Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-32891 | |
Entity Registrant Name | 1ST CONSTITUTION BANCORP | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-3665653 | |
Entity Address, Address Line One | 2650 Route 130 | |
Entity Address, Address Line Two | P.O. Box 634 | |
Entity Address, City or Town | Cranbury | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08512 | |
City Area Code | (609) | |
Local Phone Number | 655-4500 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | FCCY | |
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 | 8,654,171 | |
Current Fiscal year End Date | --12-31 | |
Amendment Flag | false | |
Entity CIK | 0001141807 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 9,211 | $ 4,983 |
Interest-earning deposits | 20,903 | 11,861 |
Total cash and cash equivalents | 30,114 | 16,844 |
Investment securities | ||
Available for sale, at fair value | 146,179 | 132,222 |
Held to maturity (fair value of $79,502 and $80,204 at June 30, 2019 and December 31, 2018, respectively) | 77,829 | 79,572 |
Total investment securities | 224,008 | 211,794 |
Loans held for sale | 3,863 | 3,020 |
Loans | 967,820 | 883,164 |
Less: Allowance for loan losses | (8,641) | (8,402) |
Net loans | 959,179 | 874,762 |
Premises and equipment, net | 11,563 | 11,653 |
Right-of-use assets | 15,441 | |
Accrued interest receivable | 4,095 | 3,860 |
Bank-owned life insurance | 28,993 | 28,705 |
Other real estate owned | 1,460 | 2,515 |
Goodwill and intangible assets | 12,196 | 12,258 |
Other assets | 13,382 | 12,422 |
Total assets | 1,304,294 | 1,177,833 |
Deposits | ||
Non-interest bearing | 232,313 | 212,981 |
Interest bearing | 789,521 | 737,691 |
Total deposits | 1,021,834 | 950,672 |
Short-term borrowings | 104,850 | 71,775 |
Redeemable subordinated debentures | 18,557 | 18,557 |
Accrued interest payable | 1,697 | 1,228 |
Lease liability | 16,021 | |
Accrued expenses and other liabilities | 6,260 | 8,516 |
Total liabilities | 1,169,219 | 1,050,748 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, no par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, no par value; 30,000,000 shares authorized; 8,682,291 and 8,639,276 shares issued and 8,648,993 and 8,605,978 shares outstanding as of June 30, 2019 and December 31, 2018, respectively | 80,190 | 79,536 |
Retained earnings | 55,224 | 49,750 |
Treasury stock, 33,298 shares at June 30, 2019 and December 31, 2018 | (368) | (368) |
Accumulated other comprehensive income (loss) | 29 | (1,833) |
Total shareholders’ equity | 135,075 | 127,085 |
Total liabilities and shareholders’ equity | $ 1,304,294 | $ 1,177,833 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in Dollars) | $ 79,502 | $ 80,204 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Common stock, shares authorized (in Shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in Shares) | 8,682,291 | 8,639,276 |
Common Stock, shares outstanding (in Shares) | 8,648,993 | 8,605,978 |
Treasury stock (in Shares) | 33,298 | 33,298 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME | ||||
Loans, including fees | $ 12,869 | $ 11,349 | $ 25,026 | $ 20,885 |
Securities: | ||||
Taxable | 1,215 | 989 | 2,485 | 1,855 |
Tax-exempt | 422 | 509 | 863 | 1,024 |
Federal funds sold and short-term investments | 47 | 34 | 94 | 172 |
Total interest income | 14,553 | 12,881 | 28,468 | 23,936 |
INTEREST EXPENSE | ||||
Deposits | 2,671 | 1,469 | 4,988 | 2,688 |
Borrowings | 257 | 220 | 430 | 227 |
Redeemable subordinated debentures | 192 | 174 | 390 | 324 |
Total interest expense | 3,120 | 1,863 | 5,808 | 3,239 |
Net interest income | 11,433 | 11,018 | 22,660 | 20,697 |
PROVISION FOR LOAN LOSSES | 400 | 225 | 700 | 450 |
Net interest income after provision for loan losses | 11,033 | 10,793 | 21,960 | 20,247 |
NON-INTEREST INCOME | ||||
Service charges on deposit accounts | 159 | 153 | 325 | 303 |
Gain on sales of loans | 1,160 | 984 | 2,205 | 2,133 |
Income on bank-owned life insurance | 149 | 159 | 288 | 273 |
Gain from bargain purchase | 0 | 184 | 0 | 184 |
Gain on sales of securities | 0 | 6 | 0 | 12 |
Other income | 702 | 557 | 1,218 | 1,023 |
Total non-interest income | 2,170 | 2,043 | 4,036 | 3,928 |
NON-INTEREST EXPENSES | ||||
Salaries and employee benefits | 5,278 | 5,076 | 10,241 | 9,814 |
Occupancy expense | 991 | 885 | 2,012 | 1,697 |
Data processing expenses | 345 | 369 | 693 | 678 |
FDIC insurance expense | 60 | 146 | 160 | 276 |
Other real estate owned expenses | 34 | 0 | 82 | 2 |
Merger-related expenses | 258 | 1,977 | 273 | 2,141 |
Other operating expenses | 1,600 | 1,798 | 3,199 | 3,288 |
Total non-interest expenses | 8,566 | 10,251 | 16,660 | 17,896 |
Income before income taxes | 4,637 | 2,585 | 9,336 | 6,279 |
INCOME TAXES | 1,267 | 714 | 2,569 | 1,555 |
Net income | $ 3,370 | $ 1,871 | $ 6,767 | $ 4,724 |
EARNINGS PER COMMON SHARE | ||||
Basic (in Dollars per share) | $ 0.39 | $ 0.22 | $ 0.78 | $ 0.57 |
Diluted (in Dollars per share) | $ 0.39 | $ 0.22 | $ 0.78 | $ 0.56 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in Shares) | 8,634,251 | 8,341,459 | 8,629,197 | 8,227,109 |
Diluted (in Shares) | 8,696,943 | 8,628,105 | 8,692,063 | 8,506,961 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 3,370 | $ 1,871 | $ 6,767 | $ 4,724 | |
Unrealized holding gains (losses) on securities available for sale | |||||
Unrealized holding gains (losses) on securities available for sale | 1,021 | (152) | 2,431 | (1,503) | |
Tax effect | (251) | 37 | (590) | 359 | |
Net of tax amount | 770 | (115) | 1,841 | (1,144) | |
Reclassification adjustment for gains on securities available for sale | |||||
Reclassification adjustment for gains on securities available for sale | [1] | 0 | (6) | 0 | (12) |
Tax effect | [2] | 0 | 1 | 0 | 3 |
Net of tax amount | 0 | (5) | 0 | (9) | |
Reclassification adjustment for unrealized impairment loss on held to maturity security | |||||
Reclassification adjustment for unrealized impairment loss on held to maturity security | [3] | 3 | 0 | 4 | 0 |
Tax effect | (1) | 0 | (1) | 0 | |
Net of tax amount | 2 | 0 | 3 | 0 | |
Pension liability | |||||
Pension liability | 56 | 89 | 111 | 89 | |
Tax effect | (14) | (25) | (31) | (25) | |
Net of tax amount | 42 | 64 | 80 | 64 | |
Reclassification adjustment for actuarial gains for unfunded pension liability | |||||
Income | [4] | (44) | (15) | (88) | (30) |
Tax effect | [2] | 13 | 4 | 26 | 8 |
Net of tax amount | (31) | (11) | (62) | (22) | |
Total other comprehensive income (loss) | 783 | (67) | 1,862 | (1,111) | |
Comprehensive income | $ 4,153 | $ 1,804 | $ 8,629 | $ 3,613 | |
[1] | Included in gain on sales of securities on the consolidated statements of income | ||||
[2] | Included in income taxes on the consolidated statements of income | ||||
[3] | Included in investment securities held to maturity on the consolidated balance sheets | ||||
[4] | Included in salaries and employee benefits expense on the consolidated statements of income |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2017 | $ 111,653 | $ 72,935 | $ 39,822 | $ (368) | $ (736) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,724 | 4,724 | |||
Exercise of stock options and issuance of restricted shares | 67 | 67 | |||
Share-based compensation | 506 | 506 | |||
Issuance of common stock | 5,495 | 5,495 | |||
Cash dividends | (986) | (986) | |||
Other comprehensive income | (1,111) | (1,111) | |||
Ending balance at Jun. 30, 2018 | 120,348 | 79,003 | 43,560 | (368) | (1,847) |
Beginning balance at Mar. 31, 2018 | 113,234 | 73,192 | 42,190 | (368) | (1,780) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,871 | 1,871 | |||
Exercise of stock options and issuance of restricted shares | 47 | 47 | |||
Share-based compensation | 269 | 269 | |||
Issuance of common stock | 5,495 | 5,495 | |||
Cash dividends | (501) | ||||
Other comprehensive income | (67) | (67) | |||
Ending balance at Jun. 30, 2018 | 120,348 | 79,003 | 43,560 | (368) | (1,847) |
Beginning balance at Dec. 31, 2018 | 127,085 | 79,536 | 49,750 | (368) | (1,833) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,370 | 3,370 | |||
Exercise of stock options and issuance of restricted shares | 66 | 66 | |||
Share-based compensation | 296 | 296 | |||
Cash dividends | (647) | (647) | |||
Other comprehensive income | 783 | 783 | |||
Ending balance at Mar. 31, 2019 | 131,207 | 79,828 | 52,501 | (368) | (754) |
Beginning balance at Dec. 31, 2018 | 127,085 | 79,536 | 49,750 | (368) | (1,833) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,767 | 6,767 | |||
Exercise of stock options and issuance of restricted shares | 89 | 89 | |||
Share-based compensation | 565 | 565 | |||
Cash dividends | (1,293) | (1,293) | |||
Other comprehensive income | 1,862 | 1,862 | |||
Ending balance at Jun. 30, 2019 | 135,075 | 80,190 | 55,224 | (368) | 29 |
Beginning balance at Mar. 31, 2019 | 131,207 | 79,828 | 52,501 | (368) | (754) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,370 | ||||
Other comprehensive income | 783 | ||||
Ending balance at Jun. 30, 2019 | $ 135,075 | $ 80,190 | $ 55,224 | $ (368) | $ 29 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Stock issued for stock options exercised (in Shares) | 15,919 | 9,307 | 15,919 | 9,307 |
Restricted shares issued (in Shares) | $ 28,581 | $ 37,200 | $ 28,581 | $ 37,200 |
Stock issued during period (in Shares) | 249,785 | 249,785 | ||
Cash dividends declared per share (in dollars per share) | $ 0.075 | $ 0.06 | $ 0.15 | $ 0.12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 6,767 | $ 4,724 |
Adjustments to reconcile net income to net cash provided by operating activities- | ||
Provision for loan losses | 700 | 450 |
Depreciation and amortization | 681 | 683 |
Net amortization of premiums and discounts on securities | 248 | 283 |
SBA discount accretion | (188) | (151) |
Gain from bargain purchase | 0 | (184) |
Gains on sales and calls of securities available for sale | 0 | (12) |
Gains on sales of other real estate owned | (137) | 0 |
Gains on sales of loans held for sale | (2,205) | (2,133) |
Originations of loans held for sale | (56,668) | (54,025) |
Proceeds from sales of loans held for sale | 58,030 | 51,121 |
Increase in cash surrender value on bank–owned life insurance | (288) | (287) |
Loss on cash surrender value on bank-owned life insurance | 0 | 14 |
Share-based compensation expense | 565 | 506 |
Decrease in deferred tax asset | 1,033 | 0 |
Noncash rent and equipment expense | 112 | 0 |
Increase in accrued interest receivable | (235) | (48) |
Increase in other assets | (1,215) | (503) |
Increase in accrued interest payable | 469 | 45 |
(Decrease) increase in accrued expenses and other liabilities | (1,765) | 8,415 |
Net cash provided by operating activities | 5,904 | 8,898 |
Purchases of securities: | ||
Available for sale | (25,339) | (24,059) |
Held to maturity | (5,942) | (2,868) |
Proceeds from maturities and payments of securities: | ||
Available for sale | 13,660 | 8,949 |
Held to maturity | 7,590 | 17,694 |
Proceeds from bank-owned life insurance benefits paid | 0 | 893 |
Net purchase of restricted stock | (1,524) | (4,600) |
Net increase in loans | (84,929) | (35,999) |
Capital expenditures | (375) | (479) |
Forfeitable deposit on other real estate owned | 0 | 100 |
Net cash paid for acquisition of NJCB | 0 | (996) |
Proceeds from sales of other real estate owned | 1,192 | 0 |
Net cash used in investing activities | (95,667) | (41,365) |
FINANCING ACTIVITIES: | ||
Exercise of stock options | 89 | 67 |
Cash dividends paid to shareholders | (1,293) | (986) |
Net increase (decrease) in deposits | 71,162 | (52,442) |
Increase in short-term borrowings | 33,075 | 97,725 |
Net cash provided by financing activities | 103,033 | 44,364 |
Increase in cash and cash equivalents | 13,270 | 11,897 |
Cash and cash equivalents at beginning of period | 16,844 | 18,754 |
Cash and cash equivalents at end of period | 30,114 | 30,651 |
Cash paid during the period for - | ||
Interest | 5,339 | 3,193 |
Income taxes | 3,724 | 3,226 |
Non-cash items: | ||
Transfer of loans to other real estate owned | 0 | 93 |
Right-of-use assets | 15,441 | 0 |
Lease liability | $ 16,021 | 0 |
Noncash assets acquired: | ||
Investment securities available for sale | 11,173 | |
Loans | 75,144 | |
Premises and equipment, net | 1,120 | |
Bank-owned life insurance | 3,972 | |
Accrued interest receivable | 259 | |
Core deposit intangible asset | 80 | |
Other assets | 2,786 | |
Value of assets | 94,534 | |
Liabilities assumed : | ||
Deposits | 87,223 | |
Other liabilities | 636 | |
Value of liabilities | 87,859 | |
Common stock issued as consideration | $ 5,495 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements include 1 ST Constitution Bancorp (the “Company”), its wholly-owned subsidiary, 1 ST Constitution Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, 1 ST Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street Corp. and 249 New York Avenue, LLC. 1 ST Constitution Capital Trust II, a subsidiary of the Company, is not included in the Company’s consolidated financial statements, as it is a variable interest entity and the Company is not the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation and certain prior period amounts have been reclassified to conform to current year presentation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on March 15, 2019. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the operating results for the interim periods have been included. The results of operations for periods of less than a year are not necessarily indicative of results for the full year. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2019 for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through the date these financial statements were issued. Adoption of New Accounting Standards ASU 2019-01 - Leases: Codification Improvements (Topic 842) In March 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-01, “Leases: Codification Improvements (Topic 842).” ASU 2019-01 aligns the new leases guidance with existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers, and clarifies an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the FASB’s new lease accounting standard. Although this guidance is effective for years beginning after December 15, 2019, the Company adopted this guidance along with the adoption of ASU 2018-11, “Leases- Targeted Improvements,” and ASU 2016-02, “Leases.” The adoption of this guidance did have a material impact on the Company's consolidated financial statements. See the discussions regarding the adoptions of ASU 2018-11 and ASU 2016-02 below. ASU 2018-13 - Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. The following disclosure requirements that are applicable to public entities were removed from Topic 820: 1. The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; 2. The policy for timing of transfers between levels; and 3. The valuation process for Level 3 fair value measurements. The following disclosure requirements were modified in Topic 820: 1. In lieu of a roll-forward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy, in addition to purchases and issues of Level 3 assets and liabilities; 2. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and 3. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements applicable to public companies were added to Topic 820: 1. The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and 2. The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate “at a minimum” from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance effective January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-11 - Leases - Targeted Improvements (Topic 842) In July 2018, the FASB issued ASU 2018-11, “Leases-Targeted Improvements,” which provides an additional (and optional) transition method for a cumulative effect adjustment. The additional transition method allows entities to initially apply the new lease standard at the adoption date (January 1, 2019 for calendar-year-end public business entities) and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This additional transition method changes only when an entity is required to initially apply the transition requirements of the new leases standard; it does not change how those requirements apply. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease standard will continue to be in accordance with current U.S. GAAP (Topic 840, Leases). For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company adopted this guidance effective January 1, 2019 along with the adoption of ASU 2016-02-, “Leases.” The adoption of this guidance did have a material impact on the Company's financial statements. See the discussion regarding the adoption of ASU 2016-02 on page 9. ASU 2018-07 - Compensation - Stock Compensation (Topic 718) In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation,” which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendment also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, “Revenue from Contracts with Customers.” For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The adoption of this guidance in 2019 did not have a material impact on the Company’s consolidated financial statements. ASU Update 2017-08 - Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities,” which shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization) rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans and not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance in 2019 did not have a material impact on the Company's consolidated financial statements. ASU Update 2016-02 - Leases In February 2016, the FASB issued ASU 2016-02 “Leases . ” From the lessee's perspective, the new standard establishes a right- of-use (“ROU”) model that requires a lessee to record a ROU assets and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted Accounting Standards Codification ("ASC") Topic 842 effective January 1, 2019 utilizing the optional transition method as provided by ASU 2018-11. Under the optional transition method, only the most recent period presented reflected the adoption with a cumulative-effect adjustment to the opening balance of retained earnings and the comparative prior periods will be presented under the previous guidance of Topic 840. The new guidance includes a number of optional transition-related practical expedients. The Company elected to apply the practical expedients that relate to: the identification and classification of leases that commenced before January 1, 2019 and the initial direct costs of those leases. The election of these practical expedients allows the Company to continue to account for those leases that commenced before January 1, 2019 in accordance with previous U.S. GAAP. All of the Company’s leases that commenced before January 1, 2019 were operating leases. The lease expense will continue to be recognized based on the terms of the leases, except that a right-of-use asset and a lease liability was recognized for each operating lease at January 1, 2019 based on the present value of the remaining minimum lease payments. At January 1, 2019, the Company had 16 leases for real property, which included leases for 13 of its branch offices and leases for three offices that are used for general office space. All of the real property leases included one or more options to extend the lease term. Two of the leases for branch offices constituted a lease for the land under the building and the Company owned the leasehold improvements to these two leases. The Company also had 13 leases for office equipment, which were primarily copier/printers. For purposes of adopting Topic 842, the Company assumed in general that it would exercise the next lease extension for each real estate lease in order to have use of the property for at least a 5 to 10 year future period. With respect to one lease for land, the Company assumed that it would exercise all extensions covering a 25 year period due to the significance of the leasehold improvements. None of the equipment leases include extensions and generally have three to five year terms. Due to the significance of the leases for real estate and the assumption regarding the exercise of the extensions for one land lease, the adoption of Topic 842 resulted in the recognition of a significant lease liability and ROU assets. The Company adopted ASC Topic 842 effective January 1, 2019 and recognized a lease liability of $16.2 million and ROU assets of $15.7 million . The adoption of this guidance in 2019 had a material impact on the Company's financial condition. |
Acquisition of New Jersey Commu
Acquisition of New Jersey Community Bank | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition of New Jersey Community Bank | Acquisition of New Jersey Community Bank On April 11, 2018, the Company completed the merger of New Jersey Community Bank (“NJCB”) with and into the Bank. The shareholders of NJCB received total consideration of $8.6 million , which was comprised of 249,785 shares of common stock of the Company with a market value of $5.5 million and cash consideration of $3.1 million , of which $401,000 was placed in escrow to cover costs and expenses, including settlement costs, if any, resulting from a certain litigation matter. In June 2019, the Company reached a settlement in the litigation matter. The escrow balance of approximately $393,000 , net of costs and expenses, will be paid out to the former NJCB shareholders in the third quarter of 2019. The merger was accounted for under the acquisition method of accounting, and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at preliminary estimated fair values as of the acquisition date. NJCB’s results of operations have been included in the Company’s Consolidated Statements of Income since April 11, 2018. The assets acquired and liabilities assumed in the merger were recorded at their fair values based on management’s best estimates, using information available at the date of the merger, including the use of third-party valuation specialists. The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 5,495 Cash payment 2,668 Cash held in escrow 401 Total consideration paid $ 8,564 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 2,073 Investment securities available for sale 11,173 Loans 75,144 Premises and equipment, net 1,120 Core deposit intangible asset 80 Bank-owned life insurance 3,972 Accrued interest receivable 259 Other assets 2,786 Deposits (87,223 ) Other liabilities (636 ) Total identifiable assets and liabilities, net $ 8,748 Gain from bargain purchase $ 184 ASC Topic 805-10 provides that if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report, in its financial statements, provisional amounts for the items for which the accounting is incomplete. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date and may recognize additional assets or liabilities to reflect new information obtained from facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period may not exceed one year from the acquisition date and the measurement period for the NJCB merger has ended. In the fourth quarter of 2018, the deferred tax asset related to the acquisition was increased by $46,000 resulting in an increase in gain from bargain purchase from $184,000 to $230,000 . Pending Acquisition of Shore Community Bank On June 23, 2019, the Company and the Bank, entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Shore Community Bank (“Shore”), providing for the merger of Shore with and into the Bank, with the Bank as the surviving entity (the “Merger”). The Merger is a stock and cash transaction valued at approximately $16.54 per share, or approximately $53.1 million in total consideration. The Merger Agreement and the transaction contemplated thereby have been unanimously approved by the boards of directors of both institutions, and the Merger is anticipated to be completed during the fourth quarter 2019. The Merger is subject to approval by the shareholders of Shore, as well as regulatory approvals, and other customary closing conditions. Subject to the terms and conditions of the Merger Agreement, Shore shareholders will receive, at their election, 0.8786 of a share of the Company’s common stock, $16.50 in cash, or a combination of the Company’s common stock and cash subject to adjustment as set forth in the Merger Agreement, for each share of Shore common stock that they own immediately prior to the effective time of the Merger. The Company is to issue a maximum of 1,509,348 shares of its common stock in the Merger and expects the mix of total merger consideration to be approximately 55% stock and 45% cash. Shore is headquartered in Toms River, New Jersey, and serves its customers and communities through five full-service banking offices in Toms River ( 3 ), Jackson and Manahawkin, New Jersey. Shore had assets of $283 million , loans of $213 million and deposits of $248 million as of June 30, 2019. Following consummation of the Merger, the Company will have approximately $1.6 billion in assets, $1.1 billion of loans and $1.2 billion of deposits, with 26 full-service banking offices located in Bergen, Middlesex, Monmouth, Mercer, Ocean and Somerset Counties, New Jersey. A description and copy of the Merger Agreement is available in the Company’s Current Report on Form 8-K filed on June 24, 2019. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding, as adjusted for the assumed exercise of dilutive common stock warrants and common stock options using the treasury stock method. Awards of restricted shares are included in outstanding shares when granted. Unvested restricted shares are entitled to non-forfeitable dividends and participate in undistributed earnings with common shares. Awards of this nature are considered participating securities and basic and diluted earnings per share are computed under the two-class method. Dilutive securities in the tables below exclude common stock options and warrants with exercise prices that exceed the average market price of the Company’s common stock during the periods presented. Inclusion of these common stock options and warrants would be anti-dilutive to the diluted earnings per common share calculation. For the three months ended June 30, 2019 and 2018 , 29,530 options and no options, respectively, were anti-dilutive and were not included in the computation of diluted earnings per share. For the six months ended June 30, 2019 and 2018, 29,530 and 8,900 options, respectively, were anti-dilutive and were not included in the computation of diluted earnings per common share. The following table illustrates the calculation of both basic and diluted earnings per share for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 3,370 $ 1,871 $ 6,767 $ 4,724 Basic weighted average shares outstanding 8,634,251 8,341,459 8,629,197 8,227,109 Plus: common stock equivalents 62,692 286,646 62,866 279,852 Diluted weighted average shares outstanding 8,696,943 8,628,105 8,692,063 8,506,961 Earnings per share: Basic $ 0.39 $ 0.22 $ 0.78 $ 0.57 Diluted $ 0.39 $ 0.22 $ 0.78 $ 0.56 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities A summary of amortized cost and approximate fair value of investment securities available for sale follows: June 30, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) $ 1,998 $ 2 $ — $ 2,000 Residential collateralized mortgage obligations - GSE 51,365 307 (249 ) 51,423 Residential mortgage backed securities - GSE 15,294 221 (2 ) 15,513 Obligations of state and political subdivisions 22,260 310 (4 ) 22,566 Trust preferred debt securities - single issuer 1,491 — (116 ) 1,375 Corporate debt securities 28,270 75 (231 ) 28,114 Other debt securities 25,277 86 (175 ) 25,188 Total $ 145,955 $ 1,001 $ (777 ) $ 146,179 December 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) $ 2,993 $ — $ (41 ) $ 2,952 Residential collateralized mortgage obligations - GSE 48,789 70 (676 ) 48,183 Residential mortgage backed securities - GSE 13,945 37 (100 ) 13,882 Obligations of state and political subdivisions 23,506 85 (249 ) 23,342 Trust preferred debt securities - single issuer 1,490 — (161 ) 1,329 Corporate debt securities 28,323 — (1,037 ) 27,286 Other debt securities 15,383 11 (146 ) 15,248 Total $ 134,429 $ 203 $ (2,410 ) $ 132,222 A summary of amortized cost, carrying value and approximate fair value of investment securities held to maturity follows: June 30, 2019 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 5,975 $ — $ 5,975 $ 86 $ (45 ) $ 6,016 Residential mortgage backed securities - GSE 34,659 — 34,659 351 (35 ) 34,975 Obligations of state and political subdivisions 34,510 — 34,510 786 (7 ) 35,289 Trust preferred debt securities - pooled 656 (497 ) 159 543 — 702 Other debt securities 2,526 — 2,526 — (6 ) 2,520 Total $ 78,326 $ (497 ) $ 77,829 $ 1,766 $ (93 ) $ 79,502 December 31, 2018 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 6,701 $ — $ 6,701 $ 30 $ (143 ) $ 6,588 Residential mortgage backed securities - GSE 31,343 — 31,343 84 (346 ) 31,081 Obligations of state and political subdivisions 38,494 — 38,494 634 (118 ) 39,010 Trust preferred debt securities - pooled 657 (501 ) 156 569 — 725 Other debt securities 2,878 — 2,878 — (78 ) 2,800 Total $ 80,073 $ (501 ) $ 79,572 $ 1,317 $ (685 ) $ 80,204 At June 30, 2019 and December 31, 2018, $73.3 million and $80.4 million of investment securities, respectively, were pledged to secure public funds and collateralized borrowings from the Federal Home Loan Bank of New York (“FHLB”) and for other purposes required or permitted by law. Restricted stock was included in other assets at June 30, 2019 and December 31, 2018 and totaled $5.6 million and $4.1 million , respectively. Restricted stock consisted of $5.5 million of FHLB stock and $135,000 of Atlantic Community Bankers Bank stock at June 30, 2019 and $3.9 million of FHLB and $135,000 of Atlantic Community Bankers Bank stock at December 31, 2018 . The following table sets forth certain information regarding the amortized cost, carrying value, fair value, weighted average yields and contractual maturities of the Company’s investment portfolio as of June 30, 2019 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2019 (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 8,960 $ 8,983 2.66 % Due after one year through five years 33,984 33,946 2.84 % Due after five years through ten years 33,579 33,533 2.99 % Due after ten years 69,432 69,717 3.00 % Total $ 145,955 $ 146,179 2.94 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 8,979 $ 9,019 3.31 % Due after one year through five years 16,539 16,921 3.70 % Due after five years through ten years 19,522 19,924 3.08 % Due after ten years 32,789 33,638 3.28 % Total $ 77,829 $ 79,502 3.34 % Gross unrealized losses on available for sale and held to maturity securities and the fair value of the related securities aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential collateralized mortgage obligations - GSE 14 $ 1,218 $ (1 ) $ 23,783 $ (293 ) $ 25,001 $ (294 ) Residential mortgage backed securities - GSE 13 4,041 (13 ) 5,186 (24 ) 9,227 (37 ) Obligations of state and political subdivisions 7 — — 3,510 (11 ) 3,510 (11 ) Trust preferred debt securities - single issuer 2 — — 1,375 (116 ) 1,375 (116 ) Corporate debt securities 7 11,872 (169 ) 9,655 (62 ) 21,527 (231 ) Other debt securities 10 10,064 (142 ) 8,137 (39 ) 18,201 (181 ) Total temporarily impaired securities 53 $ 27,195 $ (325 ) $ 51,646 $ (545 ) $ 78,841 $ (870 ) December 31, 2018 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government sponsored entities (GSE) and agencies 2 $ 994 $ (1 ) $ 1,958 $ (40 ) $ 2,952 $ (41 ) Residential collateralized mortgage obligations - GSE 34 20,756 (138 ) 22,106 (682 ) 42,862 (819 ) Residential mortgage backed securities - GSE 68 18,393 (141 ) 19,402 (305 ) 37,795 (446 ) Obligations of state and political subdivisions 67 12,785 (154 ) 11,638 (213 ) 24,423 (367 ) Trust preferred debt securities - single issuer 2 1,329 (162 ) — — 1,329 (162 ) Corporate debt securities 10 8,912 (632 ) 18,374 (405 ) 27,286 (1,037 ) Other debt securities 9 10,943 (93 ) 4,613 (130 ) 15,556 (223 ) Total temporarily impaired securities 192 $ 74,112 $ (1,321 ) $ 78,091 $ (1,775 ) $ 152,203 $ (3,095 ) U.S. Treasury securities and obligations of U.S. Government sponsored entities and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Residential collateralized mortgage obligations and residential mortgage backed securities: The unrealized losses on investments in residential collateralized mortgage obligations and mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuers, which are primarily government or government sponsored agencies. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. The decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Obligations of state and political subdivisions: The unrealized losses on investments in these securities were caused by increases in market interest rates. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. None of the issuers have defaulted on interest payments. These investments are not considered to be other than temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – single issuer : The investments in these securities with unrealized losses are comprised of two corporate trust preferred securities issued by one large financial institution that mature in 2027. The contractual terms of the trust preferred securities do not allow the issuer to settle the securities at a price less than the face value of the trust preferred securities, which is greater than the amortized cost of the trust preferred securities. The issuer maintains an investment grade credit rating and has not defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate and credit spreads and the lack of an active trading market for these securities. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Corporate debt securities . The unrealized losses on investments in corporate debt securities were caused by an increase in market interest rates, which includes the yield required by market participants for the issuer’s credit risk. All of the issuers maintain an investment grade rating and none of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes in market interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – pooled: This trust preferred debt security was issued by a two -issuer pool (Preferred Term Securities XXV, Ltd. co-issued by Keefe, Bruyette and Woods, Inc. and First Tennessee (“PRETSL XXV”)) consisting primarily of debt securities issued by financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment of $865,000 , of which $364,000 was determined to be a credit loss and charged to operations, and $501,000 was recognized in the other comprehensive income (loss) component of shareholders’ equity. The primary factor used to determine the credit portion of the impairment loss recognized in the income statement for this security was the discounted present value of projected cash flow where that present value of cash flow was less than the amortized cost basis of the security. The present value of cash flow was developed using a model that considered performing collateral ratios, the level of subordination to senior tranches of the security and credit ratings of and projected credit defaults in the underlying collateral. On a quarterly basis, management evaluates the security to determine if any additional other-than-temporary impairment ("OTTI") is required. As of June 30, 2019 , the security was in an unrealized gain position and the security was receiving the interest and principal allocable to it. Beginning in the first quarter of 2019, a portion of the $501,000 other-than-temporary impairment was recognized as an increase in the carrying amount of the security. The remaining balance will be recognized over the remaining term of the security, which is approximately 18 years . For the six months ended June 30, 2019, OTTI was reduced to $497,000 |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality The Company’s primary lending emphasis is the origination of commercial real estate loans, mortgage warehouse lines of credit and commercial business. Based on the composition of the loan portfolio, the inherent primary risks are deteriorating credit quality, a decline in the economy and a decline in New Jersey and New York City metropolitan area real estate market values. Any one, or a combination, of these events may adversely affect the loan portfolio and may result in increased delinquencies, loan losses and increased future provision levels. The following table provides an aging of the loan portfolio by loan class at June 30, 2019 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial real estate $ 177 $ 2,607 $ 508 $ 3,292 $ 407,429 $ 410,721 $ — $ 1,346 Mortgage warehouse lines — — — — 204,204 204,204 — — Construction — — — — 154,162 154,162 — — Commercial business 275 355 204 834 117,647 118,481 — 413 Residential real estate 272 — 1,425 1,697 56,544 58,241 — 1,425 Loans to individuals 15 — 397 412 21,051 21,463 — 801 Other — — — — 158 158 — — Total loans $ 739 $ 2,962 $ 2,534 $ 6,235 $ 961,195 967,430 $ — $ 3,985 Deferred loan costs, net 390 Total loans $ 967,820 The following table provides an aging of the loan portfolio by loan class at December 31, 2018 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial real estate $ — $ 499 $ 1,201 $ 1,700 $ 386,731 $ 388,431 $ — $ 1,439 Mortgage warehouse lines — — — — 154,183 154,183 — — Construction — — — — 149,387 149,387 — — Commercial business 280 — 466 746 119,844 120,590 — 3,532 Residential real estate 588 — 1,156 1,744 45,519 47,263 — 1,156 Loans to individuals 16 237 263 516 22,446 22,962 55 398 Other — — — — 181 181 — — Total loans $ 884 $ 736 $ 3,086 $ 4,706 $ 878,291 882,997 $ 55 $ 6,525 Deferred loan costs, net 167 Total loans $ 883,164 As provided by ASC 310-30, the excess of cash flows expected at acquisition over the initial investment in the loan is recognized as interest income over the life of the loan. At June 30, 2019 and December 31, 2018, there were $855,000 and $865,000 of purchased credit impaired loans, respectively, that were not classified as non-performing loans due to the accretion of income based on their original contract terms. The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and their definitions are as follows, and loans graded excellent, above average, good and watch list are treated as “pass” for grading purposes: 1. Excellent - Loans that are based upon cash collateral held at the Company and adequately margined. Loans that are based upon “blue chip” stocks listed on the major stock exchanges and adequately margined. 2. Above Average - Loans to companies whose balance sheets show excellent liquidity and long-term debt is on well-spread schedules of repayment easily covered by cash flow. Such companies have been consistently profitable and have diversification in their product lines or sources of revenue. The continuation of profitable operations for the foreseeable future is likely. Management is comprised of a mix of ages, experience and backgrounds and management succession is in place. Sources of raw materials and, for service companies, the sources of revenue are abundant. Future needs have been planned for. Character and management ability of individuals or company principals are excellent. Loans to individuals are supported by their high net worth and liquid assets. 3. Good - Loans to companies whose balance sheets show good liquidity and cash flow adequate to meet maturities of long-term debt with a comfortable margin. Such companies have established profitable records over a number of years, and there has been growth in net worth. Operating ratios are in line with those of the industry, and expenses are in proper relationship to the volume of business done and the profits achieved. Management is well-balanced and competent in their responsibilities. Economic environment is favorable; however, competition is strong. The prospects for growth are good. Loans in this category do not meet the collateral requirements of loans graded excellent and above average. 3w. Watch - Included in this category are loans evidencing problems identified by Company management that require closer supervision, but do not require a “special mention” rating. This category also covers situations where the Company does not have adequate current information upon which credit quality can be determined. The account officer has the obligation to correct these deficiencies within 30 days from the time of notification. 4. Special Mention - A “special mention” loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. 5. Substandard - A “substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified as “doubtful” has all the weaknesses inherent of a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. 7. Loss - A loan classified as “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value. Rather, this classification indicates that it is not practical or desirable to defer writing off this loan even though partial recovery may occur in the future. The following table provides a breakdown of the loan portfolio by credit quality indicator at June 30, 2019 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 152,355 $ 107,360 $ 387,191 $ 203,395 $ 56,513 Special Mention 1,807 9,756 14,035 809 91 Substandard — 1,340 9,495 — 1,637 Doubtful — 25 — — — Total $ 154,162 $ 118,481 $ 410,721 $ 204,204 $ 58,241 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 20,662 $ 158 Non-performing 801 — Total $ 21,463 $ 158 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2018 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 146,460 $ 104,162 $ 366,424 $ 152,378 $ 45,825 Special Mention 2,927 12,703 13,317 1,805 103 Substandard — 3,487 8,690 — 1,335 Doubtful — 238 — — — Total $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 22,564 $ 181 Non-performing 398 — Total $ 22,962 $ 181 Impaired Loans Loans are considered to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan agreement, including scheduled interest payments. When a loan is placed on non-accrual status, it is also considered to be impaired. Loans are placed on non-accrual status when: (1) the full collection of interest or principal becomes uncertain or (2) the loans are contractually past due 90 days or more as to interest or principal payments unless the loans are both well secured and in the process of collection. The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at June 30, 2019 and December 31, 2018 : June 30, 2019 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 3 $ 52 $ — $ — $ — $ — $ — $ 55 Loans acquired with deteriorated credit quality — — 1 — — — — — 1 Collectively evaluated for impairment 1,759 1,543 3,701 933 481 142 — 26 8,585 Ending Balance $ 1,759 $ 1,546 $ 3,754 $ 933 $ 481 $ 142 $ — $ 26 $ 8,641 Loans receivable: Individually evaluated for impairment $ — $ 775 $ 4,962 $ — $ 1,425 $ 801 $ — $ — $ 7,963 Loans acquired with deteriorated credit quality — 340 1,379 — — — — — 1,719 Collectively evaluated for impairment 154,162 117,366 404,380 204,204 56,816 20,662 158 — 957,748 Ending Balance $ 154,162 $ 118,481 $ 410,721 $ 204,204 $ 58,241 $ 21,463 $ 158 $ — 967,430 Deferred loan costs, net 390 $ 967,820 December 31, 2018 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 380 $ 71 $ — $ — $ — $ — $ — $ 451 Loans acquired with deteriorated credit quality — — 2 — — — — — 2 Collectively evaluated for impairment 1,732 1,449 3,366 731 431 148 — 92 7,949 Ending Balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Loans receivable: Individually evaluated for impairment $ 103 $ 3,775 $ 5,093 $ — $ 1,156 $ 398 $ — $ — $ 10,525 Loans acquired with deteriorated credit quality — 319 1,419 — — — — — 1,738 Collectively evaluated for impairment 149,284 116,496 381,919 154,183 46,107 22,564 181 — 870,734 Ending Balance $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 $ 22,962 $ 181 $ — 882,997 Deferred loan costs, net 167 $ 883,164 The activity in the allowance for loan loss by loan class for the three and six months ended June 30, 2019 and 2018 was as follows : (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Balance - March 31, 2019 $ 1,794 $ 1,615 $ 3,640 $ 582 $ 426 $ 155 $ — $ 492 $ 8,704 Provision charged/(credited) to operations (35 ) 276 189 351 55 (13 ) 43 (466 ) 400 Loans charged off — (345 ) (75 ) — — — (43 ) — (463 ) Recoveries of loans charged off — — — — — — — — — Balance - June 30, 2019 $ 1,759 $ 1,546 $ 3,754 $ 933 $ 481 $ 142 $ — $ 26 $ 8,641 Balance - March 31, 2018 $ 1,612 $ 1,675 $ 3,166 $ 732 $ 446 $ 129 $ — $ 537 $ 8,297 Provision charged/(credited) to operations 49 16 140 188 16 46 — (230 ) 225 Loans charged off — (32 ) — — — (7 ) — — (39 ) Recoveries of loans charged off — 6 8 — — 1 — — 15 Balance - June 30, 2018 $ 1,661 $ 1,665 $ 3,314 $ 920 $ 462 $ 169 $ — $ 307 $ 8,498 (Dollars in thousands) Construction Commercial Commercial Mortgage Residential Loans to Individuals Other Unallocated Total Balance - January 1, 2019 $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Provision charged/(credited) to operations 27 62 390 202 50 (8 ) 43 (66 ) 700 Loans charged off — (345 ) (75 ) — — — (43 ) — (463 ) Recoveries of loans charged off — — — — — 2 — — 2 Balance - June 30, 2019 $ 1,759 $ 1,546 $ 3,754 $ 933 $ 481 $ 142 $ — $ 26 $ 8,641 Balance - January 1, 2018 $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Provision charged/(credited) to operations (42 ) (36 ) 304 68 70 61 1 24 450 Loans charged off — (32 ) — — — (7 ) (1 ) — (40 ) Recoveries of loans charged off — 13 61 — — 1 — — 75 Balance - June 30, 2018 $ 1,661 $ 1,665 $ 3,314 $ 920 $ 462 $ 169 $ — $ 307 $ 8,498 When a loan is identified as impaired, the measurement of impairment is based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole remaining source of repayment for the loan is the liquidation of the collateral. In such cases, the current fair value of the collateral less selling costs is used. If the value of the impaired loan is less than the recorded investment in the loan, the impairment is recognized through an allowance estimate or a charge to the allowance. Impaired Loans Receivables (By Class) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest With no allowance: Commercial: Construction $ — $ — $ — $ 34 $ 1 $ 69 $ 2 Commercial Business 1,008 1,629 — 954 26 953 52 Commercial Real Estate 1,540 1,998 — 1,432 17 1,590 33 Mortgage Warehouse Lines — — — — — — — Subtotal 2,548 3,627 — 2,420 44 2,612 87 Residential Real Estate 1,425 1,518 — 1,333 — 1,243 — Consumer: Loans to Individuals 801 896 — 683 — 617 — Other — — — — — — — Subtotal 801 896 — 683 — 617 — With no allowance: $ 4,774 $ 6,041 $ — $ 4,436 $ 44 $ 4,472 $ 87 With an allowance: Commercial: Construction $ — $ — $ — $ — $ — $ — $ — Commercial Business 107 196 3 301 1 1,233 3 Commercial Real Estate 4,801 6,109 53 4,700 59 4,526 117 Mortgage Warehouse Lines — — — — — — — Subtotal 4,908 6,305 56 5,001 60 5,759 120 Residential Real Estate — — — — — — — Consumer: Loans to Individuals — — — — — — — Other — — — — — — — Subtotal — — — — — — — With an allowance: $ 4,908 $ 6,305 $ 56 $ 5,001 $ 60 $ 5,759 $ 120 Total: Construction — — — 34 1 69 2 Commercial Business 1,115 1,825 3 1,255 27 2,186 55 Commercial Real Estate 6,341 8,107 53 6,132 76 6,116 150 Mortgage Warehouse Lines — — — — — — — Residential Real Estate 1,425 1,518 — 1,333 — 1,243 — Consumer 801 896 — 683 — 617 — Total $ 9,682 $ 12,346 $ 56 $ 9,437 $ 104 $ 10,231 $ 207 Impaired Loans Receivables (By Class) December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Commercial: Construction $ 103 $ 103 $ — Commercial Business 992 1,332 — Commercial Real Estate 2,304 2,629 — Mortgage Warehouse Lines — — — Subtotal 3,399 4,064 — Residential Real Estate 1,156 1,241 — Consumer: Loans to Individuals 398 478 — Other — — — Subtotal 398 478 — With no allowance $ 4,953 $ 5,783 $ — With an allowance: Commercial: Construction $ — $ — $ — Commercial Business 3,102 3,217 380 Commercial Real Estate 4,208 4,208 73 Mortgage Warehouse Lines — — — Subtotal 7,310 7,425 453 Residential Real Estate — — — Consumer: Loans to Individuals — — — Other — — — Subtotal — — — With an allowance $ 7,310 $ 7,425 $ 453 Total: Construction 103 103 — Commercial Business 4,094 4,549 380 Commercial Real Estate 6,512 6,837 73 Mortgage Warehouse Lines — — — Residential Real Estate 1,156 1,241 — Consumer 398 478 — Total $ 12,263 $ 13,208 $ 453 Impaired Loans Receivables (By Class) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Interest Income Recognized With no allowance: Commercial: Construction $ 104 $ 2 $ 125 $ 4 Commercial Business 1,332 27 1,291 54 Commercial Real Estate 4,089 1 3,027 18 Mortgage Warehouse Lines — — — — Subtotal 5,525 30 4,443 76 Residential Real Estate 811 — 539 — Consumer: Loans to Individuals 424 — 415 — Other — — — — Subtotal 424 — 415 — With no allowance $ 6,760 $ 30 $ 5,397 $ 76 With an allowance: Commercial: Construction $ — $ — $ — $ — Commercial Business 3,328 46 3,376 92 Commercial Real Estate 4,127 59 4,204 100 Mortgage Warehouse Lines — — — — Subtotal 7,455 105 7,580 192 Residential Real Estate — — — — Consumer: Loans to Individuals — — — — Other — — — — Subtotal — — — — With an allowance $ 7,455 $ 105 $ 7,580 $ 192 Total: Construction 104 2 125 4 Commercial Business 4,660 73 4,667 146 Commercial Real Estate 8,216 60 7,231 118 Mortgage Warehouse Lines — — — — Residential Real Estate 811 — 539 — Consumer 424 — 415 — Total $ 14,215 $ 135 $ 12,977 $ 268 Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI”) are loans acquired at a discount due in part to the deteriorated credit quality. On April 11, 2018, as part of the NJCB merger, the Company acquired purchased credit-impaired loans with loan balances totaling $1.1 million and fair values totaling $881,000 . The following table presents additional information regarding purchased credit-impaired loans at June 30, 2019 and December 31, 2018 : (Dollars in thousands) June 30, 2019 December 31, 2018 Outstanding balance $ 1,914 $ 2,007 Carrying amount $ 1,719 $ 1,738 Changes in accretable discount for purchased credit-impaired loans for the three and six months ended June 30, 2019 and June 30, 2018 were as follows: Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 129 $ 103 $ 164 $ 126 Acquisition of impaired loans — 168 — 168 Accretion of discount (35 ) (38 ) (70 ) (61 ) Balance at end of period $ 94 $ 233 $ 94 $ 233 Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in the process of foreclosure (dollars in thousands): June 30, 2019 December 31, 2018 Number of loans Recorded Investment Number of loans Recorded Investment 3 $ 743 4 $ 821 Troubled Debt Restructurings In the normal course of business, the Bank may consider modifying loan terms for various reasons. These reasons may include as a retention strategy to compete in the current interest rate environment or to re-amortize or extend a loan term to better match the loan’s repayment stream with the borrower’s cash flow. A modified loan would be considered a troubled debt restructuring (“TDR”) if the Bank grants a concession to a borrower and has determined that the borrower is troubled (i.e., experiencing financial difficulties). If the Bank restructures a loan to a troubled borrower, the loan terms (i.e., interest rate, payment, amortization period and maturity date) may be modified in various ways to enable the borrower to cover the modified debt service payments based on current financial statements and cash flow adequacy. If a borrower’s hardship is thought to be temporary, then modified terms may be offered for only that time period. Where possible, the Bank attempts to obtain additional collateral and/or secondary repayment sources at the time of the restructuring in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms. The Bank will not offer modified terms if it believes that modifying the loan terms will only delay an inevitable permanent default. In evaluating whether a restructuring constitutes a TDR, applicable guidance requires that a creditor must separately conclude that the restructuring constitutes a concession and the borrower is experiencing financial difficulties. There were two commercial business loans with a pre- and post-modification recorded investment of $197,000 that were modified as TDR during the six months ended June 30, 2019. There were no loans modified as a TDR during the six months ended June 30, 2018. There were no TDRs that subsequently defaulted within 12 months of restructuring during the six months ended June 30, 2019 and 2018. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income for the three and six months ended June 30, 2019 and 2018. Items outside the scope of ASC 606 are noted as such. Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Service charges on deposits: Overdraft fees $ 83 $ 82 $ 172 $ 161 Other 76 71 153 142 Interchange income 118 108 221 175 Other income - in scope 112 114 206 329 Gain on sale of OREO 137 — 137 — Income on BOLI (1) 149 159 288 273 Net gains on sales of loans (1) 1,160 984 2,205 2,133 Loan servicing fees (1) 180 158 359 308 Net gains on sales and calls of securities (1) — 6 — 12 Gain from bargain purchase (1) — 184 — 184 Other income (1) 155 177 295 211 $ 2,170 $ 2,043 $ 4,036 $ 3,928 (1) Not within the scope of ASC 606 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company’s share-based incentive plans (“Stock Plans”) authorize the issuance of an aggregate of 885,873 shares of the Company’s common stock (as adjusted for stock dividends) through awards that may be granted in the form of stock options to purchase common stock (each an “Option” and collectively, “Options”), awards of restricted shares of common stock (“Stock Awards”) and restricted stock units (“RSUs”). As of June 30, 2019 , there were 422,378 shares of common stock available for future grants under the Stock Plans. The following table summarizes Options activity during the six months ended June 30, 2019 : (Dollars in thousands, except share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2019 139,511 $ 8.70 4.0 $ 1,566 Granted 11,400 19.38 Exercised (15,919 ) 6.79 Forfeited (1,205 ) 18.22 Expired or exchanged (1,615 ) 7.46 Outstanding at June 30, 2019 132,172 $ 9.79 4.3 $ 1,147 Exercisable at June 30, 2019 112,428 $ 8.30 3.6 $ 1,143 The fair value of each Option and the significant weighted average assumptions used to calculate the fair value of the Options granted during the six months ended June 30, 2019 were as follows: Fair value of options granted $ 5.63 Risk-free rate of return 2.55 % Expected option life in years 7 Expected volatility 29.09 % Expected dividends 1.56 % Share-based compensation expense related to Options was $35,000 and $34,000 for the six months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , there was approximately $97,000 of unrecognized compensation cost related to unvested Options. The following table summarizes the activity in unvested shares of restricted stock for the six months ended June 30, 2019 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2019 147,533 $ 13.21 Granted 28,581 19.17 Vested (39,018 ) 16.19 Forfeited (1,485 ) 16.95 Non-vested at June 30, 2019 135,611 $ 13.55 Share-based compensation expense related to Stock Awards was $530,000 and $472,000 for the six months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , there was approximately $1.8 million of unrecognized compensation cost related to unvested Stock Awards. In January 2019, the Company granted 10,300 RSUs with a grant date fair value of $19.38 . The RSUs will vest pro rata over 3 years subject to achievement of certain established performance metrics. The ultimate number of RSUs earned will depend on the performance measured. RSUs vesting may be more or less than the target award. The award could be in cash or shares of stock. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Bank has a 401(k) plan that covers substantially all employees with six months or more of service. The Bank’s 401(k) plan permits all eligible employees to make contributions to the plan up to the IRS salary deferral limit. The Bank’s contributions to the 401(k) plan are expensed as incurred. The Company also provides retirement benefits to certain employees under supplemental executive retirement plans . The plans are unfunded and the Company accrues actuarially determined benefit costs over the estimated service period of the employees in the plans. The Company recognizes the over-funded or under-funded status of a defined benefit post-retirement plan as an asset or liability on its balance sheet and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. At June 30, 2019 and December 31, 2018, the Company’s President and Chief Executive Officer was the only eligible participant in the supplemental executive retirement plans. In connection with the benefit plans, the Bank has life insurance policies on the lives of its executive officers, directors and certain employees. The Bank is the owner and beneficiary of these policies. The cash surrender values of these policies totaled approximately $29.0 million and $28.7 million at June 30, 2019 and December 31, 2018 , respectively. The components of net periodic expense for the Company’s supplemental executive retirement plans for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended (Dollars in thousands) 2019 2018 2019 2018 Service cost $ 47 $ 52 $ 94 $ 87 Interest cost 41 43 82 71 Actuarial gain recognized (44 ) (15 ) (88 ) (30 ) Total $ 44 $ 80 $ 88 $ 128 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) is the total of (1) net income (loss) and (2) all other changes in equity from non-shareholder sources, which are referred to as other comprehensive income (loss). The components of accumulated other comprehensive income (loss), and the related tax effects, are as follows: June 30, 2019 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gains on investment securities available for sale $ 224 $ (62 ) $ 162 Unrealized impairment loss on held to maturity security (497 ) 118 (379 ) Gains on unfunded pension liability 341 (95 ) 246 Accumulated other comprehensive income $ 68 $ (39 ) $ 29 December 31, 2018 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding losses on investment securities available for sale $ (2,207 ) $ 528 $ (1,679 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 318 (90 ) 228 Accumulated other comprehensive loss $ (2,390 ) $ 557 $ (1,833 ) Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax for the three and six months ended June 30, 2019 and 2018: (Dollars in thousands) Unrealized Unrealized Unfunded Accumulated Balance - April 1, 2019 $ (608 ) $ (381 ) $ 235 $ (754 ) Other comprehensive income before reclassifications 770 — 42 812 Amounts reclassified from accumulated other comprehensive income — 2 (31 ) (29 ) Reclassification adjustment for gains realized in income — — — — Other comprehensive income 770 2 11 783 Balance - June 30, 2019 $ 162 $ (379 ) $ 246 $ 29 Balance - April 1, 2018 $ (1,467 ) $ (382 ) $ 69 $ (1,780 ) Other comprehensive income (loss) before reclassifications (115 ) — 64 (51 ) Amounts reclassified from accumulated other comprehensive income — — (11 ) (11 ) Reclassification adjustment for gains realized in income (5 ) — — (5 ) Other comprehensive income (loss) (120 ) — 53 (67 ) Balance - June 30, 2018 $ (1,587 ) $ (382 ) $ 122 $ (1,847 ) (Dollars in thousands) Unrealized Unrealized Unfunded Accumulated Balance - January 1, 2019 $ (1,679 ) $ (382 ) $ 228 $ (1,833 ) Other comprehensive income before reclassifications 1,841 — 80 1,921 Amounts reclassified from accumulated other comprehensive income — 3 (62 ) (59 ) Reclassification adjustment for gains realized in income — — — — Other comprehensive income 1,841 3 18 1,862 Balance - June 30, 2019 $ 162 $ (379 ) $ 246 $ 29 Balance - January 1, 2018 $ (434 ) $ (382 ) $ 80 $ (736 ) Other comprehensive income (loss) before reclassifications (1,144 ) — 64 (1,080 ) Amounts reclassified from accumulated other comprehensive income — — (22 ) (22 ) Reclassification adjustment for gains realized in income (9 ) — — (9 ) Other comprehensive income (loss) (1,153 ) — 42 (1,111 ) Balance - June 30, 2018 $ (1,587 ) $ (382 ) $ 122 $ (1,847 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The term of the hosting arrangement includes the non-cancellable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the customer is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the customer is reasonably certain not to exercise the termination option, and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor. The entity also is required to apply the existing impairment guidance in Subtopic 350-40 to the capitalized implementation costs as if the costs were long-lived assets. The amendments in this ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the consolidated balance sheets in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The Company is currently evaluating the potential impact, if any, of adopting this ASU on its financial statements. This ASU is effective for fiscal years beginning after December 15, 2019. ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) In August 2018, the FASB issued ASU 2018-14 - “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20),” which consists of amendments to the disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The following disclosure requirements were removed from Subtopic 715-20: 1. The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; 2. The amount and timing of plan assets expected to be returned to the employer; 3. The disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law; 4. Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan; 5. For nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy. However, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets; and 6. For public entities, the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. The following disclosure requirements were added to Subtopic 715-20: 1. The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and 2. An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This ASU also clarifies that the following information for defined benefit pension plans should be disclosed: 1. The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets; and 2. The accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of the FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements by applying concepts in the Concepts Statement. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2020. The Company does not expect the adoption of this guidance to have a material impact on the disclosures in the Company’s consolidated financial statements. ASU Update 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires credit losses on most financial assets to be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss “CECL” model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) should be determined in a similar manner to other financial assets measured on an amortized cost basis. Upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD assets will use the CECL model described above. The ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities as of the fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. In 2019, FASB issued the following guidance related to ASU 2016-13-Financial Instruments-Credit Losses (Topic 326): In June 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief . This ASU provides optional targeted transition relief that allows reporting entities to irrevocably elect the fair value option on financial instruments that 1) were previously recorded at amortized cost and 2) are within the scope of Topic 326 if the instruments are eligible for the fair value option under Topic 825. The new guidance is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. 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 . The amendments in this ASU correct errors in and make minor improvements to the Codification by eliminating certain inconsistencies and clarifying the current guidance. The Company has completed the initial analysis of its financial assets and is building and validating the CECL models in 2019. During the second quarter of 2019, preliminary testing of the CECL model was conducted utilizing the December 31, 2018 and March 31, 2019 loan portfolios. The Company is validating the results and continuing to refine the methodology and assumptions. The Company is also evaluating the potential impact, if any, of adopting ASU 2019-05 and ASU 2019-04 on its consolidated financial statements along with the implementation of ASU 2106-13. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and counterparty creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale . Securities classified as available for sale are reported at fair value utilizing Level 1 and Level 2 inputs. For Level 2 securities, the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. Interest Rate Lock Derivatives . Interest rate lock commitments do not trade in active markets with readily observable prices. The fair value of an interest rate lock commitment is estimated based upon the forward sales price that is obtained in the best efforts commitment at the time the borrower locks in the interest rate on the loan and the probability that the locked rate commitment will close. Impaired loans. Impaired loans are those which the Company has measured and recognized impairment, generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the collateral or discounted cash flows based on the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less specific valuation allowances. Other Real Estate Owned. Foreclosed properties are adjusted to fair value less estimated selling costs at the time of foreclosure in preparation for transfer from portfolio loans to other real estate owned ("OREO"), thereby establishing a new accounting basis. The Company subsequently adjusts the fair value of the OREO, utilizing Level 3 inputs on a non-recurring basis to reflect partial write-downs based on the observable market price, current appraised value of the asset or other estimates of fair value. The fair value of other real estate owned is determined using appraisals, which may be discounted based on management’s review and changes in market conditions. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2019 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 2,000 $ — $ 2,000 Residential collateralized mortgage obligations - GSE — 51,423 — 51,423 Residential mortgage backed securities - GSE — 15,513 — 15,513 Obligations of state and political subdivisions — 22,566 — 22,566 Trust preferred debt securities - single issuer 919 456 — 1,375 Corporate debt securities 16,021 12,093 — 28,114 Other debt securities — 25,188 — 25,188 Total $ 16,940 $ 129,239 $ — $ 146,179 December 31, 2018 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 2,952 $ — $ 2,952 Residential collateralized mortgage obligations - GSE — 48,183 — 48,183 Residential mortgage backed securities - GSE — 13,882 — 13,882 Obligations of state and political subdivisions — 23,342 — 23,342 Trust preferred debt securities - single issuer — 1,329 — 1,329 Corporate debt securities 16,388 10,898 — 27,286 Other debt securities — 15,248 — 15,248 Total $ 16,388 $ 115,834 $ — $ 132,222 Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities subject to fair value adjustments (impairment) on a nonrecurring basis at June 30, 2019 and December 31, 2018 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value June 30, 2019 Impaired loans $ — $ — $ 4,852 $ 4,852 Other real estate owned — — 1,460 1,460 December 31, 2018 Impaired loans $ — $ — $ 6,857 $ 6,857 Other real estate owned — — 1,460 1,460 Impaired loans measured at fair value and included in the above table at June 30, 2019 consisted of nine loans having an aggregate recorded investment of $4.9 million and specific loan loss allowance of $56,000 . Impaired loans measured at fair value and included in the above table at December 31, 2018 consisted of eight loans having an aggregate balance of $7.3 million with specific loan loss allowance of $453,000 . The following table presents additional qualitative information about assets measured at fair value on a nonrecurring basis, where there was evidence of impairment, and for which the Company has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) June 30, 2019 Impaired loans $ 4,852 Appraisal of collateral (1) Appraisal adjustments (2) 1% - 39% (11.2%) Other real estate owned $ 1,460 Appraisal of (1) Appraisal adjustments (2) 47% - 80% (63.5%) December 31, 2018 Impaired loans $ 6,857 Appraisal of collateral (1) Appraisal adjustments (2) 5% - 23% (10.6%) Other real estate owned $ 1,460 Appraisal of (1) Appraisal adjustments (2) 47% - 80% (63.5%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs that are not identifiable. (2) Includes qualitative adjustments by management and estimated liquidation expenses. The following is a summary of fair value versus carrying value of all of the Company’s financial instruments. For the Company and the Bank, as with most financial institutions, the bulk of assets and liabilities are considered financial instruments. Many of the financial instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimations and present value calculations were used for the purpose of this note. Changes in assumptions could significantly affect these estimates. The estimated fair values and carrying amounts of financial assets and liabilities as of June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 30,114 $ 30,114 $ — $ — $ 30,114 Securities available for sale 146,179 16,940 129,239 — 146,179 Securities held to maturity 77,829 — 79,502 — 79,502 Loans held for sale 3,863 — 3,994 — 3,994 Loans, net 959,179 — — 977,184 977,184 SBA servicing asset 1,012 — 1,490 — 1,490 Interest rate lock derivative 241 — 241 — 241 Accrued interest receivable 4,095 — 4,095 — 4,095 FHLB stock 5,453 — 5,453 — 5,453 Deposits (1,021,834 ) — (1,022,215 ) — (1,022,215 ) Borrowings (104,850 ) — (104,850 ) — (104,850 ) Redeemable subordinated debentures (18,557 ) — (12,919 ) — (12,919 ) Accrued interest payable (1,697 ) — (1,697 ) — (1,697 ) December 31, 2018 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 16,844 $ 16,844 $ — $ — $ 16,844 Securities available for sale 132,222 16,388 115,834 — 132,222 Securities held to maturity 79,572 — 80,204 — 80,204 Loans held for sale 3,020 — 3,141 — 3,141 Loans, net 874,762 — — 874,742 874,742 SBA servicing asset 991 — 1,490 — 1,490 Interest rate lock derivative 79 — 79 — 79 Accrued interest receivable 3,860 — 3,860 — 3,860 FHLB stock 3,929 — 3,929 — 3,929 Deposits (950,672 ) — (949,813 ) — (949,813 ) Borrowings (71,775 ) — (71,775 ) — (71,775 ) Redeemable subordinated debentures (18,557 ) — (12,774 ) — (12,774 ) Accrued interest payable (1,228 ) — (1,228 ) — (1,228 ) Loan commitments and standby letters of credit as of June 30, 2019 and December 31, 2018 were based on fees charged for similar agreements; accordingly, the estimated fair value of loan commitments and standby letters of credit was nominal. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases At June 30, 2019, the Company had 30 operating leases under which the Company is a lessee. Of the 30 leases, 16 leases were for real property, including leases for 13 of the Company’s branch offices and 3 leases for general office space including the Company’s headquarters. All of the real property leases include one or more options to extend the lease term. Two of the branch office leases are for the land on which the branch offices are located and the Company owns the leasehold improvements. As of January 1, 2019, the Company, to the extent applicable, assumed in general that it would exercise the next lease extension for each real estate lease so that it would have the use of the property for at least a 5 to 10 year future period. With respect to one lease for land, the Company assumed that it would exercise all extensions covering a 25 year period because of the significance of the leasehold improvements. In addition, the Company had 13 leases for office equipment, which are primarily copiers and printers and one automobile lease. None of these leases include extensions and generally have three to five year terms. The Company does not have any finance leases. During the three and six months ended June 30, 2019 and 2018, the Company recognized rent and equipment expense associated with leases as follows: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Operating lease cost: Fixed rent expense $ 492 $ 482 $ 976 $ 918 Variable rent expense — — — — Short-term lease expense 2 — 4 — Sublease income — — — — Net lease cost $ 494 $ 482 $ 980 $ 918 (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Lease cost - occupancy expense $ 430 $ 416 $ 857 $ 793 Lease cost - other expense 64 66 123 125 Net lease cost $ 494 $ 482 $ 980 $ 918 During the six months ended June 30, 2019 and 2018, the following cash and non-cash activities were associated with the leases: Six Months Ended June 30, (In thousands) 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 868 $ 918 Non-cash investing and financing activities: Additions to ROU assets obtained from: Net lease cost — — New operating lease liabilities 412 — The future payments due under operating leases at June 30, 2019 and 2018 were as follows: At June 30, (In thousands) 2019 2018 Due in less than one year $ 1,832 $ 1,459 Due in one year but less than two years 1,816 1,318 Due in two years but less than three years 1,788 1,127 Due in three years but less than four years 1,784 903 Due in four years but less than five years 1,687 705 Thereafter 12,865 1,941 Total $ 21,772 $ 7,453 As of June 30, 2019, future payments due under operating leases were based on ASC Topic 842 and included, in general, at least one lease renewal option on all real estate leases except on one land lease where all renewal options were included. As of June 30, 2018, the minimum future payments were disclosed as required by ASC Topic 840 and do not include future rent related to renewal options. As of June 30, 2019, the weighted-average remaining lease term for all operating leases is 15.1 years. The weighted average discount rate associated with the operating leases as of June 30, 2019 was 3.42% . |
Pending Acquisition of Shore Co
Pending Acquisition of Shore Community Bank | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Pending Acquisition of Shore Community Bank | Acquisition of New Jersey Community Bank On April 11, 2018, the Company completed the merger of New Jersey Community Bank (“NJCB”) with and into the Bank. The shareholders of NJCB received total consideration of $8.6 million , which was comprised of 249,785 shares of common stock of the Company with a market value of $5.5 million and cash consideration of $3.1 million , of which $401,000 was placed in escrow to cover costs and expenses, including settlement costs, if any, resulting from a certain litigation matter. In June 2019, the Company reached a settlement in the litigation matter. The escrow balance of approximately $393,000 , net of costs and expenses, will be paid out to the former NJCB shareholders in the third quarter of 2019. The merger was accounted for under the acquisition method of accounting, and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at preliminary estimated fair values as of the acquisition date. NJCB’s results of operations have been included in the Company’s Consolidated Statements of Income since April 11, 2018. The assets acquired and liabilities assumed in the merger were recorded at their fair values based on management’s best estimates, using information available at the date of the merger, including the use of third-party valuation specialists. The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 5,495 Cash payment 2,668 Cash held in escrow 401 Total consideration paid $ 8,564 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 2,073 Investment securities available for sale 11,173 Loans 75,144 Premises and equipment, net 1,120 Core deposit intangible asset 80 Bank-owned life insurance 3,972 Accrued interest receivable 259 Other assets 2,786 Deposits (87,223 ) Other liabilities (636 ) Total identifiable assets and liabilities, net $ 8,748 Gain from bargain purchase $ 184 ASC Topic 805-10 provides that if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report, in its financial statements, provisional amounts for the items for which the accounting is incomplete. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date and may recognize additional assets or liabilities to reflect new information obtained from facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period may not exceed one year from the acquisition date and the measurement period for the NJCB merger has ended. In the fourth quarter of 2018, the deferred tax asset related to the acquisition was increased by $46,000 resulting in an increase in gain from bargain purchase from $184,000 to $230,000 . Pending Acquisition of Shore Community Bank On June 23, 2019, the Company and the Bank, entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Shore Community Bank (“Shore”), providing for the merger of Shore with and into the Bank, with the Bank as the surviving entity (the “Merger”). The Merger is a stock and cash transaction valued at approximately $16.54 per share, or approximately $53.1 million in total consideration. The Merger Agreement and the transaction contemplated thereby have been unanimously approved by the boards of directors of both institutions, and the Merger is anticipated to be completed during the fourth quarter 2019. The Merger is subject to approval by the shareholders of Shore, as well as regulatory approvals, and other customary closing conditions. Subject to the terms and conditions of the Merger Agreement, Shore shareholders will receive, at their election, 0.8786 of a share of the Company’s common stock, $16.50 in cash, or a combination of the Company’s common stock and cash subject to adjustment as set forth in the Merger Agreement, for each share of Shore common stock that they own immediately prior to the effective time of the Merger. The Company is to issue a maximum of 1,509,348 shares of its common stock in the Merger and expects the mix of total merger consideration to be approximately 55% stock and 45% cash. Shore is headquartered in Toms River, New Jersey, and serves its customers and communities through five full-service banking offices in Toms River ( 3 ), Jackson and Manahawkin, New Jersey. Shore had assets of $283 million , loans of $213 million and deposits of $248 million as of June 30, 2019. Following consummation of the Merger, the Company will have approximately $1.6 billion in assets, $1.1 billion of loans and $1.2 billion of deposits, with 26 full-service banking offices located in Bergen, Middlesex, Monmouth, Mercer, Ocean and Somerset Counties, New Jersey. A description and copy of the Merger Agreement is available in the Company’s Current Report on Form 8-K filed on June 24, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The accompanying unaudited consolidated financial statements include 1 ST Constitution Bancorp (the “Company”), its wholly-owned subsidiary, 1 ST Constitution Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, 1 ST Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street Corp. and 249 New York Avenue, LLC. 1 ST Constitution Capital Trust II, a subsidiary of the Company, is not included in the Company’s consolidated financial statements, as it is a variable interest entity and the Company is not the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation and certain prior period amounts have been reclassified to conform to current year presentation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on March 15, 2019. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the operating results for the interim periods have been included. The results of operations for periods of less than a year are not necessarily indicative of results for the full year. |
Subsequent Events | The Company has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2019 for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through the date these financial statements were issued. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | SU 2019-01 - Leases: Codification Improvements (Topic 842) In March 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-01, “Leases: Codification Improvements (Topic 842).” ASU 2019-01 aligns the new leases guidance with existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers, and clarifies an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the FASB’s new lease accounting standard. Although this guidance is effective for years beginning after December 15, 2019, the Company adopted this guidance along with the adoption of ASU 2018-11, “Leases- Targeted Improvements,” and ASU 2016-02, “Leases.” The adoption of this guidance did have a material impact on the Company's consolidated financial statements. See the discussions regarding the adoptions of ASU 2018-11 and ASU 2016-02 below. ASU 2018-13 - Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. The following disclosure requirements that are applicable to public entities were removed from Topic 820: 1. The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; 2. The policy for timing of transfers between levels; and 3. The valuation process for Level 3 fair value measurements. The following disclosure requirements were modified in Topic 820: 1. In lieu of a roll-forward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy, in addition to purchases and issues of Level 3 assets and liabilities; 2. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and 3. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements applicable to public companies were added to Topic 820: 1. The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and 2. The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate “at a minimum” from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance effective January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-11 - Leases - Targeted Improvements (Topic 842) In July 2018, the FASB issued ASU 2018-11, “Leases-Targeted Improvements,” which provides an additional (and optional) transition method for a cumulative effect adjustment. The additional transition method allows entities to initially apply the new lease standard at the adoption date (January 1, 2019 for calendar-year-end public business entities) and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This additional transition method changes only when an entity is required to initially apply the transition requirements of the new leases standard; it does not change how those requirements apply. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease standard will continue to be in accordance with current U.S. GAAP (Topic 840, Leases). For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company adopted this guidance effective January 1, 2019 along with the adoption of ASU 2016-02-, “Leases.” The adoption of this guidance did have a material impact on the Company's financial statements. See the discussion regarding the adoption of ASU 2016-02 on page 9. ASU 2018-07 - Compensation - Stock Compensation (Topic 718) In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation,” which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendment also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, “Revenue from Contracts with Customers.” For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The adoption of this guidance in 2019 did not have a material impact on the Company’s consolidated financial statements. ASU Update 2017-08 - Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities,” which shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization) rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans and not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance in 2019 did not have a material impact on the Company's consolidated financial statements. ASU Update 2016-02 - Leases In February 2016, the FASB issued ASU 2016-02 “Leases . ” From the lessee's perspective, the new standard establishes a right- of-use (“ROU”) model that requires a lessee to record a ROU assets and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted Accounting Standards Codification ("ASC") Topic 842 effective January 1, 2019 utilizing the optional transition method as provided by ASU 2018-11. Under the optional transition method, only the most recent period presented reflected the adoption with a cumulative-effect adjustment to the opening balance of retained earnings and the comparative prior periods will be presented under the previous guidance of Topic 840. The new guidance includes a number of optional transition-related practical expedients. The Company elected to apply the practical expedients that relate to: the identification and classification of leases that commenced before January 1, 2019 and the initial direct costs of those leases. The election of these practical expedients allows the Company to continue to account for those leases that commenced before January 1, 2019 in accordance with previous U.S. GAAP. All of the Company’s leases that commenced before January 1, 2019 were operating leases. The lease expense will continue to be recognized based on the terms of the leases, except that a right-of-use asset and a lease liability was recognized for each operating lease at January 1, 2019 based on the present value of the remaining minimum lease payments. At January 1, 2019, the Company had 16 leases for real property, which included leases for 13 of its branch offices and leases for three offices that are used for general office space. All of the real property leases included one or more options to extend the lease term. Two of the leases for branch offices constituted a lease for the land under the building and the Company owned the leasehold improvements to these two leases. The Company also had 13 leases for office equipment, which were primarily copier/printers. For purposes of adopting Topic 842, the Company assumed in general that it would exercise the next lease extension for each real estate lease in order to have use of the property for at least a 5 to 10 year future period. With respect to one lease for land, the Company assumed that it would exercise all extensions covering a 25 year period due to the significance of the leasehold improvements. None of the equipment leases include extensions and generally have three to five year terms. Due to the significance of the leases for real estate and the assumption regarding the exercise of the extensions for one land lease, the adoption of Topic 842 resulted in the recognition of a significant lease liability and ROU assets. The Company adopted ASC Topic 842 effective January 1, 2019 and recognized a lease liability of $16.2 million and ROU assets of $15.7 million . The adoption of this guidance in 2019 had a material impact on the Company's financial condition. ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The term of the hosting arrangement includes the non-cancellable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the customer is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the customer is reasonably certain not to exercise the termination option, and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor. The entity also is required to apply the existing impairment guidance in Subtopic 350-40 to the capitalized implementation costs as if the costs were long-lived assets. The amendments in this ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the consolidated balance sheets in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The Company is currently evaluating the potential impact, if any, of adopting this ASU on its financial statements. This ASU is effective for fiscal years beginning after December 15, 2019. ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) In August 2018, the FASB issued ASU 2018-14 - “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20),” which consists of amendments to the disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The following disclosure requirements were removed from Subtopic 715-20: 1. The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; 2. The amount and timing of plan assets expected to be returned to the employer; 3. The disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law; 4. Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan; 5. For nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy. However, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets; and 6. For public entities, the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. The following disclosure requirements were added to Subtopic 715-20: 1. The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and 2. An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This ASU also clarifies that the following information for defined benefit pension plans should be disclosed: 1. The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets; and 2. The accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of the FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements by applying concepts in the Concepts Statement. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2020. The Company does not expect the adoption of this guidance to have a material impact on the disclosures in the Company’s consolidated financial statements. ASU Update 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires credit losses on most financial assets to be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss “CECL” model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) should be determined in a similar manner to other financial assets measured on an amortized cost basis. Upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD assets will use the CECL model described above. The ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities as of the fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. In 2019, FASB issued the following guidance related to ASU 2016-13-Financial Instruments-Credit Losses (Topic 326): In June 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief . This ASU provides optional targeted transition relief that allows reporting entities to irrevocably elect the fair value option on financial instruments that 1) were previously recorded at amortized cost and 2) are within the scope of Topic 326 if the instruments are eligible for the fair value option under Topic 825. The new guidance is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. 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 . The amendments in this ASU correct errors in and make minor improvements to the Codification by eliminating certain inconsistencies and clarifying the current guidance. |
Investment Securities | U.S. Treasury securities and obligations of U.S. Government sponsored entities and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Residential collateralized mortgage obligations and residential mortgage backed securities: The unrealized losses on investments in residential collateralized mortgage obligations and mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuers, which are primarily government or government sponsored agencies. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. The decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Obligations of state and political subdivisions: The unrealized losses on investments in these securities were caused by increases in market interest rates. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. None of the issuers have defaulted on interest payments. These investments are not considered to be other than temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – single issuer : The investments in these securities with unrealized losses are comprised of two corporate trust preferred securities issued by one large financial institution that mature in 2027. The contractual terms of the trust preferred securities do not allow the issuer to settle the securities at a price less than the face value of the trust preferred securities, which is greater than the amortized cost of the trust preferred securities. The issuer maintains an investment grade credit rating and has not defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate and credit spreads and the lack of an active trading market for these securities. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Corporate debt securities . The unrealized losses on investments in corporate debt securities were caused by an increase in market interest rates, which includes the yield required by market participants for the issuer’s credit risk. All of the issuers maintain an investment grade rating and none of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes in market interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – pooled: This trust preferred debt security was issued by a two -issuer pool (Preferred Term Securities XXV, Ltd. co-issued by Keefe, Bruyette and Woods, Inc. and First Tennessee (“PRETSL XXV”)) consisting primarily of debt securities issued by financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment of $865,000 , of which $364,000 was determined to be a credit loss and charged to operations, and $501,000 was recognized in the other comprehensive income (loss) component of shareholders’ equity. The primary factor used to determine the credit portion of the impairment loss recognized in the income statement for this security was the discounted present value of projected cash flow where that present value of cash flow was less than the amortized cost basis of the security. The present value of cash flow was developed using a model that considered performing collateral ratios, the level of subordination to senior tranches of the security and credit ratings of and projected credit defaults in the underlying collateral. On a quarterly basis, management evaluates the security to determine if any additional other-than-temporary impairment ("OTTI") is required. As of June 30, 2019 , the security was in an unrealized gain position and the security was receiving the interest and principal allocable to it. Beginning in the first quarter of 2019, a portion of the $501,000 other-than-temporary impairment was recognized as an increase in the carrying amount of the security. The remaining balance will be recognized over the remaining term of the security, which is approximately 18 years . For the six months ended June 30, 2019, OTTI was reduced to $497,000 |
Allowance for Loan Losses and Credit Quality | The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and their definitions are as follows, and loans graded excellent, above average, good and watch list are treated as “pass” for grading purposes: 1. Excellent - Loans that are based upon cash collateral held at the Company and adequately margined. Loans that are based upon “blue chip” stocks listed on the major stock exchanges and adequately margined. 2. Above Average - Loans to companies whose balance sheets show excellent liquidity and long-term debt is on well-spread schedules of repayment easily covered by cash flow. Such companies have been consistently profitable and have diversification in their product lines or sources of revenue. The continuation of profitable operations for the foreseeable future is likely. Management is comprised of a mix of ages, experience and backgrounds and management succession is in place. Sources of raw materials and, for service companies, the sources of revenue are abundant. Future needs have been planned for. Character and management ability of individuals or company principals are excellent. Loans to individuals are supported by their high net worth and liquid assets. 3. Good - Loans to companies whose balance sheets show good liquidity and cash flow adequate to meet maturities of long-term debt with a comfortable margin. Such companies have established profitable records over a number of years, and there has been growth in net worth. Operating ratios are in line with those of the industry, and expenses are in proper relationship to the volume of business done and the profits achieved. Management is well-balanced and competent in their responsibilities. Economic environment is favorable; however, competition is strong. The prospects for growth are good. Loans in this category do not meet the collateral requirements of loans graded excellent and above average. 3w. Watch - Included in this category are loans evidencing problems identified by Company management that require closer supervision, but do not require a “special mention” rating. This category also covers situations where the Company does not have adequate current information upon which credit quality can be determined. The account officer has the obligation to correct these deficiencies within 30 days from the time of notification. 4. Special Mention - A “special mention” loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. 5. Substandard - A “substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified as “doubtful” has all the weaknesses inherent of a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. 7. Loss - A loan classified as “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value. Rather, this classification indicates that it is not practical or desirable to defer writing off this loan even though partial recovery may occur in the future. |
Fair Value Disclosures | U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and counterparty creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale . Securities classified as available for sale are reported at fair value utilizing Level 1 and Level 2 inputs. For Level 2 securities, the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. Interest Rate Lock Derivatives . Interest rate lock commitments do not trade in active markets with readily observable prices. The fair value of an interest rate lock commitment is estimated based upon the forward sales price that is obtained in the best efforts commitment at the time the borrower locks in the interest rate on the loan and the probability that the locked rate commitment will close. Impaired loans. Impaired loans are those which the Company has measured and recognized impairment, generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the collateral or discounted cash flows based on the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less specific valuation allowances. Other Real Estate Owned. Foreclosed properties are adjusted to fair value less estimated selling costs at the time of foreclosure in preparation for transfer from portfolio loans to other real estate owned ("OREO"), thereby establishing a new accounting basis. The Company subsequently adjusts the fair value of the OREO, utilizing Level 3 inputs on a non-recurring basis to reflect partial write-downs based on the observable market price, current appraised value of the asset or other estimates of fair value. The fair value of other real estate owned is determined using appraisals, which may be discounted based on management’s review and changes in market conditions. |
Acquisition of New Jersey Com_2
Acquisition of New Jersey Community Bank (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 5,495 Cash payment 2,668 Cash held in escrow 401 Total consideration paid $ 8,564 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 2,073 Investment securities available for sale 11,173 Loans 75,144 Premises and equipment, net 1,120 Core deposit intangible asset 80 Bank-owned life insurance 3,972 Accrued interest receivable 259 Other assets 2,786 Deposits (87,223 ) Other liabilities (636 ) Total identifiable assets and liabilities, net $ 8,748 Gain from bargain purchase $ 184 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the calculation of both basic and diluted earnings per share for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 3,370 $ 1,871 $ 6,767 $ 4,724 Basic weighted average shares outstanding 8,634,251 8,341,459 8,629,197 8,227,109 Plus: common stock equivalents 62,692 286,646 62,866 279,852 Diluted weighted average shares outstanding 8,696,943 8,628,105 8,692,063 8,506,961 Earnings per share: Basic $ 0.39 $ 0.22 $ 0.78 $ 0.57 Diluted $ 0.39 $ 0.22 $ 0.78 $ 0.56 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | A summary of amortized cost and approximate fair value of investment securities available for sale follows: June 30, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) $ 1,998 $ 2 $ — $ 2,000 Residential collateralized mortgage obligations - GSE 51,365 307 (249 ) 51,423 Residential mortgage backed securities - GSE 15,294 221 (2 ) 15,513 Obligations of state and political subdivisions 22,260 310 (4 ) 22,566 Trust preferred debt securities - single issuer 1,491 — (116 ) 1,375 Corporate debt securities 28,270 75 (231 ) 28,114 Other debt securities 25,277 86 (175 ) 25,188 Total $ 145,955 $ 1,001 $ (777 ) $ 146,179 December 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) $ 2,993 $ — $ (41 ) $ 2,952 Residential collateralized mortgage obligations - GSE 48,789 70 (676 ) 48,183 Residential mortgage backed securities - GSE 13,945 37 (100 ) 13,882 Obligations of state and political subdivisions 23,506 85 (249 ) 23,342 Trust preferred debt securities - single issuer 1,490 — (161 ) 1,329 Corporate debt securities 28,323 — (1,037 ) 27,286 Other debt securities 15,383 11 (146 ) 15,248 Total $ 134,429 $ 203 $ (2,410 ) $ 132,222 |
Held-to-maturity Securities | A summary of amortized cost, carrying value and approximate fair value of investment securities held to maturity follows: June 30, 2019 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 5,975 $ — $ 5,975 $ 86 $ (45 ) $ 6,016 Residential mortgage backed securities - GSE 34,659 — 34,659 351 (35 ) 34,975 Obligations of state and political subdivisions 34,510 — 34,510 786 (7 ) 35,289 Trust preferred debt securities - pooled 656 (497 ) 159 543 — 702 Other debt securities 2,526 — 2,526 — (6 ) 2,520 Total $ 78,326 $ (497 ) $ 77,829 $ 1,766 $ (93 ) $ 79,502 December 31, 2018 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 6,701 $ — $ 6,701 $ 30 $ (143 ) $ 6,588 Residential mortgage backed securities - GSE 31,343 — 31,343 84 (346 ) 31,081 Obligations of state and political subdivisions 38,494 — 38,494 634 (118 ) 39,010 Trust preferred debt securities - pooled 657 (501 ) 156 569 — 725 Other debt securities 2,878 — 2,878 — (78 ) 2,800 Total $ 80,073 $ (501 ) $ 79,572 $ 1,317 $ (685 ) $ 80,204 |
Investments Classified by Contractual Maturity Date | The following table sets forth certain information regarding the amortized cost, carrying value, fair value, weighted average yields and contractual maturities of the Company’s investment portfolio as of June 30, 2019 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2019 (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 8,960 $ 8,983 2.66 % Due after one year through five years 33,984 33,946 2.84 % Due after five years through ten years 33,579 33,533 2.99 % Due after ten years 69,432 69,717 3.00 % Total $ 145,955 $ 146,179 2.94 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 8,979 $ 9,019 3.31 % Due after one year through five years 16,539 16,921 3.70 % Due after five years through ten years 19,522 19,924 3.08 % Due after ten years 32,789 33,638 3.28 % Total $ 77,829 $ 79,502 3.34 % |
Investment Securities, Continuous Unrealized Loss Position, Fair Value | Gross unrealized losses on available for sale and held to maturity securities and the fair value of the related securities aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential collateralized mortgage obligations - GSE 14 $ 1,218 $ (1 ) $ 23,783 $ (293 ) $ 25,001 $ (294 ) Residential mortgage backed securities - GSE 13 4,041 (13 ) 5,186 (24 ) 9,227 (37 ) Obligations of state and political subdivisions 7 — — 3,510 (11 ) 3,510 (11 ) Trust preferred debt securities - single issuer 2 — — 1,375 (116 ) 1,375 (116 ) Corporate debt securities 7 11,872 (169 ) 9,655 (62 ) 21,527 (231 ) Other debt securities 10 10,064 (142 ) 8,137 (39 ) 18,201 (181 ) Total temporarily impaired securities 53 $ 27,195 $ (325 ) $ 51,646 $ (545 ) $ 78,841 $ (870 ) December 31, 2018 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government sponsored entities (GSE) and agencies 2 $ 994 $ (1 ) $ 1,958 $ (40 ) $ 2,952 $ (41 ) Residential collateralized mortgage obligations - GSE 34 20,756 (138 ) 22,106 (682 ) 42,862 (819 ) Residential mortgage backed securities - GSE 68 18,393 (141 ) 19,402 (305 ) 37,795 (446 ) Obligations of state and political subdivisions 67 12,785 (154 ) 11,638 (213 ) 24,423 (367 ) Trust preferred debt securities - single issuer 2 1,329 (162 ) — — 1,329 (162 ) Corporate debt securities 10 8,912 (632 ) 18,374 (405 ) 27,286 (1,037 ) Other debt securities 9 10,943 (93 ) 4,613 (130 ) 15,556 (223 ) Total temporarily impaired securities 192 $ 74,112 $ (1,321 ) $ 78,091 $ (1,775 ) $ 152,203 $ (3,095 ) |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table provides an aging of the loan portfolio by loan class at June 30, 2019 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial real estate $ 177 $ 2,607 $ 508 $ 3,292 $ 407,429 $ 410,721 $ — $ 1,346 Mortgage warehouse lines — — — — 204,204 204,204 — — Construction — — — — 154,162 154,162 — — Commercial business 275 355 204 834 117,647 118,481 — 413 Residential real estate 272 — 1,425 1,697 56,544 58,241 — 1,425 Loans to individuals 15 — 397 412 21,051 21,463 — 801 Other — — — — 158 158 — — Total loans $ 739 $ 2,962 $ 2,534 $ 6,235 $ 961,195 967,430 $ — $ 3,985 Deferred loan costs, net 390 Total loans $ 967,820 The following table provides an aging of the loan portfolio by loan class at December 31, 2018 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial real estate $ — $ 499 $ 1,201 $ 1,700 $ 386,731 $ 388,431 $ — $ 1,439 Mortgage warehouse lines — — — — 154,183 154,183 — — Construction — — — — 149,387 149,387 — — Commercial business 280 — 466 746 119,844 120,590 — 3,532 Residential real estate 588 — 1,156 1,744 45,519 47,263 — 1,156 Loans to individuals 16 237 263 516 22,446 22,962 55 398 Other — — — — 181 181 — — Total loans $ 884 $ 736 $ 3,086 $ 4,706 $ 878,291 882,997 $ 55 $ 6,525 Deferred loan costs, net 167 Total loans $ 883,164 |
Financing Receivable Credit Quality Indicators | The following table provides a breakdown of the loan portfolio by credit quality indicator at June 30, 2019 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 152,355 $ 107,360 $ 387,191 $ 203,395 $ 56,513 Special Mention 1,807 9,756 14,035 809 91 Substandard — 1,340 9,495 — 1,637 Doubtful — 25 — — — Total $ 154,162 $ 118,481 $ 410,721 $ 204,204 $ 58,241 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 20,662 $ 158 Non-performing 801 — Total $ 21,463 $ 158 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2018 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 146,460 $ 104,162 $ 366,424 $ 152,378 $ 45,825 Special Mention 2,927 12,703 13,317 1,805 103 Substandard — 3,487 8,690 — 1,335 Doubtful — 238 — — — Total $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 22,564 $ 181 Non-performing 398 — Total $ 22,962 $ 181 |
Allowance for Credit Losses on Financing Receivables | The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at June 30, 2019 and December 31, 2018 : June 30, 2019 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 3 $ 52 $ — $ — $ — $ — $ — $ 55 Loans acquired with deteriorated credit quality — — 1 — — — — — 1 Collectively evaluated for impairment 1,759 1,543 3,701 933 481 142 — 26 8,585 Ending Balance $ 1,759 $ 1,546 $ 3,754 $ 933 $ 481 $ 142 $ — $ 26 $ 8,641 Loans receivable: Individually evaluated for impairment $ — $ 775 $ 4,962 $ — $ 1,425 $ 801 $ — $ — $ 7,963 Loans acquired with deteriorated credit quality — 340 1,379 — — — — — 1,719 Collectively evaluated for impairment 154,162 117,366 404,380 204,204 56,816 20,662 158 — 957,748 Ending Balance $ 154,162 $ 118,481 $ 410,721 $ 204,204 $ 58,241 $ 21,463 $ 158 $ — 967,430 Deferred loan costs, net 390 $ 967,820 December 31, 2018 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 380 $ 71 $ — $ — $ — $ — $ — $ 451 Loans acquired with deteriorated credit quality — — 2 — — — — — 2 Collectively evaluated for impairment 1,732 1,449 3,366 731 431 148 — 92 7,949 Ending Balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Loans receivable: Individually evaluated for impairment $ 103 $ 3,775 $ 5,093 $ — $ 1,156 $ 398 $ — $ — $ 10,525 Loans acquired with deteriorated credit quality — 319 1,419 — — — — — 1,738 Collectively evaluated for impairment 149,284 116,496 381,919 154,183 46,107 22,564 181 — 870,734 Ending Balance $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 $ 22,962 $ 181 $ — 882,997 Deferred loan costs, net 167 $ 883,164 |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | The activity in the allowance for loan loss by loan class for the three and six months ended June 30, 2019 and 2018 was as follows : (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Balance - March 31, 2019 $ 1,794 $ 1,615 $ 3,640 $ 582 $ 426 $ 155 $ — $ 492 $ 8,704 Provision charged/(credited) to operations (35 ) 276 189 351 55 (13 ) 43 (466 ) 400 Loans charged off — (345 ) (75 ) — — — (43 ) — (463 ) Recoveries of loans charged off — — — — — — — — — Balance - June 30, 2019 $ 1,759 $ 1,546 $ 3,754 $ 933 $ 481 $ 142 $ — $ 26 $ 8,641 Balance - March 31, 2018 $ 1,612 $ 1,675 $ 3,166 $ 732 $ 446 $ 129 $ — $ 537 $ 8,297 Provision charged/(credited) to operations 49 16 140 188 16 46 — (230 ) 225 Loans charged off — (32 ) — — — (7 ) — — (39 ) Recoveries of loans charged off — 6 8 — — 1 — — 15 Balance - June 30, 2018 $ 1,661 $ 1,665 $ 3,314 $ 920 $ 462 $ 169 $ — $ 307 $ 8,498 (Dollars in thousands) Construction Commercial Commercial Mortgage Residential Loans to Individuals Other Unallocated Total Balance - January 1, 2019 $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Provision charged/(credited) to operations 27 62 390 202 50 (8 ) 43 (66 ) 700 Loans charged off — (345 ) (75 ) — — — (43 ) — (463 ) Recoveries of loans charged off — — — — — 2 — — 2 Balance - June 30, 2019 $ 1,759 $ 1,546 $ 3,754 $ 933 $ 481 $ 142 $ — $ 26 $ 8,641 Balance - January 1, 2018 $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Provision charged/(credited) to operations (42 ) (36 ) 304 68 70 61 1 24 450 Loans charged off — (32 ) — — — (7 ) (1 ) — (40 ) Recoveries of loans charged off — 13 61 — — 1 — — 75 Balance - June 30, 2018 $ 1,661 $ 1,665 $ 3,314 $ 920 $ 462 $ 169 $ — $ 307 $ 8,498 |
Impaired Financing Receivables | The following table presents additional information regarding purchased credit-impaired loans at June 30, 2019 and December 31, 2018 : (Dollars in thousands) June 30, 2019 December 31, 2018 Outstanding balance $ 1,914 $ 2,007 Carrying amount $ 1,719 $ 1,738 Impaired Loans Receivables (By Class) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest With no allowance: Commercial: Construction $ — $ — $ — $ 34 $ 1 $ 69 $ 2 Commercial Business 1,008 1,629 — 954 26 953 52 Commercial Real Estate 1,540 1,998 — 1,432 17 1,590 33 Mortgage Warehouse Lines — — — — — — — Subtotal 2,548 3,627 — 2,420 44 2,612 87 Residential Real Estate 1,425 1,518 — 1,333 — 1,243 — Consumer: Loans to Individuals 801 896 — 683 — 617 — Other — — — — — — — Subtotal 801 896 — 683 — 617 — With no allowance: $ 4,774 $ 6,041 $ — $ 4,436 $ 44 $ 4,472 $ 87 With an allowance: Commercial: Construction $ — $ — $ — $ — $ — $ — $ — Commercial Business 107 196 3 301 1 1,233 3 Commercial Real Estate 4,801 6,109 53 4,700 59 4,526 117 Mortgage Warehouse Lines — — — — — — — Subtotal 4,908 6,305 56 5,001 60 5,759 120 Residential Real Estate — — — — — — — Consumer: Loans to Individuals — — — — — — — Other — — — — — — — Subtotal — — — — — — — With an allowance: $ 4,908 $ 6,305 $ 56 $ 5,001 $ 60 $ 5,759 $ 120 Total: Construction — — — 34 1 69 2 Commercial Business 1,115 1,825 3 1,255 27 2,186 55 Commercial Real Estate 6,341 8,107 53 6,132 76 6,116 150 Mortgage Warehouse Lines — — — — — — — Residential Real Estate 1,425 1,518 — 1,333 — 1,243 — Consumer 801 896 — 683 — 617 — Total $ 9,682 $ 12,346 $ 56 $ 9,437 $ 104 $ 10,231 $ 207 Impaired Loans Receivables (By Class) December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Commercial: Construction $ 103 $ 103 $ — Commercial Business 992 1,332 — Commercial Real Estate 2,304 2,629 — Mortgage Warehouse Lines — — — Subtotal 3,399 4,064 — Residential Real Estate 1,156 1,241 — Consumer: Loans to Individuals 398 478 — Other — — — Subtotal 398 478 — With no allowance $ 4,953 $ 5,783 $ — With an allowance: Commercial: Construction $ — $ — $ — Commercial Business 3,102 3,217 380 Commercial Real Estate 4,208 4,208 73 Mortgage Warehouse Lines — — — Subtotal 7,310 7,425 453 Residential Real Estate — — — Consumer: Loans to Individuals — — — Other — — — Subtotal — — — With an allowance $ 7,310 $ 7,425 $ 453 Total: Construction 103 103 — Commercial Business 4,094 4,549 380 Commercial Real Estate 6,512 6,837 73 Mortgage Warehouse Lines — — — Residential Real Estate 1,156 1,241 — Consumer 398 478 — Total $ 12,263 $ 13,208 $ 453 Impaired Loans Receivables (By Class) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Interest Income Recognized With no allowance: Commercial: Construction $ 104 $ 2 $ 125 $ 4 Commercial Business 1,332 27 1,291 54 Commercial Real Estate 4,089 1 3,027 18 Mortgage Warehouse Lines — — — — Subtotal 5,525 30 4,443 76 Residential Real Estate 811 — 539 — Consumer: Loans to Individuals 424 — 415 — Other — — — — Subtotal 424 — 415 — With no allowance $ 6,760 $ 30 $ 5,397 $ 76 With an allowance: Commercial: Construction $ — $ — $ — $ — Commercial Business 3,328 46 3,376 92 Commercial Real Estate 4,127 59 4,204 100 Mortgage Warehouse Lines — — — — Subtotal 7,455 105 7,580 192 Residential Real Estate — — — — Consumer: Loans to Individuals — — — — Other — — — — Subtotal — — — — With an allowance $ 7,455 $ 105 $ 7,580 $ 192 Total: Construction 104 2 125 4 Commercial Business 4,660 73 4,667 146 Commercial Real Estate 8,216 60 7,231 118 Mortgage Warehouse Lines — — — — Residential Real Estate 811 — 539 — Consumer 424 — 415 — Total $ 14,215 $ 135 $ 12,977 $ 268 |
Credit Impaired Loans Acquired, Change In Amortizable Yield | Changes in accretable discount for purchased credit-impaired loans for the three and six months ended June 30, 2019 and June 30, 2018 were as follows: Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 129 $ 103 $ 164 $ 126 Acquisition of impaired loans — 168 — 168 Accretion of discount (35 ) (38 ) (70 ) (61 ) Balance at end of period $ 94 $ 233 $ 94 $ 233 |
Troubled Debt Restructurings on Financing Receivables | The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in the process of foreclosure (dollars in thousands): June 30, 2019 December 31, 2018 Number of loans Recorded Investment Number of loans Recorded Investment 3 $ 743 4 $ 821 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s sources of non-interest income for the three and six months ended June 30, 2019 and 2018. Items outside the scope of ASC 606 are noted as such. Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Service charges on deposits: Overdraft fees $ 83 $ 82 $ 172 $ 161 Other 76 71 153 142 Interchange income 118 108 221 175 Other income - in scope 112 114 206 329 Gain on sale of OREO 137 — 137 — Income on BOLI (1) 149 159 288 273 Net gains on sales of loans (1) 1,160 984 2,205 2,133 Loan servicing fees (1) 180 158 359 308 Net gains on sales and calls of securities (1) — 6 — 12 Gain from bargain purchase (1) — 184 — 184 Other income (1) 155 177 295 211 $ 2,170 $ 2,043 $ 4,036 $ 3,928 (1) Not within the scope of ASC 606 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes Options activity during the six months ended June 30, 2019 : (Dollars in thousands, except share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2019 139,511 $ 8.70 4.0 $ 1,566 Granted 11,400 19.38 Exercised (15,919 ) 6.79 Forfeited (1,205 ) 18.22 Expired or exchanged (1,615 ) 7.46 Outstanding at June 30, 2019 132,172 $ 9.79 4.3 $ 1,147 Exercisable at June 30, 2019 112,428 $ 8.30 3.6 $ 1,143 |
Fair Value Inputs, Assets, Quantitative Information | The fair value of each Option and the significant weighted average assumptions used to calculate the fair value of the Options granted during the six months ended June 30, 2019 were as follows: Fair value of options granted $ 5.63 Risk-free rate of return 2.55 % Expected option life in years 7 Expected volatility 29.09 % Expected dividends 1.56 % |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the activity in unvested shares of restricted stock for the six months ended June 30, 2019 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2019 147,533 $ 13.21 Granted 28,581 19.17 Vested (39,018 ) 16.19 Forfeited (1,485 ) 16.95 Non-vested at June 30, 2019 135,611 $ 13.55 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Expense | The components of net periodic expense for the Company’s supplemental executive retirement plans for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended (Dollars in thousands) 2019 2018 2019 2018 Service cost $ 47 $ 52 $ 94 $ 87 Interest cost 41 43 82 71 Actuarial gain recognized (44 ) (15 ) (88 ) (30 ) Total $ 44 $ 80 $ 88 $ 128 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), and the related tax effects, are as follows: June 30, 2019 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gains on investment securities available for sale $ 224 $ (62 ) $ 162 Unrealized impairment loss on held to maturity security (497 ) 118 (379 ) Gains on unfunded pension liability 341 (95 ) 246 Accumulated other comprehensive income $ 68 $ (39 ) $ 29 December 31, 2018 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding losses on investment securities available for sale $ (2,207 ) $ 528 $ (1,679 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 318 (90 ) 228 Accumulated other comprehensive loss $ (2,390 ) $ 557 $ (1,833 ) Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax for the three and six months ended June 30, 2019 and 2018: (Dollars in thousands) Unrealized Unrealized Unfunded Accumulated Balance - April 1, 2019 $ (608 ) $ (381 ) $ 235 $ (754 ) Other comprehensive income before reclassifications 770 — 42 812 Amounts reclassified from accumulated other comprehensive income — 2 (31 ) (29 ) Reclassification adjustment for gains realized in income — — — — Other comprehensive income 770 2 11 783 Balance - June 30, 2019 $ 162 $ (379 ) $ 246 $ 29 Balance - April 1, 2018 $ (1,467 ) $ (382 ) $ 69 $ (1,780 ) Other comprehensive income (loss) before reclassifications (115 ) — 64 (51 ) Amounts reclassified from accumulated other comprehensive income — — (11 ) (11 ) Reclassification adjustment for gains realized in income (5 ) — — (5 ) Other comprehensive income (loss) (120 ) — 53 (67 ) Balance - June 30, 2018 $ (1,587 ) $ (382 ) $ 122 $ (1,847 ) (Dollars in thousands) Unrealized Unrealized Unfunded Accumulated Balance - January 1, 2019 $ (1,679 ) $ (382 ) $ 228 $ (1,833 ) Other comprehensive income before reclassifications 1,841 — 80 1,921 Amounts reclassified from accumulated other comprehensive income — 3 (62 ) (59 ) Reclassification adjustment for gains realized in income — — — — Other comprehensive income 1,841 3 18 1,862 Balance - June 30, 2019 $ 162 $ (379 ) $ 246 $ 29 Balance - January 1, 2018 $ (434 ) $ (382 ) $ 80 $ (736 ) Other comprehensive income (loss) before reclassifications (1,144 ) — 64 (1,080 ) Amounts reclassified from accumulated other comprehensive income — — (22 ) (22 ) Reclassification adjustment for gains realized in income (9 ) — — (9 ) Other comprehensive income (loss) (1,153 ) — 42 (1,111 ) Balance - June 30, 2018 $ (1,587 ) $ (382 ) $ 122 $ (1,847 ) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2019 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 2,000 $ — $ 2,000 Residential collateralized mortgage obligations - GSE — 51,423 — 51,423 Residential mortgage backed securities - GSE — 15,513 — 15,513 Obligations of state and political subdivisions — 22,566 — 22,566 Trust preferred debt securities - single issuer 919 456 — 1,375 Corporate debt securities 16,021 12,093 — 28,114 Other debt securities — 25,188 — 25,188 Total $ 16,940 $ 129,239 $ — $ 146,179 December 31, 2018 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 2,952 $ — $ 2,952 Residential collateralized mortgage obligations - GSE — 48,183 — 48,183 Residential mortgage backed securities - GSE — 13,882 — 13,882 Obligations of state and political subdivisions — 23,342 — 23,342 Trust preferred debt securities - single issuer — 1,329 — 1,329 Corporate debt securities 16,388 10,898 — 27,286 Other debt securities — 15,248 — 15,248 Total $ 16,388 $ 115,834 $ — $ 132,222 |
Fair Value Measurements, Nonrecurring | Assets and liabilities subject to fair value adjustments (impairment) on a nonrecurring basis at June 30, 2019 and December 31, 2018 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value June 30, 2019 Impaired loans $ — $ — $ 4,852 $ 4,852 Other real estate owned — — 1,460 1,460 December 31, 2018 Impaired loans $ — $ — $ 6,857 $ 6,857 Other real estate owned — — 1,460 1,460 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents additional qualitative information about assets measured at fair value on a nonrecurring basis, where there was evidence of impairment, and for which the Company has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) June 30, 2019 Impaired loans $ 4,852 Appraisal of collateral (1) Appraisal adjustments (2) 1% - 39% (11.2%) Other real estate owned $ 1,460 Appraisal of (1) Appraisal adjustments (2) 47% - 80% (63.5%) December 31, 2018 Impaired loans $ 6,857 Appraisal of collateral (1) Appraisal adjustments (2) 5% - 23% (10.6%) Other real estate owned $ 1,460 Appraisal of (1) Appraisal adjustments (2) 47% - 80% (63.5%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs that are not identifiable. (2) Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value, by Balance Sheet Grouping | The estimated fair values and carrying amounts of financial assets and liabilities as of June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 30,114 $ 30,114 $ — $ — $ 30,114 Securities available for sale 146,179 16,940 129,239 — 146,179 Securities held to maturity 77,829 — 79,502 — 79,502 Loans held for sale 3,863 — 3,994 — 3,994 Loans, net 959,179 — — 977,184 977,184 SBA servicing asset 1,012 — 1,490 — 1,490 Interest rate lock derivative 241 — 241 — 241 Accrued interest receivable 4,095 — 4,095 — 4,095 FHLB stock 5,453 — 5,453 — 5,453 Deposits (1,021,834 ) — (1,022,215 ) — (1,022,215 ) Borrowings (104,850 ) — (104,850 ) — (104,850 ) Redeemable subordinated debentures (18,557 ) — (12,919 ) — (12,919 ) Accrued interest payable (1,697 ) — (1,697 ) — (1,697 ) December 31, 2018 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 16,844 $ 16,844 $ — $ — $ 16,844 Securities available for sale 132,222 16,388 115,834 — 132,222 Securities held to maturity 79,572 — 80,204 — 80,204 Loans held for sale 3,020 — 3,141 — 3,141 Loans, net 874,762 — — 874,742 874,742 SBA servicing asset 991 — 1,490 — 1,490 Interest rate lock derivative 79 — 79 — 79 Accrued interest receivable 3,860 — 3,860 — 3,860 FHLB stock 3,929 — 3,929 — 3,929 Deposits (950,672 ) — (949,813 ) — (949,813 ) Borrowings (71,775 ) — (71,775 ) — (71,775 ) Redeemable subordinated debentures (18,557 ) — (12,774 ) — (12,774 ) Accrued interest payable (1,228 ) — (1,228 ) — (1,228 ) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | During the three and six months ended June 30, 2019 and 2018, the Company recognized rent and equipment expense associated with leases as follows: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Operating lease cost: Fixed rent expense $ 492 $ 482 $ 976 $ 918 Variable rent expense — — — — Short-term lease expense 2 — 4 — Sublease income — — — — Net lease cost $ 494 $ 482 $ 980 $ 918 (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Lease cost - occupancy expense $ 430 $ 416 $ 857 $ 793 Lease cost - other expense 64 66 123 125 Net lease cost $ 494 $ 482 $ 980 $ 918 During the six months ended June 30, 2019 and 2018, the following cash and non-cash activities were associated with the leases: Six Months Ended June 30, (In thousands) 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 868 $ 918 Non-cash investing and financing activities: Additions to ROU assets obtained from: Net lease cost — — New operating lease liabilities 412 — |
Lessee, Operating Lease, Liability, Maturity | The future payments due under operating leases at June 30, 2019 and 2018 were as follows: At June 30, (In thousands) 2019 2018 Due in less than one year $ 1,832 $ 1,459 Due in one year but less than two years 1,816 1,318 Due in two years but less than three years 1,788 1,127 Due in three years but less than four years 1,784 903 Due in four years but less than five years 1,687 705 Thereafter 12,865 1,941 Total $ 21,772 $ 7,453 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Jan. 01, 2019USD ($)lease | Jun. 30, 2019USD ($)lease |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | 30 | |
Lease liability | $ | $ 16,021 | |
Right-of-use assets | $ | $ 15,441 | |
Building [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | 16 | 16 |
Building, Branch Offices [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | 13 | 13 |
Building, General Office Space [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | 3 | 3 |
Office Equipment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | 13 | 13 |
Land [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | 2 | 2 |
Operating lease, renewal term | 25 years | 25 years |
Minimum [Member] | Building [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, renewal term | 5 years | 5 years |
Minimum [Member] | Office Equipment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, term of contract | 3 years | |
Maximum [Member] | Building [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, renewal term | 10 years | 10 years |
Maximum [Member] | Office Equipment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, term of contract | 5 years | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease liability | $ | $ 16,200 | |
Right-of-use assets | $ | $ 15,700 |
Acquisition of New Jersey Com_3
Acquisition of New Jersey Community Bank (Narrative) (Details) - USD ($) $ in Thousands | Apr. 11, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||||||
Gain from bargain purchase | $ 0 | $ 184 | $ 0 | $ 184 | |||
New Jersey Community Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration paid | $ 8,564 | ||||||
Number of shares issued (in shares) | 249,785 | ||||||
Company stock issued | $ 5,495 | ||||||
Cash payment to acquire business | 3,100 | ||||||
Cash held in escrow | 401 | ||||||
Gain from bargain purchase | 230 | ||||||
Deferred tax assets acquired, adjustment | $ 46 | ||||||
Forecast [Member] | New Jersey Community Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments for legal settlements | $ 393 | ||||||
Previously Reported [Member] | New Jersey Community Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Gain from bargain purchase | $ 184 |
Acquisition of New Jersey Com_4
Acquisition of New Jersey Community Bank (Summary of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Apr. 11, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |||||
Gain from bargain purchase | $ 0 | $ 184 | $ 0 | $ 184 | |
New Jersey Community Bank [Member] | |||||
Consideration paid: | |||||
Company stock issued | $ 5,495 | ||||
Cash payment | 2,668 | ||||
Cash held in escrow | 401 | ||||
Total consideration paid | 8,564 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |||||
Cash and cash equivalents | 2,073 | ||||
Investment securities available for sale | 11,173 | ||||
Loans | 75,144 | ||||
Premises and equipment, net | 1,120 | ||||
Core deposit intangible asset | 80 | ||||
Bank-owned life insurance | 3,972 | ||||
Accrued interest receivable | 259 | ||||
Other assets | 2,786 | ||||
Deposits | (87,223) | ||||
Other liabilities | (636) | ||||
Total identifiable assets and liabilities, net | 8,748 | ||||
Gain from bargain purchase | 230 | ||||
Previously Reported [Member] | New Jersey Community Bank [Member] | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |||||
Gain from bargain purchase | $ 184 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 29,530 | 0 | 29,530 | 8,900 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliation of Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 3,370 | $ 3,370 | $ 1,871 | $ 6,767 | $ 4,724 |
Basic weighted average shares outstanding | |||||
Basic weighted average shares outstanding (in Shares) | 8,634,251 | 8,341,459 | 8,629,197 | 8,227,109 | |
Plus: common stock equivalents (in Shares) | 62,692 | 286,646 | 62,866 | 279,852 | |
Diluted weighted average shares outstanding (in Shares) | 8,696,943 | 8,628,105 | 8,692,063 | 8,506,961 | |
Earnings per share: | |||||
Basic (in Dollars per share) | $ 0.39 | $ 0.22 | $ 0.78 | $ 0.57 | |
Diluted (in Dollars per share) | $ 0.39 | $ 0.22 | $ 0.78 | $ 0.56 |
Investment Securities (Debt Sec
Investment Securities (Debt Securities, Available-for-sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 145,955 | $ 134,429 |
Gross Unrealized Gains | 1,001 | 203 |
Gross Unrealized Losses | (777) | (2,410) |
Available for sale, at fair value | 146,179 | 132,222 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,998 | 2,993 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | (41) |
Available for sale, at fair value | 2,000 | 2,952 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 51,365 | 48,789 |
Gross Unrealized Gains | 307 | 70 |
Gross Unrealized Losses | (249) | (676) |
Available for sale, at fair value | 51,423 | 48,183 |
Residential mortgage backed securities – GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,294 | 13,945 |
Gross Unrealized Gains | 221 | 37 |
Gross Unrealized Losses | (2) | (100) |
Available for sale, at fair value | 15,513 | 13,882 |
Obligations of state and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 22,260 | 23,506 |
Gross Unrealized Gains | 310 | 85 |
Gross Unrealized Losses | (4) | (249) |
Available for sale, at fair value | 22,566 | 23,342 |
Trust preferred debt securities – single issuer [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,491 | 1,490 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (116) | (161) |
Available for sale, at fair value | 1,375 | 1,329 |
Corporate debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,270 | 28,323 |
Gross Unrealized Gains | 75 | 0 |
Gross Unrealized Losses | (231) | (1,037) |
Available for sale, at fair value | 28,114 | 27,286 |
Other debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,277 | 15,383 |
Gross Unrealized Gains | 86 | 11 |
Gross Unrealized Losses | (175) | (146) |
Available for sale, at fair value | $ 25,188 | $ 15,248 |
Investment Securities (Held-to-
Investment Securities (Held-to-maturity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held to maturity | ||
Amortized Cost | $ 78,326 | $ 80,073 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | (497) | (501) |
Carrying Value | 77,829 | 79,572 |
Gross Unrealized Gains | 1,766 | 1,317 |
Gross Unrealized Losses | (93) | (685) |
Fair Value | 79,502 | 80,204 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Held to maturity | ||
Amortized Cost | 5,975 | 6,701 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 5,975 | 6,701 |
Gross Unrealized Gains | 86 | 30 |
Gross Unrealized Losses | (45) | (143) |
Fair Value | 6,016 | 6,588 |
Residential mortgage backed securities - GSE [Member] | ||
Held to maturity | ||
Amortized Cost | 34,659 | 31,343 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 34,659 | 31,343 |
Gross Unrealized Gains | 351 | 84 |
Gross Unrealized Losses | (35) | (346) |
Fair Value | 34,975 | 31,081 |
Obligations of state and political subdivisions [Member] | ||
Held to maturity | ||
Amortized Cost | 34,510 | 38,494 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 34,510 | 38,494 |
Gross Unrealized Gains | 786 | 634 |
Gross Unrealized Losses | (7) | (118) |
Fair Value | 35,289 | 39,010 |
Trust preferred debt securities-pooled [Member] | ||
Held to maturity | ||
Amortized Cost | 656 | 657 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | (497) | (501) |
Carrying Value | 159 | 156 |
Gross Unrealized Gains | 543 | 569 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 702 | 725 |
Other debt securities [Member] | ||
Held to maturity | ||
Amortized Cost | 2,526 | 2,878 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 2,526 | 2,878 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (78) |
Fair Value | $ 2,520 | $ 2,800 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)security | Jun. 30, 2019USD ($)securityfinancial_institution | Dec. 31, 2009USD ($) | Dec. 31, 2018USD ($)security | |
Schedule of Marketable Securities [Line Items] | ||||
Investment securities pledged to secure funds | $ 73,300 | $ 73,300 | $ 80,400 | |
Restricted stock | 5,600 | 5,600 | 4,100 | |
Federal home loan bank, stock | $ 5,500 | $ 5,500 | $ 3,900 | |
Number of corporate trust preferred securities issued | security | 53 | 53 | 192 | |
Other than temporary impairment | $ 501 | $ 497 | $ 865 | |
Other-than-temporary impairment loss, debt securities, portion recognized in earnings | 364 | |||
Other than temporary impairment loss, portion in other comprehensive loss | $ 501 | |||
Trust preferred debt securities – single issuer [Member] | ||||
Schedule of Marketable Securities [Line Items] | ||||
Number of corporate trust preferred securities issued | security | 2 | 2 | 2 | |
Number of issuers of corporate trust preferred securities | financial_institution | 1 | |||
Trust preferred debt securities-pooled [Member] | ||||
Schedule of Marketable Securities [Line Items] | ||||
Number of issuers of corporate trust preferred securities | financial_institution | 2 | |||
Remaining length of term | 18 years | |||
Atlantic Community Bankers Bank Stock [Member] | Bankers Bank Stock [Member] | ||||
Schedule of Marketable Securities [Line Items] | ||||
Bankers bank stock | $ 135 | $ 135 | $ 135 |
Investment Securities (Securiti
Investment Securities (Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 8,960 | |
Due after one year through five years | 33,984 | |
Due after five years through ten years | 33,579 | |
Due after ten years | 69,432 | |
Amortized Cost | 145,955 | $ 134,429 |
Fair Value | ||
Due in one year or less | 8,983 | |
Due after one year through five years | 33,946 | |
Due after five years through ten years | 33,533 | |
Due after ten years | 69,717 | |
Total | $ 146,179 | 132,222 |
Yield | ||
Due in one year or less | 2.66% | |
Due after one year through five years | 2.84% | |
Due after five years through ten years | 2.99% | |
Due after ten years | 3.00% | |
Total | 2.94% | |
Carrying Value | ||
Due in one year or less | $ 8,979 | |
Due after one year through five years | 16,539 | |
Due after five years through ten years | 19,522 | |
Due after ten years | 32,789 | |
Carrying Value | 77,829 | 79,572 |
Fair Value | ||
Due in one year or less | 9,019 | |
Due after one year through five years | 16,921 | |
Due after five years through ten years | 19,924 | |
Due after ten years | 33,638 | |
Total | $ 79,502 | $ 80,204 |
Yield | ||
Due in one year or less | 3.31% | |
Due after one year through five years | 3.70% | |
Due after five years through ten years | 3.08% | |
Due after ten years | 3.28% | |
Total | 3.34% |
Investment Securities (Unrealiz
Investment Securities (Unrealized Losses on Available for Sale and Held to Maturity Securities) (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 53 | 192 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 27,195 | $ 74,112 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (325) | (1,321) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 51,646 | 78,091 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (545) | (1,775) |
Securities in a continuous unrealized loss position, fair value | 78,841 | 152,203 |
Securities in a continuous unrealized loss position, unrealized losses | $ (870) | $ (3,095) |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 2 | |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 994 | |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (1) | |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 1,958 | |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (40) | |
Securities in a continuous unrealized loss position, fair value | 2,952 | |
Securities in a continuous unrealized loss position, unrealized losses | $ (41) | |
Residential collateralized mortgage obligations - GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 14 | 34 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 1,218 | $ 20,756 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (1) | (138) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 23,783 | 22,106 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (293) | (682) |
Securities in a continuous unrealized loss position, fair value | 25,001 | 42,862 |
Securities in a continuous unrealized loss position, unrealized losses | $ (294) | $ (819) |
Residential mortgage backed securities - GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 13 | 68 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 4,041 | $ 18,393 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (13) | (141) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 5,186 | 19,402 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (24) | (305) |
Securities in a continuous unrealized loss position, fair value | 9,227 | 37,795 |
Securities in a continuous unrealized loss position, unrealized losses | $ (37) | $ (446) |
Obligations of state and political subdivisions [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 7 | 67 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 0 | $ 12,785 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 0 | (154) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 3,510 | 11,638 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (11) | (213) |
Securities in a continuous unrealized loss position, fair value | 3,510 | 24,423 |
Securities in a continuous unrealized loss position, unrealized losses | $ (11) | $ (367) |
Trust preferred debt securities – single issuer [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 2 | 2 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 0 | $ 1,329 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 0 | (162) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 1,375 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (116) | 0 |
Securities in a continuous unrealized loss position, fair value | 1,375 | 1,329 |
Securities in a continuous unrealized loss position, unrealized losses | $ (116) | $ (162) |
Corporate debt securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 7 | 10 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 11,872 | $ 8,912 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (169) | (632) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 9,655 | 18,374 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (62) | (405) |
Securities in a continuous unrealized loss position, fair value | 21,527 | 27,286 |
Securities in a continuous unrealized loss position, unrealized losses | $ (231) | $ (1,037) |
Other debt securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 10 | 9 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 10,064 | $ 10,943 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (142) | (93) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 8,137 | 4,613 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (39) | (130) |
Securities in a continuous unrealized loss position, fair value | 18,201 | 15,556 |
Securities in a continuous unrealized loss position, unrealized losses | $ (181) | $ (223) |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Credit Quality (Aging of Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 23, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | $ 967,430 | $ 882,997 | |
Deferred loan costs, net | 390 | 167 | |
Total loans | 967,820 | $ 1,100,000 | 883,164 |
Total Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 6,235 | 4,706 | |
Current | 961,195 | 878,291 | |
Total Loans Receivable | 967,430 | 882,997 | |
Recorded Investment 90 Days Accruing | 0 | 55 | |
Non-accrual Loans | 3,985 | 6,525 | |
Total Loans [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 739 | 884 | |
Total Loans [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,962 | 736 | |
Total Loans [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,534 | 3,086 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,292 | 1,700 | |
Current | 407,429 | 386,731 | |
Total Loans Receivable | 410,721 | 388,431 | |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 1,346 | 1,439 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 177 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,607 | 499 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 508 | 1,201 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 204,204 | 154,183 | |
Total Loans Receivable | 204,204 | 154,183 | |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 154,162 | 149,387 | |
Total Loans Receivable | 154,162 | 149,387 | |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 834 | 746 | |
Current | 117,647 | 119,844 | |
Total Loans Receivable | 118,481 | 120,590 | |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 413 | 3,532 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 275 | 280 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 355 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 204 | 466 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,697 | 1,744 | |
Current | 56,544 | 45,519 | |
Total Loans Receivable | 58,241 | 47,263 | |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 1,425 | 1,156 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 272 | 588 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,425 | 1,156 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 412 | 516 | |
Current | 21,051 | 22,446 | |
Total Loans Receivable | 21,463 | 22,962 | |
Recorded Investment 90 Days Accruing | 0 | 55 | |
Non-accrual Loans | 801 | 398 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 15 | 16 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 237 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 397 | 263 | |
Consumer Portfolio Segment [Member] | Other [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 158 | 181 | |
Total Loans Receivable | 158 | 181 | |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Credit Quality (Narrative) (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019USD ($)loancontract | Jun. 30, 2018contract | Dec. 31, 2018USD ($) | Apr. 11, 2018USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Number of contracts modified as TDR | contract | 2 | 0 | ||
Recorded investment of modified TDR | $ 197 | |||
Number of TDRs that subsequently defaulted | 0 | 0 | ||
Financial Asset Acquired with Credit Deterioration [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Purchased credit-impaired loans | $ 1,719 | $ 1,738 | ||
New Jersey Community Bank [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Purchased credit-impaired loans | $ 855 | $ 865 | $ 881 | |
Purchased credit-impaired loans, book value | $ 1,100 |
Allowance for Loan Losses and_5
Allowance for Loan Losses and Credit Quality (Commercial and Consumer Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 967,430 | $ 882,997 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 154,162 | 149,387 |
Commercial Portfolio Segment [Member] | Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 152,355 | 146,460 |
Commercial Portfolio Segment [Member] | Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,807 | 2,927 |
Commercial Portfolio Segment [Member] | Construction [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 118,481 | 120,590 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 107,360 | 104,162 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 9,756 | 12,703 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,340 | 3,487 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 25 | 238 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 410,721 | 388,431 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 387,191 | 366,424 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 14,035 | 13,317 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 9,495 | 8,690 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 204,204 | 154,183 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 203,395 | 152,378 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 809 | 1,805 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 58,241 | 47,263 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 56,513 | 45,825 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 91 | 103 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,637 | 1,335 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 21,463 | 22,962 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 20,662 | 22,564 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 801 | 398 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 158 | 181 |
Consumer Portfolio Segment [Member] | Other [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 158 | 181 |
Consumer Portfolio Segment [Member] | Other [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Allowance for Loan Losses and_6
Allowance for Loan Losses and Credit Quality (Allowance for Loan Losses by Impairment Method) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 23, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | $ 55 | $ 451 | |||||
Allowance for loan losses, ending balance | 8,641 | $ 8,704 | 8,402 | $ 8,498 | $ 8,297 | $ 8,013 | |
Allowance for loan losses, collectively evaluated for impairment | 8,585 | 7,949 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 7,963 | 10,525 | |||||
Loans receivables, ending balance | 967,430 | 882,997 | |||||
Loans receivables, collectively evaluated for impairment | 957,748 | 870,734 | |||||
Deferred loan costs, net | 390 | 167 | |||||
Total loans | 967,820 | $ 1,100,000 | 883,164 | ||||
Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 1 | 2 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 1,719 | 1,738 | |||||
Commercial Portfolio Segment [Member] | Construction [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||
Allowance for loan losses, ending balance | 1,759 | 1,794 | 1,732 | 1,661 | 1,612 | 1,703 | |
Allowance for loan losses, collectively evaluated for impairment | 1,759 | 1,732 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 0 | 103 | |||||
Loans receivables, ending balance | 154,162 | 149,387 | |||||
Loans receivables, collectively evaluated for impairment | 154,162 | 149,284 | |||||
Commercial Portfolio Segment [Member] | Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 0 | 0 | |||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 3 | 380 | |||||
Allowance for loan losses, ending balance | 1,546 | 1,615 | 1,829 | 1,665 | 1,675 | 1,720 | |
Allowance for loan losses, collectively evaluated for impairment | 1,543 | 1,449 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 775 | 3,775 | |||||
Loans receivables, ending balance | 118,481 | 120,590 | |||||
Loans receivables, collectively evaluated for impairment | 117,366 | 116,496 | |||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 340 | 319 | |||||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 52 | 71 | |||||
Allowance for loan losses, ending balance | 3,754 | 3,640 | 3,439 | 3,314 | 3,166 | 2,949 | |
Allowance for loan losses, collectively evaluated for impairment | 3,701 | 3,366 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 4,962 | 5,093 | |||||
Loans receivables, ending balance | 410,721 | 388,431 | |||||
Loans receivables, collectively evaluated for impairment | 404,380 | 381,919 | |||||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 1 | 2 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 1,379 | 1,419 | |||||
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||
Allowance for loan losses, ending balance | 933 | 582 | 731 | 920 | 732 | 852 | |
Allowance for loan losses, collectively evaluated for impairment | 933 | 731 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 0 | 0 | |||||
Loans receivables, ending balance | 204,204 | 154,183 | |||||
Loans receivables, collectively evaluated for impairment | 204,204 | 154,183 | |||||
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 0 | 0 | |||||
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||
Allowance for loan losses, ending balance | 481 | 426 | 431 | 462 | 446 | 392 | |
Allowance for loan losses, collectively evaluated for impairment | 481 | 431 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 1,425 | 1,156 | |||||
Loans receivables, ending balance | 58,241 | 47,263 | |||||
Loans receivables, collectively evaluated for impairment | 56,816 | 46,107 | |||||
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 0 | 0 | |||||
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||
Allowance for loan losses, ending balance | 142 | 155 | 148 | 169 | 129 | 114 | |
Allowance for loan losses, collectively evaluated for impairment | 142 | 148 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 801 | 398 | |||||
Loans receivables, ending balance | 21,463 | 22,962 | |||||
Loans receivables, collectively evaluated for impairment | 20,662 | 22,564 | |||||
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 0 | 0 | |||||
Consumer Portfolio Segment [Member] | Other [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||
Allowance for loan losses, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses, collectively evaluated for impairment | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 0 | 0 | |||||
Loans receivables, ending balance | 158 | 181 | |||||
Loans receivables, collectively evaluated for impairment | 158 | 181 | |||||
Consumer Portfolio Segment [Member] | Other [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | 0 | 0 | |||||
Unallocated [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||
Allowance for loan losses, ending balance | 26 | $ 492 | 92 | $ 307 | $ 537 | $ 283 | |
Allowance for loan losses, collectively evaluated for impairment | 26 | 92 | |||||
Loans receivable: | |||||||
Loans receivables, individually evaluated for impairment | 0 | 0 | |||||
Loans receivables, ending balance | 0 | 0 | |||||
Loans receivables, collectively evaluated for impairment | 0 | 0 | |||||
Unallocated [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||
Allowance for loan losses: | |||||||
Allowance for loan losses, ending balance | 0 | 0 | |||||
Loans receivable: | |||||||
Loans receivables, ending balance | $ 0 | $ 0 |
Allowance for Loan Losses and_7
Allowance for Loan Losses and Credit Quality (Allowance for Loan Losses Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 8,704 | $ 8,297 | $ 8,402 | $ 8,013 |
Provision charged/(credited) to operations | 400 | 225 | 700 | 450 |
Loans charged off | (463) | (39) | (463) | (40) |
Recoveries of loans charged off | 0 | 15 | 2 | 75 |
Ending Balance | 8,641 | 8,498 | 8,641 | 8,498 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 1,794 | 1,612 | 1,732 | 1,703 |
Provision charged/(credited) to operations | (35) | 49 | 27 | (42) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Ending Balance | 1,759 | 1,661 | 1,759 | 1,661 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 1,615 | 1,675 | 1,829 | 1,720 |
Provision charged/(credited) to operations | 276 | 16 | 62 | (36) |
Loans charged off | (345) | (32) | (345) | (32) |
Recoveries of loans charged off | 0 | 6 | 0 | 13 |
Ending Balance | 1,546 | 1,665 | 1,546 | 1,665 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 3,640 | 3,166 | 3,439 | 2,949 |
Provision charged/(credited) to operations | 189 | 140 | 390 | 304 |
Loans charged off | (75) | 0 | (75) | 0 |
Recoveries of loans charged off | 0 | 8 | 0 | 61 |
Ending Balance | 3,754 | 3,314 | 3,754 | 3,314 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 582 | 732 | 731 | 852 |
Provision charged/(credited) to operations | 351 | 188 | 202 | 68 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Ending Balance | 933 | 920 | 933 | 920 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 426 | 446 | 431 | 392 |
Provision charged/(credited) to operations | 55 | 16 | 50 | 70 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Ending Balance | 481 | 462 | 481 | 462 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 155 | 129 | 148 | 114 |
Provision charged/(credited) to operations | (13) | 46 | (8) | 61 |
Loans charged off | 0 | (7) | 0 | (7) |
Recoveries of loans charged off | 0 | 1 | 2 | 1 |
Ending Balance | 142 | 169 | 142 | 169 |
Consumer Portfolio Segment [Member] | Other [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 0 | 0 |
Provision charged/(credited) to operations | 43 | 0 | 43 | 1 |
Loans charged off | (43) | 0 | (43) | (1) |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 492 | 537 | 92 | 283 |
Provision charged/(credited) to operations | (466) | (230) | (66) | 24 |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries of loans charged off | 0 | 0 | 0 | 0 |
Ending Balance | $ 26 | $ 307 | $ 26 | $ 307 |
Allowance for Loan Losses and_8
Allowance for Loan Losses and Credit Quality (Impaired Loans Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
With no allowance: | |||||
Recorded Investment | $ 4,774 | $ 4,774 | $ 4,953 | ||
Unpaid Principal Balance | 6,041 | 6,041 | 5,783 | ||
Average Recorded Investment | 4,436 | $ 6,760 | 4,472 | $ 5,397 | |
Interest Income Recognized | 44 | 30 | 87 | 76 | |
With an allowance: | |||||
Recorded Investment | 4,908 | 4,908 | 7,310 | ||
Unpaid Principal Balance | 6,305 | 6,305 | 7,425 | ||
Related Allowance | 56 | 56 | 453 | ||
Average Recorded Investment | 5,001 | 7,455 | 5,759 | 7,580 | |
Interest Income Recognized | 60 | 105 | 120 | 192 | |
Total: | |||||
Recorded Investment | 9,682 | 9,682 | 12,263 | ||
Unpaid Principal Balance | 12,346 | 12,346 | 13,208 | ||
Related Allowance | 56 | 56 | 453 | ||
Average Recorded Investment | 9,437 | 14,215 | 10,231 | 12,977 | |
Interest Income Recognized | 104 | 135 | 207 | 268 | |
Commercial Portfolio Segment [Member] | |||||
With no allowance: | |||||
Recorded Investment | 2,548 | 2,548 | 3,399 | ||
Unpaid Principal Balance | 3,627 | 3,627 | 4,064 | ||
Average Recorded Investment | 2,420 | 5,525 | 2,612 | 4,443 | |
Interest Income Recognized | 44 | 30 | 87 | 76 | |
With an allowance: | |||||
Recorded Investment | 4,908 | 4,908 | 7,310 | ||
Unpaid Principal Balance | 6,305 | 6,305 | 7,425 | ||
Related Allowance | 56 | 56 | 453 | ||
Average Recorded Investment | 5,001 | 7,455 | 5,759 | 7,580 | |
Interest Income Recognized | 60 | 105 | 120 | 192 | |
Total: | |||||
Related Allowance | 56 | 56 | 453 | ||
Commercial Portfolio Segment [Member] | Construction [Member] | |||||
With no allowance: | |||||
Recorded Investment | 0 | 0 | 103 | ||
Unpaid Principal Balance | 0 | 0 | 103 | ||
Average Recorded Investment | 34 | 104 | 69 | 125 | |
Interest Income Recognized | 1 | 2 | 2 | 4 | |
With an allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Recorded Investment | 0 | 0 | 103 | ||
Unpaid Principal Balance | 0 | 0 | 103 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 34 | 104 | 69 | 125 | |
Interest Income Recognized | 1 | 2 | 2 | 4 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||||
With no allowance: | |||||
Recorded Investment | 1,008 | 1,008 | 992 | ||
Unpaid Principal Balance | 1,629 | 1,629 | 1,332 | ||
Average Recorded Investment | 954 | 1,332 | 953 | 1,291 | |
Interest Income Recognized | 26 | 27 | 52 | 54 | |
With an allowance: | |||||
Recorded Investment | 107 | 107 | 3,102 | ||
Unpaid Principal Balance | 196 | 196 | 3,217 | ||
Related Allowance | 3 | 3 | 380 | ||
Average Recorded Investment | 301 | 3,328 | 1,233 | 3,376 | |
Interest Income Recognized | 1 | 46 | 3 | 92 | |
Total: | |||||
Recorded Investment | 1,115 | 1,115 | 4,094 | ||
Unpaid Principal Balance | 1,825 | 1,825 | 4,549 | ||
Related Allowance | 3 | 3 | 380 | ||
Average Recorded Investment | 1,255 | 4,660 | 2,186 | 4,667 | |
Interest Income Recognized | 27 | 73 | 55 | 146 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||||
With no allowance: | |||||
Recorded Investment | 1,540 | 1,540 | 2,304 | ||
Unpaid Principal Balance | 1,998 | 1,998 | 2,629 | ||
Average Recorded Investment | 1,432 | 4,089 | 1,590 | 3,027 | |
Interest Income Recognized | 17 | 1 | 33 | 18 | |
With an allowance: | |||||
Recorded Investment | 4,801 | 4,801 | 4,208 | ||
Unpaid Principal Balance | 6,109 | 6,109 | 4,208 | ||
Related Allowance | 53 | 53 | 73 | ||
Average Recorded Investment | 4,700 | 4,127 | 4,526 | 4,204 | |
Interest Income Recognized | 59 | 59 | 117 | 100 | |
Total: | |||||
Recorded Investment | 6,341 | 6,341 | 6,512 | ||
Unpaid Principal Balance | 8,107 | 8,107 | 6,837 | ||
Related Allowance | 53 | 53 | 73 | ||
Average Recorded Investment | 6,132 | 8,216 | 6,116 | 7,231 | |
Interest Income Recognized | 76 | 60 | 150 | 118 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||||
With no allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | |||||
With no allowance: | |||||
Recorded Investment | 1,425 | 1,425 | 1,156 | ||
Unpaid Principal Balance | 1,518 | 1,518 | 1,241 | ||
Average Recorded Investment | 1,333 | 811 | 1,243 | 539 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Recorded Investment | 1,425 | 1,425 | 1,156 | ||
Unpaid Principal Balance | 1,518 | 1,518 | 1,241 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 1,333 | 811 | 1,243 | 539 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment [Member] | |||||
With no allowance: | |||||
Recorded Investment | 801 | 801 | 398 | ||
Unpaid Principal Balance | 896 | 896 | 478 | ||
Average Recorded Investment | 683 | 424 | 617 | 415 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Recorded Investment | 801 | 801 | 398 | ||
Unpaid Principal Balance | 896 | 896 | 478 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 683 | 424 | 617 | 415 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | |||||
With no allowance: | |||||
Recorded Investment | 801 | 801 | 398 | ||
Unpaid Principal Balance | 896 | 896 | 478 | ||
Average Recorded Investment | 683 | 424 | 617 | 415 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Related Allowance | 0 | 0 | 0 | ||
Consumer Portfolio Segment [Member] | Other [Member] | |||||
With no allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance: | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | $ 0 | 0 | $ 0 | |
Total: | |||||
Related Allowance | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses and_9
Allowance for Loan Losses and Credit Quality (Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 12,346 | $ 13,208 |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 1,914 | 2,007 |
Carrying amount | $ 1,719 | $ 1,738 |
Allowance for Loan Losses an_10
Allowance for Loan Losses and Credit Quality (Changes in Accretable Discount for Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 129 | $ 103 | $ 164 | $ 126 |
Acquisition of impaired loans | 0 | 168 | 0 | 168 |
Accretion of discount | (35) | (38) | (70) | (61) |
Balance at end of period | $ 94 | $ 233 | $ 94 | $ 233 |
Allowance for Loan Losses an_11
Allowance for Loan Losses and Credit Quality (Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 3 | 4 |
Recorded Investment | $ | $ 743 | $ 821 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Service charges on deposit accounts | $ 159 | $ 153 | $ 325 | $ 303 |
Gain on sale of OREO | 137 | 0 | 137 | 0 |
Income on BOLI | 149 | 159 | 288 | 273 |
Net gains on sales of loans | 1,160 | 984 | 2,205 | 2,133 |
Loan servicing fees | 180 | 158 | 359 | 308 |
Net gains on sales and calls of securities | 0 | 6 | 0 | 12 |
Gain from bargain purchase | 0 | 184 | 0 | 184 |
Other income | 155 | 177 | 295 | 211 |
Total non-interest income | 2,170 | 2,043 | 4,036 | 3,928 |
Service Charges on Deposits, Overdraft fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges on deposit accounts | 83 | 82 | 172 | 161 |
Service Charges on Deposits, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges on deposit accounts | 76 | 71 | 153 | 142 |
Interchange income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges on deposit accounts | 118 | 108 | 221 | 175 |
Other income - in scope [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges on deposit accounts | $ 112 | $ 114 | $ 206 | $ 329 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in Shares) | 885,873 | ||
Number of shares available for grant (in Shares) | 422,378 | ||
Compensation not yet recognized, stock options | $ 97 | ||
Compensation not yet recognized, other than options | $ 1,800 | ||
Granted (in Shares) | 28,581 | ||
Weighted average grant date fair value, grants in period (in Dollars per share) | $ 19.17 | ||
Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 35 | $ 34 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 530 | $ 472 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in Shares) | 10,300 | ||
Weighted average grant date fair value, grants in period (in Dollars per share) | $ 19.38 | ||
Award vesting period | 3 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Transactions under Stock Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Number of Shares | |||||
Outstanding, beginning of period (in Shares) | 139,511 | ||||
Granted (in Shares) | 11,400 | ||||
Exercised (in Shares) | (15,919) | (9,307) | (15,919) | (9,307) | |
Forfeited (in Shares) | (1,205) | ||||
Expired or exchanged (in Shares) | (1,615) | ||||
Outstanding, end of period (in Shares) | 132,172 | 132,172 | 139,511 | ||
Exercisable, end of period (in Shares) | 112,428 | 112,428 | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning of period (in Dollars per share) | $ 8.70 | ||||
Granted (in Dollars per share) | 19.38 | ||||
Exercised (in Dollars per share) | 6.79 | ||||
Forfeited (in Dollars per share) | 18.22 | ||||
Expired or exchanged (in Dollars per share) | 7.46 | ||||
Outstanding, end of period (in Dollars per share) | $ 9.79 | 9.79 | $ 8.70 | ||
Exercisable, end of period (in Dollars per share) | $ 8.30 | $ 8.30 | |||
Weighted Average Remaining Contractual Term (Years) | |||||
Outstanding, end of period | 4 years 3 months 18 days | 4 years | |||
Exercisable, end of period | 3 years 7 months 6 days | ||||
Aggregate Intrinsic Value | |||||
Outstanding, end of period | $ 1,147 | $ 1,147 | $ 1,566 | ||
Exercisable, end of period | $ 1,143 | $ 1,143 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value and Weighted Average Assumptions) (Details) | 6 Months Ended |
Jun. 30, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Fair value of options granted (in Dollars per share) | $ 5.63 |
Risk-free rate of return | 2.55% |
Expected option life in years | 7 years |
Expected volatility | 29.09% |
Expected dividends | 1.56% |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Restricted Shares Activity) (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period (in Shares) | shares | 147,533 |
Granted (in Shares) | shares | 28,581 |
Vested (in Shares) | shares | (39,018) |
Forfeited (in Shares) | shares | (1,485) |
Non-vested, end of period (in Shares) | shares | 135,611 |
Average Grant Date Fair Value (in dollars per share) | |
Outstanding, beginning of period (in Dollars per share) | $ / shares | $ 13.21 |
Granted (in Dollars per share) | $ / shares | 19.17 |
Vested (in Dollars per share) | $ / shares | 16.19 |
Forfeited (in Dollars per share) | $ / shares | 16.95 |
Non-vested, end of period (in Dollars per share) | $ / shares | $ 13.55 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Period of service | 6 months | |
Cash surrender value of life insurance | $ 29 | $ 28.7 |
Benefit Plans (Schedule of Comp
Benefit Plans (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 47 | $ 52 | $ 94 | $ 87 |
Interest cost | 41 | 43 | 82 | 71 |
Actuarial gain recognized | (44) | (15) | (88) | (30) |
Net periodic benefit cost | $ 44 | $ 80 | $ 88 | $ 128 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | $ 68 | $ (2,390) |
Other Comprehensive Income (Loss), Tax | (39) | 557 |
Other Comprehensive Income (Loss), Net of Tax | 29 | (1,833) |
Unrealized net holding gains (losses) on investment securities available for sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 224 | (2,207) |
Other Comprehensive Income (Loss), Tax | (62) | 528 |
Other Comprehensive Income (Loss), Net of Tax | 162 | (1,679) |
Unrealized impairment (loss) on held to maturity security [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | (497) | (501) |
Other Comprehensive Income (Loss), Tax | 118 | 119 |
Other Comprehensive Income (Loss), Net of Tax | (379) | (382) |
Gains on unfunded pension liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 341 | 318 |
Other Comprehensive Income (Loss), Tax | (95) | (90) |
Other Comprehensive Income (Loss), Net of Tax | $ 246 | $ 228 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Changes in the Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 131,207 | $ 127,085 | $ 113,234 | $ 127,085 | $ 111,653 |
Other comprehensive income before reclassifications | 812 | (51) | 1,921 | (1,080) | |
Amounts reclassified | (29) | (59) | |||
Total other comprehensive income (loss) | 783 | 783 | (67) | 1,862 | (1,111) |
Ending balance | 135,075 | 131,207 | 120,348 | 135,075 | 120,348 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | |||||
Beginning balance | (754) | (1,833) | (1,780) | (1,833) | (736) |
Total other comprehensive income (loss) | 783 | (67) | 1,862 | (1,111) | |
Ending balance | 29 | (754) | (1,847) | 29 | (1,847) |
Unrealized Holding Gains (Losses) on Available for Sale Securities [Member] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | |||||
Beginning balance | (608) | (1,679) | (1,467) | (1,679) | (434) |
Other comprehensive income before reclassifications | 770 | (115) | 1,841 | (1,144) | |
Amounts reclassified | (5) | (9) | |||
Total other comprehensive income (loss) | 770 | (120) | 1,841 | (1,153) | |
Ending balance | 162 | (608) | (1,587) | 162 | (1,587) |
Unrealized Impairment Loss on Held to Maturity Security [Member] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | |||||
Beginning balance | (381) | (382) | (382) | (382) | (382) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified | 2 | 3 | |||
Total other comprehensive income (loss) | 2 | 0 | 3 | 0 | |
Ending balance | (379) | (381) | (382) | (379) | (382) |
Unfunded Pension Liability [Member] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | |||||
Beginning balance | 235 | 228 | 69 | 228 | 80 |
Other comprehensive income before reclassifications | 42 | 64 | 80 | 64 | |
Amounts reclassified | (31) | (11) | (62) | (22) | |
Total other comprehensive income (loss) | 11 | 53 | 18 | 42 | |
Ending balance | $ 246 | $ 235 | $ 122 | $ 246 | $ 122 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 146,179 | $ 132,222 |
Assets, fair value disclosure | 146,179 | 132,222 |
Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 16,940 | 16,388 |
Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 129,239 | 115,834 |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 2,000 | 2,952 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 2,000 | 2,952 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 51,423 | 48,183 |
Residential collateralized mortgage obligations - GSE [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential collateralized mortgage obligations - GSE [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 51,423 | 48,183 |
Residential collateralized mortgage obligations - GSE [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential mortgage backed securities - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 15,513 | 13,882 |
Residential mortgage backed securities - GSE [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential mortgage backed securities - GSE [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 15,513 | 13,882 |
Residential mortgage backed securities - GSE [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Obligations of state and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 22,566 | 23,342 |
Obligations of state and political subdivisions [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Obligations of state and political subdivisions [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 22,566 | 23,342 |
Obligations of state and political subdivisions [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Trust preferred debt securities – single issuer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 1,375 | 1,329 |
Trust preferred debt securities – single issuer [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 919 | 0 |
Trust preferred debt securities – single issuer [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 456 | 1,329 |
Trust preferred debt securities – single issuer [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 28,114 | 27,286 |
Corporate debt securities [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 16,021 | 16,388 |
Corporate debt securities [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 12,093 | 10,898 |
Corporate debt securities [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Other debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 25,188 | 15,248 |
Other debt securities [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Other debt securities [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 25,188 | 15,248 |
Other debt securities [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 0 | $ 0 |
Fair Value Disclosures (Finan_2
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Non-recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 4,852 | $ 6,857 |
Other real estate owned | 1,460 | 1,460 |
Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 4,852 | 6,857 |
Other real estate owned | $ 1,460 | $ 1,460 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) $ in Thousands | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investment | $ 9,682 | $ 12,263 |
Related Allowance | $ 56 | $ 453 |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans | loan | 9 | 8 |
Impaired loans, recorded investment | $ 4,900 | $ 7,300 |
Related Allowance | $ 56 | $ 453 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Qualitative Information) (Details) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Qualitative Information [Line Items] | ||
Impaired loans | $ 4,852 | $ 6,857 |
Other real estate owned | $ 1,460 | $ 1,460 |
Appraisal adjustments [Member] | Minimum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Loans and leases, measurement input | 0.01 | 0.05 |
Other real estate owned, measurement input | 0.47 | 0.47 |
Appraisal adjustments [Member] | Maximum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Loans and leases, measurement input | 0.39 | 0.23 |
Other real estate owned, measurement input | 0.80 | 0.80 |
Appraisal adjustments [Member] | Weighted Average [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Loans and leases, measurement input | 0.112 | 0.106 |
Other real estate owned, measurement input | 0.635 | 0.635 |
Fair Value Disclosures (Estimat
Fair Value Disclosures (Estimated Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 23, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 30,114 | $ 16,844 | |
Securities available for sale | 146,179 | 132,222 | |
Securities held to maturity | 77,829 | 79,572 | |
Securities held to maturity, fair value | 79,502 | 80,204 | |
Loans held for sale | 3,863 | 3,020 | |
Loans, net | 959,179 | 874,762 | |
Accrued interest receivable | 4,095 | 3,860 | |
Deposits | (1,021,834) | $ (1,200,000) | (950,672) |
Accrued interest payable | (1,697) | (1,228) | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 30,114 | 16,844 | |
Securities available for sale | 146,179 | 132,222 | |
Securities held to maturity | 77,829 | 79,572 | |
Loans held for sale | 3,863 | 3,020 | |
Loans, net | 959,179 | 874,762 | |
SBA servicing asset | 1,012 | 991 | |
Interest rate lock derivative | 241 | 79 | |
Accrued interest receivable | 4,095 | 3,860 | |
FHLB stock | 5,453 | 3,929 | |
Deposits | (1,021,834) | (950,672) | |
Borrowings | (104,850) | (71,775) | |
Redeemable subordinated debentures | (18,557) | (18,557) | |
Accrued interest payable | (1,697) | (1,228) | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents, fair value | 30,114 | 16,844 | |
Securities available for sale | 146,179 | 132,222 | |
Securities held to maturity, fair value | 79,502 | 80,204 | |
Loans held for sale, fair value | 3,994 | 3,141 | |
Loans, net, fair value | 977,184 | 874,742 | |
SBA servicing asset | 1,490 | 1,490 | |
Interest rate lock derivative | 241 | 79 | |
Accrued interest receivable, fair value | 4,095 | 3,860 | |
FHLB stock | 5,453 | 3,929 | |
Deposits, fair value | (1,022,215) | (949,813) | |
Borrowings, fair value | (104,850) | (71,775) | |
Redeemable subordinated debentures | (12,919) | (12,774) | |
Accrued interest payable, fair value | (1,697) | (1,228) | |
Fair Value [Member] | Level 1 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents, fair value | 30,114 | 16,844 | |
Securities available for sale | 16,940 | 16,388 | |
Securities held to maturity, fair value | 0 | 0 | |
Loans held for sale, fair value | 0 | 0 | |
Loans, net, fair value | 0 | 0 | |
SBA servicing asset | 0 | 0 | |
Interest rate lock derivative | 0 | 0 | |
Accrued interest receivable, fair value | 0 | 0 | |
FHLB stock | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Borrowings, fair value | 0 | 0 | |
Redeemable subordinated debentures | 0 | 0 | |
Accrued interest payable, fair value | 0 | 0 | |
Fair Value [Member] | Level 2 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents, fair value | 0 | 0 | |
Securities available for sale | 129,239 | 115,834 | |
Securities held to maturity, fair value | 79,502 | 80,204 | |
Loans held for sale, fair value | 3,994 | 3,141 | |
Loans, net, fair value | 0 | 0 | |
SBA servicing asset | 1,490 | 1,490 | |
Interest rate lock derivative | 241 | 79 | |
Accrued interest receivable, fair value | 4,095 | 3,860 | |
FHLB stock | 5,453 | 3,929 | |
Deposits, fair value | (1,022,215) | (949,813) | |
Borrowings, fair value | (104,850) | (71,775) | |
Redeemable subordinated debentures | (12,919) | (12,774) | |
Accrued interest payable, fair value | (1,697) | (1,228) | |
Fair Value [Member] | Level 3 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents, fair value | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Securities held to maturity, fair value | 0 | 0 | |
Loans held for sale, fair value | 0 | 0 | |
Loans, net, fair value | 977,184 | 874,742 | |
SBA servicing asset | 0 | 0 | |
Interest rate lock derivative | 0 | 0 | |
Accrued interest receivable, fair value | 0 | 0 | |
FHLB stock | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Borrowings, fair value | 0 | 0 | |
Redeemable subordinated debentures | 0 | 0 | |
Accrued interest payable, fair value | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - lease | Jan. 01, 2019 | Jun. 30, 2019 |
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 30 | |
Weighted average remaining lease term | 15 years 1 month 6 days | |
Weighted average discount rate | 3.42% | |
Building [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 16 | 16 |
Building [Member] | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, renewal term | 5 years | 5 years |
Building [Member] | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, renewal term | 10 years | 10 years |
Building, Branch Offices [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 13 | 13 |
Building, General Office Space [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 3 | 3 |
Land [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 2 | 2 |
Operating lease, renewal term | 25 years | 25 years |
Office Equipment [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 13 | 13 |
Office Equipment [Member] | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 3 years | |
Office Equipment [Member] | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 5 years | |
Automobiles [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 1 | |
Automobiles [Member] | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 3 years | |
Automobiles [Member] | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating lease cost: | ||||
Fixed rent expense | $ 492 | $ 976 | ||
Variable rent expense | 0 | 0 | ||
Short-term lease expense | 2 | 4 | ||
Sublease income | 0 | 0 | ||
Net lease cost | 494 | 980 | ||
Net lease cost | $ 482 | $ 918 | ||
Occupancy, Net [Member] | ||||
Operating lease cost: | ||||
Net lease cost | 430 | 857 | ||
Net lease cost | 416 | 793 | ||
Other Expense [Member] | ||||
Operating lease cost: | ||||
Net lease cost | $ 64 | $ 123 | ||
Net lease cost | $ 66 | $ 125 |
Leases - Summary of Cash and No
Leases - Summary of Cash and Non-Cash Items (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 868 | |
Operating cash flows from operating leases | $ 918 | |
Additions to ROU assets obtained from: | ||
Net lease cost | 0 | |
New operating lease liabilities | $ 412 |
Leases - Future Payments Under
Leases - Future Payments Under Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Lease, After Adoption of 842 | ||
Due in less than one year | $ 1,832 | |
Due in one year but less than two years | 1,816 | |
Due in two years but less than three years | 1,788 | |
Due in three years but less than four years | 1,784 | |
Due in four years but less than five years | 1,687 | |
Thereafter | 12,865 | |
Total | $ 21,772 | |
Operating Leases, Before Adoption 842 | ||
Due in less than one year | $ 1,459 | |
Due in one year but less than two years | 1,318 | |
Due in two years but less than three years | 1,127 | |
Due in three years but less than four years | 903 | |
Due in four years but less than five years | 705 | |
Thereafter | 1,941 | |
Total | $ 7,453 |
Pending Acquisition of Shore _2
Pending Acquisition of Shore Community Bank (Details) $ / shares in Units, $ in Thousands | Jun. 23, 2019USD ($)office$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||
Number of offices | office | 26 | ||
Assets | $ 1,600,000 | $ 1,304,294 | $ 1,177,833 |
Total loans | 1,100,000 | 967,820 | 883,164 |
Deposits | $ 1,200,000 | 1,021,834 | $ 950,672 |
Shore Community Bank [Member] | |||
Business Acquisition [Line Items] | |||
Assets | 283,000 | ||
Total loans | 213,000 | ||
Deposits | $ 248,000 | ||
Shore Community Bank [Member] | |||
Business Acquisition [Line Items] | |||
Consideration transferred per share, cash and stock (in dollars per share) | $ / shares | $ 16.54 | ||
Total consideration paid | $ 53,100 | ||
Consideration paid in shares (in shares) | shares | 0.8786 | ||
Consideration paid in cash (in dollars per share) | $ / shares | $ 16.50 | ||
Number of shares issued (in shares) | shares | 1,509,348 | ||
Consideration transferred, percentage of equity | 55.00% | ||
Consideration transferred, percentage of cash | 45.00% | ||
Number of offices | office | 5 | ||
Toms River, New Jersey [Member] | Shore Community Bank [Member] | |||
Business Acquisition [Line Items] | |||
Number of offices | office | 3 |