other expenses (5,797) (6,051) (6,035) (6,953) (24,836) Income before taxes 2,661 2,922 2,884 1,455 9,922 (Provision) credit for income taxes (681) (739) (658) 872 (1,206) Net income $ 1,980 $ 2,183 $ 2,226 $ 2,327 $ 8,716 Net income per share - basic $ 0.53 $ 0.59 $ 0.60 $ 0.63 $ 2.35 Net income per share - diluted $ 0.53 $ 0.59 $ 0.60 $ 0.61 $ 2.33 |
Parent Company Only (Tables)
Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Only [Abstract] | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets As of December 31, (dollars in thousands) 2019 2018 Assets: Cash $ 63 $ 232 Investment in subsidiary 107,115 93,669 Other assets 107 106 Total $ 107,285 $ 94,007 Liabilities and shareholders' equity: Liabilities $ 449 $ 450 Capital stock and retained earnings 103,234 94,652 Accumulated other comprehensive income (loss) 3,602 (1,095) Total $ 107,285 $ 94,007 |
Schedule of Condensed Income Statement | Condensed Income Statements Years ended December 31, (dollars in thousands) 2019 2018 2017 Income: Equity in undistributed earnings of subsidiary $ 8,839 $ 9,273 $ 6,685 Dividends from subsidiary 4,037 2,723 2,574 Gain on sale of investment securities - 44 - Other income - 11 22 Total income 12,876 12,051 9,281 Operating expenses 1,598 1,269 1,094 Income before taxes 11,278 10,782 8,187 Credit for income taxes 298 224 529 Net income $ 11,576 $ 11,006 $ 8,716 |
Schedule of Condensed Comprehensive Income | Statements of Comprehensive Income Years ended December 31, (dollars in thousands) 2019 2018 2017 Bancorp net loss $ (1,300) $ (990) $ (542) Equity in net income of subsidiary 12,876 11,996 9,258 Net income 11,576 11,006 8,716 Other comprehensive income (loss), before tax: Unrealized holding gains on available-for-sale securities - - 197 Tax effect - - (67) Unrealized gain, net of tax - - 130 Equity in other comprehensive income (loss) of subsidiary 4,697 (2,478) (4) Other comprehensive income (loss), net of tax 4,697 (2,478) 126 Total comprehensive income, net of tax $ 16,273 $ 8,528 $ 8,842 |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows Years ended December 31, (dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 11,576 $ 11,006 $ 8,716 Adjustments to reconcile net income to net cash used in operations: Equity in earnings of subsidiary (12,876) (11,996) (9,258) Stock-based compensation expense 817 749 550 Deferred income tax 2 (60) (69) Gain on sale of investment securities - (44) - Changes in other assets and liabilities, net 137 12 (26) Net cash used in operating activities (344) (333) (87) Cash flows provided by investing activities: Dividends received from subsidiary 4,037 2,723 2,574 Proceeds from sales of investment securities - 871 - Net cash provided by investing activities 4,037 3,594 2,574 Cash flows used in financing activities: Dividends paid, net of dividend reinvestment (4,037) (3,397) (2,954) Exercise of stock options - 14 416 Withholdings to purchase capital stock 175 149 126 Cash paid in lieu of fractional shares - - (11) Net cash used in financing activities (3,862) (3,234) (2,423) Net change in cash (169) 27 64 Cash, beginning 232 205 141 Cash, ending $ 63 $ 232 $ 205 |
Business Combination and Pend_2
Business Combination and Pending Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination and Pending Acquisition [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | (dollars in thousands) March 17, 2017 Cash and cash equivalents $ 11,817 Loans 1,574 Bank premises and equipment 264 Goodwill 209 Accrued interest receivable and other assets 4 Total assets acquired $ 13,868 Deposits $ 13,809 Accrued interest payable and other liabilities 59 Total liabilities assumed $ 13,868 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Analysis of Leased Property under Finance Leases | Asset Balance at December 31, (dollars in thousands) 2019 2018 Equipment $ 397 $ 375 Less accumulated depreciation and amortization (117) (42) Leased property under finance leases, net $ 280 $ 333 |
Schedule of Future Minimum Lease Payments under Finance Leases | (dollars in thousands) Amount 2020 $ 82 2021 82 2022 82 2023 56 2024 - 2025 and thereafter - Total minimum lease payments (a) 302 Less amount representing interest (b) (16) Present value of net minimum lease payments $ 286 (a) The future minimum lease payments have not been reduced by estimated executory costs (such as taxes and maintenance) since this amount was deemed immaterial by management. (b) Amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate upon lease inception. |
Schedule of Lease Costs and Other Information | (dollars in thousands) December 31, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 75 Interest on lease liabilities 10 Operating lease cost 431 Short-term lease cost 18 Variable lease cost (1) Total lease cost $ 533 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 10 Operating cash flows from operating leases (Fixed payments) $ 349 Operating cash flows from operating leases (Liability reduction) $ 85 Financing cash flows from finance leases $ 73 Right-of-use assets obtained in exchange for new finance lease liabilities $ 6,189 Right-of-use assets obtained in exchange for new operating lease liabilities $ 22 Weighted-average remaining lease term - finance leases 3.67 yrs Weighted average remaining lease term - operating leases 23.88 yrs Weighted-average discount rate - finance leases 3.07% Weighted-average discount rate - operating leases 3.78% |
Schedule of Future Minimum Lease Payments under Operating Leases | (dollars in thousands) Amount 2020 $ 397 2021 402 2022 408 2023 411 2024 413 2025 and thereafter 8,069 Total future minimum lease payments 10,100 Plus variable payment adjustment 97 Less amount representing interest (3,641) Present value of net future minimum lease payments $ 6,556 |
Schedule of Undiscounted Cash Flows to be Received | (dollars in thousands) Amount 2020 $ 194 2021 189 2022 60 2023 48 2024 51 2025 and thereafter 135 Total lease payments to be received $ 677 |
Schedule of Lease Income | For the years ended December 31, (dollars in thousands) 2019 2018 Lease income - direct finance leases Interest income on lease receivables $ 683 $ 580 Lease income - operating leases 239 217 Total lease income $ 922 $ 797 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Signifcant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)ShareBasedCompensationPlanemployee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Held-to-maturity securities | $ 0 | $ 0 | |
Trading securities | $ 0 | 0 | |
Maximum loan-to-value percentage for commercial real estate loan originations | 80.00% | ||
Unrecognized tax benefits | $ 0 | 0 | $ 0 |
Unrecognized tax benefits, accrued interest and penalties | $ 0 | $ 0 | $ 0 |
Number of share based compensation plans | ShareBasedCompensationPlan | 2 | ||
Number of individuals with split dollar life insurance arrangement | employee | 4 | ||
Minimum [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Residential mortgage term | 10 years | ||
Maximum [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Residential mortgage term | 30 years |
Cash (Narrative) (Details)
Cash (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Cash [Abstract] | ||
Federal Reserve Bank, reserve requirement | $ 700,000 | $ 1,400,000 |
FDIC insured amount | $ 250,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (1,095) | $ (1,095) | ||
Effect of adopting ASU | (100) | (91) | ||
Ending balance | 3,602 | $ (1,095) | ||
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (1,095) | (1,095) | 1,804 | $ 1,381 |
Other comprehensive income (loss) before reclassifications, net of tax | 4,708 | (2,470) | 29 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (11) | (8) | 97 | |
Effect of adopting ASU | (421) | 297 | ||
Net current-period other comprehensive income (loss) | 4,697 | (2,899) | 423 | |
Ending balance | $ 3,602 | $ (1,095) | $ 1,804 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications from Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Gain (loss) on sale of investment securities | $ 20 | $ (2) | $ (4) | $ 5 | $ 107 | $ (58) | $ (147) | $ 14 | $ 54 | $ (147) | |||||
Provision for income taxes | (584) | (611) | $ (591) | (540) | $ (525) | (559) | (539) | (506) | 872 | $ (658) | $ (739) | $ (681) | (2,326) | (2,129) | (1,206) |
Net income | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | 11,576 | 11,006 | 8,716 |
Reclassified from Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Provision for income taxes | (3) | (2) | 50 | ||||||||||||
Net income | 11 | 8 | (97) | ||||||||||||
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | Reclassified from Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Gain (loss) on sale of investment securities | $ 14 | $ 10 | $ (147) |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - security | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in unrealized loss position | 17 | 100 |
Number of securities in unrealized loss position, more than 12 months | 12 | 69 |
MBS - GSE Residential [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in unrealized loss position | 14 | |
Number of securities in unrealized loss position, more than 12 months | 12 | |
MBS - GSE Residential [Member] | Measurement Input, Loss Severity [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, measurement input | 0.59% | |
Obligations Of States And Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in unrealized loss position | 3 | |
Obligations Of States And Political Subdivisions [Member] | Measurement Input, Loss Severity [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, measurement input | 0.34% |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Total available-for-sale debt securities | $ 180,557 | $ 184,196 |
Gross unrealized gains: Available-for-sale debt securities | 4,698 | 1,533 |
Gross unrealized losses: Available-for-sale debt securities | (138) | (2,919) |
Fair value: Available-for-sale debt securities | 185,117 | 182,810 |
Agency - GSE [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Total available-for-sale debt securities | 5,941 | 5,926 |
Gross unrealized gains: Available-for-sale debt securities | 218 | 8 |
Gross unrealized losses: Available-for-sale debt securities | (17) | |
Fair value: Available-for-sale debt securities | 6,159 | 5,917 |
Obligations Of States And Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Total available-for-sale debt securities | 51,857 | 51,603 |
Gross unrealized gains: Available-for-sale debt securities | 2,871 | 1,259 |
Gross unrealized losses: Available-for-sale debt securities | (10) | (287) |
Fair value: Available-for-sale debt securities | 54,718 | 52,575 |
MBS - GSE Residential [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Total available-for-sale debt securities | 122,759 | 126,667 |
Gross unrealized gains: Available-for-sale debt securities | 1,609 | 266 |
Gross unrealized losses: Available-for-sale debt securities | (128) | (2,615) |
Fair value: Available-for-sale debt securities | $ 124,240 | $ 124,318 |
Investment Securities (Amorti_2
Investment Securities (Amortized Cost and Fair Value of Debt Securities by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Securities [Abstract] | ||
Amortized cost: Due in one year or less | $ 3,499 | |
Amortized cost: Due after one year through five years | 6,853 | |
Amortized cost: Due after five years through ten years | 1,002 | |
Amortized cost: Due after ten years | 46,444 | |
Amortized cost: MBS - GSE residential | 122,759 | |
Amortized cost: Total available-for-sale debt securities | 180,557 | $ 184,196 |
Fair value: Due in one year or less | 3,530 | |
Fair value: Due after one year through five years | 7,136 | |
Fair value: Due after five years through ten years | 1,003 | |
Fair value: Due after ten years | 49,208 | |
Fair value: MBS - GSE residential | 124,240 | |
Fair value: Total available-for-sale debt securities | $ 185,117 | $ 182,810 |
Investment Securities (Schedule
Investment Securities (Schedule Of Realized Gain (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Securities [Abstract] | |||
Gross realized gain | $ 104 | $ 114 | |
Gross realized loss | (90) | (60) | $ (147) |
Net gain (loss) | $ 14 | $ 54 | $ (147) |
Investment Securities (Availabl
Investment Securities (Available-for-Sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair value | $ 7,951 | $ 35,672 |
Less than 12 months: Unrealized losses | (29) | (461) |
More than 12 months: Fair value | 16,518 | 83,311 |
More than 12 months: Unrealized losses | (109) | (2,458) |
Total: Fair value | 24,469 | 118,983 |
Total: Unrealized losses | $ (138) | $ (2,919) |
Less than 12 months: Number of securities | security | 5 | 31 |
More than 12 months: Number of securities | security | 12 | 69 |
Total: Number of securities | security | 17 | 100 |
Agency - GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair value | $ 3,937 | |
Less than 12 months: Unrealized losses | (17) | |
Total: Fair value | 3,937 | |
Total: Unrealized losses | (17) | |
Obligations Of States And Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair value | $ 2,867 | 6,123 |
Less than 12 months: Unrealized losses | (10) | (91) |
More than 12 months: Fair value | 8,447 | |
More than 12 months: Unrealized losses | (196) | |
Total: Fair value | 2,867 | 14,570 |
Total: Unrealized losses | $ (10) | (287) |
Total: Number of securities | security | 3 | |
MBS - GSE Residential [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair value | $ 5,084 | 25,612 |
Less than 12 months: Unrealized losses | (19) | (353) |
More than 12 months: Fair value | 16,518 | 74,864 |
More than 12 months: Unrealized losses | (109) | (2,262) |
Total: Fair value | 21,602 | 100,476 |
Total: Unrealized losses | $ (128) | $ (2,615) |
More than 12 months: Number of securities | security | 12 | |
Total: Number of securities | security | 14 |
Loans and Leases (Narrative) (D
Loans and Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loanitem | Dec. 31, 2018USD ($)loanitem | Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred loan costs | $ 3,000 | $ 2,600 | |
Mortgages serviced | 302,300 | 304,900 | |
Mortgage servicing rights | 1,000 | 1,100 | |
Allowance for impaired loans | 908 | 1,020 | |
Impaired loans | $ 4,665 | 6,128 | |
Number of dealerships | item | 2 | ||
Direct finance lease receivable | $ 4,700 | 4,900 | |
Direct finance lease residual value | 10,800 | 11,100 | |
Average recorded investment | 5,208 | 6,723 | $ 9,300 |
Interest income recognized | 247 | 437 | 482 |
Cash basis interest income recognized | $ 0 | ||
Troubled Debt Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for impaired loans | 200 | 800 | |
Accruing TDR Balance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | 1,000 | 1,800 | |
Non-Accrual Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | 600 | 1,700 | |
Financing receivable, net | $ 3,700 | $ 4,300 | |
Number of loans classified as TDRs | loan | 2 | 4 | |
Number of unrelated borrowers that had loans modified in a TDR | item | 2 | 3 |
Loans and Leases (Loan Classifi
Loans and Leases (Loan Classifications) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 754,313 | $ 729,092 | ||
Less: Allowance for loan losses | (9,747) | (9,747) | $ (9,193) | $ (9,364) |
Less: Unearned lease revenue | (903) | (1,028) | ||
Loans and leases, net | 743,663 | 718,317 | ||
Commercial And Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 122,594 | 126,884 | ||
Less: Allowance for loan losses | (1,484) | (1,432) | $ (1,374) | $ (1,075) |
Commercial Real Estate: Non-Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 99,801 | 95,515 | ||
Commercial Real Estate: Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 130,558 | 124,092 | ||
Commercial Real Estate: Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 4,654 | 6,761 | ||
Consumer: Home Equity Installment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 36,631 | 32,729 | ||
Consumer: Home Equity Line Of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 47,282 | 52,517 | ||
Consumer: Auto Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 105,870 | 105,576 | ||
Consumer: Direct Finance Leases [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 16,355 | 17,004 | ||
Consumer: Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 5,634 | 6,314 | ||
Residential: Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 167,164 | 145,951 | ||
Residential: Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 17,770 | $ 15,749 |
Loans and Leases (Non-Accrual L
Loans and Leases (Non-Accrual Loans, Segregated by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | $ 3,674 | $ 4,298 |
Commercial And Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 336 | 156 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 510 | 472 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 1,447 | 1,634 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 65 | 463 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 294 | 34 |
Consumer: Auto Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 16 | 25 |
Residential: Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | $ 1,006 | $ 1,514 |
Loans and Leases (Information R
Loans and Leases (Information Related to Loans Modified in Troubled Debt Restructuring, by Class) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of contracts | contract | 2 |
Recorded investment (as of period end) | $ 729 |
Increase in allowance (as of period end) | $ 356 |
Number of contracts | contract | 2 |
Recorded investment | $ 729 |
Consumer: Home Equity Installment [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of contracts | contract | 1 |
Recorded investment (as of period end) | $ 413 |
Increase in allowance (as of period end) | $ 356 |
Number of contracts | contract | 1 |
Recorded investment | $ 413 |
Residential: Real Estate [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of contracts | contract | 1 |
Recorded investment (as of period end) | $ 316 |
Number of contracts | contract | 1 |
Recorded investment | $ 316 |
Loans and Leases (Loans Modifie
Loans and Leases (Loans Modified as TDR that Subsequently Defaulted) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of contracts | contract | 2 |
Recorded investment | $ | $ 729 |
Consumer: Home Equity Installment [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of contracts | contract | 1 |
Recorded investment | $ | $ 413 |
Residential: Real Estate [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of contracts | contract | 1 |
Recorded investment | $ | $ 316 |
Loans and Leases (Past Due Loan
Loans and Leases (Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 5,040 | $ 10,237 |
Current | 748,370 | 717,827 |
Total loans | 753,410 | 728,064 |
Recorded investment past due >=90 days and accruing | 1 | |
Non-accrual loans | 3,674 | 4,298 |
Unearned lease revenue | 903 | 1,028 |
Deferred loan costs | 3,000 | 2,600 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 681 | 4,151 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 685 | 1,787 |
Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3,674 | 4,299 |
Commercial And Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 540 | 2,002 |
Current | 122,054 | 124,882 |
Total loans | 122,594 | 126,884 |
Non-accrual loans | 336 | 156 |
Commercial And Industrial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 33 | 1,711 |
Commercial And Industrial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 171 | 135 |
Commercial And Industrial [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 336 | 156 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 580 | 973 |
Current | 99,221 | 94,542 |
Total loans | 99,801 | 95,515 |
Non-accrual loans | 510 | 472 |
Commercial Real Estate: Non-Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 388 | |
Commercial Real Estate: Non-Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 70 | 113 |
Commercial Real Estate: Non-Owner Occupied [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 510 | 472 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,716 | 2,410 |
Current | 128,842 | 121,682 |
Total loans | 130,558 | 124,092 |
Non-accrual loans | 1,447 | 1,634 |
Commercial Real Estate: Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 180 | 263 |
Commercial Real Estate: Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 89 | 513 |
Commercial Real Estate: Owner Occupied [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,447 | 1,634 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 4,654 | 6,761 |
Total loans | 4,654 | 6,761 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 70 | 695 |
Current | 36,561 | 32,034 |
Total loans | 36,631 | 32,729 |
Non-accrual loans | 65 | 463 |
Consumer: Home Equity Installment [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 50 | |
Consumer: Home Equity Installment [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 5 | 182 |
Consumer: Home Equity Installment [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 65 | 463 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 343 | 934 |
Current | 46,939 | 51,583 |
Total loans | 47,282 | 52,517 |
Non-accrual loans | 294 | 34 |
Consumer: Home Equity Line Of Credit [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 49 | 725 |
Consumer: Home Equity Line Of Credit [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 175 | |
Consumer: Home Equity Line Of Credit [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 294 | 34 |
Consumer: Auto Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 378 | 373 |
Current | 105,492 | 105,203 |
Total loans | 105,870 | 105,576 |
Non-accrual loans | 16 | 25 |
Consumer: Auto Loans [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 316 | 262 |
Consumer: Auto Loans [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 46 | 86 |
Consumer: Auto Loans [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 16 | 25 |
Consumer: Direct Finance Leases [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 138 | 116 |
Current | 15,314 | 15,860 |
Total loans | 15,452 | 15,976 |
Consumer: Direct Finance Leases [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 59 | 116 |
Consumer: Direct Finance Leases [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 79 | |
Consumer: Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 16 | 90 |
Current | 5,618 | 6,224 |
Total loans | 5,634 | 6,314 |
Recorded investment past due >=90 days and accruing | 1 | |
Consumer: Other [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 15 | 79 |
Consumer: Other [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1 | 10 |
Consumer: Other [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1 | |
Residential: Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,259 | 2,644 |
Current | 165,905 | 143,307 |
Total loans | 167,164 | 145,951 |
Non-accrual loans | 1,006 | 1,514 |
Residential: Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 29 | 557 |
Residential: Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 224 | 573 |
Residential: Real Estate [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,006 | 1,514 |
Residential: Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 17,770 | 15,749 |
Total loans | $ 17,770 | $ 15,749 |
Loans and Leases (Impaired Loan
Loans and Leases (Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 5,272 | $ 7,385 | |
Recorded investment with allowance | 2,487 | 2,837 | |
Recorded investment with no allowance | 2,178 | 3,291 | |
Total recorded investment | 4,665 | 6,128 | |
Related allowance | 908 | 1,020 | |
Average recorded investment | 5,208 | 6,723 | $ 9,300 |
Interest income recognized | 247 | 437 | 482 |
Cash basis interest income recognized | $ 0 | ||
Commercial And Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 336 | 251 | |
Recorded investment with allowance | 336 | 156 | |
Recorded investment with no allowance | 24 | ||
Total recorded investment | 336 | 180 | |
Related allowance | 221 | 41 | |
Average recorded investment | 226 | 192 | |
Interest income recognized | 1 | 2 | |
Commercial Real Estate: Non-Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 1,047 | 1,176 | |
Recorded investment with allowance | 333 | 715 | |
Recorded investment with no allowance | 591 | 269 | |
Total recorded investment | 924 | 984 | |
Related allowance | 232 | 36 | |
Average recorded investment | 914 | 1,976 | |
Interest income recognized | 185 | 98 | |
Commercial Real Estate: Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 2,336 | 3,266 | |
Recorded investment with allowance | 1,052 | 1,473 | |
Recorded investment with no allowance | 972 | 1,455 | |
Total recorded investment | 2,024 | 2,928 | |
Related allowance | 194 | 559 | |
Average recorded investment | 2,504 | 2,578 | |
Interest income recognized | 40 | 77 | |
Commercial Real Estate: Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 107 | ||
Interest income recognized | 205 | ||
Consumer: Home Equity Installment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 106 | 496 | |
Recorded investment with allowance | 414 | ||
Recorded investment with no allowance | 65 | 49 | |
Total recorded investment | 65 | 463 | |
Related allowance | 356 | ||
Average recorded investment | 129 | 373 | |
Interest income recognized | 2 | 5 | |
Consumer: Home Equity Line Of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 362 | 74 | |
Recorded investment with allowance | 88 | 33 | |
Recorded investment with no allowance | 206 | 1 | |
Total recorded investment | 294 | 34 | |
Related allowance | 87 | 16 | |
Average recorded investment | 184 | 140 | |
Interest income recognized | 10 | ||
Consumer: Auto Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 32 | 31 | |
Recorded investment with allowance | 17 | ||
Recorded investment with no allowance | 16 | 8 | |
Total recorded investment | 16 | 25 | |
Related allowance | 10 | ||
Average recorded investment | 39 | 31 | |
Interest income recognized | 3 | ||
Consumer: Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 4 | ||
Residential: Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 1,053 | 2,091 | |
Recorded investment with allowance | 678 | 29 | |
Recorded investment with no allowance | 328 | 1,485 | |
Total recorded investment | 1,006 | 1,514 | |
Related allowance | 174 | 2 | |
Average recorded investment | 1,212 | 1,322 | |
Interest income recognized | $ 19 | $ 37 |
Loans and Leases (Credit Qualit
Loans and Leases (Credit Quality Indicator Loan Categories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Unearned lease revenue | $ 903 | $ 1,028 |
Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 122,594 | 126,884 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 99,801 | 95,515 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 130,558 | 124,092 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 4,654 | 6,761 |
Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 357,607 | 353,252 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 36,631 | 32,729 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 47,282 | 52,517 |
Consumer: Auto Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 105,870 | 105,576 |
Consumer: Direct Finance Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 15,452 | 15,976 |
Consumer: Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 5,634 | 6,314 |
Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 210,869 | 213,112 |
Residential: Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 167,164 | 145,951 |
Residential: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 17,770 | 15,749 |
Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 184,934 | 161,700 |
Consumer And Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 395,803 | 374,812 |
Pass [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 115,585 | 125,272 |
Pass [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 92,016 | 90,373 |
Pass [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 121,887 | 116,577 |
Pass [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 3,687 | 6,761 |
Pass [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 333,175 | 338,983 |
Special mention [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 2,061 | 334 |
Special mention [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,360 | 938 |
Special mention [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 2,065 | 1,685 |
Special mention [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 17 | |
Special mention [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 5,503 | 2,957 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 4,948 | 1,278 |
Substandard [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 6,425 | 4,204 |
Substandard [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 6,606 | 5,830 |
Substandard [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 950 | |
Substandard [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 18,929 | 11,312 |
Performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 36,566 | 32,266 |
Performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 46,988 | 52,483 |
Performing [Member] | Consumer: Auto Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 105,854 | 105,551 |
Performing [Member] | Consumer: Direct Finance Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 15,452 | 15,976 |
Performing [Member] | Consumer: Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 5,634 | 6,313 |
Performing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 210,494 | 212,589 |
Performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 166,158 | 144,437 |
Performing [Member] | Residential: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 17,770 | 15,749 |
Performing [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 183,928 | 160,186 |
Performing [Member] | Consumer And Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 394,422 | 372,775 |
Non-performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 65 | 463 |
Non-performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 294 | 34 |
Non-performing [Member] | Consumer: Auto Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 16 | 25 |
Non-performing [Member] | Consumer: Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1 | |
Non-performing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 375 | 523 |
Non-performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,006 | 1,514 |
Non-performing [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,006 | 1,514 |
Non-performing [Member] | Consumer And Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | $ 1,381 | $ 2,037 |
Loans and Leases (Schedule of C
Loans and Leases (Schedule of Change in Allowance for Loan Losses and the Recorded Investment in Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Allowance for Loan Losses: Beginning balance | $ 9,747 | $ 9,193 | $ 9,364 | $ 9,747 | $ 9,193 | $ 9,364 | |||||||||
Charge-offs | (1,509) | (1,226) | (1,745) | ||||||||||||
Recoveries | 424 | 330 | 124 | ||||||||||||
Provisions | $ 255 | $ 320 | $ 255 | 255 | $ 325 | $ 400 | $ 425 | 300 | $ 525 | $ 375 | $ 225 | 325 | 1,085 | 1,450 | 1,450 |
Allowance for Loan Losses: Ending balance | 9,747 | 9,747 | 9,193 | 9,747 | 9,747 | 9,193 | |||||||||
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 908 | 1,020 | 908 | 1,020 | |||||||||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 8,839 | 8,727 | 8,839 | 8,727 | |||||||||||
Loan Receivables: Ending balance | 753,410 | 728,064 | 753,410 | 728,064 | |||||||||||
Loans Receivable: Ending balance: individually evaluated for impairment | 4,665 | 6,128 | 4,665 | 6,128 | |||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 748,745 | 721,936 | 748,745 | 721,936 | |||||||||||
Unearned lease revenue | 903 | 1,028 | 903 | 1,028 | |||||||||||
Deferred loan costs | 3,000 | 2,600 | 3,000 | 2,600 | |||||||||||
Commercial And Industrial [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Allowance for Loan Losses: Beginning balance | 1,432 | 1,374 | 1,075 | 1,432 | 1,374 | 1,075 | |||||||||
Charge-offs | (184) | (196) | (143) | ||||||||||||
Recoveries | 32 | 77 | 10 | ||||||||||||
Provisions | 204 | 177 | 432 | ||||||||||||
Allowance for Loan Losses: Ending balance | 1,484 | 1,432 | 1,374 | 1,484 | 1,432 | 1,374 | |||||||||
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 221 | 41 | 221 | 41 | |||||||||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,263 | 1,391 | 1,263 | 1,391 | |||||||||||
Loan Receivables: Ending balance | 122,594 | 126,884 | 122,594 | 126,884 | |||||||||||
Loans Receivable: Ending balance: individually evaluated for impairment | 336 | 180 | 336 | 180 | |||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 122,258 | 126,704 | 122,258 | 126,704 | |||||||||||
Commercial Real Estate [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Allowance for Loan Losses: Beginning balance | 3,901 | 4,060 | 4,706 | 3,901 | 4,060 | 4,706 | |||||||||
Charge-offs | (597) | (268) | (635) | ||||||||||||
Recoveries | 317 | 42 | 47 | ||||||||||||
Provisions | 312 | 67 | (58) | ||||||||||||
Allowance for Loan Losses: Ending balance | 3,933 | 3,901 | 4,060 | 3,933 | 3,901 | 4,060 | |||||||||
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 426 | 595 | 426 | 595 | |||||||||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 3,507 | 3,306 | 3,507 | 3,306 | |||||||||||
Loan Receivables: Ending balance | 235,013 | 226,368 | 235,013 | 226,368 | |||||||||||
Loans Receivable: Ending balance: individually evaluated for impairment | 2,948 | 3,912 | 2,948 | 3,912 | |||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 232,065 | 222,456 | 232,065 | 222,456 | |||||||||||
Consumer [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Allowance for Loan Losses: Beginning balance | 2,548 | 2,063 | 1,834 | 2,548 | 2,063 | 1,834 | |||||||||
Charge-offs | (398) | (391) | (658) | ||||||||||||
Recoveries | 67 | 211 | 67 | ||||||||||||
Provisions | (204) | 665 | 820 | ||||||||||||
Allowance for Loan Losses: Ending balance | 2,013 | 2,548 | 2,063 | 2,013 | 2,548 | 2,063 | |||||||||
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 87 | 382 | 87 | 382 | |||||||||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,926 | 2,166 | 1,926 | 2,166 | |||||||||||
Loan Receivables: Ending balance | 210,869 | 213,112 | 210,869 | 213,112 | |||||||||||
Loans Receivable: Ending balance: individually evaluated for impairment | 375 | 522 | 375 | 522 | |||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 210,494 | 212,590 | 210,494 | 212,590 | |||||||||||
Residential Real Estate [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Allowance for Loan Losses: Beginning balance | 1,844 | 1,608 | 1,622 | 1,844 | 1,608 | 1,622 | |||||||||
Charge-offs | (330) | (371) | (309) | ||||||||||||
Recoveries | 8 | ||||||||||||||
Provisions | 756 | 607 | 295 | ||||||||||||
Allowance for Loan Losses: Ending balance | 2,278 | 1,844 | 1,608 | 2,278 | 1,844 | 1,608 | |||||||||
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 174 | 2 | 174 | 2 | |||||||||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 2,104 | 1,842 | 2,104 | 1,842 | |||||||||||
Loan Receivables: Ending balance | 184,934 | 161,700 | 184,934 | 161,700 | |||||||||||
Loans Receivable: Ending balance: individually evaluated for impairment | 1,006 | 1,514 | 1,006 | 1,514 | |||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 183,928 | 160,186 | 183,928 | 160,186 | |||||||||||
Unallocated [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Allowance for Loan Losses: Beginning balance | $ 22 | $ 88 | $ 127 | 22 | 88 | 127 | |||||||||
Provisions | 17 | (66) | (39) | ||||||||||||
Allowance for Loan Losses: Ending balance | 39 | 22 | $ 88 | 39 | 22 | $ 88 | |||||||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | $ 39 | $ 22 | $ 39 | $ 22 |
Loans and Leases (Undiscounted
Loans and Leases (Undiscounted Cash Flows to be Received on Annual Basis for Direct Finance Leases) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Loans and Leases [Abstract] | |
2020 | $ 6,505 |
2021 | 5,072 |
2022 | 3,379 |
2023 | 1,299 |
2024 | 100 |
2025 and thereafter | |
Total future minimum lease payments receivable | 16,355 |
Less: Unearned income | (903) |
Undiscounted cash flows to be received | $ 15,452 |
Bank Premises And Equipment (Na
Bank Premises And Equipment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 1.5 | $ 1.3 | $ 1.3 | |
Loan transferred from loans to foreclosed assets held-for-sale to bank premises, value | $ 1 | |||
Lease expiration date | Dec. 31, 2021 | |||
Bank Premises [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 40 years | |||
Furniture, Fixtures And Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 3 years | |||
Furniture, Fixtures And Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 7 years |
Bank Premises And Equipment (Co
Bank Premises And Equipment (Components Of Bank Premises And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 39,442 | $ 35,736 |
Less accumulated depreciation and amortization | (17,885) | (16,816) |
Bank premises and equipment, net | 21,557 | 18,920 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,865 | 2,865 |
Bank Premises [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,123 | 13,902 |
Furniture, Fixtures And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 12,523 | 11,075 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 9,372 | 7,263 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 559 | $ 631 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposit Liabilities [Line Items] | ||
Time Deposits 100,000 Or More | $ 70.7 | $ 66.9 |
Time Deposits 250,000 Or More | 44.5 | $ 38.4 |
Pledged As Collateral [Member] | ||
Deposit Liabilities [Line Items] | ||
Qualifying collateral to secure deposits | 99.7 | |
Securities Available To Be Pledged As Collateral [Member] | ||
Deposit Liabilities [Line Items] | ||
Investment Securities | 185.1 | |
Pledged Letters of Credit | 32.3 | |
Qualifying Collateral | $ 117.7 |
Deposits (Schedule Of Certifica
Deposits (Schedule Of Certificates Of Deposits By Year Of Maturity) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
2020, Amount | $ 86,159 |
2021, Amount | 18,026 |
2022, Amount | 7,368 |
2023, Amount | 1,145 |
2024, Amount | 2,401 |
2025 and thereafter, Amount | 1,112 |
Total, Amount | $ 116,211 |
2020, Percent | 74.10% |
2021, Percent | 15.50% |
2022, Percent | 6.30% |
2023, Percent | 1.00% |
2024, Percent | 2.10% |
2025 and thereafter, Percent | 1.00% |
Total, Percent | 100.00% |
Short-Term Borrowings (Narrativ
Short-Term Borrowings (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Carrying value of the underlying qualified investment securities | $ 12.2 | |
FHLB Advance [Member] | ||
Short-term Debt [Line Items] | ||
Remaining borrowing capacity | $ 202.8 | |
Correspondent Banks [Member] | ||
Short-term Debt [Line Items] | ||
Remaining borrowing capacity | 21 | |
Federal Reserve Bank Discount Window [Member] | ||
Short-term Debt [Line Items] | ||
Remaining borrowing capacity | $ 94.3 |
Short-Term Borrowings (Schedule
Short-Term Borrowings (Schedule Of Components Of Short-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Short-term Borrowings | $ 37,839 | $ 76,366 |
Overnight Borrowings [Member] | ||
Total Short-term Borrowings | $ 37,839 | $ 76,366 |
Short-Term Borrowings (Schedu_2
Short-Term Borrowings (Schedule Of Short-Term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 58,747 | $ 98,568 | $ 63,916 |
Average outstanding | 35,243 | 37,559 | 28,673 |
Overnight Borrowings [Member] | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | 58,747 | 76,366 | 46,737 |
Average outstanding | $ 35,243 | $ 27,893 | $ 18,399 |
Weighted-average rate during the year | 2.49% | 2.38% | 1.09% |
Rate at year-end | 1.81% | 2.62% | 1.56% |
Repurchase Agreements [Member] | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 22,202 | $ 17,179 | |
Average outstanding | $ 9,666 | $ 10,274 | |
Weighted-average rate during the year | 0.16% | 0.20% | |
Rate at year-end | 0.18% |
FHLB Advances (Narrative) (Deta
FHLB Advances (Narrative) (Details) | Sep. 30, 2018USD ($) |
FHLB Advances [Abstract] | |
Amount borrowed from FHLB | $ 15,000,000 |
FHLB Advances (Schedule Of Matu
FHLB Advances (Schedule Of Maturity And Weighted-Average Interest Rates Of FHLB Advances) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
FHLB Advances [Abstract] | |
2020, Amount | |
2021, Amount | 5,000 |
2022, Amount | 5,000 |
2023, Amount | 5,000 |
2024, Amount | |
Total, Amount | $ 15,000 |
2020, Rate | |
2021, Rate | 2.95% |
2022, Rate | 2.99% |
2023, Rate | 3.07% |
2024, Rate | |
Total, Rate | 3.01% |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) | Feb. 05, 2019$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2019USD ($)itemshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of active share-based compensation plans | item | 2 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Non-option shares granted | 12,901 | 19,250 | 13,224 | |||
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 11,073 | 38,941 | 24,346 | |||
Vesting period | 3 years | |||||
Options exercised | 3,059 | 3,051 | ||||
Options exercised, intrinsic value | $ | $ 10,631 | $ 12,288 | ||||
Options exercised, realized tax deduction | $ | 108,134 | 122,969 | ||||
Options exercised, tax benefit | $ | $ 22,708 | $ 25,823 | ||||
Options outstanding | 97,264 | 89,250 | 53,360 | 29,014 | ||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | ||||||
Options exercised | 750 | 750 | 21,750 | |||
Options exercised, price per share | $ / shares | $ 18.50 | $ 18.50 | $ 19.14 | |||
Options exercised, grant date intrinsic value | $ | $ 2,585 | $ 79,715 | ||||
Options exercised, realized tax deduction | $ | 22,875 | 363,392 | ||||
Options exercised, tax benefit | $ | $ 4,804 | $ 123,553 | ||||
Options outstanding | 0 | 750 | 22,500 | |||
2012 Stock Incentive Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration date | Dec. 31, 2022 | |||||
Director Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 750,000 | |||||
Vesting period | 3 years | 3 years | 2 years | |||
Director Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Non-option shares granted | 5,600 | 5,600 | 8,400 | 8,400 | ||
Omnibus Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 750,000 | |||||
Omnibus Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Term used to determine historical volatility | 5 years | |||||
Grant date stock price | $ / shares | $ 59.70 | |||||
Discount rate | 8.393% | |||||
Interest rate | 2.494% | |||||
Volatility rate | 19.411% | |||||
Omnibus Plan [Member] | Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 11,073 | |||||
Expected term | 10 years | 10 years | ||||
Dividend rate | 1.628% | |||||
Grant date fair value stock price | $ / shares | $ 16.79 | |||||
Interest rate | 2.692% | |||||
Volatility rate | 23.732% | |||||
Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Performance period | 3 years | |||||
Long-Term Incentive Plan [Member] | Senior Officers and Managers [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance period | 1 year | |||||
Long-Term Incentive Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Holding period | 2 years | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 165,000 | |||||
Number of shares issued | 81,019 | |||||
Dividend Reinvestment Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 750,000 | |||||
Dividend reinvestment plan, shares available for issuance | 591,730 | |||||
Award Date One [Member] | Omnibus Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | 3 years | 3 years | |||
Award Date One [Member] | Omnibus Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Non-option shares granted | 7,251 | 7,251 | 10,800 | 4,749 | ||
Vesting period | 3 years | |||||
Holding period | 2 years | |||||
Term used to determine historical volatility | 5 years | |||||
Treasury yield | 5 years |
Stock Plans (Summary of Weighte
Stock Plans (Summary of Weighted-Average Fair-Value and Vesting of Restricted Stock Grants) (Details) - $ / shares | Feb. 05, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Director Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 3 years | 2 years | |
Director Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% | 33.00% | 50.00% | |
Director Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% | 33.00% | 50.00% | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 12,901 | 19,250 | 13,224 | |
Weighted-average grant date fair value | $ 54.70 | $ 47.44 | $ 25.36 | |
Restricted Stock [Member] | Director Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 5,600 | 5,600 | 8,400 | 8,400 |
Weighted-average grant date fair value | $ 54.69 | $ 49.50 | $ 26.17 | |
Award Date One [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 3 years | 3 years | |
Award Date One [Member] | Omnibus Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% | 33.00% | 33.00% | |
Award Date One [Member] | Omnibus Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% | 33.00% | 33.00% | |
Award Date One [Member] | Omnibus Plan [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% | 33.00% | 33.00% | |
Award Date One [Member] | Restricted Stock [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 7,251 | 7,251 | 10,800 | 4,749 |
Weighted-average grant date fair value | $ 54.69 | $ 45.83 | $ 23.93 | |
Vesting period | 3 years | |||
Award Date Two [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | 1 year | 1 year | |
Award Date Two [Member] | Restricted Stock [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 50 | 50 | 75 | |
Weighted-average grant date fair value | $ 58.08 | $ 49.50 | $ 26.17 |
Stock Plans (Schedule of Non-Ve
Stock Plans (Schedule of Non-Vested Restricted Stock Units Activity) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested balance at January 1, | 29,960 | 20,704 | 21,962 |
Granted | 12,901 | 19,250 | 13,224 |
Forfeited | (126) | ||
Vested | (15,574) | (9,994) | (14,482) |
Non-vested balance at December 31, | 27,161 | 29,960 | 20,704 |
Weighted-average grant date fair value, Non-vested balance at January 1, | $ 38.99 | $ 23.59 | $ 20.31 |
Weighted-average grant date fair value, Granted | 54.70 | 47.44 | 25.36 |
Weighted-average grant date fair value, Forfeited | 54.69 | ||
Weighted-average grant date fair value, Vested | 33.81 | 23.69 | 20.47 |
Weighted-average grant date fair value, Non-vested balance at December 31, | $ 49.48 | $ 38.99 | $ 23.59 |
Director Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested balance at January 1, | 12,600 | 8,400 | 8,400 |
Granted | 5,600 | 8,400 | 8,400 |
Forfeited | |||
Vested | (7,000) | (4,200) | (8,400) |
Non-vested balance at December 31, | 11,200 | 12,600 | 8,400 |
Weighted-average grant date fair value, Granted | $ 54.69 | $ 49.50 | $ 26.17 |
Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested balance at January 1, | 17,360 | 12,304 | 13,562 |
Granted | 7,301 | 10,850 | 4,824 |
Forfeited | (126) | ||
Vested | (8,574) | (5,794) | (6,082) |
Non-vested balance at December 31, | 15,961 | 17,360 | 12,304 |
Stock Plans (Schedule of SSARs
Stock Plans (Schedule of SSARs Activity) (Details) - Stock-Settled Stock Appreciation Rights (SSARs) [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding January 1, | 89,250 | 53,360 | 29,014 | |
Granted | 11,073 | 38,941 | 24,346 | |
Exercised | (3,059) | (3,051) | ||
Forfeited | ||||
Outstanding December 31, | 97,264 | 89,250 | 53,360 | 29,014 |
Weighted-average grant date fair value, Outstanding January 1, | $ 8.36 | $ 4.20 | $ 3.48 | |
Weighted-average grant date fair value - Granted | 16.79 | 13.73 | 5.06 | |
Weighted-average grant date fair value - Exercised | 3.48 | 4.03 | ||
Weighted-average grant date fair value - Forfeited | ||||
Weighted-average grant date fair value, Outstanding December 31, | $ 9.47 | $ 8.36 | $ 4.20 | $ 3.48 |
Weighted-average remaining contractual term (years), Granted | 10 years | 10 years | 10 years | |
Weighted-average remaining contractual term (years), Outstanding | 7 years 6 months | 8 years 2 months 12 days | 8 years 6 months | 9 years 1 month 6 days |
Vested and exercisable | 52,112 | |||
Vesting period | 3 years | |||
Share-based Compensation Award, Tranche One, Two and Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% |
Stock Plans (Schedule of Compen
Stock Plans (Schedule of Compensation Cost for Share-Based Payment Arrangements, Allocation of Share-Based Compensation Costs by Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Vested Equity Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 958 | $ 880 | $ 333 |
Non-Vested Equity Awards [Member] | Director Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 240 | 237 | 116 |
Non-Vested Equity Awards [Member] | Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 611 | 500 | 194 |
Non-Vested Equity Awards [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 107 | 143 | 23 |
Restricted Stock And Stock-Settled Stock Appreciation Rights [Member] | Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Accrued stock-based compensation expense | $ (100) | $ (100) | $ 200 |
Stock Plans (Schedule of Unreco
Stock Plans (Schedule of Unrecognized Compensation Cost, Non-Vested Awards) (Details) - Non-Vested Equity Awards [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 1,145 |
Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 364 |
Omnibus Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 781 |
Stock Plans (Summary of Stock O
Stock Plans (Summary of Stock Option Activity) (Details) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding January 1, | 750 | 750 | 22,500 | ||
Granted | |||||
Exercised | (750) | (750) | (21,750) | ||
Forfeited | |||||
Outstanding December 31, | 0 | 750 | 22,500 | ||
Weighted-average grant date fair value, Outstanding January 1, | $ 18.50 | $ 18.50 | $ 19.12 | ||
Weighted-average grant date fair value - Granted | |||||
Weighted-average grant date fair value - Exercised | $ 18.50 | 18.50 | 19.14 | ||
Weighted-average grant date fair value - Forfeited | |||||
Weighted-average grant date fair value, Outstanding December 31, | $ 18.50 | $ 19.12 | |||
Weighted-average remaining contractual term (years), Outstanding | 2 months 12 days | 1 year |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||||
Unrecognized tax benefits | $ 0 | |||
Penalties and interest | $ 0 | $ 0 | $ 0 | |
Federal statutory income tax rate | 21.00% | 34.00% | ||
Decrease in deferred tax liabilites resulting from Tax Act | $ 1,100,000 | $ 1,100,000 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Allowance for loan losses | $ 2,047 | $ 2,047 |
Net unrealized losses on available-for-sale securities | 291 | |
Deferred interest from non-accrual assets | 149 | 167 |
Operating lease liabilities | 1,377 | |
Other | 556 | 697 |
Total | 4,129 | 3,202 |
Net unrealized gains on available-for-sale securities | (958) | |
Loan fees and costs | (1,248) | (1,151) |
Automobile leasing | (3,463) | (3,393) |
Operating lease right-of-use assets | (1,265) | |
Depreciation | (685) | (416) |
Mortgage loan servicing rights | (211) | (241) |
Total | (7,830) | (5,201) |
Deferred tax liability, net | $ (3,701) | $ (1,999) |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Income Tax Expense Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||||||||||||||
Current | $ 1,985 | $ 1,110 | $ 1,872 | ||||||||||||
Deferred | 341 | 1,019 | (666) | ||||||||||||
Total/Actual provision for income taxes | $ 584 | $ 611 | $ 591 | $ 540 | $ 525 | $ 559 | $ 539 | $ 506 | $ (872) | $ 658 | $ 739 | $ 681 | $ 2,326 | $ 2,129 | $ 1,206 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||||||||||||||
Expected provision at the statutory rate | $ 2,919 | $ 2,758 | $ 3,373 | ||||||||||||
Tax-exempt income | (592) | (567) | (845) | ||||||||||||
Bank owned life insurance | (136) | (126) | (198) | ||||||||||||
Nondeductible interest expense | 37 | 18 | 19 | ||||||||||||
Nondeductible other expenses and other, net | 98 | 43 | (59) | ||||||||||||
Tax rate change adjustment | 3 | (1,084) | |||||||||||||
Total/Actual provision for income taxes | $ 584 | $ 611 | $ 591 | $ 540 | $ 525 | $ 559 | $ 539 | $ 506 | $ (872) | $ 658 | $ 739 | $ 681 | $ 2,326 | $ 2,129 | $ 1,206 |
Retirement Plan (Narrative) (De
Retirement Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Plan [Abstract] | |||
Contributions to the plan | $ 0.5 | $ 0.4 | $ 0.4 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss on commitments | $ | $ 0 | $ 0 | $ 0 |
Other Repossessed Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of repossessed automobiles | 2 | ||
Number of repossessed assets | 0 | ||
Other assets fair value | $ | $ 20,000 | ||
Minimum [Member] | Other Real Estate Owned [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, measurement input | (0.2694) | (0.1847) | |
Minimum [Member] | Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjustment applied to arrive at fair value | (21.56%) | (16.70%) | |
Maximum [Member] | Other Real Estate Owned [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, measurement input | (0.8948) | (0.6896) | |
Maximum [Member] | Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjustment applied to arrive at fair value | (84.98%) | (57.89%) | |
Weighted Average [Member] | Other Real Estate Owned [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, measurement input | (0.4865) | (0.4583) | |
Weighted Average [Member] | Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjustment applied to arrive at fair value | (29.11%) | (44.42%) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount and Estimated Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale debt securities | $ 185,117 | $ 182,810 |
Loans held-for-sale | 1,660 | 5,789 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 15,663 | 17,485 |
Available-for-sale debt securities | 185,117 | 182,810 |
FHLB stock | 4,383 | 6,339 |
Loans and leases, net | 743,663 | 718,317 |
Loans held-for-sale | 1,643 | 5,707 |
Accrued interest receivable | 3,281 | 3,271 |
Short-term borrowings | 37,839 | 76,366 |
FHLB advances | 15,000 | 31,704 |
Accrued interest payable | 644 | 530 |
Carrying Amount [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 719,526 | 653,897 |
Carrying Amount [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 116,211 | 116,286 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 15,663 | 17,485 |
Available-for-sale debt securities | 185,117 | 182,810 |
FHLB stock | 4,383 | 6,339 |
Loans and leases, net | 735,657 | 697,729 |
Loans held-for-sale | 1,660 | 5,789 |
Accrued interest receivable | 3,281 | 3,271 |
Short-term borrowings | 37,839 | 76,366 |
FHLB advances | 15,430 | 31,698 |
Accrued interest payable | 644 | 530 |
Estimated Fair Value [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 719,526 | 653,897 |
Estimated Fair Value [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 115,993 | 114,876 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 15,663 | 17,485 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale debt securities | 185,117 | 182,810 |
FHLB stock | 4,383 | 6,339 |
Loans held-for-sale | 1,660 | 5,789 |
Accrued interest receivable | 3,281 | 3,271 |
Short-term borrowings | 37,839 | 76,366 |
FHLB advances | 15,430 | 31,698 |
Accrued interest payable | 644 | 530 |
Significant Other Observable Inputs (Level 2) [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 719,526 | 653,897 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 115,993 | 114,876 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases, net | $ 735,657 | $ 697,729 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 185,117 | $ 182,810 |
Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 6,159 | 5,917 |
Obligations Of States And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 54,718 | 52,575 |
MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 124,240 | 124,318 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 185,117 | 182,810 |
Significant Other Observable Inputs (Level 2) [Member] | Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 6,159 | 5,917 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations Of States And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 54,718 | 52,575 |
Significant Other Observable Inputs (Level 2) [Member] | MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 124,240 | $ 124,318 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements at Fair Value Segregated by Hierarchy Fair Value Levels) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,949 | $ 2,001 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,579 | 1,817 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 350 | 184 |
Other Repossessed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 20 | |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,949 | 2,001 |
Significant Other Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,579 | 1,817 |
Significant Other Unobservable Inputs (Level 3) [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 350 | $ 184 |
Significant Other Unobservable Inputs (Level 3) [Member] | Other Repossessed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 20 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Value, Off-Balance Sheet Risks) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to extend credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | $ 143,558 | $ 144,710 |
Standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | $ 7,287 | $ 2,690 |
Fair Value Measurements (Supply
Fair Value Measurements (Supply Commitment) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | $ 7,287 |
Less than one year [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 5,917 |
More than one year to five years [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 363 |
Over five years [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 1,007 |
Secured [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 6,924 |
Secured [Member] | Less than one year [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 5,554 |
Secured [Member] | More than one year to five years [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 363 |
Secured [Member] | Over five years [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 1,007 |
Secured by Collateral [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 4,519 |
Secured by Collateral [Member] | Less than one year [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 3,149 |
Secured by Collateral [Member] | More than one year to five years [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 363 |
Secured by Collateral [Member] | Over five years [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 1,007 |
Secured by Bank Lines of Credit [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 2,405 |
Secured by Bank Lines of Credit [Member] | Less than one year [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 2,405 |
Unsecured [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | 363 |
Unsecured [Member] | Less than one year [Member] | |
Supply Commitment [Line Items] | |
Outstanding financial letters of credit | $ 363 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019itemshares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Number of active share-based compensation plans | item | 2 | ||
Potentially dilutive common shares | 42,811 | 43,194 | 23,919 |
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive common shares | 32,091 | 29,301 | 14,300 |
Restricted Stock [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive common shares | 10,720 | 13,893 | 9,619 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic EPS: | |||||||||||||||
Net income available to common shareholders | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | $ 11,576 | $ 11,006 | $ 8,716 |
Weighted-average common shares outstanding | 3,779,582 | 3,752,704 | 3,711,490 | ||||||||||||
Basic EPS | $ 0.71 | $ 0.82 | $ 0.79 | $ 0.74 | $ 0.76 | $ 0.76 | $ 0.74 | $ 0.67 | $ 0.63 | $ 0.60 | $ 0.59 | $ 0.53 | $ 3.06 | $ 2.93 | $ 2.35 |
Diluted EPS: | |||||||||||||||
Net income available to common shareholders | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | $ 11,576 | $ 11,006 | $ 8,716 |
Weighted-average common shares outstanding | 3,779,582 | 3,752,704 | 3,711,490 | ||||||||||||
Potentially dilutive common shares | 42,811 | 43,194 | 23,919 | ||||||||||||
Weighted-average common and potentially dilutive shares outstanding | 3,822,393 | 3,795,898 | 3,735,409 | ||||||||||||
Diluted EPS | $ 0.71 | $ 0.80 | $ 0.79 | $ 0.73 | $ 0.75 | $ 0.75 | $ 0.73 | $ 0.67 | $ 0.61 | $ 0.60 | $ 0.59 | $ 0.53 | $ 3.03 | $ 2.90 | $ 2.33 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Total Risk Adjusted Capital | 8.00% |
Tier I Common Equity | 4.50% |
Tier 1 capital (to risk-weighted assets) | 6.00% |
Leverage Ratio | 4.00% |
Amount available for dividend payments without regulatory approval | $ 94.7 |
Maximum [Member] | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Capital conversion buffer | 2.50% |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 common equity (to risk-weighted assets) Actual, Ratio | 4.50% | |
Tier 1 capital (to risk-weighted assets), Actual, Ratio | 6.00% | |
Capital conservation buffer | 0.625% | |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 112,188 | $ 103,313 |
Total capital (to risk-weighted assets), Actual, Ratio | 15.80% | 14.80% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 56,791 | $ 55,970 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Amount | $ 74,538 | $ 69,088 |
Total capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Ratio | 10.50% | 9.90% |
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 70,989 | $ 69,962 |
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 10.00% | 10.00% |
Tier 1 common equity (to risk-weighted assets) Actual, Amount | $ 103,303 | $ 94,554 |
Tier 1 common equity (to risk-weighted assets) Actual, Ratio | 14.60% | 13.50% |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes, Amount | $ 31,945 | $ 31,483 |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes, Ratio | 4.50% | 4.50% |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Amount | $ 49,692 | $ 44,601 |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Ratio | 7.00% | 6.40% |
Tier 1 common equity (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 46,143 | $ 45,475 |
Tier 1 common equity (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 103,303 | $ 94,554 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio | 14.60% | 13.50% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 42,593 | $ 41,977 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Amount | $ 60,340 | $ 55,095 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Ratio | 8.50% | 7.90% |
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 56,791 | $ 55,970 |
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), Actual, Amount | $ 103,303 | $ 94,554 |
Tier 1 capital (to average assets), Actual, Ratio | 10.30% | 9.80% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 40,265 | $ 38,591 |
Tier 1 capital (to average assets), For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For capital adequacy purposeswith capital conversion buffer, Ratio | $ 40,265 | $ 38,591 |
Tier 1 capital (to average assets), For capital adequacy purposes with capital conversion buffer, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action provisions, Amount | $ 50,331 | $ 48,238 |
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action provisions, Ratio | 5.00% | 5.00% |
Parent Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 111,910 | $ 103,201 |
Total capital (to risk-weighted assets), Actual, Ratio | 15.80% | 14.80% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 56,796 | $ 55,975 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Amount | $ 74,545 | $ 69,094 |
Total capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Ratio | 10.50% | 9.90% |
Tier 1 common equity (to risk-weighted assets) Actual, Amount | $ 103,024 | $ 94,442 |
Tier 1 common equity (to risk-weighted assets) Actual, Ratio | 14.50% | 13.50% |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes, Amount | $ 31,948 | $ 31,486 |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes, Ratio | 4.50% | 4.50% |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Amount | $ 49,696 | $ 44,605 |
Tier 1 common equity (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Ratio | 7.00% | 6.40% |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 103,024 | $ 94,442 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio | 14.50% | 13.50% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 42,597 | $ 41,981 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Amount | $ 60,346 | $ 55,100 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes with capital conversion buffer, Ratio | 8.50% | 7.90% |
Tier 1 capital (to average assets), Actual, Amount | $ 103,024 | $ 94,442 |
Tier 1 capital (to average assets), Actual, Ratio | 10.40% | 9.80% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 39,650 | $ 38,593 |
Tier 1 capital (to average assets), For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For capital adequacy purposeswith capital conversion buffer, Ratio | $ 39,650 | $ 38,593 |
Tier 1 capital (to average assets), For capital adequacy purposes with capital conversion buffer, Ratio | 4.00% | 4.00% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Minimum percetage interest shareholders must have to obtain loan | 5.00% | ||
Related Party Deposit Liabilities | $ 14.8 | $ 14.4 | $ 14.3 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Transactions) (Details) - Stock owned by officers, directors, associates and such persons and shareholders who own more than %5 of shares outstanding [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Balance, beginning | $ 6,542 | $ 6,497 | $ 7,849 |
Additions | 1,864 | 1,314 | 1,111 |
Collections | (1,641) | (1,269) | (2,463) |
Balance, ending | $ 6,765 | $ 6,542 | $ 6,497 |
Quarterly Financial Informati_3
Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information [Abstract] | |||||||||||||||
Interest income | $ 9,949 | $ 10,008 | $ 9,657 | $ 9,655 | $ 9,624 | $ 9,028 | $ 8,535 | $ 8,143 | $ 7,916 | $ 7,928 | $ 7,854 | $ 7,366 | $ 39,269 | $ 35,330 | $ 31,064 |
Interest expense | (1,938) | (2,008) | (1,863) | (1,745) | (1,660) | (1,317) | (1,012) | (884) | (866) | (882) | (787) | (688) | (7,554) | (4,873) | (3,223) |
Net interest income | 8,011 | 8,000 | 7,794 | 7,910 | 7,964 | 7,711 | 7,523 | 7,259 | 7,050 | 7,046 | 7,067 | 6,678 | 31,715 | 30,457 | 27,841 |
Provision for loan losses | (255) | (320) | (255) | (255) | (325) | (400) | (425) | (300) | (525) | (375) | (225) | (325) | (1,085) | (1,450) | (1,450) |
Gain (loss) on write-down/sale of investment securities | 20 | (2) | (4) | 5 | 107 | (58) | (147) | 14 | 54 | (147) | |||||
Other income | 2,595 | 2,634 | 2,489 | 2,461 | 2,263 | 2,278 | 2,264 | 2,341 | 2,029 | 2,248 | 2,131 | 2,105 | 10,179 | 9,146 | 8,513 |
Other expenses | (7,073) | (6,643) | (6,435) | (6,770) | (6,530) | (6,172) | (6,162) | (6,208) | (6,953) | (6,035) | (6,051) | (5,797) | (26,921) | (25,072) | (24,836) |
Income before taxes | 3,298 | 3,669 | 3,593 | 3,342 | 3,372 | 3,422 | 3,307 | 3,034 | 1,455 | 2,884 | 2,922 | 2,661 | 13,902 | 13,135 | 9,922 |
Provision for income taxes | (584) | (611) | (591) | (540) | (525) | (559) | (539) | (506) | 872 | (658) | (739) | (681) | (2,326) | (2,129) | (1,206) |
Net income | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | $ 11,576 | $ 11,006 | $ 8,716 |
Net income per share - basic | $ 0.71 | $ 0.82 | $ 0.79 | $ 0.74 | $ 0.76 | $ 0.76 | $ 0.74 | $ 0.67 | $ 0.63 | $ 0.60 | $ 0.59 | $ 0.53 | $ 3.06 | $ 2.93 | $ 2.35 |
Net income per share - diluted | $ 0.71 | $ 0.80 | $ 0.79 | $ 0.73 | $ 0.75 | $ 0.75 | $ 0.73 | $ 0.67 | $ 0.61 | $ 0.60 | $ 0.59 | $ 0.53 | $ 3.03 | $ 2.90 | $ 2.33 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) | Dec. 31, 2019item |
Contingencies [Abstract] | |
Loss contingency, pending legal proceedings | 0 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 |
New Accounting Pronouncements [Abstract] | ||
Right-of-use assets | $ 4,100 | $ 6,023 |
Operating lease liabilities | 4,600 | 6,556 |
Effect of adopting ASU | $ (100) | $ (91) |
Parent Company Only (Schedule o
Parent Company Only (Schedule of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Cash | $ 14,583 | $ 16,025 |
Available-for-sale securities | 185,117 | 182,810 |
Other assets | 4,478 | 6,906 |
Total assets | 1,009,927 | 981,102 |
Liabilities | 903,092 | 887,545 |
Accumulated other comprehensive income (loss) | 3,602 | (1,095) |
Total liabilities and shareholders' equity | 1,009,927 | 981,102 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash | 63 | 232 |
Investment in subsidiary | 107,115 | 93,669 |
Other assets | 107 | 106 |
Total assets | 107,285 | 94,007 |
Liabilities | 449 | 450 |
Capital stock and retained earnings | 103,234 | 94,652 |
Accumulated other comprehensive income (loss) | 3,602 | (1,095) |
Total liabilities and shareholders' equity | $ 107,285 | $ 94,007 |
Parent Company Only (Schedule_2
Parent Company Only (Schedule of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Gain on sale of investment securities | $ 44 | ||||||||||||||
Other income | $ 2,595 | $ 2,634 | $ 2,489 | $ 2,461 | $ 2,263 | $ 2,278 | $ 2,264 | $ 2,341 | $ 2,029 | $ 2,248 | $ 2,131 | $ 2,105 | $ 10,179 | 9,146 | $ 8,513 |
Credit for income taxes | (584) | (611) | (591) | (540) | (525) | (559) | (539) | (506) | 872 | (658) | (739) | (681) | (2,326) | (2,129) | (1,206) |
Net income | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | 11,576 | 11,006 | 8,716 |
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Equity in undistributed earnings of subsidiary | 8,839 | 9,273 | 6,685 | ||||||||||||
Dividends from subsidiary | 4,037 | 2,723 | 2,574 | ||||||||||||
Gain on sale of investment securities | 44 | ||||||||||||||
Other income | 11 | 22 | |||||||||||||
Total income | 12,876 | 12,051 | 9,281 | ||||||||||||
Operating expenses | 1,598 | 1,269 | 1,094 | ||||||||||||
Income before taxes | 11,278 | 10,782 | 8,187 | ||||||||||||
Credit for income taxes | 298 | 224 | 529 | ||||||||||||
Net income | $ 11,576 | $ 11,006 | $ 8,716 |
Parent Company Only (Schedule_3
Parent Company Only (Schedule of Condensed Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | $ 11,576 | $ 11,006 | $ 8,716 |
Unrealized holding gain (loss) on available-for-sale debt securities | 5,960 | (3,127) | 44 | ||||||||||||
Tax effect | (1,249) | 659 | (65) | ||||||||||||
Unrealized gain (loss), net of tax | 4,697 | (2,478) | 126 | ||||||||||||
Other comprehensive income (loss), net of tax | 4,697 | (2,478) | 126 | ||||||||||||
Total comprehensive income, net of tax | 16,273 | 8,528 | 8,842 | ||||||||||||
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Bancorp net loss | (1,300) | (990) | (542) | ||||||||||||
Equity in net income of subsidiary | 12,876 | 11,996 | 9,258 | ||||||||||||
Net income | 11,576 | 11,006 | 8,716 | ||||||||||||
Unrealized holding gain (loss) on available-for-sale debt securities | 197 | ||||||||||||||
Tax effect | (67) | ||||||||||||||
Unrealized gain (loss), net of tax | 130 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiary | 4,697 | (2,478) | (4) | ||||||||||||
Other comprehensive income (loss), net of tax | 4,697 | (2,478) | 126 | ||||||||||||
Total comprehensive income, net of tax | $ 16,273 | $ 8,528 | $ 8,842 |
Parent Company Only (Schedule_4
Parent Company Only (Schedule of Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | $ 2,714 | $ 3,058 | $ 3,002 | $ 2,802 | $ 2,847 | $ 2,863 | $ 2,768 | $ 2,528 | $ 2,327 | $ 2,226 | $ 2,183 | $ 1,980 | $ 11,576 | $ 11,006 | $ 8,716 |
Stock-based compensation expense | 817 | 749 | 550 | ||||||||||||
Deferred income tax expense | 341 | 1,019 | (666) | ||||||||||||
Gain on sale of investment securities | (44) | ||||||||||||||
Net cash provided by operating activities | 25,786 | 13,650 | 13,887 | ||||||||||||
Proceeds from sales of investment securities | 10,952 | 13,514 | 5,970 | ||||||||||||
Net cash used in investing activities | (33,996) | (117,119) | (69,842) | ||||||||||||
Exercise of stock options | 14 | 416 | |||||||||||||
Withholdings to purchase capital stock | 175 | 149 | 126 | ||||||||||||
Cash paid in lieu of fractional shares | (11) | ||||||||||||||
Net cash provided by financing activities | 6,388 | 105,129 | 45,937 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (1,822) | 1,660 | (10,018) | ||||||||||||
Cash and cash equivalents, beginning | 17,485 | 15,825 | 25,843 | 17,485 | 15,825 | 25,843 | |||||||||
Cash and cash equivalents, ending | 15,663 | 17,485 | 15,825 | 15,663 | 17,485 | 15,825 | |||||||||
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | 11,576 | 11,006 | 8,716 | ||||||||||||
Equity in earnings of subsidiary | (12,876) | (11,996) | (9,258) | ||||||||||||
Stock-based compensation expense | 817 | 749 | 550 | ||||||||||||
Deferred income tax expense | 2 | (60) | (69) | ||||||||||||
Gain on sale of investment securities | (44) | ||||||||||||||
Changes in other assets and liabilities, net | 137 | 12 | (26) | ||||||||||||
Net cash provided by operating activities | (344) | (333) | (87) | ||||||||||||
Dividends received from subsidiary | 4,037 | 2,723 | 2,574 | ||||||||||||
Proceeds from sales of investment securities | 871 | ||||||||||||||
Net cash used in investing activities | 4,037 | 3,594 | 2,574 | ||||||||||||
Dividends paid, net of dividends reinvested | (4,037) | (3,397) | (2,954) | ||||||||||||
Exercise of stock options | 14 | 416 | |||||||||||||
Withholdings to purchase capital stock | 175 | 149 | 126 | ||||||||||||
Cash paid in lieu of fractional shares | (11) | ||||||||||||||
Net cash provided by financing activities | (3,862) | (3,234) | (2,423) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (169) | 27 | 64 | ||||||||||||
Cash and cash equivalents, beginning | $ 232 | $ 205 | $ 141 | 232 | 205 | 141 | |||||||||
Cash and cash equivalents, ending | $ 63 | $ 232 | $ 205 | $ 63 | $ 232 | $ 205 |
Business Combination and Pend_3
Business Combination and Pending Acquisition (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($)itemshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)loan | Mar. 17, 2017USD ($) | |
Business Acquisition [Line Items] | |||||
Acquisition costs | $ 41,000 | ||||
Number of loans acquired with evidence of credit quality deterioration | loan | 0 | ||||
Goodwill | $ 209,000 | $ 209,000 | $ 209,000 | ||
West Scranton branch of Wayne Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Loans | $ 1,574,000 | ||||
Goodwill | $ 209,000 | ||||
Goodwill impairment | 0 | $ 0 | |||
MNB Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition costs | 440,000 | ||||
Consideration | $ 78,500,000 | ||||
Number of shares issuable per share of acquiree common stock | shares | 1.039 | ||||
Number of branches operated by acquiree | item | 9 | ||||
Estimated non-recurring costs to facilitate merger and integrate | $ 2,400,000 |
Business Combination and Pend_4
Business Combination and Pending Acquisition (Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 17, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 209 | $ 209 | |
West Scranton branch of Wayne Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 11,817 | ||
Loans | 1,574 | ||
Bank premises and equipment | 264 | ||
Goodwill | 209 | ||
Accrued interest receivable and other assets | 4 | ||
Total assets acquired | 13,868 | ||
Deposits | 13,809 | ||
Accrued interest payable and other liabilities | 59 | ||
Total liabilities assumed | $ 13,868 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)employee | Mar. 29, 2017employee | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Purchase of life insurance policies | $ 2,000 | $ 2,000 | $ 8,000 | ||
Cash surrender value of bank owned life insurance | 23,261 | $ 20,615 | |||
Earnings on bank-owned life insurance | 647 | 598 | $ 581 | ||
Number of officers with split dollar life insurance arrangement | employee | 11 | ||||
Split dollar life insurance arrangement, death benefit | 23,300 | ||||
Split dollar life insurance arrangement, death benefit to be paid to insured's beneficiary | 4,100 | ||||
Split dollar life insurance arrangement, death benefit to be paid to Company | $ 19,200 | ||||
Number of officers with opportunity to retain benefit equal to two times highest base salary after separation | employee | 4 | ||||
Split dollar life insurance arrangement, accrued expense | $ 107 | 63 | |||
Defined contribution plan, cost recognized | 500 | 400 | $ 400 | ||
Supplemental Executive Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of officers who entered into supplemental executive retirement agreement | employee | 5 | ||||
Defined contribution plan, accrued expense | $ 1,400 | $ 900 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue Recognition [Abstract] | ||
Contract balance | $ 0 | $ 0 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)item | |
Leases [Line Items] | |
Number of properties leased under operating lease | 6 |
Number of leases classified as finance lease | 2 |
Total lease cost | $ | $ 533 |
Premise and Equipment [Member] | |
Leases [Line Items] | |
Total lease cost | $ | 498 |
Other Expense [Member] | |
Leases [Line Items] | |
Total lease cost | $ | $ 35 |
Standalone ATM [Member] | |
Leases [Line Items] | |
Number of properties leased under operating lease | 3 |
Leased to Unrelated Party [Member] | |
Leases [Line Items] | |
Number of properties leased under operating lease | 4 |
Leases (Analysis of Leased Prop
Leases (Analysis of Leased Property under Finance Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Equipment | $ 397 | $ 375 |
Less accumulated depreciation and amortization | (117) | (42) |
Leased property under finance leases, net | $ 280 | $ 333 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Lease Payments under Finance Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2020 | $ 82 | |
2021 | 82 | |
2022 | 82 | |
2023 | 56 | |
2024 | ||
2025 and thereafter | ||
Total minimum lease payments | 302 | |
Less amount representing interest | (16) | |
Present value of net minimum lease payments | $ 286 | $ 336 |
Leases (Schedule of Lease Costs
Leases (Schedule of Lease Costs and Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 75 | |
Interest on lease liabilities | 10 | |
Operating lease cost | 431 | |
Short-term lease cost | 18 | |
Variable lease cost | (1) | |
Total lease cost | 533 | |
Operating cash flows from finance leases | 10 | |
Operating cash flows from operating leases (Fixed payments) | 349 | |
Operating cash flows from operating leases (Liability reduction) | 85 | |
Financing cash flows from finance leases | 73 | $ 38 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 6,189 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 22 | |
Weighted-average remaining lease term - finance leases | 3 years 8 months 1 day | |
Weighted average remaining lease term - operating leases | 23 years 10 months 17 days | |
Weighted-average discount rate - finance leases | 3.07% | |
Weighted-average discount rate - operating leases | 3.78% |
Leases (Schedule of Future Mi_2
Leases (Schedule of Future Minimum Lease Payments under Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 397 | |
2021 | 402 | |
2022 | 408 | |
2023 | 411 | |
2024 | 413 | |
2025 and thereafter | 8,069 | |
Total future minimum lease payments | 10,100 | |
Plus variable payment adjustment | 97 | |
Less amount representing interest | (3,641) | |
Present value of net future minimum lease payments | $ 6,556 | $ 4,600 |
Leases (Schedule of Undiscounte
Leases (Schedule of Undiscounted Cash Flows to be Received) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 194 |
2021 | 189 |
2022 | 60 |
2023 | 48 |
2024 | 51 |
2025 and thereafter | 135 |
Total lease payments to be received | $ 677 |
Leases (Schedule of Lease Incom
Leases (Schedule of Lease Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Lease income - direct finance leases: Interest income on lease receivables | $ 683 | $ 580 |
Lease income - operating leases | 239 | 217 |
Total lease income | $ 922 | $ 797 |
Uncategorized Items - fdbc-2019
Label | Element | Value |
West Scranton Branch Of Wayne Bank [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Non-cash Assets | fdbc_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNonCashAssets | $ 2,051,000 |