Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Transition Report | false | |
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 & DRINKER ST. | |
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 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 Common Stock, Shares Outstanding | 3,799,213 | |
Amendment Flag | false | |
Entity Central Index Key | 0001098151 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and due from banks | $ 4,148 | $ 14,583 |
Interest-bearing deposits with financial institutions | 54,812 | 1,080 |
Total cash and cash equivalents | 58,960 | 15,663 |
Available-for-sale securities | 203,984 | 185,117 |
Federal Home Loan Bank stock | 2,732 | 4,383 |
Loans and leases, net (allowance for loan losses of $10,017 in 2020; $9,747 in 2019) | 735,107 | 743,663 |
Loans held-for-sale (fair value $1,620 in 2020, $1,660 in 2019) | 1,591 | 1,643 |
Foreclosed assets held-for-sale | 116 | 369 |
Bank premises and equipment, net | 21,412 | 21,557 |
Leased property under finance leases, net | 260 | 280 |
Right-of-use assets | 5,977 | 6,023 |
Cash surrender value of bank owned life insurance | 23,426 | 23,261 |
Accrued interest receivable | 3,239 | 3,281 |
Goodwill | 209 | 209 |
Other assets | 5,482 | 4,478 |
Total assets | 1,062,495 | 1,009,927 |
Liabilities: | ||
Deposits: Interest-bearing | 675,719 | 643,714 |
Deposits: Non-interest-bearing | 243,942 | 192,023 |
Total deposits | 919,661 | 835,737 |
Accrued interest payable and other liabilities | 8,910 | 7,674 |
Finance lease obligation | 267 | 286 |
Operating lease liabilities | 6,517 | 6,556 |
Short-term borrowings | 37,839 | |
FHLB advances | 15,000 | 15,000 |
Total liabilities | 950,355 | 903,092 |
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; 3,797,646 in 2020; and 3,781,500 in 2019) | 31,342 | 30,848 |
Retained earnings | 73,948 | 72,385 |
Accumulated other comprehensive income | 6,850 | 3,602 |
Total shareholders' equity | 112,140 | 106,835 |
Total liabilities and shareholders' equity | $ 1,062,495 | $ 1,009,927 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Loans and leases, allowance for loan losses | $ 10,017 | $ 9,747 |
Loans held-for-sale, fair value | $ 1,620 | $ 1,660 |
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 | 3,797,646 | 3,781,500 |
Capital stock, shares outstanding | 3,797,646 | 3,781,500 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Loans and leases: Taxable | $ 8,063 | $ 7,891 |
Loans and leases: Nontaxable | 297 | 267 |
Interest-bearing deposits with financial institutions | 12 | 15 |
Restricted regulatory securities | 65 | 100 |
Investment securities: | ||
U.S. government agency and corporations | 846 | 960 |
States and political subdivisions (nontaxable) | 423 | 422 |
States and political subdivisions (taxable) | 5 | |
Total interest income | 9,711 | 9,655 |
Interest expense: | ||
Deposits | 1,516 | 1,331 |
Other short-term borrowings and other | 75 | 271 |
FHLB advances | 114 | 143 |
Total interest expense | 1,705 | 1,745 |
Net interest income | 8,006 | 7,910 |
Provision for loan losses | 300 | 255 |
Net interest income after provision for loan losses | 7,706 | 7,655 |
Other income: | ||
Earnings on bank-owned life insurance | 165 | 146 |
Gain (loss) on write-down, sale or disposal of: | ||
Loans | 215 | 218 |
Available-for-sale debt securities | (4) | |
Premises and equipment | (7) | (1) |
Total other income | 2,755 | 2,457 |
Other expenses: | ||
Salaries and employee benefits | 3,923 | 3,704 |
Premises and equipment | 1,118 | 1,075 |
Data processing and communication | 460 | 411 |
Advertising and marketing | 434 | 399 |
Professional services | 411 | 366 |
Merger-related expenses | 273 | 19 |
Automated transaction processing | 227 | 186 |
Office supplies and postage | 106 | 105 |
PA shares tax | 66 | 40 |
Loan collection | 29 | 41 |
Other real estate owned | 27 | 51 |
FDIC assessment | 67 | |
Other | 230 | 306 |
Total other expenses | 7,304 | 6,770 |
Income before income taxes | 3,157 | 3,342 |
Provision for income taxes | 523 | 540 |
Net income | $ 2,634 | $ 2,802 |
Per share data: | ||
Net income - basic | $ 0.69 | $ 0.74 |
Net income - diluted | 0.69 | 0.73 |
Dividends | $ 0.28 | $ 0.26 |
Deposit Accounts [Member] | ||
Other income: | ||
Other income: revenues from contracts with customers | $ 559 | $ 539 |
Interchange [Member] | ||
Other income: | ||
Other income: revenues from contracts with customers | 557 | 494 |
Loans [Member] | ||
Other income: | ||
Other income: revenues from contracts with customers | 438 | 280 |
Trust Fiduciary [Member] | ||
Other income: | ||
Other income: revenues from contracts with customers | 419 | 294 |
Investment Advisory, Management and Administrative Service [Member] | ||
Other income: | ||
Other income: revenues from contracts with customers | 159 | 235 |
Financial Service, Other [Member] | ||
Other income: | ||
Other income: revenues from contracts with customers | $ 250 | $ 256 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 2,634 | $ 2,802 |
Other comprehensive income, before tax: | ||
Unrealized holding gain on available-for-sale debt securities | 4,111 | 2,516 |
Reclassification adjustment for net losses realized in income | 4 | |
Net unrealized gain | 4,111 | 2,520 |
Tax effect | (863) | (529) |
Unrealized gain, net of tax | 3,248 | 1,991 |
Other comprehensive income, net of tax | 3,248 | 1,991 |
Total comprehensive income, net of tax | $ 5,882 | $ 4,793 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Capital Stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Total |
Balance at Dec. 31, 2018 | $ 29,715,000 | $ 64,937,000 | $ (1,095,000) | $ 93,557,000 |
Balance, shares at Dec. 31, 2018 | 3,759,426 | |||
Net income | 2,802,000 | 2,802,000 | ||
Other comprehensive income | 1,991,000 | 1,991,000 | ||
Effect of adopting ASU | (107,000) | (107,000) | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 175,000 | 175,000 | ||
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 | 15,049 | |||
Issuance of common stock through exercise of SSARs, shares | 1,965 | |||
Stock-based compensation expense | $ 314,000 | 314,000 | ||
Cash dividends declared | (990,000) | (990,000) | ||
Balance at Mar. 31, 2019 | $ 30,204,000 | 66,642,000 | 896,000 | 97,742,000 |
Balance, shares at Mar. 31, 2019 | 3,780,975 | |||
Balance at Dec. 31, 2018 | $ 29,715,000 | 64,937,000 | (1,095,000) | 93,557,000 |
Balance, shares at Dec. 31, 2018 | 3,759,426 | |||
Balance at Dec. 31, 2019 | $ 30,848,000 | 72,385,000 | 3,602,000 | 106,835,000 |
Balance, shares at Dec. 31, 2019 | 3,781,500 | |||
Net income | 2,634,000 | 2,634,000 | ||
Other comprehensive income | 3,248,000 | 3,248,000 | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 219,000 | 219,000 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 3,885 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans | $ 12,261 | |||
Stock-based compensation expense | 275,000 | 275,000 | ||
Cash dividends declared | (1,071,000) | (1,071,000) | ||
Balance at Mar. 31, 2020 | $ 31,342,000 | $ 73,948,000 | $ 6,850,000 | $ 112,140,000 |
Balance, shares at Mar. 31, 2020 | 3,797,646 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 2,634 | $ 2,802 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 835 | 740 | |
Provision for loan losses | 300 | 255 | $ 1,085 |
Deferred income tax expense | 442 | 218 | |
Stock-based compensation expense | 243 | 279 | |
Excess tax benefit from exercise of SSARs | 23 | ||
Proceeds from sale of loans held-for-sale | 13,055 | 12,702 | |
Originations of loans held-for-sale | (11,232) | (6,231) | |
Earnings from bank-owned life insurance | (165) | (146) | (146) |
Net gain from sales of loans | (215) | (218) | |
Net loss from sales of investment securities | 4 | ||
Net loss from sale and write-down of foreclosed assets held-for-sale | 17 | 21 | |
Net loss from write-down and disposal of bank premises and equipment | 7 | 1 | |
Operating lease payments | 8 | 7 | |
Change in: | |||
Accrued interest receivable | 42 | (50) | |
Other assets | (903) | (633) | |
Accrued interest payable and other liabilities | (178) | (1,583) | |
Net cash provided by operating activities | 4,890 | 8,191 | |
Available-for-sale securities: | |||
Proceeds from sales | 7,765 | 4,705 | |
Proceeds from maturities, calls and principal pay-downs | 8,832 | 9,052 | |
Purchases | (31,617) | (11,145) | |
Decrease in FHLB stock | 1,651 | 2,676 | |
Net decrease in loans and leases | 5,837 | 12,129 | |
Principal portion of lease payments received under direct finance leases | 759 | 717 | |
Purchase of life insurance policies | (2,000) | ||
Purchases of bank premises and equipment | (271) | (334) | |
Proceeds from sale of foreclosed assets held-for-sale | 236 | 26 | |
Net cash used in investing activities | (6,808) | 15,826 | |
Cash flows from financing activities: | |||
Net increase in deposits | 83,924 | 55,102 | |
Net decrease in short-term borrowings | (37,839) | (70,460) | |
Repayment of FHLB advances | (10,000) | ||
Repayment of finance lease obligation | (18) | (19) | |
Proceeds from employee stock purchase plan participants | 219 | 175 | |
Dividends paid | (1,071) | (990) | |
Net cash provided by financing activities | 45,215 | (26,192) | |
Net increase (decrease) in cash and cash equivalents | 43,297 | (2,175) | |
Cash and cash equivalents, beginning | 15,663 | 17,485 | 17,485 |
Cash and cash equivalents, ending | 58,960 | 15,310 | $ 15,663 |
Supplemental Disclosures of Cash Flow Information, Cash payments for: | |||
Interest | 1,784 | 1,626 | |
Income tax | |||
Supplemental Disclosures of Non-cash Investing Activities: | |||
Net change in unrealized gains on available-for-sale securities | 4,111 | 2,520 | |
Transfers from loans to foreclosed assets held-for-sale | 277 | ||
Transfers from loans to loans held-for-sale | 1,662 | 1,925 | |
Security settlement pending | $ 1,445 | 1,698 | |
Right-of-use asset | 4,133 | ||
Lease liability | $ 4,540 |
Nature of Operations and Critic
Nature of Operations and Critical Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Nature of Operations and Critical Accounting Policies [Abstract] | |
Nature of Operations and Critical Accounting Policies | 1. Nature of operations and critical accounting policies Nature of operations Fidelity D & D Bancorp, Inc. (the Company) is a bank holding company and the parent of Fidelity Deposit and Discount Bank (the Bank). The Bank is a commercial bank chartered under the law of the Commonwealth of Pennsylvania and a wholly-owned subsidiary of the Company. Having commenced operations in 1903 , the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna and Luzerne Counties. Effective May 1, 2020, the Company completed its acquisition of MNB Corporation (MNB) and its wholly-owned subsidiary, Merchants Bank of Bangor. At the effective time of the acquisition, MNB merged with and into the Company with the Company surviving the merger. In addition, Merchants Bank of Bangor merged with and into the Bank with the Bank as the surviving bank. With the combination of the two organizations, the Company, on a consolidated basis, has approximately $1.6 billion in assets, $1.4 billion in deposits, and $1.1 billion in loans with 21 community banking offices located in the counties of Lackawanna, Luzerne and Northampton in Pennsylvania and a Wealth Management office in Schuylkill and Lebanon Counties in Pennsylvania. Further discussion of the acquisition of MNB can be found in Footnote 9, “Acquisition”. Principles of consolidation The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. For additional information and disclosures required under GAAP, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company’s assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company. In the opinion of management, the consolidated balance sheets as of March 31, 2020 and December 31, 2019 and the related consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in shareholders’ equity for the three months ended March 31, 2020 and 2019, and consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2019 financial statements to conform to the 2020 presentation. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after March 31, 2020 through the date these consolidated financial statements were issued. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2019, and the notes included therein, included within the Company’s Annual Report filed on Form 10-K. Critical accounting policies The preparation of financial statements in conformity with 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 reported periods. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at March 31, 2020 is adequate and reasonable to cover incurred losses. Given the subjective nature of identifying and estimating loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance amount. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination. Another material estimate is the calculation of fair values of the Company’s investment securities. Fair values of investment securities are determined by pricing provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. All of the Company’s debt securities are classified as available-for-sale (AFS). AFS debt securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders’ equity as a component of accumulated other comprehensive income (AOCI). The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells residential mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these circumstances, pricing may be obtained from other entities and the residential mortgage loans are transferred at the lower of cost or market value and simultaneously sold. For other loans transferred to HFS, pricing may be obtained from other entities or modeled and the other loans are transferred at the lower of cost or market value and then sold. As of March 31, 2020 and December 31, 2019, loans classified as HFS consisted of residential mortgage loans. Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest income on automobile direct finance leasing is determined using the interest method 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. Foreclosed assets held-for-sale includes other real estate acquired through foreclosure (ORE) and may, from time-to-time, include repossessed assets such as automobiles. ORE is carried at the lower of cost (principal balance at date of foreclosure) or fair value less estimated cost to sell. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain ORE properties, subsequent write downs to the asset’s fair value, any rental income received and gains or losses on disposal are included as components of other real estate owned expense in the consolidated statements of income. 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. 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. The split dollar life insurance expense is not deductible for tax purposes. 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. For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 3. Accumulated 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 three months ended March 31, 2020 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ 3,602 Other comprehensive income before reclassifications, net of tax 3,248 Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income 3,248 Ending balance $ 6,850 As of and for the three months ended March 31, 2019 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ (1,095) Other comprehensive income before reclassifications, net of tax 1,988 Amounts reclassified from accumulated other comprehensive income, net of tax 3 Net current-period other comprehensive income 1,991 Ending balance $ 896 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 For the three months ended March 31, 2020 2019 Unrealized gains (losses) on AFS debt securities $ - $ (4) Gain (loss) on sale of investment securities Income tax effect - 1 Provision for income taxes Total reclassifications for the period $ - $ (3) Net income |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
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. The amortized cost and fair value of investment securities at March 31, 2020 and December 31, 2019 are summarized as follows: Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value March 31, 2020 Available-for-sale debt securities: Agency - GSE $ 5,945 $ 411 $ - $ 6,356 Obligations of states and political subdivisions 52,813 3,441 - 56,254 MBS - GSE residential 136,555 4,819 - 141,374 Total available-for-sale debt securities $ 195,313 $ 8,671 $ - $ 203,984 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 The amortized cost and fair value of debt securities at March 31, 2020 by contractual maturity are summarized below: Amortized Fair (dollars in thousands) cost value Available-for-sale securities: Debt securities: Due in one year or less $ 3,580 $ 3,594 Due after one year through five years 6,868 7,336 Due after five years through ten years 1,625 1,675 Due after ten years 46,685 50,005 MBS - GSE residential 136,555 141,374 Total available-for-sale debt securities $ 195,313 $ 203,984 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. The following table presents the fair value and gross unrealized losses of debt securities aggregated by investment type, the length of time and the number of securities that have been in a continuous unrealized loss position as of December 31, 2019: 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 The Company had no debt securities in an unrealized loss position at March 31, 2020. 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 March 31, 2020, 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 | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases [Abstract] | |
Loans And Leases | 5. Loans and leases The classifications of loans and leases at March 31, 2020 and December 31, 2019 are summarized as follows: (dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 118,140 $ 122,594 Commercial real estate: Non-owner occupied 95,630 99,801 Owner occupied 125,976 130,558 Construction 3,196 4,654 Consumer: Home equity installment 35,456 36,631 Home equity line of credit 46,850 47,282 Auto loans 102,213 105,870 Direct finance leases 17,356 16,355 Other 7,025 5,634 Residential: Real estate 175,453 167,164 Construction 18,767 17,770 Total 746,062 754,313 Less: Allowance for loan losses (10,017) (9,747) Unearned lease revenue (938) (903) Loans and leases, net $ 735,107 $ 743,663 Net deferred loan costs of $3.0 million have been included in the carrying values of loans at both March 31, 2020 and December 31, 2019. 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 $299.0 million as of March 31, 2020 and $302.3 million as of December 31, 2019. Mortgage servicing rights amounted to $1.0 million and $1.0 million as of March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, were as follows: (dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 310 $ 336 Commercial real estate: Non-owner occupied 419 510 Owner occupied 1,465 1,447 Consumer: Home equity installment 62 65 Home equity line of credit 340 294 Auto loans 92 16 Residential: Real estate 966 1,006 Total $ 3,654 $ 3,674 Troubled Debt Restructuring (TDR) 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 March 31, 2020 and December 31, 2019, 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. There were no loans modified as TDRs for the three months ended March 31, 2020 and 2019. 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. There were no loans modified as a TDR within the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019. 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 March 31, 2020 and 2019, respectively, the allowance for impaired loans that have been modified in a TDR was $0.2 million and $0.2 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 March 31, 2020 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 1,590 $ 1,009 $ 310 $ 2,909 $ 115,231 $ 118,140 $ - Commercial real estate: Non-owner occupied 1,137 380 419 1,936 93,694 95,630 - Owner occupied 783 360 1,465 2,608 123,368 125,976 - Construction - - - - 3,196 3,196 - Consumer: Home equity installment 63 28 62 153 35,303 35,456 - Home equity line of credit 362 13 340 715 46,135 46,850 - Auto loans 888 23 92 1,003 101,210 102,213 - Direct finance leases 294 - - 294 16,124 16,418 (2) - Other 25 3 - 28 6,997 7,025 - Residential: Real estate - 1,350 966 2,316 173,137 175,453 - Construction - - - - 18,767 18,767 - Total $ 5,142 $ 3,166 $ 3,654 $ 11,962 $ 733,162 $ 745,124 $ - (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, 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. 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 March 31, 2020, impaired loans totaled $4.6 million consisting of $1.0 million in accruing TDRs and $3.6 million in non-accrual loans. 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. As of March 31, 2020, the non-accrual loans included two TDRs to two unrelated borrowers totaling $0.6 million compared with two TDRs to two unrelated borrowers totaling $0.6 million as of December 31, 2019. 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 March 31, 2020 Commercial and industrial $ 310 $ 310 $ - $ 310 $ 195 Commercial real estate: Non-owner occupied 1,098 203 628 831 118 Owner occupied 2,352 1,121 920 2,041 194 Consumer: Home equity installment 104 39 23 62 1 Home equity line of credit 407 135 205 340 74 Auto loans 108 - 92 92 - Residential: - Real estate 1,044 627 339 966 137 Total $ 5,423 $ 2,435 $ 2,207 $ 4,642 $ 719 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 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. March 31, 2020 March 31, 2019 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 $ 252 $ - $ - $ 178 $ 1 $ - Commercial real estate: Non-owner occupied 884 6 - 1,701 8 - Owner occupied 2,327 6 - 2,589 10 - Construction - - - 75 - - Consumer: Home equity installment 49 - - 381 - - Home equity line of credit 245 - - 42 - - Auto Loans 52 - - 35 - - Other - - - 4 - - Residential: Real estate 1,102 - - 1,347 9 - Total $ 4,911 $ 12 $ - $ 6,352 $ 28 $ - 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 $3.0 million of deferred costs, segregated by class, categorized into the appropriate credit quality indicator category as of March 31, 2020 and December 31, 2019, respectively: Commercial credit exposure Credit risk profile by creditworthiness category March 31, 2020 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 110,927 $ 1,820 $ 5,393 $ - $ 118,140 Commercial real estate - non-owner occupied 88,576 1,090 5,964 - 95,630 Commercial real estate - owner occupied 117,458 1,890 6,628 - 125,976 Commercial real estate - construction 2,389 56 751 - 3,196 Total commercial $ 319,350 $ 4,856 $ 18,736 $ - $ 342,942 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity March 31, 2020 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 35,394 $ 62 $ 35,456 Home equity line of credit 46,510 340 46,850 Auto loans 102,121 92 102,213 Direct finance leases (1) 16,418 - 16,418 Other 7,025 - 7,025 Total consumer 207,468 494 207,962 Residential Real estate 174,487 966 175,453 Construction 18,767 - 18,767 Total residential 193,254 966 194,220 Total consumer & residential $ 400,722 $ 1,460 $ 402,182 (1) Net of unearned lease revenue of $0.9 million. 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 (2) 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 (2) Net of unearned lease revenue of $0.9 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 and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: As of and for the three months ended March 31, 2020 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,484 $ 3,933 $ 2,013 $ 2,278 $ 39 $ 9,747 Charge-offs (64) (163) (43) (31) - (301) Recoveries 12 2 64 193 - 271 Provision 121 171 60 (47) (5) 300 Ending balance $ 1,553 $ 3,943 $ 2,094 $ 2,393 $ 34 $ 10,017 Ending balance: individually evaluated for impairment $ 195 $ 312 $ 75 $ 137 $ - $ 719 Ending balance: collectively evaluated for impairment $ 1,358 $ 3,631 $ 2,019 $ 2,256 $ 34 $ 9,298 Loans Receivables: Ending balance (2) $ 118,140 $ 224,802 $ 207,962 (1) $ 194,220 $ - $ 745,124 Ending balance: individually evaluated for impairment $ 310 $ 2,872 $ 494 $ 966 $ - $ 4,642 Ending balance: collectively evaluated for impairment $ 117,830 $ 221,930 $ 207,468 $ 193,254 $ - $ 740,482 (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, 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 three months ended March 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 (28) (361) (89) (35) - (513) Recoveries 6 2 25 - - 33 Provision (3) 485 (354) 101 26 255 Ending balance $ 1,407 $ 4,027 $ 2,130 $ 1,910 $ 48 $ 9,522 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. Lessor accounting was largely unchanged as a result of the standard. Additional disclosures required under the standard are included in this section and in Footnote 12, “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 $5.0 million and $4.7 million as of March 31, 2020 and December 31, 2019, respectively. The residual value of the direct finance leases is fully guaranteed by the dealerships. Residual values amounted to $11.4 million and $10.8 million at March 31, 2020 and December 31, 2019, 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 $ 5,344 2021 6,005 2022 3,720 2023 2,039 2024 248 Total future minimum lease payments receivable 17,356 Less: Unearned income (938) Undiscounted cash flows to be received $ 16,418 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Ear nings 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-settled stock appreciation rights (SSARs), dilution would occur if Company-issued SSARs were exercised and converted into common stock. As of the three months ended March 31, 2020 and 2019, there were 28,070 and 29,708 potentially dilutive shares related to issued and unexercised SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 6,303 and 11,058 potentially dilutive shares related to unvested restricted share grants as of the three months ended March 31, 2020 and 2019, 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 periods indicated: Three months ended March 31, 2020 2019 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 2,634 $ 2,802 Weighted-average common shares outstanding 3,792,741 3,774,004 Basic EPS $ 0.69 $ 0.74 Diluted EPS: Net income available to common shareholders $ 2,634 $ 2,802 Weighted-average common shares outstanding 3,792,741 3,774,004 Potentially dilutive common shares 34,373 40,766 Weighted-average common and potentially dilutive shares outstanding 3,827,114 3,814,770 Diluted EPS $ 0.69 $ 0.73 |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2020 | |
Stock Plans [Abstract] | |
Stock Plans | 7. 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). 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 was the participant’s continued employment throughout the LTIP with a three -year vesting period. Prior to the 2020 grants, the restricted stock had a two -year post vesting holding period requirement. The SSAR awards have a ten -year term from the date of each grant. 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. During the first quarter of 2020, the Company approved a 1 year LTIP and awarded restricted stock to senior officers and managers in February and March 2020 based on 2019 performance. The following table summarizes the weighted-average fair value and vesting of restricted stock grants awarded during the periods ended March 31, 2020 and 2019 under the 2012 stock incentive plans: March 31, 2020 March 31, 2019 Weighted- Weighted- average average Shares grant date Shares grant date granted fair value granted fair value Director plan 6,000 (3) $ 56.63 5,600 (2) $ 54.69 Omnibus plan 11,761 (3) 55.06 7,251 (2) 54.69 Omnibus plan 50 (1) 57.62 50 (1) 58.08 Total 17,811 $ 55.59 12,901 $ 54.70 (1) Vest after 1 year (2) Vest after 3 years – 33% each year (3) Vest fully after 3 years The fair value of the shares granted in the first quarter of 2020 was calculated using the grant date stock price. 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, 2019 11,200 15,961 27,161 $ 49.48 Granted 6,000 11,811 17,811 55.59 Vested (4,664) (7,597) (12,261) 46.94 Non-vested balance at March 31, 2020 12,536 20,175 32,711 $ 53.76 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, 2019 97,264 $ 9.47 7.5 Granted - - Exercised - - Forfeited - - Outstanding March 31, 2020 97,264 $ 9.47 7.2 Of the SSARs outstanding at March 31, 2020, 76,897 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 . 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 three months ended March 31, 2020 and 2019 and the unrecognized stock-based compensation expense as of March 31, 2020: Three months ended March 31, (dollars in thousands) 2020 2019 Stock-based compensation expense: Director stock incentive plan $ 78 $ 59 Omnibus stock incentive plan 170 148 Employee stock purchase plan 27 107 Total stock-based compensation expense $ 275 $ 314 In addition, during the three months ended March 31, 2020, the Company reversed accruals of ( $32 thousand) in stock-based compensation expense for restricted stock and SSARs awarded under the Omnibus Plan. During the three months ended March 31, 2019, the Company reversed accruals of ( $35 thousand) in stock-based compensation expense. As of (dollars in thousands) March 31, 2020 Unrecognized stock-based compensation expense: Director plan $ 626 Omnibus plan 1,262 Total unrecognized stock-based compensation expense $ 1,888 The unrecognized stock-based compensation expense as of March 31, 2020 will be recognized ratably over the periods ended January 2023 and January 2023 for the Director Plan and the Omnibus Plan, respectively. 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 March 31, 2020, 84,904 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. 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 as of the periods indicated: March 31, 2020 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 $ 58,960 $ 58,960 $ 58,960 $ - $ - Available-for-sale debt securities 203,984 203,984 - 203,984 - FHLB stock 2,732 2,732 - 2,732 - Loans and leases, net 735,107 736,923 - - 736,923 Loans held-for-sale 1,591 1,620 - 1,620 - Accrued interest receivable 3,239 3,239 - 3,239 - Financial liabilities: Deposits with no stated maturities 809,714 809,714 - 809,714 - Time deposits 109,947 110,692 - 110,692 - FHLB advances 15,000 15,808 - 15,808 - Accrued interest payable 564 564 - 564 - 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 - 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) March 31, 2020 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 6,356 $ - $ 6,356 $ - Obligations of states and political subdivisions 56,254 - 56,254 - MBS - GSE residential 141,374 - 141,374 - Total available-for-sale debt securities $ 203,984 $ - $ 203,984 $ - 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 $ - 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 March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, respectively. The following table illustrates the financial instruments newly 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 March 31, 2020 (Level 1) (Level 2) (Level 3) Impaired loans $ 1,716 $ - $ - $ 1,716 Other real estate owned 99 - - 99 Other repossessed assets 17 - - 17 Total $ 1,832 $ - $ - $ 1,832 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 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 March 31, 2020 and December 31, 2019, the range of liquidation expenses and other valuation adjustments applied to impaired loans ranged from -20.86% and -85.08% and from -21.56% to -84.98% , respectively. The weighted average of liquidation expenses and other valuation adjustments applied to impaired loans amounted to -37.18% as of March 31, 2020 and -29.11% as of December 31, 2019, 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 March 31, 2020 and December 31, 2019, the discounts applied to the appraised values of ORE ranged from -26.94% and -89.48% , respectively. As of March 31, 2020, and December 31, 2019, the weighted average of discount to the appraisal values of ORE amounted to -56.15% and -48.65% , respectively. At March 31, 2020, other repossessed assets consisted of two automobiles, totaling $17 thousand. 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. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2020 | |
Acquisition [Abstract] | |
Acquisition | 9. Acquisition Effective May 1, 2020, the Company completed the acquisition of MNB Corporation (“MNB”) pursuant to the Agreement and Plan of Reorganization, dated December 9, 2019. MNB was the holding company of Merchants Bank of Bangor (“Merchants Bank”) which operated 9 retail community banking offices in Eastern Pennsylvania. Subject to the terms and conditions of the agreement, MNB merged with and into the Company and Merchants Bank merged with and into the Bank. Under the terms of the agreement, MNB shareholders received as consideration 1.039 shares of Fidelity common stock for each share of MNB common stock that they owned as of the closing date. As a result of the merger, the Company issued 1,176,993 shares of its common stock and cash in exchange for fractional shares based upon $43.767 , the determined market share price of the Company’s common stock in accordance with the Agreement and Plan of Reorganization. Effective May 1, 2020, in connection with the merger and pursuant to the terms of the Agreement and Plan of Reorganization, Richard M. Hotchkiss , formerly the Chair of the boards of directors of MNB and Merchants Bank, was appointed as a Class C director and HelenBeth Garofalo Vilcek, w as appointed as a Class A d irector of th e Board of Directors of the Company and the Bank . With the combination of the two organizations, the Company, on a consolidated basis, will have approximate total assets of $1.6 billion, total deposi ts of $1.4 billion and total loans of $1.1 billion. For the three months ended March 31, 2020, the Corporation incurred merger-related expenses totaling $273 thousand, primarily consisting of professional fees. The remaining non-recurring costs to facilitate the merger and integrate systems in 2020 are currently estimated to be $1.8 million. The merger transaction will be accounted for using the acquisition method of accounting, and, accordingly, assets acquired, liabilities assumed and consideration exchanged will be recorded at estimated fair values on the acquisition date. Management is in the process of assessing the assets purchased and liabilities assumed in connection with the merger. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Employee Benefits [Abstract] | |
Employee Benefits | 10. 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 $23.4 million and $23.3 million, respectively, as of March 31, 2020 and December 31, 2019 and is reflected as an asset on the consolidated balance sheets. For the three months ended March 31, 2020 and 2019, the Company has recorded income of $165 thousand and $146 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 March 31, 2020, the policies had total death benefits of $23.4 million of which $4.1 million would have been paid to the officer’s beneficiaries and the remaining $19.3 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 March 31, 2020 and December 31, 2019, the Company accrued expenses of $119 thousand and $107 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 March 31, 2020 and December 31, 2019, the Company accrued expenses of $1.6 million and $1.4 million in connection with the SERP. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 11. Revenue Recognition 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 March 31, 2020 and December 31, 2019, 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 no t capitalize any contract acquisition costs. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 12. 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 March 31, 2020, 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 (dollars in thousands) March 31, 2020 December 31, 2019 Equipment $ 397 $ 397 Less accumulated depreciation and amortization (137) (117) Leased property under finance leases, net $ 260 $ 280 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 March 31, 2020: (dollars in thousands) Amount 2020 $ 62 2021 82 2022 82 2023 55 Total minimum lease payments (a) 281 Less amount representing interest (b) (14) Present value of net minimum lease payments $ 267 (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 March 31, 2020, the Company leased its Green Ridge, Pittston, Peckville, Back Mountain, Mountain Top 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) March 31, 2020 March 31, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 20 $ 19 Interest on lease liabilities 2 2 Operating lease cost 108 108 Short-term lease cost 5 5 Variable lease cost (1) - Total lease cost $ 134 $ 134 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 2 $ 2 Operating cash flows from operating leases (Fixed payments) $ 99 $ 80 Operating cash flows from operating leases (Liability reduction) $ 39 $ 25 Financing cash flows from finance leases $ 18 $ 19 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 17 Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 4,133 Weighted-average remaining lease term - finance leases 3.42 yrs 4.42 yrs Weighted average remaining lease term - operating leases 23.66 yrs 23.45 yrs Weighted-average discount rate - finance leases 3.07% 3.07% Weighted-average discount rate - operating leases 3.78% 3.94% During the first quarter of 2020, $125 thousand of the total lease cost is included in premises and equipment expense and $9 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 March 31, 2020 are as follows: (dollars in thousands) Amount 2020 $ 289 2021 390 2022 396 2023 399 2024 401 2025 and thereafter 7,936 Total future minimum lease payments 9,811 Plus variable payment adjustment 285 Less amount representing interest (3,579) Present value of net future minimum lease payments $ 6,517 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 $ 144 2021 189 2022 60 2023 48 2024 51 2025 and thereafter 135 Total lease payments to be received $ 627 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 three months ended March 31, (dollars in thousands) 2020 2019 Lease income - direct finance leases Interest income on lease receivables $ 176 $ 175 Lease income - operating leases 57 56 Total lease income $ 233 $ 231 |
Nature of Operations and Crit_2
Nature of Operations and Critical Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Nature of Operations and Critical Accounting Policies [Abstract] | |
Nature of Operations | Nature of operations Fidelity D & D Bancorp, Inc. (the Company) is a bank holding company and the parent of Fidelity Deposit and Discount Bank (the Bank). The Bank is a commercial bank chartered under the law of the Commonwealth of Pennsylvania and a wholly-owned subsidiary of the Company. Having commenced operations in 1903 , the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna and Luzerne Counties. Effective May 1, 2020, the Company completed its acquisition of MNB Corporation (MNB) and its wholly-owned subsidiary, Merchants Bank of Bangor. At the effective time of the acquisition, MNB merged with and into the Company with the Company surviving the merger. In addition, Merchants Bank of Bangor merged with and into the Bank with the Bank as the surviving bank. With the combination of the two organizations, the Company, on a consolidated basis, has approximately $1.6 billion in assets, $1.4 billion in deposits, and $1.1 billion in loans with 21 community banking offices located in the counties of Lackawanna, Luzerne and Northampton in Pennsylvania and a Wealth Management office in Schuylkill and Lebanon Counties in Pennsylvania. Further discussion of the acquisition of MNB can be found in Footnote 9, “Acquisition”. |
Principles of Consolidation | Principles of consolidation The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. For additional information and disclosures required under GAAP, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company’s assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company. In the opinion of management, the consolidated balance sheets as of March 31, 2020 and December 31, 2019 and the related consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in shareholders’ equity for the three months ended March 31, 2020 and 2019, and consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2019 financial statements to conform to the 2020 presentation. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after March 31, 2020 through the date these consolidated financial statements were issued. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2019, and the notes included therein, included within the Company’s Annual Report filed on Form 10-K. |
Use of Estimates | The preparation of financial statements in conformity with 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 reported periods. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at March 31, 2020 is adequate and reasonable to cover incurred losses. Given the subjective nature of identifying and estimating loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance amount. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination. |
Investment Securities | Another material estimate is the calculation of fair values of the Company’s investment securities. Fair values of investment securities are determined by pricing provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. All of the Company’s debt securities are classified as available-for-sale (AFS). AFS debt securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders’ equity as a component of accumulated other comprehensive income (AOCI). |
Loans Held-for-Sale | The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells residential mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these circumstances, pricing may be obtained from other entities and the residential mortgage loans are transferred at the lower of cost or market value and simultaneously sold. For other loans transferred to HFS, pricing may be obtained from other entities or modeled and the other loans are transferred at the lower of cost or market value and then sold. As of March 31, 2020 and December 31, 2019, loans classified as HFS consisted of residential mortgage loans. |
Automobile Leasing | Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest income on automobile direct finance leasing is determined using the interest method 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. |
Foreclosed Assets Held-for-Sale | Foreclosed assets held-for-sale includes other real estate acquired through foreclosure (ORE) and may, from time-to-time, include repossessed assets such as automobiles. ORE is carried at the lower of cost (principal balance at date of foreclosure) or fair value less estimated cost to sell. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain ORE properties, subsequent write downs to the asset’s fair value, any rental income received and gains or losses on disposal are included as components of other real estate owned expense in the consolidated statements of income. |
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. |
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. The split dollar life insurance expense is not deductible for tax purposes. 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. |
Cash Flows | For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
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-settled stock appreciation rights (SSARs), dilution would occur if Company-issued SSARs were exercised and converted into common stock. As of the three months ended March 31, 2020 and 2019, there were 28,070 and 29,708 potentially dilutive shares related to issued and unexercised SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 6,303 and 11,058 potentially dilutive shares related to unvested restricted share grants as of the three months ended March 31, 2020 and 2019, 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. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | As of and for the three months ended March 31, 2020 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ 3,602 Other comprehensive income before reclassifications, net of tax 3,248 Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income 3,248 Ending balance $ 6,850 As of and for the three months ended March 31, 2019 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ (1,095) Other comprehensive income before reclassifications, net of tax 1,988 Amounts reclassified from accumulated other comprehensive income, net of tax 3 Net current-period other comprehensive income 1,991 Ending balance $ 896 |
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 For the three months ended March 31, 2020 2019 Unrealized gains (losses) on AFS debt securities $ - $ (4) Gain (loss) on sale of investment securities Income tax effect - 1 Provision for income taxes Total reclassifications for the period $ - $ (3) Net income |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment Securities [Abstract] | |
Amortized Cost and Fair Value of Investment Securities | Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value March 31, 2020 Available-for-sale debt securities: Agency - GSE $ 5,945 $ 411 $ - $ 6,356 Obligations of states and political subdivisions 52,813 3,441 - 56,254 MBS - GSE residential 136,555 4,819 - 141,374 Total available-for-sale debt securities $ 195,313 $ 8,671 $ - $ 203,984 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 |
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 $ 3,580 $ 3,594 Due after one year through five years 6,868 7,336 Due after five years through ten years 1,625 1,675 Due after ten years 46,685 50,005 MBS - GSE residential 136,555 141,374 Total available-for-sale debt securities $ 195,313 $ 203,984 |
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 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases [Abstract] | |
Loan Classifications | (dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 118,140 $ 122,594 Commercial real estate: Non-owner occupied 95,630 99,801 Owner occupied 125,976 130,558 Construction 3,196 4,654 Consumer: Home equity installment 35,456 36,631 Home equity line of credit 46,850 47,282 Auto loans 102,213 105,870 Direct finance leases 17,356 16,355 Other 7,025 5,634 Residential: Real estate 175,453 167,164 Construction 18,767 17,770 Total 746,062 754,313 Less: Allowance for loan losses (10,017) (9,747) Unearned lease revenue (938) (903) Loans and leases, net $ 735,107 $ 743,663 |
Non-Accrual Loans, Segregated by Class | (dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 310 $ 336 Commercial real estate: Non-owner occupied 419 510 Owner occupied 1,465 1,447 Consumer: Home equity installment 62 65 Home equity line of credit 340 294 Auto loans 92 16 Residential: Real estate 966 1,006 Total $ 3,654 $ 3,674 |
Past Due Loans | Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days March 31, 2020 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 1,590 $ 1,009 $ 310 $ 2,909 $ 115,231 $ 118,140 $ - Commercial real estate: Non-owner occupied 1,137 380 419 1,936 93,694 95,630 - Owner occupied 783 360 1,465 2,608 123,368 125,976 - Construction - - - - 3,196 3,196 - Consumer: Home equity installment 63 28 62 153 35,303 35,456 - Home equity line of credit 362 13 340 715 46,135 46,850 - Auto loans 888 23 92 1,003 101,210 102,213 - Direct finance leases 294 - - 294 16,124 16,418 (2) - Other 25 3 - 28 6,997 7,025 - Residential: Real estate - 1,350 966 2,316 173,137 175,453 - Construction - - - - 18,767 18,767 - Total $ 5,142 $ 3,166 $ 3,654 $ 11,962 $ 733,162 $ 745,124 $ - (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, 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. |
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 March 31, 2020 Commercial and industrial $ 310 $ 310 $ - $ 310 $ 195 Commercial real estate: Non-owner occupied 1,098 203 628 831 118 Owner occupied 2,352 1,121 920 2,041 194 Consumer: Home equity installment 104 39 23 62 1 Home equity line of credit 407 135 205 340 74 Auto loans 108 - 92 92 - Residential: - Real estate 1,044 627 339 966 137 Total $ 5,423 $ 2,435 $ 2,207 $ 4,642 $ 719 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 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. March 31, 2020 March 31, 2019 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 $ 252 $ - $ - $ 178 $ 1 $ - Commercial real estate: Non-owner occupied 884 6 - 1,701 8 - Owner occupied 2,327 6 - 2,589 10 - Construction - - - 75 - - Consumer: Home equity installment 49 - - 381 - - Home equity line of credit 245 - - 42 - - Auto Loans 52 - - 35 - - Other - - - 4 - - Residential: Real estate 1,102 - - 1,347 9 - Total $ 4,911 $ 12 $ - $ 6,352 $ 28 $ - |
Credit Quality Indicator Loan Categories | Commercial credit exposure Credit risk profile by creditworthiness category March 31, 2020 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 110,927 $ 1,820 $ 5,393 $ - $ 118,140 Commercial real estate - non-owner occupied 88,576 1,090 5,964 - 95,630 Commercial real estate - owner occupied 117,458 1,890 6,628 - 125,976 Commercial real estate - construction 2,389 56 751 - 3,196 Total commercial $ 319,350 $ 4,856 $ 18,736 $ - $ 342,942 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity March 31, 2020 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 35,394 $ 62 $ 35,456 Home equity line of credit 46,510 340 46,850 Auto loans 102,121 92 102,213 Direct finance leases (1) 16,418 - 16,418 Other 7,025 - 7,025 Total consumer 207,468 494 207,962 Residential Real estate 174,487 966 175,453 Construction 18,767 - 18,767 Total residential 193,254 966 194,220 Total consumer & residential $ 400,722 $ 1,460 $ 402,182 (1) Net of unearned lease revenue of $0.9 million. 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 (2) 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 (2) Net of unearned lease revenue of $0.9 million. |
Schedule of Change in Allowance for Loan Losses and the Recorded Investment in Loans | As of and for the three months ended March 31, 2020 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,484 $ 3,933 $ 2,013 $ 2,278 $ 39 $ 9,747 Charge-offs (64) (163) (43) (31) - (301) Recoveries 12 2 64 193 - 271 Provision 121 171 60 (47) (5) 300 Ending balance $ 1,553 $ 3,943 $ 2,094 $ 2,393 $ 34 $ 10,017 Ending balance: individually evaluated for impairment $ 195 $ 312 $ 75 $ 137 $ - $ 719 Ending balance: collectively evaluated for impairment $ 1,358 $ 3,631 $ 2,019 $ 2,256 $ 34 $ 9,298 Loans Receivables: Ending balance (2) $ 118,140 $ 224,802 $ 207,962 (1) $ 194,220 $ - $ 745,124 Ending balance: individually evaluated for impairment $ 310 $ 2,872 $ 494 $ 966 $ - $ 4,642 Ending balance: collectively evaluated for impairment $ 117,830 $ 221,930 $ 207,468 $ 193,254 $ - $ 740,482 (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, 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 three months ended March 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 (28) (361) (89) (35) - (513) Recoveries 6 2 25 - - 33 Provision (3) 485 (354) 101 26 255 Ending balance $ 1,407 $ 4,027 $ 2,130 $ 1,910 $ 48 $ 9,522 |
Undiscounted Cash Flows to be Received on Annual Basis for Direct Finance Leases | (dollars in thousands) Amount 2020 $ 5,344 2021 6,005 2022 3,720 2023 2,039 2024 248 Total future minimum lease payments receivable 17,356 Less: Unearned income (938) Undiscounted cash flows to be received $ 16,418 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three months ended March 31, 2020 2019 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 2,634 $ 2,802 Weighted-average common shares outstanding 3,792,741 3,774,004 Basic EPS $ 0.69 $ 0.74 Diluted EPS: Net income available to common shareholders $ 2,634 $ 2,802 Weighted-average common shares outstanding 3,792,741 3,774,004 Potentially dilutive common shares 34,373 40,766 Weighted-average common and potentially dilutive shares outstanding 3,827,114 3,814,770 Diluted EPS $ 0.69 $ 0.73 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock Plans [Abstract] | |
Summary of Weighted-Average Fair-Value and Vesting of Restricted Stock Grants | March 31, 2020 March 31, 2019 Weighted- Weighted- average average Shares grant date Shares grant date granted fair value granted fair value Director plan 6,000 (3) $ 56.63 5,600 (2) $ 54.69 Omnibus plan 11,761 (3) 55.06 7,251 (2) 54.69 Omnibus plan 50 (1) 57.62 50 (1) 58.08 Total 17,811 $ 55.59 12,901 $ 54.70 (1) Vest after 1 year (2) Vest after 3 years – 33% each year (3) Vest fully after 3 years |
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, 2019 11,200 15,961 27,161 $ 49.48 Granted 6,000 11,811 17,811 55.59 Vested (4,664) (7,597) (12,261) 46.94 Non-vested balance at March 31, 2020 12,536 20,175 32,711 $ 53.76 |
Schedule of SSARs Activity | Awards Weighted-average grant date fair value Weighted-average remaining contractual term (years) Outstanding December 31, 2019 97,264 $ 9.47 7.5 Granted - - Exercised - - Forfeited - - Outstanding March 31, 2020 97,264 $ 9.47 7.2 Of the SSARs outstanding at March 31, 2020, 76,897 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 | Three months ended March 31, (dollars in thousands) 2020 2019 Stock-based compensation expense: Director stock incentive plan $ 78 $ 59 Omnibus stock incentive plan 170 148 Employee stock purchase plan 27 107 Total stock-based compensation expense $ 275 $ 314 In addition, during the three months ended March 31, 2020, the Company reversed accruals of ( $32 thousand) in stock-based compensation expense for restricted stock and SSARs awarded under the Omnibus Plan. During the three months ended March 31, 2019, the Company reversed accruals of ( $35 thousand) in stock-based compensation expense. |
Schedule of Unrecognized Compensation Cost, Non-Vested Awards | As of (dollars in thousands) March 31, 2020 Unrecognized stock-based compensation expense: Director plan $ 626 Omnibus plan 1,262 Total unrecognized stock-based compensation expense $ 1,888 The unrecognized stock-based compensation expense as of March 31, 2020 will be recognized ratably over the periods ended January 2023 and January 2023 for the Director Plan and the Omnibus Plan, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Carrying Amount and Estimated Fair Value by Balance Sheet Grouping | March 31, 2020 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 $ 58,960 $ 58,960 $ 58,960 $ - $ - Available-for-sale debt securities 203,984 203,984 - 203,984 - FHLB stock 2,732 2,732 - 2,732 - Loans and leases, net 735,107 736,923 - - 736,923 Loans held-for-sale 1,591 1,620 - 1,620 - Accrued interest receivable 3,239 3,239 - 3,239 - Financial liabilities: Deposits with no stated maturities 809,714 809,714 - 809,714 - Time deposits 109,947 110,692 - 110,692 - FHLB advances 15,000 15,808 - 15,808 - Accrued interest payable 564 564 - 564 - 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 - |
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) March 31, 2020 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 6,356 $ - $ 6,356 $ - Obligations of states and political subdivisions 56,254 - 56,254 - MBS - GSE residential 141,374 - 141,374 - Total available-for-sale debt securities $ 203,984 $ - $ 203,984 $ - 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 $ - |
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 March 31, 2020 (Level 1) (Level 2) (Level 3) Impaired loans $ 1,716 $ - $ - $ 1,716 Other real estate owned 99 - - 99 Other repossessed assets 17 - - 17 Total $ 1,832 $ - $ - $ 1,832 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 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Analysis of Leased Property under Finance Leases | Asset Balance at (dollars in thousands) March 31, 2020 December 31, 2019 Equipment $ 397 $ 397 Less accumulated depreciation and amortization (137) (117) Leased property under finance leases, net $ 260 $ 280 |
Schedule of Future Minimum Lease Payments under Finance Leases | (dollars in thousands) Amount 2020 $ 62 2021 82 2022 82 2023 55 Total minimum lease payments (a) 281 Less amount representing interest (b) (14) Present value of net minimum lease payments $ 267 (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) March 31, 2020 March 31, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 20 $ 19 Interest on lease liabilities 2 2 Operating lease cost 108 108 Short-term lease cost 5 5 Variable lease cost (1) - Total lease cost $ 134 $ 134 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 2 $ 2 Operating cash flows from operating leases (Fixed payments) $ 99 $ 80 Operating cash flows from operating leases (Liability reduction) $ 39 $ 25 Financing cash flows from finance leases $ 18 $ 19 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 17 Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 4,133 Weighted-average remaining lease term - finance leases 3.42 yrs 4.42 yrs Weighted average remaining lease term - operating leases 23.66 yrs 23.45 yrs Weighted-average discount rate - finance leases 3.07% 3.07% Weighted-average discount rate - operating leases 3.78% 3.94% |
Schedule of Future Minimum Lease Payments under Operating Leases | (dollars in thousands) Amount 2020 $ 289 2021 390 2022 396 2023 399 2024 401 2025 and thereafter 7,936 Total future minimum lease payments 9,811 Plus variable payment adjustment 285 Less amount representing interest (3,579) Present value of net future minimum lease payments $ 6,517 |
Schedule of Undiscounted Cash Flows to be Received | (dollars in thousands) Amount 2020 $ 144 2021 189 2022 60 2023 48 2024 51 2025 and thereafter 135 Total lease payments to be received $ 627 |
Schedule of Lease Income | For the three months ended March 31, (dollars in thousands) 2020 2019 Lease income - direct finance leases Interest income on lease receivables $ 176 $ 175 Lease income - operating leases 57 56 Total lease income $ 233 $ 231 |
Nature of Operations and Crit_3
Nature of Operations and Critical Accounting Policies (Narrative) (Details) | May 01, 2020USD ($)item | Mar. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Year founded | 1903 | ||
Capitalized contract cost | $ 0 | ||
Assets | $ 1,062,495,000 | 1,009,927,000 | |
Total deposits | $ 919,661,000 | $ 835,737,000 | |
Goodwill term | 15 years | ||
Executives [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Number of individuals with split dollar life insurance arrangement | employee | 4 | ||
Subsequent Event [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Number of businesses combined in acquisition | item | 2 | ||
Assets | $ 1,600,000,000 | ||
Total deposits | 1,400,000,000 | ||
Loans | $ 1,100,000,000 | ||
Number of offices | item | 21 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 3,602 | |
Effect of adopting ASU | $ (107) | |
Ending balance | 6,850 | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 3,602 | (1,095) |
Other comprehensive income before reclassifications, net of tax | 3,248 | 1,988 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 3 | |
Net current-period other comprehensive income | 3,248 | 1,991 |
Ending balance | $ 6,850 | $ 896 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications from Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | $ (523) | $ (540) |
Net income | 2,634 | 2,802 |
Reclassified from Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | 1 | |
Net income | (3) | |
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 | $ (4) |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - security | Mar. 31, 2020 | Dec. 31, 2019 |
Investment Securities [Abstract] | ||
Number of securities in unrealized loss position, more than 12 months | 0 | 12 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Total available-for-sale debt securities | $ 195,313 | $ 180,557 |
Gross unrealized gains: Available-for-sale debt securities | 8,671 | 4,698 |
Gross unrealized losses: Available-for-sale debt securities | (138) | |
Fair value: Available-for-sale debt securities | 203,984 | 185,117 |
Agency - GSE [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Total available-for-sale debt securities | 5,945 | 5,941 |
Gross unrealized gains: Available-for-sale debt securities | 411 | 218 |
Fair value: Available-for-sale debt securities | 6,356 | 6,159 |
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 | 52,813 | 51,857 |
Gross unrealized gains: Available-for-sale debt securities | 3,441 | 2,871 |
Gross unrealized losses: Available-for-sale debt securities | (10) | |
Fair value: Available-for-sale debt securities | 56,254 | 54,718 |
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 | 136,555 | 122,759 |
Gross unrealized gains: Available-for-sale debt securities | 4,819 | 1,609 |
Gross unrealized losses: Available-for-sale debt securities | (128) | |
Fair value: Available-for-sale debt securities | $ 141,374 | $ 124,240 |
Investment Securities (Amorti_2
Investment Securities (Amortized Cost and Fair Value of Debt Securities by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investment Securities [Abstract] | ||
Amortized cost: Due in one year or less | $ 3,580 | |
Amortized cost: Due after one year through five years | 6,868 | |
Amortized cost: Due after five years through ten years | 1,625 | |
Amortized cost: Due after ten years | 46,685 | |
Amortized cost: MBS - GSE residential | 136,555 | |
Amortized cost: Total available-for-sale debt securities | 195,313 | $ 180,557 |
Fair value: Due in one year or less | 3,594 | |
Fair value: Due after one year through five years | 7,336 | |
Fair value: Due after five years through ten years | 1,675 | |
Fair value: Due after ten years | 50,005 | |
Fair value: MBS - GSE residential | 141,374 | |
Fair value: Total available-for-sale debt securities | $ 203,984 | $ 185,117 |
Investment Securities (Availabl
Investment Securities (Available-for-Sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) $ in Thousands | Mar. 31, 2020security | Dec. 31, 2019USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair value | $ 7,951 | |
Less than 12 months: Unrealized losses | (29) | |
More than 12 months: Fair value | 16,518 | |
More than 12 months: Unrealized losses | (109) | |
Total: Fair value | 24,469 | |
Total: Unrealized losses | $ (138) | |
Less than 12 months: Number of securities | security | 5 | |
More than 12 months: Number of securities | security | 0 | 12 |
Total: Number of securities | security | 17 | |
MBS - GSE Residential [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair value | $ 5,084 | |
Less than 12 months: Unrealized losses | (19) | |
More than 12 months: Fair value | 16,518 | |
More than 12 months: Unrealized losses | (109) | |
Total: Fair value | 21,602 | |
Total: Unrealized losses | $ (128) |
Loans and Leases (Narrative) (D
Loans and Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)loanitem | Mar. 31, 2019USD ($)loan | Dec. 31, 2019USD ($)loanitem | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred loan costs | $ 3,000 | $ 3,000 | |
Mortgages serviced | 299,000 | 302,300 | |
Mortgage servicing rights | 1,000 | 1,000 | |
Allowance for impaired loans | 719 | 908 | |
Impaired loans | $ 4,642 | 4,665 | |
Number of loans classified as TDRs | loan | 0 | 0 | |
Number of contracts modified by TDR with subsequent default | loan | 0 | 0 | |
Direct finance lease receivable | $ 5,000 | 4,700 | |
Direct finance lease residual value | 11,400 | 10,800 | |
Troubled Debt Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for impaired loans | 200 | $ 200 | |
Accruing TDR Balance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | 1,000 | 1,000 | |
Non-Accrual Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | 600 | 600 | |
Financing receivable, net | $ 3,600 | $ 3,700 | |
Number of loans classified as TDRs | loan | 2 | 2 | |
Number of unrelated borrowers that had loans modified in a TDR | item | 2 | 2 |
Loans and Leases (Loan Classifi
Loans and Leases (Loan Classifications) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 746,062 | $ 754,313 | ||
Less: Allowance for loan losses | (10,017) | (9,747) | $ (9,522) | $ (9,747) |
Less: Unearned lease revenue | (938) | (903) | ||
Loans and leases, net | 735,107 | 743,663 | ||
Commercial And Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 118,140 | 122,594 | ||
Less: Allowance for loan losses | (1,553) | (1,484) | $ (1,407) | $ (1,432) |
Commercial Real Estate: Non-Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 95,630 | 99,801 | ||
Commercial Real Estate: Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 125,976 | 130,558 | ||
Commercial Real Estate: Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 3,196 | 4,654 | ||
Consumer: Home Equity Installment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 35,456 | 36,631 | ||
Consumer: Home Equity Line Of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 46,850 | 47,282 | ||
Consumer: Auto Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 102,213 | 105,870 | ||
Consumer: Direct Finance Leases [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 17,356 | 16,355 | ||
Less: Unearned lease revenue | (900) | |||
Consumer: Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 7,025 | 5,634 | ||
Residential: Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 175,453 | 167,164 | ||
Residential: Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 18,767 | $ 17,770 |
Loans and Leases (Non-Accrual L
Loans and Leases (Non-Accrual Loans, Segregated by Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | $ 3,654 | $ 3,674 |
Commercial And Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 310 | 336 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 419 | 510 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 1,465 | 1,447 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 62 | 65 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 340 | 294 |
Consumer: Auto Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | 92 | 16 |
Residential: Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans | $ 966 | $ 1,006 |
Loans and Leases (Past Due Loan
Loans and Leases (Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 11,962 | $ 5,040 |
Current | 733,162 | 748,370 |
Total loans | 745,124 | 753,410 |
Unearned lease revenue | 938 | 903 |
Deferred loan costs | 3,000 | 3,000 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 5,142 | 681 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3,166 | 685 |
Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3,654 | 3,674 |
Commercial And Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,909 | 540 |
Current | 115,231 | 122,054 |
Total loans | 118,140 | 122,594 |
Commercial And Industrial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,590 | 33 |
Commercial And Industrial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,009 | 171 |
Commercial And Industrial [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 310 | 336 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,936 | 580 |
Current | 93,694 | 99,221 |
Total loans | 95,630 | 99,801 |
Commercial Real Estate: Non-Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,137 | |
Commercial Real Estate: Non-Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 380 | 70 |
Commercial Real Estate: Non-Owner Occupied [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 419 | 510 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,608 | 1,716 |
Current | 123,368 | 128,842 |
Total loans | 125,976 | 130,558 |
Commercial Real Estate: Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 783 | 180 |
Commercial Real Estate: Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 360 | 89 |
Commercial Real Estate: Owner Occupied [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,465 | 1,447 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,196 | 4,654 |
Total loans | 3,196 | 4,654 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 153 | 70 |
Current | 35,303 | 36,561 |
Total loans | 35,456 | 36,631 |
Consumer: Home Equity Installment [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 63 | |
Consumer: Home Equity Installment [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 28 | 5 |
Consumer: Home Equity Installment [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 62 | 65 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 715 | 343 |
Current | 46,135 | 46,939 |
Total loans | 46,850 | 47,282 |
Consumer: Home Equity Line Of Credit [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 362 | 49 |
Consumer: Home Equity Line Of Credit [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 13 | |
Consumer: Home Equity Line Of Credit [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 340 | 294 |
Consumer: Auto Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,003 | 378 |
Current | 101,210 | 105,492 |
Total loans | 102,213 | 105,870 |
Consumer: Auto Loans [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 888 | 316 |
Consumer: Auto Loans [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 23 | 46 |
Consumer: Auto Loans [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 92 | 16 |
Consumer: Direct Finance Leases [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 294 | 138 |
Current | 16,124 | 15,314 |
Total loans | 16,418 | 15,452 |
Unearned lease revenue | 900 | |
Consumer: Direct Finance Leases [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 294 | 59 |
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 | 28 | 16 |
Current | 6,997 | 5,618 |
Total loans | 7,025 | 5,634 |
Consumer: Other [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 25 | 15 |
Consumer: Other [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3 | 1 |
Residential: Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,316 | 1,259 |
Current | 173,137 | 165,905 |
Total loans | 175,453 | 167,164 |
Residential: Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 29 | |
Residential: Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,350 | 224 |
Residential: Real Estate [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 966 | 1,006 |
Residential: Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 18,767 | 17,770 |
Total loans | $ 18,767 | $ 17,770 |
Loans and Leases (Impaired Loan
Loans and Leases (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 5,423 | $ 5,272 | |
Recorded investment with allowance | 2,435 | 2,487 | |
Recorded investment with no allowance | 2,207 | 2,178 | |
Total recorded investment | 4,642 | 4,665 | |
Related allowance | 719 | 908 | |
Average recorded investment | 4,911 | $ 6,352 | |
Interest income recognized | 12 | 28 | |
Cash basis interest income recognized | |||
Commercial And Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 310 | 336 | |
Recorded investment with allowance | 310 | 336 | |
Total recorded investment | 310 | 336 | |
Related allowance | 195 | 221 | |
Average recorded investment | 252 | 178 | |
Interest income recognized | 1 | ||
Cash basis interest income recognized | |||
Commercial Real Estate: Non-Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 1,098 | 1,047 | |
Recorded investment with allowance | 203 | 333 | |
Recorded investment with no allowance | 628 | 591 | |
Total recorded investment | 831 | 924 | |
Related allowance | 118 | 232 | |
Average recorded investment | 884 | 1,701 | |
Interest income recognized | 6 | 8 | |
Cash basis interest income recognized | |||
Commercial Real Estate: Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 2,352 | 2,336 | |
Recorded investment with allowance | 1,121 | 1,052 | |
Recorded investment with no allowance | 920 | 972 | |
Total recorded investment | 2,041 | 2,024 | |
Related allowance | 194 | 194 | |
Average recorded investment | 2,327 | 2,589 | |
Interest income recognized | 6 | 10 | |
Cash basis interest income recognized | |||
Commercial Real Estate: Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 75 | ||
Interest income recognized | |||
Cash basis interest income recognized | |||
Consumer: Home Equity Installment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 104 | 106 | |
Recorded investment with allowance | 39 | ||
Recorded investment with no allowance | 23 | 65 | |
Total recorded investment | 62 | 65 | |
Related allowance | 1 | ||
Average recorded investment | 49 | 381 | |
Interest income recognized | |||
Cash basis interest income recognized | |||
Consumer: Home Equity Line Of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 407 | 362 | |
Recorded investment with allowance | 135 | 88 | |
Recorded investment with no allowance | 205 | 206 | |
Total recorded investment | 340 | 294 | |
Related allowance | 74 | 87 | |
Average recorded investment | 245 | 42 | |
Interest income recognized | |||
Cash basis interest income recognized | |||
Consumer: Auto Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 108 | 32 | |
Recorded investment with no allowance | 92 | 16 | |
Total recorded investment | 92 | 16 | |
Average recorded investment | 52 | 35 | |
Interest income recognized | |||
Cash basis interest income recognized | |||
Consumer: Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 4 | ||
Interest income recognized | |||
Cash basis interest income recognized | |||
Residential: Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | 1,044 | 1,053 | |
Recorded investment with allowance | 627 | 678 | |
Recorded investment with no allowance | 339 | 328 | |
Total recorded investment | 966 | 1,006 | |
Related allowance | 137 | $ 174 | |
Average recorded investment | 1,102 | 1,347 | |
Interest income recognized | 9 | ||
Cash basis interest income recognized |
Loans and Leases (Credit Qualit
Loans and Leases (Credit Quality Indicator Loan Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Unearned lease revenue | $ 938 | $ 903 |
Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 118,140 | 122,594 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 95,630 | 99,801 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 125,976 | 130,558 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 3,196 | 4,654 |
Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 342,942 | 357,607 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 35,456 | 36,631 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 46,850 | 47,282 |
Consumer: Auto Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 102,213 | 105,870 |
Consumer: Direct Finance Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 16,418 | 15,452 |
Unearned lease revenue | 900 | |
Consumer: Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 7,025 | 5,634 |
Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 207,962 | 210,869 |
Residential: Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 175,453 | 167,164 |
Residential: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 18,767 | 17,770 |
Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 194,220 | 184,934 |
Consumer And Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 402,182 | 395,803 |
Pass [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 110,927 | 115,585 |
Pass [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 88,576 | 92,016 |
Pass [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 117,458 | 121,887 |
Pass [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 2,389 | 3,687 |
Pass [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 319,350 | 333,175 |
Special mention [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,820 | 2,061 |
Special mention [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,090 | 1,360 |
Special mention [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,890 | 2,065 |
Special mention [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 56 | 17 |
Special mention [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 4,856 | 5,503 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 5,393 | 4,948 |
Substandard [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 5,964 | 6,425 |
Substandard [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 6,628 | 6,606 |
Substandard [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 751 | 950 |
Substandard [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 18,736 | 18,929 |
Doubtful [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | ||
Doubtful [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | ||
Doubtful [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | ||
Doubtful [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | ||
Doubtful [Member] | Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | ||
Performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 35,394 | 36,566 |
Performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 46,510 | 46,988 |
Performing [Member] | Consumer: Auto Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 102,121 | 105,854 |
Performing [Member] | Consumer: Direct Finance Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 16,418 | 15,452 |
Performing [Member] | Consumer: Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 7,025 | 5,634 |
Performing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 207,468 | 210,494 |
Performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 174,487 | 166,158 |
Performing [Member] | Residential: Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 18,767 | 17,770 |
Performing [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 193,254 | 183,928 |
Performing [Member] | Consumer And Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 400,722 | 394,422 |
Non-performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 62 | 65 |
Non-performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 340 | 294 |
Non-performing [Member] | Consumer: Auto Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 92 | 16 |
Non-performing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 494 | 375 |
Non-performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 966 | 1,006 |
Non-performing [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 966 | 1,006 |
Non-performing [Member] | Consumer And Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | $ 1,460 | $ 1,381 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses: Beginning balance | $ 9,747 | $ 9,747 | $ 9,747 |
Charge-offs | (301) | (513) | (1,509) |
Recoveries | 271 | 33 | 424 |
Provisions | 300 | 255 | 1,085 |
Allowance for Loan Losses: Ending balance | 10,017 | 9,522 | 9,747 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 719 | 908 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 9,298 | 8,839 | |
Loan Receivables: Ending balance | 745,124 | 753,410 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 4,642 | 4,665 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 740,482 | 748,745 | |
Unearned lease revenue | 938 | 903 | |
Deferred loan costs | 3,000 | 3,000 | |
Commercial And Industrial [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 1,484 | 1,432 | 1,432 |
Charge-offs | (64) | (28) | (184) |
Recoveries | 12 | 6 | 32 |
Provisions | 121 | (3) | 204 |
Allowance for Loan Losses: Ending balance | 1,553 | 1,407 | 1,484 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 195 | 221 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,358 | 1,263 | |
Loan Receivables: Ending balance | 118,140 | 122,594 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 310 | 336 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 117,830 | 122,258 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 3,933 | 3,901 | 3,901 |
Charge-offs | (163) | (361) | (597) |
Recoveries | 2 | 2 | 317 |
Provisions | 171 | 485 | 312 |
Allowance for Loan Losses: Ending balance | 3,943 | 4,027 | 3,933 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 312 | 426 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 3,631 | 3,507 | |
Loan Receivables: Ending balance | 224,802 | 235,013 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 2,872 | 2,948 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 221,930 | 232,065 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 2,013 | 2,548 | 2,548 |
Charge-offs | (43) | (89) | (398) |
Recoveries | 64 | 25 | 67 |
Provisions | 60 | (354) | (204) |
Allowance for Loan Losses: Ending balance | 2,094 | 2,130 | 2,013 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 75 | 87 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 2,019 | 1,926 | |
Loan Receivables: Ending balance | 207,962 | 210,869 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 494 | 375 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 207,468 | 210,494 | |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 2,278 | 1,844 | 1,844 |
Charge-offs | (31) | (35) | (330) |
Recoveries | 193 | 8 | |
Provisions | (47) | 101 | 756 |
Allowance for Loan Losses: Ending balance | 2,393 | 1,910 | 2,278 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 137 | 174 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 2,256 | 2,104 | |
Loan Receivables: Ending balance | 194,220 | 184,934 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 966 | 1,006 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 193,254 | 183,928 | |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 39 | 22 | 22 |
Provisions | (5) | 26 | 17 |
Allowance for Loan Losses: Ending balance | 34 | $ 48 | 39 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | $ 34 | $ 39 |
Loans and Leases (Undiscounted
Loans and Leases (Undiscounted Cash Flows to be Received on Annual Basis for Direct Finance Leases) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Loans and Leases [Abstract] | |
2020 | $ 5,344 |
2021 | 6,005 |
2022 | 3,720 |
2023 | 2,039 |
2024 | 248 |
Total future minimum lease payments receivable | 17,356 |
Less: Unearned income | (938) |
Undiscounted cash flows to be received | $ 16,418 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2020itemshares | Mar. 31, 2019shares | |
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 | 34,373 | 40,766 |
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive common shares | 28,070 | 29,708 |
Restricted Stock [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive common shares | 6,303 | 11,058 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic EPS: | ||
Net income available to common shareholders | $ 2,634 | $ 2,802 |
Weighted-average common shares outstanding | 3,792,741 | 3,774,004 |
Basic EPS | $ 0.69 | $ 0.74 |
Diluted EPS: | ||
Net income available to common shareholders | $ 2,634 | $ 2,802 |
Weighted-average common shares outstanding | 3,792,741 | 3,774,004 |
Potentially dilutive common shares | 34,373 | 40,766 |
Weighted-average common and potentially dilutive shares outstanding | 3,827,114 | 3,814,770 |
Diluted EPS | $ 0.69 | $ 0.73 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020$ / sharesitemshares | Mar. 31, 2019 | Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of active share-based compensation plans | item | 2 | ||
Common stock, no par value | $ / shares | |||
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | |||
Vesting period | 3 years | ||
Options exercised | 3,059 | ||
Options exercised, intrinsic value | $ | $ 10,631 | ||
Options exercised, realized tax deduction | $ | 108,134 | ||
Options exercised, tax benefit | $ | $ 22,708 | ||
Director Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 750,000 | ||
Common stock, no par value | $ / shares | |||
Director Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | 3 years | |
Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 750,000 | ||
Common stock, no par value | $ / shares | |||
Omnibus Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Omnibus Plan [Member] | Stock-Settled Stock Appreciation Rights (SSARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
Long-Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting 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 | ||
Long-Term Incentive Plan [Member] | Restricted Stock [Member] | Senior Officers and Managers [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 1 year | ||
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 | 84,904 | ||
Award Date One [Member] | Omnibus Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Stock Plans (Summary of Weighte
Stock Plans (Summary of Weighted-Average Fair-Value and Vesting of Restricted Stock Grants) (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 17,811 | 12,901 |
Weighted-average grant date fair value | $ 55.59 | $ 54.70 |
Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 6,000 | 5,600 |
Weighted-average grant date fair value | $ 56.63 | $ 54.69 |
Vesting period | 3 years | 3 years |
Director Plan [Member] | 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% | |
Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Award Date One [Member] | Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 11,761 | 7,251 |
Weighted-average grant date fair value | $ 55.06 | $ 54.69 |
Vesting period | 3 years | |
Award Date One [Member] | Omnibus Plan [Member] | 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% | |
Award Date Two [Member] | Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 50 | 50 |
Weighted-average grant date fair value | $ 57.62 | $ 58.08 |
Vesting period | 1 year | 1 year |
Stock Plans (Schedule of Non-Ve
Stock Plans (Schedule of Non-Vested Restricted Stock Units Activity) (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested balance at December 31, 2019 | 27,161 | |
Granted | 17,811 | |
Vested | (12,261) | |
Non-vested balance at March 31, 2020 | 32,711 | |
Weighted-average grant date fair value, Non-vested balance at December 31, 2019 | $ 49.48 | |
Weighted-average grant date fair value, Granted | 55.59 | $ 54.70 |
Weighted-average grant date fair value, Vested | 46.94 | |
Weighted-average grant date fair value, Non-vested balance at March 31, 2020 | $ 53.76 | |
Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested balance at December 31, 2019 | 11,200 | |
Granted | 6,000 | |
Vested | (4,664) | |
Non-vested balance at March 31, 2020 | 12,536 | |
Weighted-average grant date fair value, Granted | $ 56.63 | $ 54.69 |
Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested balance at December 31, 2019 | 15,961 | |
Granted | 11,811 | |
Vested | (7,597) | |
Non-vested balance at March 31, 2020 | 20,175 |
Stock Plans (Schedule of SSARs
Stock Plans (Schedule of SSARs Activity) (Details) - Stock-Settled Stock Appreciation Rights (SSARs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding December 31, 2019 | 97,264 | |
Granted | ||
Exercised | (3,059) | |
Forfeited | ||
Outstanding March 31, 2020 | 97,264 | 97,264 |
Weighted-average grant date fair value, Outstanding December 31, 2019 | $ 9.47 | |
Weighted-average grant date fair value - Granted | ||
Weighted-average grant date fair value - Exercised | ||
Weighted-average grant date fair value - Forfeited | ||
Weighted-average grant date fair value, Outstanding March 31, 2020 | $ 9.47 | $ 9.47 |
Weighted-average remaining contractual term (years), Outstanding | 7 years 2 months 12 days | 7 years 6 months |
Vested and exercisable | 76,897 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Non-Vested Equity Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 275 | $ 314 |
Non-Vested Equity Awards [Member] | Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 78 | 59 |
Non-Vested Equity Awards [Member] | Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 170 | 148 |
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 | 27 | 107 |
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 | $ (32) | $ (35) |
Stock Plans (Schedule of Unreco
Stock Plans (Schedule of Unrecognized Compensation Cost, Non-Vested Awards) (Details) - Stock-Based Compensation Plan [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 1,888 |
Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 626 |
Omnibus Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 1,262 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfer from Level 1 to Level 2 | $ | $ 0 | $ 0 |
Transfer from Level 2 to Level 1 | $ | 0 | 0 |
Transfers into (out of) Level 3 | $ | $ 0 | $ 0 |
Other Repossessed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of repossessed automobiles | item | 2 | 2 |
Other assets fair value | $ | $ 17,000 | $ 20,000 |
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 | (20.86%) | (21.56%) |
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 | item | (0.2694) | |
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 | (85.08%) | (84.98%) |
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 | item | (0.8948) | |
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 | (37.18%) | (29.11%) |
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 | item | (0.5615) | (0.4865) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount and Estimated Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale debt securities | $ 203,984 | $ 185,117 |
Loans held-for-sale | 1,620 | 1,660 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 58,960 | 15,663 |
Available-for-sale debt securities | 203,984 | 185,117 |
FHLB stock | 2,732 | 4,383 |
Loans and leases, net | 735,107 | 743,663 |
Loans held-for-sale | 1,591 | 1,643 |
Accrued interest receivable | 3,239 | 3,281 |
Short-term borrowings | 37,839 | |
FHLB advances | 15,000 | 15,000 |
Accrued interest payable | 564 | 644 |
Carrying Amount [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 809,714 | 719,526 |
Carrying Amount [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 109,947 | 116,211 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 58,960 | 15,663 |
Available-for-sale debt securities | 203,984 | 185,117 |
FHLB stock | 2,732 | 4,383 |
Loans and leases, net | 736,923 | 735,657 |
Loans held-for-sale | 1,620 | 1,660 |
Accrued interest receivable | 3,239 | 3,281 |
Short-term borrowings | 37,839 | |
FHLB advances | 15,808 | 15,430 |
Accrued interest payable | 564 | 644 |
Estimated Fair Value [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 809,714 | 719,526 |
Estimated Fair Value [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 110,692 | 115,993 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 58,960 | 15,663 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale debt securities | 203,984 | 185,117 |
FHLB stock | 2,732 | 4,383 |
Loans held-for-sale | 1,620 | 1,660 |
Accrued interest receivable | 3,239 | 3,281 |
Short-term borrowings | 37,839 | |
FHLB advances | 15,808 | 15,430 |
Accrued interest payable | 564 | 644 |
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 | 809,714 | 719,526 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 110,692 | 115,993 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases, net | $ 736,923 | $ 735,657 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 203,984 | $ 185,117 |
Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 6,356 | 6,159 |
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 | 56,254 | 54,718 |
MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 141,374 | 124,240 |
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 | 203,984 | 185,117 |
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 | 6,356 | 6,159 |
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 | 56,254 | 54,718 |
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 | $ 141,374 | $ 124,240 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements at Fair Value Segregated by Hierarchy Fair Value Levels) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,832 | $ 1,949 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,716 | 1,579 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 99 | 350 |
Other Repossessed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 17 | 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 | 1,832 | 1,949 |
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 | 1,716 | 1,579 |
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 | 99 | 350 |
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 | $ 17 | $ 20 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) $ / shares in Units, $ in Thousands | May 01, 2020USD ($)item$ / sharesshares | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Assets | $ 1,062,495 | $ 1,009,927 | |||
Total deposits | 919,661 | $ 835,737 | |||
Merger-related expenses | $ 273 | $ 19 | |||
Forecast [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated non-recurring costs to facilitate merger and integrate | $ 1,800 | ||||
Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of businesses combined in acquisition | item | 2 | ||||
Assets | $ 1,600,000 | ||||
Total deposits | 1,400,000 | ||||
Loans | $ 1,100,000 | ||||
Subsequent Event [Member] | MNB Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Conversion | $ / shares | $ 43.767 | ||||
Shares issued | shares | 1,176,993 | ||||
Number of branches operated by acquiree | item | 9 | ||||
Number of shares issuable per share of acquiree common stock | shares | 1.039 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020USD ($)employee | Mar. 31, 2019USD ($)employee | Dec. 31, 2019USD ($) | Mar. 20, 2019employee | Dec. 31, 2017employee | Mar. 29, 2017employee | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Purchase of life insurance policies | $ 2,000 | |||||
Cash surrender value of bank owned life insurance | $ 23,426 | $ 23,261 | ||||
Earnings on bank-owned life insurance | 165 | $ 146 | 146 | |||
Number of officers with split dollar life insurance arrangement | employee | 1 | 11 | ||||
Split dollar life insurance arrangement, death benefit | 23,400 | |||||
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 | $ 19,300 | |||||
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 | $ 119 | 107 | ||||
Supplemental Executive Retirement Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of officers who entered into supplemental executive retirement agreement | employee | 1 | 5 | ||||
Defined contribution plan, accrued expense | $ 1,600 | $ 1,400 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue Recognition [Abstract] | ||
Contract balance | $ 0 | $ 0 |
Capitalized contract cost | $ 0 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | |
Leases [Line Items] | ||
Number of properties leased under operating lease | 6 | |
Number of leases classified as finance lease | 2 | |
Total lease cost | $ | $ 134 | $ 134 |
Number of lessor leases | 7 | |
Residential [Member] | ||
Leases [Line Items] | ||
Number of lessor leases | 4 | |
Long-Term [Member] | ||
Leases [Line Items] | ||
Number of lessor leases | 3 | |
Premise and Equipment [Member] | ||
Leases [Line Items] | ||
Total lease cost | $ | $ 125 | |
Other Expense [Member] | ||
Leases [Line Items] | ||
Total lease cost | $ | $ 9 | |
Land [Member] | ||
Leases [Line Items] | ||
Number of properties leased under operating lease | 4 | |
Standalone ATM [Member] | ||
Leases [Line Items] | ||
Number of properties leased under operating lease | 3 |
Leases (Analysis of Leased Prop
Leases (Analysis of Leased Property under Finance Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Equipment | $ 397 | $ 397 |
Less accumulated depreciation and amortization | (137) | (117) |
Leased property under finance leases, net | $ 260 | $ 280 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Lease Payments under Finance Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 62 | |
2021 | 82 | |
2022 | 82 | |
2023 | 55 | |
Total minimum lease payments | 281 | |
Less amount representing interest | (14) | |
Present value of net minimum lease payments | $ 267 | $ 286 |
Leases (Schedule of Lease Costs
Leases (Schedule of Lease Costs and Other Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 20 | $ 19 |
Interest on lease liabilities | 2 | 2 |
Operating lease cost | 108 | 108 |
Short-term lease cost | 5 | 5 |
Variable lease cost | (1) | |
Total lease cost | 134 | 134 |
Operating cash flows from finance leases | 2 | 2 |
Operating cash flows from operating leases (Fixed payments) | 99 | 80 |
Operating cash flows from operating leases (Liability reduction) | 39 | 25 |
Financing cash flows from finance leases | $ 18 | 19 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 17 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 4,133 | |
Weighted-average remaining lease term - finance leases | 3 years 5 months 1 day | 4 years 5 months 1 day |
Weighted average remaining lease term - operating leases | 23 years 7 months 28 days | 23 years 5 months 12 days |
Weighted-average discount rate - finance leases | 3.07% | 3.07% |
Weighted-average discount rate - operating leases | 3.78% | 3.94% |
Leases (Schedule of Future Mi_2
Leases (Schedule of Future Minimum Lease Payments under Operating Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 289 | |
2021 | 390 | |
2022 | 396 | |
2023 | 399 | |
2024 | 401 | |
2025 and thereafter | 7,936 | |
Total future minimum lease payments | 9,811 | |
Plus variable payment adjustment | 285 | |
Less amount representing interest | (3,579) | |
Present value of net future minimum lease payments | $ 6,517 | $ 6,556 |
Leases (Schedule of Undiscounte
Leases (Schedule of Undiscounted Cash Flows to be Received) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 144 |
2021 | 189 |
2022 | 60 |
2023 | 48 |
2024 | 51 |
2025 and thereafter | 135 |
Total lease payments to be received | $ 627 |
Leases (Schedule of Lease Incom
Leases (Schedule of Lease Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Lease income - direct finance leases: Interest income on lease receivables | $ 176 | $ 175 |
Lease income - operating leases | 57 | 56 |
Total lease income | $ 233 | $ 231 |