Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 10,201,298 | |
Current Fiscal year End Date | --12-31 | |
Amendment Flag | false | |
Entity CIK | 0001141807 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 8,762 | $ 2,547 |
Interest-earning deposits | 3,277 | 12,295 |
Total cash and cash equivalents | 12,039 | 14,842 |
Investment securities | ||
Available for sale, at fair value | 163,725 | 155,782 |
Held to maturity (fair value of $91,138 and $78,223 at March 31, 2020 and December 31, 2019, respectively) | 88,381 | 76,620 |
Total investment securities | 252,106 | 232,402 |
Loans held for sale | 11,755 | 5,927 |
Loans | 1,217,807 | 1,216,028 |
Less: allowance for loan losses | (10,001) | (9,271) |
Net loans | 1,207,806 | 1,206,757 |
Premises and equipment, net | 14,966 | 15,262 |
Right-of-use assets | 17,550 | 17,957 |
Accrued interest receivable | 4,843 | 4,945 |
Bank-owned life insurance | 36,858 | 36,678 |
Other real estate owned | 470 | 571 |
Goodwill and intangible assets | 36,654 | 36,779 |
Other assets | 15,822 | 14,142 |
Total assets | 1,610,869 | 1,586,262 |
Deposits | ||
Non-interest bearing | 299,147 | 287,555 |
Interest bearing | 998,885 | 989,807 |
Total deposits | 1,298,032 | 1,277,362 |
Short-term borrowings | 94,125 | 92,050 |
Redeemable subordinated debentures | 18,557 | 18,557 |
Accrued interest payable | 1,430 | 1,592 |
Lease liability | 18,257 | 18,617 |
Accrued expenses and other liabilities | 7,363 | 7,506 |
Total liabilities | 1,437,764 | 1,415,684 |
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; 10,240,624 and 10,224,974 shares issued and 10,201,298 and 10,191,676 shares outstanding as of March 31, 2020 and December 31, 2019, respectively | 110,254 | 109,964 |
Retained earnings | 63,295 | 60,791 |
Treasury stock, 39,326 and 33,298 shares at March 31, 2020 and December 31, 2019, respectively | (503) | (368) |
Accumulated other comprehensive income | 59 | 191 |
Total shareholders' equity | 173,105 | 170,578 |
Total liabilities and shareholders' equity | $ 1,610,869 | $ 1,586,262 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in Dollars) | $ 91,138 | $ 78,223 |
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) | 10,240,624 | 10,224,974 |
Common Stock, shares outstanding (in Shares) | 10,201,298 | 10,191,676 |
Treasury stock (in Shares) | 39,326 | 33,298 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST INCOME | ||
Loans, including fees | $ 14,805 | $ 12,157 |
Securities: | ||
Taxable | 1,056 | 1,270 |
Tax-exempt | 438 | 441 |
Federal funds sold and short-term investments | 89 | 47 |
Total interest income | 16,388 | 13,915 |
INTEREST EXPENSE | ||
Deposits | 3,238 | 2,317 |
Borrowings | 62 | 173 |
Redeemable subordinated debentures | 152 | 198 |
Total interest expense | 3,452 | 2,688 |
Net interest income | 12,936 | 11,227 |
PROVISION FOR LOAN LOSSES | 895 | 300 |
Net interest income after provision for loan losses | 12,041 | 10,927 |
NON-INTEREST INCOME | ||
Service charges on deposit accounts | 213 | 166 |
Gain on sales of loans | 1,470 | 1,045 |
Income on bank-owned life insurance | 180 | 139 |
Gain on sales of securities | 8 | 0 |
Other income | 585 | 516 |
Total non-interest income | 2,456 | 1,866 |
NON-INTEREST EXPENSES | ||
Salaries and employee benefits | 6,169 | 4,963 |
Occupancy expense | 1,170 | 1,021 |
Data processing expenses | 446 | 348 |
FDIC insurance expense | 34 | 100 |
Other real estate owned expenses | 17 | 48 |
Other operating expenses | 1,957 | 1,614 |
Total non-interest expenses | 9,793 | 8,094 |
Income before income taxes | 4,704 | 4,699 |
INCOME TAXES | 1,283 | 1,302 |
Net income | $ 3,421 | $ 3,397 |
EARNINGS PER COMMON SHARE | ||
Basic (in Dollars per share) | $ 0.34 | $ 0.39 |
Diluted (in Dollars per share) | $ 0.33 | $ 0.39 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||
Basic (in Shares) | 10,200,836 | 8,624,088 |
Diluted (in Shares) | 10,262,047 | 8,694,004 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,421 | $ 3,397 | |
Unrealized holding (losses) gains on securities available for sale | |||
Unrealized holding (losses) gains on securities available for sale | (187) | 1,408 | |
Tax effect | 46 | (337) | |
Net of tax amount | (141) | 1,071 | |
Reclassification adjustment for gains on securities available for sale | |||
Reclassification adjustment for gains on securities available for sale | [1] | (1) | 0 |
Tax effect | [2] | 0 | 0 |
Net of tax amount | (1) | 0 | |
Reclassification adjustment for unrealized impairment loss on held to maturity security | |||
Reclassification adjustment for unrealized impairment loss on held to maturity security | [3] | 3 | 1 |
Tax effect | (1) | 0 | |
Net of tax amount | 2 | 1 | |
Pension liability | |||
Pension liability | 56 | 55 | |
Tax effect | (17) | (17) | |
Net of tax amount | 39 | 38 | |
Reclassification adjustment for actuarial gains for unfunded pension liability | |||
Reclassification adjustment for actuarial gains for unfunded pension liability | [4] | (44) | (44) |
Tax effect | [2] | 13 | 13 |
Net of tax amount | (31) | (31) | |
Total other comprehensive (loss) income | (132) | 1,079 | |
Comprehensive income | $ 3,289 | $ 4,476 | |
[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, 2018 | $ 127,085 | $ 79,536 | $ 49,750 | $ (368) | $ (1,833) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,397 | 3,397 | |||
Exercise of stock options and issuance of restricted shares | 23 | 23 | |||
Share-based compensation | 269 | 269 | |||
Cash dividends | (646) | (646) | |||
Other comprehensive income (loss) | 1,079 | 1,079 | |||
Ending balance at Mar. 31, 2019 | 131,207 | 79,828 | 52,501 | (368) | (754) |
Beginning balance at Dec. 31, 2019 | 170,578 | 109,964 | 60,791 | (368) | 191 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,421 | 3,421 | |||
Exercise of stock options and issuance of restricted shares | 0 | 0 | |||
Share-based compensation | 290 | 290 | |||
Cash dividends | (917) | (917) | |||
Treasury stock purchased (6,028 shares) | (135) | (135) | |||
Other comprehensive income (loss) | (132) | (132) | |||
Ending balance at Mar. 31, 2020 | $ 173,105 | $ 110,254 | $ 63,295 | $ (503) | $ 59 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock issued for stock options exercised (in Shares) | 5,364 | |
Restricted shares issued (in Shares) | 15,650 | 14,000 |
Treasury stock purchased (in shares) | 6,028 | |
Cash dividends declared per share (in dollars per share) | $ 0.09 | $ 0.075 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 3,421 | $ 3,397 |
Adjustments to reconcile net income to net cash provided by operating activities- | ||
Provision for loan losses | 895 | 300 |
Depreciation and amortization | 542 | 340 |
Net amortization of premiums and discounts on securities | 306 | 110 |
SBA discount accretion | (106) | (92) |
Gains on sales and calls of securities available for sale | (1) | 0 |
Gains on sales and calls of securities held to maturity | (7) | 0 |
Gains on sales of loans held for sale | (1,470) | (1,045) |
Originations of loans held for sale | (42,459) | (22,467) |
Proceeds from sales of loans held for sale | 38,101 | 25,363 |
Increase in cash surrender value on bank–owned life insurance | (180) | (139) |
Share-based compensation expense | 290 | 269 |
Increase in deferred tax asset | (41) | 0 |
Noncash rent and equipment expense | 47 | 53 |
Decrease in accrued interest receivable | 102 | 81 |
Increase in other assets | (626) | (304) |
(Decrease) increase in accrued interest payable | (162) | 361 |
Decrease in accrued expenses and other liabilities | (131) | (1,084) |
Net cash (used in) provided by operating activities | (1,479) | 5,143 |
Purchases of securities: | ||
Available for sale | (18,416) | (20,950) |
Held to maturity | (16,729) | (2,739) |
Proceeds from maturities and payments of securities: | ||
Available for sale | 10,051 | 7,280 |
Held to maturity | 4,889 | 4,436 |
Net (purchase) sale of restricted stock | (1,038) | 2,238 |
Net (increase) decrease in loans | (1,838) | 8,924 |
Capital expenditures | (37) | (200) |
Proceeds from sales of other real estate owned | 101 | 0 |
Net cash used in investing activities | (23,017) | (1,011) |
FINANCING ACTIVITIES: | ||
Exercise of stock options | 0 | 23 |
Purchase of treasury shares | (135) | 0 |
Cash dividends paid to shareholders | (917) | (646) |
Net increase in deposits | 20,670 | 44,533 |
Increase (decrease) in short-term borrowings | 2,075 | (49,725) |
Net cash provided by (used in) financing activities | 21,693 | (5,815) |
Decrease in cash and cash equivalents | (2,803) | (1,683) |
Cash and cash equivalents at beginning of period | 14,842 | 16,844 |
Cash and cash equivalents at end of period | 12,039 | 15,161 |
Cash paid during the period for - | ||
Interest | 3,614 | 2,327 |
Income taxes | $ 101 | $ 2,192 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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. 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, 2019 , filed with the SEC on March 16, 2020. Goodwill During the first quarter of 2020, management determined that a triggering event had occurred with respect to goodwill, which required a review of goodwill for impairment. Management completed its review of goodwill and concluded that it was more likely than not that the fair value of goodwill exceeded the carrying amount of goodwill at March 31, 2020. Accordingly, goodwill was not impaired at March 31, 2020. 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 March 31, 2020 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. COVID-19 Impact The sudden emergence of the COVID-19 global pandemic has created widespread uncertainty, social and economic disruption, highly volatile financial markets and unprecedented increases in unemployment levels in a short period of time. Mandated business and school closures, restrictions on travel and social distancing have resulted in almost all businesses and employees being adversely impacted and a dramatic increase in unemployment levels in a short period of time. While the spread of COVID-19 and the restrictions implemented to contain its spread did not significantly impact the Company’s financial condition as of March 31, 2020, the businesses located in the Bank’s primary market areas of northern and central New Jersey, communities along the New Jersey shore, and the New York City metropolitan area, and their employees, have been adversely impacted. As a result of the recent emergence of the pandemic and the uncertainty, it is not possible to determine the overall impact of the pandemic on the Company’s business. To the extent that customers are not able to fulfill their contractual obligations to the Company, the Company’s business operations, asset valuations, financial condition, cash flows and results of operations could be materially adversely impacted. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, deferred tax assets, or other real estate owned ("OREO"). The future effect of the COVID-19 pandemic on the Company’s operations and financial performance will depend on future developments related to the duration, extent and severity of the pandemic and the length of time that mandated business and school closures, restrictions on travel and social distancing remain in place. The Company’s operations rely on third-party vendors to process, record and monitor transactions. If any of these vendors are unable to provide these services, our ability to serve customers could be disrupted. The pandemic could negatively impact customers’ ability to conduct banking and other financial transactions. The Company’s operations could be adversely impacted if key personnel or a significant number of employees were unable to work due to illness or restrictions. On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in response to the coronavirus pandemic. This legislation aims at providing relief for individuals and businesses that have been negatively impacted by the coronavirus pandemic. Adoption of New Accounting Standards 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. The amendments in this Update align 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 Update. The amendments in this ASU also require 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 adoption of this guidance in 2020 did not have a material impact on the Company's consolidated financial statements. 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. The amendments in this Update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The following disclosure requirements are 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 are 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. The amendments in this ASU also clarify the disclosure requirements in paragraph 715-20-50-3, which state 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 ending after December 15, 2020. The adoption of this guidance in 2020 did not have a material impact on the Company's consolidated financial statements. |
Acquisition of Shore Community
Acquisition of Shore Community Bank | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition of Shore Community Bank | Acquisition of Shore Community Bank On November 8, 2019, the Company completed its acquisition of 100 percent of the shares of common stock of Shore Community Bank ("Shore"), which merged with and into the Bank (the “Shore Merger”). The former shareholders of Shore received total consideration of $54.3 million , which was comprised of 1,509,275 shares of common stock of the Company with a market value of $29.2 million and cash of $25.1 million , of which $925,000 was cash paid in exchange for unexercised outstanding stock options. The Shore 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 Shore Merger date. The excess of the fair value of the consideration paid over the preliminary net fair value of Shore's assets and liabilities resulted in the recognition of goodwill of $23.2 million . Shore’s results of operations have been included in the Company’s Consolidated Statements of Income since November 8, 2019. The assets acquired and liabilities assumed in the merger were recorded at their estimated 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 fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the Shore Merger. The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 29,175 Cash payment 24,233 Cash payment for unexercised outstanding stock options 925 Total consideration paid $ 54,333 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 32,599 Investment securities available for sale 26,440 Loans 205,833 Premises and equipment, net 4,433 Core deposit intangible asset 1,467 Bank-owned life insurance 7,250 Right-of-use assets 3,226 Accrued interest receivable 778 Other real estate owned 605 Other assets 2,518 Deposits (249,836 ) Lease liability (3,226 ) Other liabilities (948 ) Total identifiable assets and liabilities, net $ 31,139 Goodwill recorded from Shore merger $ 23,194 Accounting Standards Codification (“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. Investments were recorded at fair value, utilizing quoted market prices on nationally recognized exchanges (Level 1) or by using Level 2 inputs. For Level 2 securities, the Company obtained fair value measurements from an independent pricing service. 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. Loans acquired in the Shore Merger were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310. The fair values of loans acquired were estimated, utilizing cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses of approximately $3.6 million and estimated prepayments. Projected cash flows were then discounted to present value, utilizing a risk-adjusted market rate for similar loans that management determined market participants would likely use. At the Shore Merger date, the Company recorded $201.3 million of loans without evidence of credit quality deterioration and $4.6 million of loans with evidence of credit quality deterioration. The following table summarizes the composition of the loans acquired and recorded at fair value: At November 8, 2019 (Dollars in thousands) Loans acquired with no credit quality deterioration Loans acquired with credit quality deterioration Total Commercial Construction $ 9,733 $ — $ 9,733 Commercial real estate 135,482 4,071 139,553 Commercial business 12,027 — 12,027 Residential real estate 36,849 500 37,349 Consumer 7,171 — 7,171 Total loans $ 201,262 $ 4,571 $ 205,833 The following is a summary of the loans acquired with evidence of deteriorated credit quality in the Shore Merger as of the date of the closing of the merger: (Dollars in thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 7,584 Contractual cash flows not expected to be collected (non-accretable difference) 2,355 Expected cash flows at acquisition 5,229 Interest component of expected cash flows (accretable difference) 658 Fair value of acquired loans $ 4,571 Bank-owned life insurance was recorded at the cash surrender value of the insurance policies, which approximates the redemption value of the policies. The Company recorded a core deposit intangible asset related to a value ascribed to demand, interest checking, money market and savings account, referred to as core deposits, acquired as part of the acquisition. The value assigned to the acquired core deposits represents the future economic benefit of the potential cost savings from acquiring the core deposits, net of operating expenses and including ancillary fee income, compared to the cost of obtaining alternative funds from available market sources. Management used estimates including the expected attrition rates of depository accounts, future interest rate levels, and the cost of servicing various depository products. The core deposit intangible asset totaled $1.5 million and is being amortized over its estimated useful life of approximately 10 years , using an accelerated method. The following table presents the projected amortization of the core deposit intangible asset for each period: (Dollars in thousands) Amount Year 2020 $ 262 2021 236 2022 209 2023 182 2024 156 Thereafter 378 Total $ 1,423 The fair values of deposit liabilities with no stated maturities, such as checking, money market and savings accounts, were assumed to equal the carrying value amounts since these deposits are payable on demand. The fair values of certificates of deposit represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit. Direct costs related to the Shore Merger were expensed as incurred. For the year ended December 31, 2019, the Company incurred $1.7 million of expenses for termination of contracts, legal and financial advisory fees, severance and other integration related expenses, which have been separately stated as merger-related expenses in the Company’s Consolidated Statements of Income. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Shore operations included in the Company’s Consolidated Statements of Income for the three months ended March 31, 2020 under the column "Shore Three Months Ended 3/31/2020." In addition, the table presents unaudited condensed pro forma financial information assuming that the Shore Merger had been completed as of January 1, 2019. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the Shore Merger occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma financial information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Shore’s operations. (Dollars in thousands) Shore Three Months Ended 3/31/2020 Actual for the Three Months Ended 3/31/2020 Pro Forma for the Three Months Ended 3/31/2019 Net interest income $ 2,065 $ 12,936 $ 13,736 Non-interest income 113 2,456 2,044 Non-interest expenses 979 9,793 9,624 Income taxes 369 1,283 1,632 Net income 830 3,421 4,224 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
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 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 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 would be anti-dilutive to the diluted earnings per common share calculation. For the three months ended March 31, 2020 and 2019 , 41,430 options and 30,630 options, respectively, were anti-dilutive and were not included in the computation of diluted earnings per share. The following table illustrates the calculation of both basic and diluted earnings per share for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, (Dollars in thousands, except per share data) 2020 2019 Net income $ 3,421 $ 3,397 Basic weighted average shares outstanding 10,200,836 8,624,088 Plus: common stock equivalents 61,211 69,916 Diluted weighted average shares outstanding 10,262,047 8,694,004 Earnings per share: Basic $ 0.34 $ 0.39 Diluted $ 0.33 $ 0.39 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 (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”) $ 3,968 $ — $ (16 ) $ 3,952 Residential collateralized mortgage obligations - GSE 47,196 866 (292 ) 47,770 Residential mortgage backed securities - GSE 19,177 693 (23 ) 19,847 Obligations of state and political subdivisions 34,941 637 (1 ) 35,577 Trust preferred debt securities - single issuer 1,493 — (230 ) 1,263 Corporate debt securities 26,702 160 (1,052 ) 25,810 Other debt securities 30,022 146 (662 ) 29,506 Total $ 163,499 $ 2,502 $ (2,276 ) $ 163,725 December 31, 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”) $ 774 $ — $ (10 ) $ 764 Residential collateralized mortgage obligations - GSE 53,223 194 (242 ) 53,175 Residential mortgage backed securities - GSE 18,100 292 (5 ) 18,387 Obligations of state and political subdivisions 33,177 342 — 33,519 Trust preferred debt securities - single issuer 1,492 — (50 ) 1,442 Corporate debt securities 23,224 139 (84 ) 23,279 Other debt securities 25,378 80 (242 ) 25,216 Total $ 155,368 $ 1,047 $ (633 ) $ 155,782 A summary of amortized cost, carrying value and approximate fair value of investment securities held to maturity follows: March 31, 2020 (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 $ 7,877 $ — $ 7,877 $ 383 $ — $ 8,260 Residential mortgage backed securities - GSE 34,622 — 34,622 1,312 — 35,934 Obligations of state and political subdivisions 43,455 — 43,455 632 — 44,087 Trust preferred debt securities - pooled 656 (489 ) 167 400 — 567 Other debt securities 2,260 — 2,260 30 — 2,290 Total $ 88,870 $ (489 ) $ 88,381 $ 2,757 $ — $ 91,138 December 31, 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 $ 5,117 $ — $ 5,117 $ 76 $ (35 ) $ 5,158 Residential mortgage backed securities - GSE 36,528 — 36,528 481 (54 ) 36,955 Obligations of state and political subdivisions 32,533 — 32,533 690 (25 ) 33,198 Trust preferred debt securities - pooled 657 (492 ) 165 479 — 644 Other debt securities 2,277 — 2,277 — (9 ) 2,268 Total $ 77,112 $ (492 ) $ 76,620 $ 1,726 $ (123 ) $ 78,223 At March 31, 2020 and December 31, 2019 , $109.2 million and $92.2 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 March 31, 2020 and December 31, 2019 and totaled $5.4 million and $4.3 million , respectively. Restricted stock consisted of $5.2 million of FHLB stock and $160,000 of Atlantic Community Bankers Bank stock at March 31, 2020 and $4.2 million of FHLB and $160,000 of Atlantic Community Bankers Bank stock at December 31, 2019 . 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 March 31, 2020 . 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. March 31, 2020 (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 13,440 $ 13,401 3.01 % Due after one year through five years 33,858 33,707 2.65 % Due after five years through ten years 37,027 36,689 2.52 % Due after ten years 79,174 79,928 2.39 % Total $ 163,499 $ 163,725 2.52 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 19,871 $ 19,946 2.19 % Due after one year through five years 11,855 12,117 3.67 % Due after five years through ten years 16,925 17,560 3.09 % Due after ten years 39,730 41,515 2.82 % Total $ 88,381 $ 91,138 2.84 % 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 March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 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 $ 3,952 $ (16 ) $ — $ — $ 3,952 $ (16 ) Residential collateralized mortgage obligations - GSE 9 $ 4,352 $ (22 ) $ 12,966 $ (270 ) $ 17,318 $ (292 ) Residential mortgage backed securities - GSE 23 2,158 (23 ) — — 2,158 (23 ) Obligations of state and political subdivisions 4 1,424 (1 ) — — 1,424 (1 ) Trust preferred debt securities - single issuer 2 — — 1,263 (230 ) 1,263 (230 ) Corporate debt securities 8 17,858 (836 ) 1,784 (216 ) 19,642 (1,052 ) Other debt securities 11 12,870 (313 ) 7,016 (349 ) 19,886 (662 ) Total temporarily impaired securities 59 $ 42,614 $ (1,211 ) $ 23,029 $ (1,065 ) $ 65,643 $ (2,276 ) December 31, 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 U.S. Treasury securities and obligations of U.S. Government sponsored entities (GSE) and agencies 1 $ 764 $ (10 ) $ — $ — $ 764 $ (10 ) Residential collateralized mortgage obligations - GSE 39 18,328 (138 ) 13,300 (139 ) 31,628 (277 ) Residential mortgage backed securities - GSE 13 5,505 (59 ) — — 5,505 (59 ) Obligations of state and political subdivisions 4 2,311 (25 ) 527 — 2,838 (25 ) Trust preferred debt securities - single issuer 2 — — 1,442 (50 ) 1,442 (50 ) Corporate debt securities 4 2,994 (5 ) 7,954 (79 ) 10,948 (84 ) Other debt securities 12 13,692 (151 ) 5,598 (100 ) 19,290 (251 ) Total temporarily impaired securities 75 $ 43,594 $ (388 ) $ 28,821 $ (368 ) $ 72,415 $ (756 ) 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 financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment charge 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 to be 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. Due to recovery of the cash flows underlying the security, the Company began to accrete the $501,000 of impairment charge in the other comprehensive income component in 2019. Total accretion of $3,000 was recognized in the first quarter 2020 as an increase in the carrying amount of the security. On a quarterly basis, management evaluates this security to determine if any additional other-than-temporary impairment is required. As of March 31, 2020 , management concluded that no additional other-than-temporary impairment had occurred. |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 3 Months Ended |
Mar. 31, 2020 | |
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 loans. 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 March 31, 2020 : (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 $ 347 $ — $ 5,626 $ 5,973 $ 570,914 $ 576,887 $ — $ 3,842 Mortgage warehouse lines — — — — 224,794 224,794 — — Construction 9,307 — — 9,307 136,292 145,599 — 7,500 Commercial business 437 — 525 962 149,105 150,067 — 644 Residential real estate 962 292 673 1,927 87,420 89,347 — 687 Loans to individuals 580 — 154 734 29,821 30,555 — 525 Other loans — — — — 141 141 — — Total loans $ 11,633 $ 292 $ 6,978 $ 18,903 $ 1,198,487 1,217,390 $ — $ 13,198 Deferred loan costs, net 417 Total loans $ 1,217,807 The following table provides an aging of the loan portfolio by loan class at December 31, 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 $ 238 $ 1,927 $ 3,882 $ 6,047 $ 561,608 $ 567,655 $ — $ 2,596 Mortgage warehouse lines — — — — 236,672 236,672 — — Construction — — — — 148,939 148,939 — — Commercial business 381 — 330 711 138,560 139,271 — 501 Residential real estate 2,459 271 677 3,407 86,852 90,259 — 708 Loans to individuals 296 — 311 607 31,997 32,604 — 692 Other loans — — — — 137 137 — — Total loans $ 3,374 $ 2,198 $ 5,200 $ 10,772 $ 1,204,765 $ 1,215,537 $ — $ 4,497 Deferred loan costs, net 491 Total loans $ 1,216,028 As provided by Accounting Standards Codification (“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 March 31, 2020 and December 31, 2019 , there were $5.2 million and $5.4 million 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 March 31, 2020 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 136,292 $ 146,829 $ 549,099 $ 224,105 $ 86,467 Special Mention — 1,871 8,262 689 1,062 Substandard 9,307 1,283 19,526 — 1,818 Doubtful — 84 — — — Total $ 145,599 $ 150,067 $ 576,887 $ 224,794 $ 89,347 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other loans Performing $ 30,030 $ 141 Non-performing 525 — Total $ 30,555 $ 141 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2019 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 147,132 $ 135,804 $ 538,104 $ 235,808 $ 87,512 Special Mention — 1,990 9,994 864 922 Substandard 1,807 1,477 19,557 — 1,825 Doubtful — — — — — Total $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other loans Performing $ 31,912 $ 137 Non-performing 692 — Total $ 32,604 $ 137 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 March 31, 2020 and December 31, 2019 : March 31, 2020 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other loans Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 19 $ 72 $ — $ — $ — $ — $ — $ 91 Loans acquired with deteriorated credit quality — — — — — — — — — Collectively evaluated for impairment 1,706 1,752 4,728 1,027 430 188 79 9,910 Ending Balance $ 1,706 $ 1,771 $ 4,800 $ 1,027 $ 430 $ 188 $ — $ 79 $ 10,001 Loans receivable: Individually evaluated for impairment $ 9,307 $ 1,393 $ 7,398 $ — $ 688 $ 525 $ — $ — $ 19,311 Loans acquired with deteriorated credit quality — 328 5,164 — 513 — — — 6,005 Collectively evaluated for impairment 136,292 148,346 564,325 224,794 88,146 30,030 141 — 1,192,074 Ending Balance $ 145,599 $ 150,067 $ 576,887 $ 224,794 $ 89,347 $ 30,555 $ 141 $ — 1,217,390 Deferred loan costs, net 417 $ 1,217,807 December 31, 2019 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other loans Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 8 $ 7 $ 50 $ — $ — $ — $ — $ — $ 65 Loans acquired with deteriorated credit quality — 3 1 — — — — — 4 Collectively evaluated for impairment 1,381 1,399 4,473 1,083 412 185 — 269 9,202 Ending Balance $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Loans receivable: Individually evaluated for impairment $ 1,807 $ 1,251 $ 6,171 $ — $ 708 $ 692 $ — $ — $ 10,629 Loans acquired with deteriorated credit quality — 334 5,419 — 504 — — — 6,257 Collectively evaluated for impairment 147,132 137,686 556,065 236,672 89,047 31,912 137 — 1,198,651 Ending Balance $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 $ 32,604 $ 137 $ — 1,215,537 Deferred loan costs, net 491 $ 1,216,028 The activity in the allowance for loan loss by loan class for the three months ended March 31, 2020 and 2019 was as follows : (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other loans Unallocated Total Balance - January 1, 2020 $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Provision charged/(credited) to operations 317 527 276 (56 ) 18 3 — (190 ) 895 Loans charged off — (165 ) — — — — — — (165 ) Recoveries of loans charged off — — — — — — — — — Balance - March 31, 2020 $ 1,706 $ 1,771 $ 4,800 $ 1,027 $ 430 $ 188 $ — $ 79 $ 10,001 January 1, 2019 $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Provision charged/(credited) to operations 62 (214 ) 201 (149 ) (5 ) 5 — 400 300 Loans charged off — — — — — — — — — Recoveries of loans charged off — — — — — 2 — — 2 Balance - March 31, 2019 $ 1,794 $ 1,615 $ 3,640 $ 582 $ 426 $ 155 $ — $ 492 $ 8,704 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 March 31, 2020 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 9,307 $ 9,307 $ — $ 3,102 $ 25 Commercial Business 1,658 3,190 — 1,095 18 Commercial Real Estate 8,354 9,510 — 7,792 94 Mortgage Warehouse Lines — — — — — Subtotal 19,319 22,007 — 11,989 137 Residential Real Estate 1,201 1,460 — 1,204 9 Consumer: Loans to Individuals 525 640 — 680 — Other loans — — — — — Subtotal 525 640 — 680 — With no allowance: $ 21,045 $ 24,107 $ — $ 13,873 $ 146 With an allowance: Commercial: Construction $ — $ — $ — $ 1,204 $ — Commercial Business 63 63 19 656 — Commercial Real Estate 4,208 5,516 72 4,552 50 Mortgage Warehouse Lines — — — — — Subtotal 4,271 5,579 91 6,412 50 Residential Real Estate — — — — — Consumer: Loans to Individuals — — — — — Other loans — — — — — Subtotal — — — — — With an allowance: $ 4,271 $ 5,579 $ 91 $ 6,412 $ 50 Total: Construction 9,307 9,307 — 4,306 25 Commercial Business 1,721 3,253 19 1,751 18 Commercial Real Estate 12,562 15,026 72 12,344 144 Mortgage Warehouse Lines — — — — — Residential Real Estate 1,201 1,460 — 1,204 9 Consumer 525 640 — 680 — Total $ 25,316 $ 29,686 $ 91 $ 20,285 $ 196 Impaired Loans Receivables (By Class) December 31, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Commercial: Construction $ — $ — $ — Commercial Business 680 1,971 — Commercial Real Estate 7,141 8,204 — Mortgage Warehouse Lines — — — Subtotal 7,821 10,175 — Residential Real Estate 1,212 1,465 — Consumer: Loans to Individuals 692 802 — Other loans — — — Subtotal 692 802 — With no allowance $ 9,725 $ 12,442 $ — With an allowance: Commercial: Construction $ 1,807 $ 1,807 $ 8 Commercial Business 905 993 10 Commercial Real Estate 4,449 5,757 51 Mortgage Warehouse Lines — — — Subtotal 7,161 8,557 69 Residential Real Estate — — — Consumer: Loans to Individuals — — — Other loans — — — Subtotal — — — With an allowance $ 7,161 $ 8,557 $ 69 Total: Construction $ 1,807 $ 1,807 $ 8 Commercial Business 1,585 2,964 10 Commercial Real Estate 11,590 13,961 51 Mortgage Warehouse Lines — — — Residential Real Estate 1,212 1,465 — Consumer 692 802 — Total $ 16,886 $ 20,999 $ 69 Impaired Loans Receivables (By Class) Three Months Ended March 31, 2019 (Dollars in thousands) Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 103 $ 2 Commercial Business 951 26 Commercial Real Estate 1,757 16 Mortgage Warehouse Lines — — Subtotal 2,811 44 Residential Real Estate 1,152 — Consumer: Loans to Individuals 552 — Other loans — — Subtotal 552 — With no allowance $ 4,515 $ 44 With an allowance: Commercial: Construction $ — $ — Commercial Business 2,145 2 Commercial Real Estate 4,351 58 Mortgage Warehouse Lines — — Subtotal 6,496 60 Residential Real Estate — — Consumer: Loans to Individuals — — Other loans — — Subtotal — — With an allowance $ 6,496 $ 60 Total: Construction $ 103 $ 2 Commercial Business 3,096 28 Commercial Real Estate 6,108 74 Mortgage Warehouse Lines — — Residential Real Estate 1,152 — Consumer 552 — Total $ 11,011 $ 104 Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI”) are loans acquired at a discount due in part to the deteriorated credit quality. On November 8, 2019, as part of the Shore Merger, the Company acquired purchased credit-impaired loans with loan balances totaling $6.3 million and fair values totaling $4.6 million . The following table presents additional information regarding purchased credit-impaired loans at March 31, 2020 and December 31, 2019 : (Dollars in thousands) March 31, 2020 December 31, 2019 Outstanding balance $ 7,625 $ 8,038 Carrying amount $ 6,005 $ 6,257 Changes in accretable discount for purchased credit-impaired loans for the three months ended March 31, 2020 and March 31, 2019 were as follows: Three months ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 657 $ 164 Accretion of discount (135 ) (35 ) Balance at end of period $ 522 $ 129 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): March 31, 2020 December 31, 2019 Number of loans Recorded Investment Number of loans Recorded Investment 1 $ 311 2 $ 382 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 no loans modified as a TDR during the three months ended March 31, 2020 and March 31, 2019 . There were no TDRs that subsequently defaulted within 12 months of restructuring during the three months ended March 31, 2020 . Pursuant to the CARES Act, loan modifications made between March 1, 2020 and the earlier of i) December 30, 2020 or ii) 60 days after the President declares a termination of the COVID-19 national emergency are not classified as TDRs if the related loans were not more than 30 days past due as of December 31, 2019. As of March 31, 2020, $16.6 million of loans to borrowers had been modified to defer the payment of interest and or principal for up to 90 days. These modified loans were not considered to be TDRs and are therefore excluded from the table above. As of April 30, 2020, $77.5 million of commercial loans and $5.2 million of residential mortgage and home equity loans had been modified and the Bank had committed to modify $47.6 million of commercial loans and $446,000 of residential mortgage and home equity loans to provide deferral of interest and or principal for up to 90 days due to the adverse effects of the COVID-19 pandemic on the operations and financial position of the borrowers. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019. Items outside the scope of ASC 606 are noted as such. Three months ended (Dollars in thousands) March 31, 2020 March 31, 2019 Service charges on deposit accounts: Overdraft fees $ 95 $ 89 Other 118 77 Interchange income 149 103 Other income - in scope 103 94 Income on bank-owned life insurance (1) 180 139 Net gains on sales of loans (1) 1,470 1,045 Loan servicing fees (1) 166 179 Gains on sales and calls of securities (1) 8 — Other income (1) 167 140 $ 2,456 $ 1,866 (1) Not within the scope of ASC 606 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , there were 356,341 shares of common stock available for future grants under the Stock Plans. The following table summarizes Options activity during the three months ended March 31, 2020 : (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, 2020 122,151 $ 9.85 3.9 1,500 Granted 27,000 17.53 Outstanding at March 31, 2020 149,151 $ 11.24 4.7 $ 572 Exercisable at March 31, 2020 110,351 $ 8.88 3.1 $ 570 The fair value of each Option and the significant weighted average assumptions used to calculate the fair value of the Options granted during the three months ended March 31, 2020 were as follows: Grant Date January 6, 2020 March 19, 2020 Fair value of options granted $ 5.27 $ 2.09 Risk-free rate of return 1.72 % 1.00 % Expected option life in years 7 7 Expected volatility 24.53 % 24.53 % Expected dividends 1.35 % 2.86 % Share-based compensation expense related to Options was $32,000 and $23,000 for the three months ended March 31, 2020 and 2019 , respectively. As of March 31, 2020 , there was approximately $134,000 of unrecognized compensation cost related to unvested Options. The following table summarizes the activity in Stock Awards for the three months ended March 31, 2020 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2020 134,359 $ 13.84 Granted 15,650 21.92 Vested (25,165 ) 16.73 Non-vested at March 31, 2020 124,844 $ 14.27 Share-based compensation expense related to Stock Awards was $258,000 and $246,000 for the three months ended March 31, 2020 and 2019 , respectively. As of March 31, 2020 , there was approximately $1.8 million of unrecognized compensation cost related to unvested Stock Awards. The following table summarizes the activity in Restricted Stock Units ("RSUs") for the three months ended March 31, 2020 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2020 10,300 $ 19.38 Granted 18,950 21.92 Vested (3,433 ) 19.38 Non-vested at March 31, 2020 25,817 $ 21.24 Share-based compensation expense related to RSUs was $76,000 and $17,000 for the three months ended March 31, 2020 and 2019 , respectively. As of March 31, 2020 , there was approximately $305,000 of unrecognized compensation cost related to unvested Stock Awards. RSUs vest pro-rata over 3 years subject to achievement of certain established performance metrics. The ultimate number of RSUs earned, if any, will depend on the performance measured over each annual period during the applicable 3 -year performance period. If performance measures are achieved, the RSUs will vest on the date of certification of performance achievement by the Compensation Committee following each annual performance period. On March 19, 2020, the Compensation Committee determined that the applicable performance metrics were achieved at 138% of target. Awards of RSUs are settled in cash unless the recipient timely elects for the RSUs to be settled in shares of common stock. The RSUs are recorded as a liability by the Company. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 , 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 $36.9 million and $36.7 million at March 31, 2020 and December 31, 2019 , respectively. The components of net periodic expense for the Company’s supplemental executive retirement plans for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended (Dollars in thousands) 2020 2019 Service cost $ 47 $ 47 Interest cost 41 41 Actuarial gain recognized (44 ) (44 ) Total $ 44 $ 44 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gains on investment securities available for sale $ 226 $ (65 ) $ 161 Unrealized impairment loss on held to maturity security (489 ) 117 (372 ) Gains on unfunded pension liability 376 (106 ) 270 Accumulated other comprehensive income $ 113 $ (54 ) $ 59 December 31, 2019 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gains on investment securities available for sale $ 414 $ (111 ) $ 303 Unrealized impairment loss on held to maturity security (492 ) 118 (374 ) Gains on unfunded pension liability 364 (102 ) 262 Accumulated other comprehensive income $ 286 $ (95 ) $ 191 Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax for the three months ended March 31, 2020 and 2019: (Dollars in thousands) Unrealized Unrealized Unfunded Accumulated Balance - January 1, 2020 $ 303 $ (374 ) $ 262 $ 191 Other comprehensive (loss) income before reclassifications (141 ) — 39 (102 ) Amounts reclassified from accumulated other comprehensive income — 2 (31 ) (29 ) Reclassification adjustment for gains realized in income (1 ) — — (1 ) Other comprehensive (loss) income (142 ) 2 8 (132 ) Balance - March 31, 2020 $ 161 $ (372 ) $ 270 $ 59 Balance - January 1, 2019 $ (1,679 ) $ (382 ) $ 228 $ (1,833 ) Other comprehensive income before reclassifications 1,071 — 38 1,109 Amounts reclassified from accumulated other comprehensive income — 1 (31 ) (30 ) Other comprehensive income 1,071 1 7 1,079 Balance - March 31, 2019 $ (608 ) $ (381 ) $ 235 $ (754 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 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, 2022, 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. The Company has completed the initial analysis of its financial assets and will continue to build and validate the CECL models in 2020 to evaluate the impact of the adoption of the new standard on its consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this ASU make minor improvements to the Codification by eliminating certain inconsistencies and clarifying the current guidance. 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 November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). ASU 2019-10 provides that the FASB’s recently developed philosophy regarding the implementation of effective dates applies to ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), among other ASUs. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2022, 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. See the discussions regarding the adoption of ASU 2016-13 above. Also in November 2019, the FASB issued ASU No. 2019-11, “Financial Instruments - Credit Losses: Codification Improvements (Topic 326)” to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. ASU 2019-11 clarifies that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving the amortized cost basis. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2022, 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. See the discussions regarding the adoption of ASU 2016-13 above. ASU Update 2020-02 - Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842) In January 2020, the FASB issued ASU No. 2020-02, “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).” This ASU adds and amends SEC paragraphs in the Accounting Standards Codification to reflect the issuance of SEC Staff Accounting Bulletin No. 119, related to the new credit losses standard, and comments by the SEC staff related to the revised effective date of the new leases standard. This ASU is effective upon issuance. See the discussion regarding the adoption of ASU 2016-13 above. ASU Update 2020-03 - Codification Improvements to Financial Instruments In March 2020, the FASB issued ASU No. 2020-3, “Codification Improvements to Financial Instruments.” This ASU clarifies various financial instruments topics, including the CECL standard issued in 2016. Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Other amendments are effective upon issuance of this ASU. See the discussion regarding the adoption of ASU 2016-13 above. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 (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 $ — $ 3,952 $ — $ 3,952 Residential collateralized mortgage obligations - GSE — 47,770 — 47,770 Residential mortgage backed securities - GSE — 19,847 — 19,847 Obligations of state and political subdivisions — 35,577 — 35,577 Trust preferred debt securities - single issuer — 1,263 — 1,263 Corporate debt securities 11,808 14,002 — 25,810 Other debt securities — 29,506 — 29,506 Interest rate lock derivative — 359 — 359 Total $ 11,808 $ 152,276 $ — $ 164,084 December 31, 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 $ — $ 764 $ — $ 764 Residential collateralized mortgage obligations - GSE — 53,175 — 53,175 Residential mortgage backed securities - GSE — 18,387 — 18,387 Obligations of state and political subdivisions — 33,519 — 33,519 Trust preferred debt securities - single issuer — 1,442 — 1,442 Corporate debt securities 11,151 12,128 — 23,279 Other debt securities — 25,216 — 25,216 Interest rate lock derivative — 159 — 159 Total $ 11,151 $ 144,790 $ — $ 155,941 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 March 31, 2020 and December 31, 2019 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value March 31, 2020 Impaired loans $ — $ — $ 4,180 $ 4,180 Other real estate owned — — 93 93 December 31, 2019 Impaired loans $ — $ — $ 7,092 $ 7,092 Other real estate owned — — 93 93 Impaired loans measured at fair value and included in the above table at March 31, 2020 consisted of six loans having an aggregate recorded investment of $4.3 million and specific loan loss allowance of $91,000 . Impaired loans measured at fair value and included in the above table at December 31, 2019 consisted of twelve loans having an aggregate balance of $7.2 million with specific loan loss allowance of $69,000 . 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) March 31, 2020 Impaired loans $ 4,180 Appraisal of collateral (1) Appraisal adjustments (2) 0.1% - 40.4% Other real estate owned $ 93 Appraisal of (1) Appraisal adjustments (2) 47.0% December 31, 2019 Impaired loans $ 7,092 Appraisal of collateral (1) Appraisal adjustments (2) 0.1% - 40.4% Other real estate owned $ 93 Appraisal of (1) Appraisal adjustments (2) 47.0% (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 March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 12,039 $ 12,039 $ — $ — $ 12,039 Securities available for sale 163,725 11,808 151,917 — 163,725 Securities held to maturity 88,381 — 91,138 — 91,138 Loans held for sale 11,755 — 12,100 — 12,100 Net loans 1,207,806 — — 1,222,317 1,222,317 SBA servicing asset 902 — 1,245 — 1,245 Interest rate lock derivative 359 — 359 — 359 Accrued interest receivable 4,843 — 4,843 — 4,843 FHLB stock 5,214 — 5,214 — 5,214 Deposits (1,298,032 ) — (1,301,168 ) — (1,301,168 ) Short-term borrowings (94,125 ) — (94,125 ) — (94,125 ) Redeemable subordinated debentures (18,557 ) — (12,441 ) — (12,441 ) Accrued interest payable (1,430 ) — (1,430 ) — (1,430 ) December 31, 2019 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 14,842 $ 14,842 $ — $ — $ 14,842 Securities available for sale 155,782 11,151 144,631 — 155,782 Securities held to maturity 76,620 — 78,223 — 78,223 Loans held for sale 5,927 — 6,093 — 6,093 Net loans 1,206,757 — — 1,243,088 1,243,088 SBA servicing asset 930 — 1,245 — 1,245 Interest rate lock derivative 159 — 159 — 159 Accrued interest receivable 4,945 — 4,945 — 4,945 FHLB stock 4,176 — 4,176 — 4,176 Deposits (1,277,362 ) — (1,278,166 ) — (1,278,166 ) Short-term borrowings (92,050 ) — (92,050 ) — (92,050 ) Redeemable subordinated debentures (18,557 ) — (12,837 ) — (12,837 ) Accrued interest payable (1,592 ) — (1,592 ) — (1,592 ) Loan commitments and standby letters of credit as of March 31, 2020 and December 31, 2019 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 | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases At March 31, 2020, the Company had 37 operating leases under which the Company is a lessee. Of the 37 leases, 23 leases were for real property, including leases for 19 of the Company’s branch offices and 4 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. Four of the branch office leases are for the land on which the branch offices are located and the Company owns the leasehold improvements. In addition, the Company had 12 leases for office equipment, which are primarily copiers and printers and two 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 months ended March 31, 2020 and 2019, the Company recognized rent and equipment expense associated with leases as follows: (In thousands) Three Months Ended March 31, 2020 2019 Operating lease cost: Fixed rent expense and equipment expense $ 667 $ 484 Short-term lease expense 12 2 Net lease cost $ 679 $ 486 (In thousands) Three Months Ended March 31, 2020 2019 Lease cost - occupancy expense $ 614 $ 427 Lease cost - other expense 65 59 Net lease cost $ 679 $ 486 During the three months ended March 31, 2020 and 2019, the following cash and non-cash activities were associated with the leases: Three Months Ended March 31, (In thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 630 $ 433 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities — 60 The future payments due under operating leases at March 31, 2020 and 2019 were as follows: At March 31, (In thousands) 2020 2019 Due in less than one year $ 2,065 $ 1,778 Due in one year but less than two years 2,033 1,762 Due in two years but less than three years 2,018 1,730 Due in three years but less than four years 1,969 1,719 Due in four years but less than five years 1,802 1,673 Thereafter 14,673 12,988 Total future payments $ 24,560 $ 21,650 Less: Implied interest (6,303 ) (5,738 ) Total lease liability $ 18,257 $ 15,912 As of March 31, 2020, 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 March 31, 2020, 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 March 31, 2020 was 3.43% . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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. 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, 2019 , filed with the SEC on March 16, 2020. Goodwill During the first quarter of 2020, management determined that a triggering event had occurred with respect to goodwill, which required a review of goodwill for impairment. Management completed its review of goodwill and concluded that it was more likely than not that the fair value of goodwill exceeded the carrying amount of goodwill at March 31, 2020. Accordingly, goodwill was not impaired at March 31, 2020. 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 March 31, 2020 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 | Adoption of New Accounting Standards 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. The amendments in this Update align 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 Update. The amendments in this ASU also require 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 adoption of this guidance in 2020 did not have a material impact on the Company's consolidated financial statements. 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. The amendments in this Update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The following disclosure requirements are 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 are 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. The amendments in this ASU also clarify the disclosure requirements in paragraph 715-20-50-3, which state 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 ending after December 15, 2020. The adoption of this guidance in 2020 did not have a material impact on the Company's consolidated financial statements. ASU Update 2020-02 - Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842) |
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 financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment charge 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 to be 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. Due to recovery of the cash flows underlying the security, the Company began to accrete the $501,000 of impairment charge in the other comprehensive income component in 2019. Total accretion of $3,000 was recognized in the first quarter 2020 as an increase in the carrying amount of the security. On a quarterly basis, management evaluates this security to determine if any additional other-than-temporary impairment is required. As of March 31, 2020 , management concluded that no additional other-than-temporary impairment had occurred. |
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 Shore Communit_2
Acquisition of Shore Community Bank (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the composition of the loans acquired and recorded at fair value: At November 8, 2019 (Dollars in thousands) Loans acquired with no credit quality deterioration Loans acquired with credit quality deterioration Total Commercial Construction $ 9,733 $ — $ 9,733 Commercial real estate 135,482 4,071 139,553 Commercial business 12,027 — 12,027 Residential real estate 36,849 500 37,349 Consumer 7,171 — 7,171 Total loans $ 201,262 $ 4,571 $ 205,833 The following is a summary of the loans acquired with evidence of deteriorated credit quality in the Shore Merger as of the date of the closing of the merger: (Dollars in thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 7,584 Contractual cash flows not expected to be collected (non-accretable difference) 2,355 Expected cash flows at acquisition 5,229 Interest component of expected cash flows (accretable difference) 658 Fair value of acquired loans $ 4,571 The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 29,175 Cash payment 24,233 Cash payment for unexercised outstanding stock options 925 Total consideration paid $ 54,333 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 32,599 Investment securities available for sale 26,440 Loans 205,833 Premises and equipment, net 4,433 Core deposit intangible asset 1,467 Bank-owned life insurance 7,250 Right-of-use assets 3,226 Accrued interest receivable 778 Other real estate owned 605 Other assets 2,518 Deposits (249,836 ) Lease liability (3,226 ) Other liabilities (948 ) Total identifiable assets and liabilities, net $ 31,139 Goodwill recorded from Shore merger $ 23,194 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents the projected amortization of the core deposit intangible asset for each period: (Dollars in thousands) Amount Year 2020 $ 262 2021 236 2022 209 2023 182 2024 156 Thereafter 378 Total $ 1,423 |
Business Acquisition, Pro Forma Information | The following table presents financial information regarding the former Shore operations included in the Company’s Consolidated Statements of Income for the three months ended March 31, 2020 under the column "Shore Three Months Ended 3/31/2020." In addition, the table presents unaudited condensed pro forma financial information assuming that the Shore Merger had been completed as of January 1, 2019. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the Shore Merger occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma financial information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Shore’s operations. (Dollars in thousands) Shore Three Months Ended 3/31/2020 Actual for the Three Months Ended 3/31/2020 Pro Forma for the Three Months Ended 3/31/2019 Net interest income $ 2,065 $ 12,936 $ 13,736 Non-interest income 113 2,456 2,044 Non-interest expenses 979 9,793 9,624 Income taxes 369 1,283 1,632 Net income 830 3,421 4,224 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 : Three Months Ended March 31, (Dollars in thousands, except per share data) 2020 2019 Net income $ 3,421 $ 3,397 Basic weighted average shares outstanding 10,200,836 8,624,088 Plus: common stock equivalents 61,211 69,916 Diluted weighted average shares outstanding 10,262,047 8,694,004 Earnings per share: Basic $ 0.34 $ 0.39 Diluted $ 0.33 $ 0.39 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 (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”) $ 3,968 $ — $ (16 ) $ 3,952 Residential collateralized mortgage obligations - GSE 47,196 866 (292 ) 47,770 Residential mortgage backed securities - GSE 19,177 693 (23 ) 19,847 Obligations of state and political subdivisions 34,941 637 (1 ) 35,577 Trust preferred debt securities - single issuer 1,493 — (230 ) 1,263 Corporate debt securities 26,702 160 (1,052 ) 25,810 Other debt securities 30,022 146 (662 ) 29,506 Total $ 163,499 $ 2,502 $ (2,276 ) $ 163,725 December 31, 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”) $ 774 $ — $ (10 ) $ 764 Residential collateralized mortgage obligations - GSE 53,223 194 (242 ) 53,175 Residential mortgage backed securities - GSE 18,100 292 (5 ) 18,387 Obligations of state and political subdivisions 33,177 342 — 33,519 Trust preferred debt securities - single issuer 1,492 — (50 ) 1,442 Corporate debt securities 23,224 139 (84 ) 23,279 Other debt securities 25,378 80 (242 ) 25,216 Total $ 155,368 $ 1,047 $ (633 ) $ 155,782 |
Held-to-maturity Securities | A summary of amortized cost, carrying value and approximate fair value of investment securities held to maturity follows: March 31, 2020 (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 $ 7,877 $ — $ 7,877 $ 383 $ — $ 8,260 Residential mortgage backed securities - GSE 34,622 — 34,622 1,312 — 35,934 Obligations of state and political subdivisions 43,455 — 43,455 632 — 44,087 Trust preferred debt securities - pooled 656 (489 ) 167 400 — 567 Other debt securities 2,260 — 2,260 30 — 2,290 Total $ 88,870 $ (489 ) $ 88,381 $ 2,757 $ — $ 91,138 December 31, 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 $ 5,117 $ — $ 5,117 $ 76 $ (35 ) $ 5,158 Residential mortgage backed securities - GSE 36,528 — 36,528 481 (54 ) 36,955 Obligations of state and political subdivisions 32,533 — 32,533 690 (25 ) 33,198 Trust preferred debt securities - pooled 657 (492 ) 165 479 — 644 Other debt securities 2,277 — 2,277 — (9 ) 2,268 Total $ 77,112 $ (492 ) $ 76,620 $ 1,726 $ (123 ) $ 78,223 |
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 March 31, 2020 . 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. March 31, 2020 (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 13,440 $ 13,401 3.01 % Due after one year through five years 33,858 33,707 2.65 % Due after five years through ten years 37,027 36,689 2.52 % Due after ten years 79,174 79,928 2.39 % Total $ 163,499 $ 163,725 2.52 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 19,871 $ 19,946 2.19 % Due after one year through five years 11,855 12,117 3.67 % Due after five years through ten years 16,925 17,560 3.09 % Due after ten years 39,730 41,515 2.82 % Total $ 88,381 $ 91,138 2.84 % |
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 March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 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 $ 3,952 $ (16 ) $ — $ — $ 3,952 $ (16 ) Residential collateralized mortgage obligations - GSE 9 $ 4,352 $ (22 ) $ 12,966 $ (270 ) $ 17,318 $ (292 ) Residential mortgage backed securities - GSE 23 2,158 (23 ) — — 2,158 (23 ) Obligations of state and political subdivisions 4 1,424 (1 ) — — 1,424 (1 ) Trust preferred debt securities - single issuer 2 — — 1,263 (230 ) 1,263 (230 ) Corporate debt securities 8 17,858 (836 ) 1,784 (216 ) 19,642 (1,052 ) Other debt securities 11 12,870 (313 ) 7,016 (349 ) 19,886 (662 ) Total temporarily impaired securities 59 $ 42,614 $ (1,211 ) $ 23,029 $ (1,065 ) $ 65,643 $ (2,276 ) December 31, 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 U.S. Treasury securities and obligations of U.S. Government sponsored entities (GSE) and agencies 1 $ 764 $ (10 ) $ — $ — $ 764 $ (10 ) Residential collateralized mortgage obligations - GSE 39 18,328 (138 ) 13,300 (139 ) 31,628 (277 ) Residential mortgage backed securities - GSE 13 5,505 (59 ) — — 5,505 (59 ) Obligations of state and political subdivisions 4 2,311 (25 ) 527 — 2,838 (25 ) Trust preferred debt securities - single issuer 2 — — 1,442 (50 ) 1,442 (50 ) Corporate debt securities 4 2,994 (5 ) 7,954 (79 ) 10,948 (84 ) Other debt securities 12 13,692 (151 ) 5,598 (100 ) 19,290 (251 ) Total temporarily impaired securities 75 $ 43,594 $ (388 ) $ 28,821 $ (368 ) $ 72,415 $ (756 ) |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Credit Quality (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table provides an aging of the loan portfolio by loan class at March 31, 2020 : (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 $ 347 $ — $ 5,626 $ 5,973 $ 570,914 $ 576,887 $ — $ 3,842 Mortgage warehouse lines — — — — 224,794 224,794 — — Construction 9,307 — — 9,307 136,292 145,599 — 7,500 Commercial business 437 — 525 962 149,105 150,067 — 644 Residential real estate 962 292 673 1,927 87,420 89,347 — 687 Loans to individuals 580 — 154 734 29,821 30,555 — 525 Other loans — — — — 141 141 — — Total loans $ 11,633 $ 292 $ 6,978 $ 18,903 $ 1,198,487 1,217,390 $ — $ 13,198 Deferred loan costs, net 417 Total loans $ 1,217,807 The following table provides an aging of the loan portfolio by loan class at December 31, 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 $ 238 $ 1,927 $ 3,882 $ 6,047 $ 561,608 $ 567,655 $ — $ 2,596 Mortgage warehouse lines — — — — 236,672 236,672 — — Construction — — — — 148,939 148,939 — — Commercial business 381 — 330 711 138,560 139,271 — 501 Residential real estate 2,459 271 677 3,407 86,852 90,259 — 708 Loans to individuals 296 — 311 607 31,997 32,604 — 692 Other loans — — — — 137 137 — — Total loans $ 3,374 $ 2,198 $ 5,200 $ 10,772 $ 1,204,765 $ 1,215,537 $ — $ 4,497 Deferred loan costs, net 491 Total loans $ 1,216,028 |
Financing Receivable Credit Quality Indicators | The following table provides a breakdown of the loan portfolio by credit quality indicator at March 31, 2020 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 136,292 $ 146,829 $ 549,099 $ 224,105 $ 86,467 Special Mention — 1,871 8,262 689 1,062 Substandard 9,307 1,283 19,526 — 1,818 Doubtful — 84 — — — Total $ 145,599 $ 150,067 $ 576,887 $ 224,794 $ 89,347 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other loans Performing $ 30,030 $ 141 Non-performing 525 — Total $ 30,555 $ 141 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2019 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 147,132 $ 135,804 $ 538,104 $ 235,808 $ 87,512 Special Mention — 1,990 9,994 864 922 Substandard 1,807 1,477 19,557 — 1,825 Doubtful — — — — — Total $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other loans Performing $ 31,912 $ 137 Non-performing 692 — Total $ 32,604 $ 137 |
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 March 31, 2020 and December 31, 2019 : March 31, 2020 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other loans Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 19 $ 72 $ — $ — $ — $ — $ — $ 91 Loans acquired with deteriorated credit quality — — — — — — — — — Collectively evaluated for impairment 1,706 1,752 4,728 1,027 430 188 79 9,910 Ending Balance $ 1,706 $ 1,771 $ 4,800 $ 1,027 $ 430 $ 188 $ — $ 79 $ 10,001 Loans receivable: Individually evaluated for impairment $ 9,307 $ 1,393 $ 7,398 $ — $ 688 $ 525 $ — $ — $ 19,311 Loans acquired with deteriorated credit quality — 328 5,164 — 513 — — — 6,005 Collectively evaluated for impairment 136,292 148,346 564,325 224,794 88,146 30,030 141 — 1,192,074 Ending Balance $ 145,599 $ 150,067 $ 576,887 $ 224,794 $ 89,347 $ 30,555 $ 141 $ — 1,217,390 Deferred loan costs, net 417 $ 1,217,807 December 31, 2019 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other loans Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 8 $ 7 $ 50 $ — $ — $ — $ — $ — $ 65 Loans acquired with deteriorated credit quality — 3 1 — — — — — 4 Collectively evaluated for impairment 1,381 1,399 4,473 1,083 412 185 — 269 9,202 Ending Balance $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Loans receivable: Individually evaluated for impairment $ 1,807 $ 1,251 $ 6,171 $ — $ 708 $ 692 $ — $ — $ 10,629 Loans acquired with deteriorated credit quality — 334 5,419 — 504 — — — 6,257 Collectively evaluated for impairment 147,132 137,686 556,065 236,672 89,047 31,912 137 — 1,198,651 Ending Balance $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 $ 32,604 $ 137 $ — 1,215,537 Deferred loan costs, net 491 $ 1,216,028 |
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 months ended March 31, 2020 and 2019 was as follows : (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other loans Unallocated Total Balance - January 1, 2020 $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Provision charged/(credited) to operations 317 527 276 (56 ) 18 3 — (190 ) 895 Loans charged off — (165 ) — — — — — — (165 ) Recoveries of loans charged off — — — — — — — — — Balance - March 31, 2020 $ 1,706 $ 1,771 $ 4,800 $ 1,027 $ 430 $ 188 $ — $ 79 $ 10,001 January 1, 2019 $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Provision charged/(credited) to operations 62 (214 ) 201 (149 ) (5 ) 5 — 400 300 Loans charged off — — — — — — — — — Recoveries of loans charged off — — — — — 2 — — 2 Balance - March 31, 2019 $ 1,794 $ 1,615 $ 3,640 $ 582 $ 426 $ 155 $ — $ 492 $ 8,704 |
Impaired Financing Receivables | The following table presents additional information regarding purchased credit-impaired loans at March 31, 2020 and December 31, 2019 : (Dollars in thousands) March 31, 2020 December 31, 2019 Outstanding balance $ 7,625 $ 8,038 Carrying amount $ 6,005 $ 6,257 Impaired Loans Receivables (By Class) Three Months Ended March 31, 2020 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 9,307 $ 9,307 $ — $ 3,102 $ 25 Commercial Business 1,658 3,190 — 1,095 18 Commercial Real Estate 8,354 9,510 — 7,792 94 Mortgage Warehouse Lines — — — — — Subtotal 19,319 22,007 — 11,989 137 Residential Real Estate 1,201 1,460 — 1,204 9 Consumer: Loans to Individuals 525 640 — 680 — Other loans — — — — — Subtotal 525 640 — 680 — With no allowance: $ 21,045 $ 24,107 $ — $ 13,873 $ 146 With an allowance: Commercial: Construction $ — $ — $ — $ 1,204 $ — Commercial Business 63 63 19 656 — Commercial Real Estate 4,208 5,516 72 4,552 50 Mortgage Warehouse Lines — — — — — Subtotal 4,271 5,579 91 6,412 50 Residential Real Estate — — — — — Consumer: Loans to Individuals — — — — — Other loans — — — — — Subtotal — — — — — With an allowance: $ 4,271 $ 5,579 $ 91 $ 6,412 $ 50 Total: Construction 9,307 9,307 — 4,306 25 Commercial Business 1,721 3,253 19 1,751 18 Commercial Real Estate 12,562 15,026 72 12,344 144 Mortgage Warehouse Lines — — — — — Residential Real Estate 1,201 1,460 — 1,204 9 Consumer 525 640 — 680 — Total $ 25,316 $ 29,686 $ 91 $ 20,285 $ 196 Impaired Loans Receivables (By Class) December 31, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Commercial: Construction $ — $ — $ — Commercial Business 680 1,971 — Commercial Real Estate 7,141 8,204 — Mortgage Warehouse Lines — — — Subtotal 7,821 10,175 — Residential Real Estate 1,212 1,465 — Consumer: Loans to Individuals 692 802 — Other loans — — — Subtotal 692 802 — With no allowance $ 9,725 $ 12,442 $ — With an allowance: Commercial: Construction $ 1,807 $ 1,807 $ 8 Commercial Business 905 993 10 Commercial Real Estate 4,449 5,757 51 Mortgage Warehouse Lines — — — Subtotal 7,161 8,557 69 Residential Real Estate — — — Consumer: Loans to Individuals — — — Other loans — — — Subtotal — — — With an allowance $ 7,161 $ 8,557 $ 69 Total: Construction $ 1,807 $ 1,807 $ 8 Commercial Business 1,585 2,964 10 Commercial Real Estate 11,590 13,961 51 Mortgage Warehouse Lines — — — Residential Real Estate 1,212 1,465 — Consumer 692 802 — Total $ 16,886 $ 20,999 $ 69 Impaired Loans Receivables (By Class) Three Months Ended March 31, 2019 (Dollars in thousands) Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 103 $ 2 Commercial Business 951 26 Commercial Real Estate 1,757 16 Mortgage Warehouse Lines — — Subtotal 2,811 44 Residential Real Estate 1,152 — Consumer: Loans to Individuals 552 — Other loans — — Subtotal 552 — With no allowance $ 4,515 $ 44 With an allowance: Commercial: Construction $ — $ — Commercial Business 2,145 2 Commercial Real Estate 4,351 58 Mortgage Warehouse Lines — — Subtotal 6,496 60 Residential Real Estate — — Consumer: Loans to Individuals — — Other loans — — Subtotal — — With an allowance $ 6,496 $ 60 Total: Construction $ 103 $ 2 Commercial Business 3,096 28 Commercial Real Estate 6,108 74 Mortgage Warehouse Lines — — Residential Real Estate 1,152 — Consumer 552 — Total $ 11,011 $ 104 |
Credit Impaired Loans Acquired, Change In Amortizable Yield | Changes in accretable discount for purchased credit-impaired loans for the three months ended March 31, 2020 and March 31, 2019 were as follows: Three months ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 657 $ 164 Accretion of discount (135 ) (35 ) Balance at end of period $ 522 $ 129 |
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): March 31, 2020 December 31, 2019 Number of loans Recorded Investment Number of loans Recorded Investment 1 $ 311 2 $ 382 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s sources of non-interest income for the three months ended March 31, 2020 and 2019. Items outside the scope of ASC 606 are noted as such. Three months ended (Dollars in thousands) March 31, 2020 March 31, 2019 Service charges on deposit accounts: Overdraft fees $ 95 $ 89 Other 118 77 Interchange income 149 103 Other income - in scope 103 94 Income on bank-owned life insurance (1) 180 139 Net gains on sales of loans (1) 1,470 1,045 Loan servicing fees (1) 166 179 Gains on sales and calls of securities (1) 8 — Other income (1) 167 140 $ 2,456 $ 1,866 (1) Not within the scope of ASC 606 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes Options activity during the three months ended March 31, 2020 : (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, 2020 122,151 $ 9.85 3.9 1,500 Granted 27,000 17.53 Outstanding at March 31, 2020 149,151 $ 11.24 4.7 $ 572 Exercisable at March 31, 2020 110,351 $ 8.88 3.1 $ 570 |
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 three months ended March 31, 2020 were as follows: Grant Date January 6, 2020 March 19, 2020 Fair value of options granted $ 5.27 $ 2.09 Risk-free rate of return 1.72 % 1.00 % Expected option life in years 7 7 Expected volatility 24.53 % 24.53 % Expected dividends 1.35 % 2.86 % |
Schedule of Nonvested Restricted Stock Shares Activity | The following table summarizes the activity in Stock Awards for the three months ended March 31, 2020 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2020 134,359 $ 13.84 Granted 15,650 21.92 Vested (25,165 ) 16.73 Non-vested at March 31, 2020 124,844 $ 14.27 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the activity in Restricted Stock Units ("RSUs") for the three months ended March 31, 2020 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2020 10,300 $ 19.38 Granted 18,950 21.92 Vested (3,433 ) 19.38 Non-vested at March 31, 2020 25,817 $ 21.24 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 were as follows: Three Months Ended (Dollars in thousands) 2020 2019 Service cost $ 47 $ 47 Interest cost 41 41 Actuarial gain recognized (44 ) (44 ) Total $ 44 $ 44 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gains on investment securities available for sale $ 226 $ (65 ) $ 161 Unrealized impairment loss on held to maturity security (489 ) 117 (372 ) Gains on unfunded pension liability 376 (106 ) 270 Accumulated other comprehensive income $ 113 $ (54 ) $ 59 December 31, 2019 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gains on investment securities available for sale $ 414 $ (111 ) $ 303 Unrealized impairment loss on held to maturity security (492 ) 118 (374 ) Gains on unfunded pension liability 364 (102 ) 262 Accumulated other comprehensive income $ 286 $ (95 ) $ 191 Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax for the three months ended March 31, 2020 and 2019: (Dollars in thousands) Unrealized Unrealized Unfunded Accumulated Balance - January 1, 2020 $ 303 $ (374 ) $ 262 $ 191 Other comprehensive (loss) income before reclassifications (141 ) — 39 (102 ) Amounts reclassified from accumulated other comprehensive income — 2 (31 ) (29 ) Reclassification adjustment for gains realized in income (1 ) — — (1 ) Other comprehensive (loss) income (142 ) 2 8 (132 ) Balance - March 31, 2020 $ 161 $ (372 ) $ 270 $ 59 Balance - January 1, 2019 $ (1,679 ) $ (382 ) $ 228 $ (1,833 ) Other comprehensive income before reclassifications 1,071 — 38 1,109 Amounts reclassified from accumulated other comprehensive income — 1 (31 ) (30 ) Other comprehensive income 1,071 1 7 1,079 Balance - March 31, 2019 $ (608 ) $ (381 ) $ 235 $ (754 ) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 (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 $ — $ 3,952 $ — $ 3,952 Residential collateralized mortgage obligations - GSE — 47,770 — 47,770 Residential mortgage backed securities - GSE — 19,847 — 19,847 Obligations of state and political subdivisions — 35,577 — 35,577 Trust preferred debt securities - single issuer — 1,263 — 1,263 Corporate debt securities 11,808 14,002 — 25,810 Other debt securities — 29,506 — 29,506 Interest rate lock derivative — 359 — 359 Total $ 11,808 $ 152,276 $ — $ 164,084 December 31, 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 $ — $ 764 $ — $ 764 Residential collateralized mortgage obligations - GSE — 53,175 — 53,175 Residential mortgage backed securities - GSE — 18,387 — 18,387 Obligations of state and political subdivisions — 33,519 — 33,519 Trust preferred debt securities - single issuer — 1,442 — 1,442 Corporate debt securities 11,151 12,128 — 23,279 Other debt securities — 25,216 — 25,216 Interest rate lock derivative — 159 — 159 Total $ 11,151 $ 144,790 $ — $ 155,941 |
Fair Value Measurements, Nonrecurring | Assets and liabilities subject to fair value adjustments (impairment) on a nonrecurring basis at March 31, 2020 and December 31, 2019 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value March 31, 2020 Impaired loans $ — $ — $ 4,180 $ 4,180 Other real estate owned — — 93 93 December 31, 2019 Impaired loans $ — $ — $ 7,092 $ 7,092 Other real estate owned — — 93 93 |
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) March 31, 2020 Impaired loans $ 4,180 Appraisal of collateral (1) Appraisal adjustments (2) 0.1% - 40.4% Other real estate owned $ 93 Appraisal of (1) Appraisal adjustments (2) 47.0% December 31, 2019 Impaired loans $ 7,092 Appraisal of collateral (1) Appraisal adjustments (2) 0.1% - 40.4% Other real estate owned $ 93 Appraisal of (1) Appraisal adjustments (2) 47.0% (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 March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 12,039 $ 12,039 $ — $ — $ 12,039 Securities available for sale 163,725 11,808 151,917 — 163,725 Securities held to maturity 88,381 — 91,138 — 91,138 Loans held for sale 11,755 — 12,100 — 12,100 Net loans 1,207,806 — — 1,222,317 1,222,317 SBA servicing asset 902 — 1,245 — 1,245 Interest rate lock derivative 359 — 359 — 359 Accrued interest receivable 4,843 — 4,843 — 4,843 FHLB stock 5,214 — 5,214 — 5,214 Deposits (1,298,032 ) — (1,301,168 ) — (1,301,168 ) Short-term borrowings (94,125 ) — (94,125 ) — (94,125 ) Redeemable subordinated debentures (18,557 ) — (12,441 ) — (12,441 ) Accrued interest payable (1,430 ) — (1,430 ) — (1,430 ) December 31, 2019 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 14,842 $ 14,842 $ — $ — $ 14,842 Securities available for sale 155,782 11,151 144,631 — 155,782 Securities held to maturity 76,620 — 78,223 — 78,223 Loans held for sale 5,927 — 6,093 — 6,093 Net loans 1,206,757 — — 1,243,088 1,243,088 SBA servicing asset 930 — 1,245 — 1,245 Interest rate lock derivative 159 — 159 — 159 Accrued interest receivable 4,945 — 4,945 — 4,945 FHLB stock 4,176 — 4,176 — 4,176 Deposits (1,277,362 ) — (1,278,166 ) — (1,278,166 ) Short-term borrowings (92,050 ) — (92,050 ) — (92,050 ) Redeemable subordinated debentures (18,557 ) — (12,837 ) — (12,837 ) Accrued interest payable (1,592 ) — (1,592 ) — (1,592 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | During the three months ended March 31, 2020 and 2019, the Company recognized rent and equipment expense associated with leases as follows: (In thousands) Three Months Ended March 31, 2020 2019 Operating lease cost: Fixed rent expense and equipment expense $ 667 $ 484 Short-term lease expense 12 2 Net lease cost $ 679 $ 486 (In thousands) Three Months Ended March 31, 2020 2019 Lease cost - occupancy expense $ 614 $ 427 Lease cost - other expense 65 59 Net lease cost $ 679 $ 486 During the three months ended March 31, 2020 and 2019, the following cash and non-cash activities were associated with the leases: Three Months Ended March 31, (In thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 630 $ 433 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities — 60 |
Lessee, Operating Lease, Liability, Maturity | The future payments due under operating leases at March 31, 2020 and 2019 were as follows: At March 31, (In thousands) 2020 2019 Due in less than one year $ 2,065 $ 1,778 Due in one year but less than two years 2,033 1,762 Due in two years but less than three years 2,018 1,730 Due in three years but less than four years 1,969 1,719 Due in four years but less than five years 1,802 1,673 Thereafter 14,673 12,988 Total future payments $ 24,560 $ 21,650 Less: Implied interest (6,303 ) (5,738 ) Total lease liability $ 18,257 $ 15,912 |
Acquisition of Shore Communit_3
Acquisition of Shore Community Bank (Narrative) (Details) - USD ($) | Nov. 08, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill impairment | $ 0 | |||
Estimated future credit losses | $ 165,000 | $ 0 | ||
Shore Community Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of interests acquired | 100.00% | |||
Total consideration paid | $ 54,333,000 | |||
Number of shares issued (in shares) | 1,509,275 | |||
Company stock issued | $ 29,175,000 | |||
Cash payment to acquire business | 25,100,000 | |||
Cash payment for unexercised outstanding stock options | 925,000 | |||
Goodwill | $ 23,194,000 | |||
Measurement adjustment term | 1 year | |||
Acquired loans receivable | $ 205,833,000 | |||
Core deposit intangible asset | 1,467,000 | |||
Merger-related expenses | $ 1,700,000 | |||
Financial Asset Acquired with Credit Deterioration [Member] | Shore Community Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated future credit losses | 3,600,000 | |||
Acquired loans receivable | 4,571,000 | |||
Financial Asset Acquired and No Credit Deterioration [Member] | Shore Community Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired loans receivable | 201,262,000 | |||
Core Deposits [Member] | Shore Community Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Core deposit intangible asset | $ 1,500,000 | |||
Acquired intangible assets, weighted average useful life | 10 years |
Acquisition of Shore Communit_4
Acquisition of Shore Community Bank (Summary of Assets Acquired and Liabilities Assumed) (Details) - Shore Community Bank [Member] $ in Thousands | Nov. 08, 2019USD ($) |
Consideration paid: | |
Company stock issued | $ 29,175 |
Cash payment | 24,233 |
Cash payment for unexercised outstanding stock options | 925 |
Total consideration paid | 54,333 |
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |
Cash and cash equivalents | 32,599 |
Investment securities available for sale | 26,440 |
Loans | 205,833 |
Premises and equipment, net | 4,433 |
Core deposit intangible asset | 1,467 |
Bank-owned life insurance | 7,250 |
Right-of-use assets | 3,226 |
Accrued interest receivable | 778 |
Other real estate owned | 605 |
Other assets | 2,518 |
Deposits | (249,836) |
Lease liability | (3,226) |
Other liabilities | (948) |
Total identifiable assets and liabilities, net | 31,139 |
Goodwill recorded from Shore merger | $ 23,194 |
Acquisition of Shore Communit_5
Acquisition of Shore Community Bank (Summary of Loans Acquired at Fair Value) (Details) - Shore Community Bank [Member] $ in Thousands | Nov. 08, 2019USD ($) |
Business Acquisition [Line Items] | |
Acquired loans receivable | $ 205,833 |
Consumer Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 7,171 |
Construction [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 9,733 |
Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 139,553 |
Commercial Business [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 12,027 |
Residential Real Estate [Member] | Residential Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 37,349 |
Financial Asset Acquired and No Credit Deterioration [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 201,262 |
Financial Asset Acquired and No Credit Deterioration [Member] | Consumer Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 7,171 |
Financial Asset Acquired and No Credit Deterioration [Member] | Construction [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 9,733 |
Financial Asset Acquired and No Credit Deterioration [Member] | Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 135,482 |
Financial Asset Acquired and No Credit Deterioration [Member] | Commercial Business [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 12,027 |
Financial Asset Acquired and No Credit Deterioration [Member] | Residential Real Estate [Member] | Residential Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 36,849 |
Financial Asset Acquired with Credit Deterioration [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 4,571 |
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Construction [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 4,071 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Business [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Residential Real Estate [Member] | Residential Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | $ 500 |
Acquisition of Shore Communit_6
Acquisition of Shore Community Bank (Summary of Loans Acquired with Credit Quality Deterioration) (Details) - Shore Community Bank [Member] $ in Thousands | Nov. 08, 2019USD ($) |
Business Acquisition [Line Items] | |
Fair value of acquired loans | $ 205,833 |
Financial Asset Acquired with Credit Deterioration [Member] | |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | 7,584 |
Contractual cash flows not expected to be collected (non-accretable difference) | 2,355 |
Expected cash flows at acquisition | 5,229 |
Interest component of expected cash flows (accretable difference) | 658 |
Fair value of acquired loans | $ 4,571 |
Acquisition of Shore Communit_7
Acquisition of Shore Community Bank (Projected Amortization Expense of Core Deposits Acquired) (Details) - Core Deposits [Member] - Shore Community Bank [Member] $ in Thousands | Nov. 08, 2019USD ($) |
Business Acquisition [Line Items] | |
2020 | $ 262 |
2021 | 236 |
2022 | 209 |
2023 | 182 |
2024 | 156 |
Thereafter | 378 |
Total | $ 1,423 |
Acquisition of Shore Communit_8
Acquisition of Shore Community Bank (Pro Forma Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 12,936 | $ 11,227 |
Non-interest income | 2,456 | 1,866 |
Non-interest expenses | 9,793 | 8,094 |
Income taxes | 1,283 | 1,302 |
Net income | 3,421 | 3,397 |
Shore Community Bank [Member] | ||
Business Acquisition [Line Items] | ||
Pro forma, Net interest income | 12,936 | 13,736 |
Pro forma, Non-interest income | 2,456 | 2,044 |
Pro forma, Non-interest expense | 9,793 | 9,624 |
Pro forma, Income taxes | 1,283 | 1,632 |
Pro forma, Net income | 3,421 | $ 4,224 |
Shore Community Bank [Member] | ||
Business Acquisition [Line Items] | ||
Net interest income | 2,065 | |
Non-interest income | 113 | |
Non-interest expenses | 979 | |
Income taxes | 369 | |
Net income | $ 830 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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) | 41,430 | 30,630 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 3,421 | $ 3,397 |
Basic weighted average shares outstanding | ||
Basic weighted average shares outstanding (in Shares) | 10,200,836 | 8,624,088 |
Plus: common stock equivalents (in Shares) | 61,211 | 69,916 |
Diluted weighted average shares outstanding (in Shares) | 10,262,047 | 8,694,004 |
Earnings per share: | ||
Basic (in Dollars per share) | $ 0.34 | $ 0.39 |
Diluted (in Dollars per share) | $ 0.33 | $ 0.39 |
Investment Securities (Debt Sec
Investment Securities (Debt Securities, Available-for-sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 163,499 | $ 155,368 |
Gross Unrealized Gains | 2,502 | 1,047 |
Gross Unrealized Losses | (2,276) | (633) |
Available for sale, at fair value | 163,725 | 155,782 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,968 | 774 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (16) | (10) |
Available for sale, at fair value | 3,952 | 764 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 47,196 | 53,223 |
Gross Unrealized Gains | 866 | 194 |
Gross Unrealized Losses | (292) | (242) |
Available for sale, at fair value | 47,770 | 53,175 |
Residential mortgage backed securities – GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,177 | 18,100 |
Gross Unrealized Gains | 693 | 292 |
Gross Unrealized Losses | (23) | (5) |
Available for sale, at fair value | 19,847 | 18,387 |
Obligations of state and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,941 | 33,177 |
Gross Unrealized Gains | 637 | 342 |
Gross Unrealized Losses | (1) | 0 |
Available for sale, at fair value | 35,577 | 33,519 |
Trust preferred debt securities – single issuer [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,493 | 1,492 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (230) | (50) |
Available for sale, at fair value | 1,263 | 1,442 |
Corporate debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,702 | 23,224 |
Gross Unrealized Gains | 160 | 139 |
Gross Unrealized Losses | (1,052) | (84) |
Available for sale, at fair value | 25,810 | 23,279 |
Other debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 30,022 | 25,378 |
Gross Unrealized Gains | 146 | 80 |
Gross Unrealized Losses | (662) | (242) |
Available for sale, at fair value | $ 29,506 | $ 25,216 |
Investment Securities (Held-to-
Investment Securities (Held-to-maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Held to maturity | ||
Amortized Cost | $ 88,870 | $ 77,112 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | (489) | (492) |
Carrying Value | 88,381 | 76,620 |
Gross Unrealized Gains | 2,757 | 1,726 |
Gross Unrealized Losses | 0 | (123) |
Fair Value | 91,138 | 78,223 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Held to maturity | ||
Amortized Cost | 7,877 | 5,117 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 7,877 | 5,117 |
Gross Unrealized Gains | 383 | 76 |
Gross Unrealized Losses | 0 | (35) |
Fair Value | 8,260 | 5,158 |
Residential mortgage backed securities - GSE [Member] | ||
Held to maturity | ||
Amortized Cost | 34,622 | 36,528 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 34,622 | 36,528 |
Gross Unrealized Gains | 1,312 | 481 |
Gross Unrealized Losses | 0 | (54) |
Fair Value | 35,934 | 36,955 |
Obligations of state and political subdivisions [Member] | ||
Held to maturity | ||
Amortized Cost | 43,455 | 32,533 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 43,455 | 32,533 |
Gross Unrealized Gains | 632 | 690 |
Gross Unrealized Losses | 0 | (25) |
Fair Value | 44,087 | 33,198 |
Trust preferred debt securities-pooled [Member] | ||
Held to maturity | ||
Amortized Cost | 656 | 657 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | (489) | (492) |
Carrying Value | 167 | 165 |
Gross Unrealized Gains | 400 | 479 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 567 | 644 |
Other debt securities [Member] | ||
Held to maturity | ||
Amortized Cost | 2,260 | 2,277 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 2,260 | 2,277 |
Gross Unrealized Gains | 30 | 0 |
Gross Unrealized Losses | 0 | (9) |
Fair Value | $ 2,290 | $ 2,268 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)securityfinancial_institution | Dec. 31, 2019USD ($)securityfinancial_institution | Dec. 31, 2009USD ($) | |
Schedule of Marketable Securities [Line Items] | |||
Restricted stock | $ 5,400 | $ 4,300 | |
Federal home loan bank, stock | $ 5,200 | $ 4,200 | |
Number of corporate trust preferred securities issued | security | 59 | 75 | |
Other than temporary impairment | $ 865 | ||
Other-than-temporary impairment loss, debt securities, portion recognized in earnings | 364 | ||
Other than temporary impairment loss, portion in other comprehensive loss | $ 501 | ||
Accretion recognized as increase in carrying amount of security | $ 3 | ||
Trust preferred debt securities – single issuer [Member] | |||
Schedule of Marketable Securities [Line Items] | |||
Number of corporate trust preferred securities issued | security | 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 | ||
Atlantic Community Bankers Bank Stock [Member] | Bankers Bank Stock [Member] | |||
Schedule of Marketable Securities [Line Items] | |||
Bankers bank stock | $ 160 | $ 160 | |
Federal Home Loan Bank Borrowings [Member] | |||
Schedule of Marketable Securities [Line Items] | |||
Investment securities pledged to secure funds | $ 109,200 | $ 92,200 |
Investment Securities (Securiti
Investment Securities (Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 13,440 | |
Due after one year through five years | 33,858 | |
Due after five years through ten years | 37,027 | |
Due after ten years | 79,174 | |
Amortized Cost | 163,499 | $ 155,368 |
Fair Value | ||
Due in one year or less | 13,401 | |
Due after one year through five years | 33,707 | |
Due after five years through ten years | 36,689 | |
Due after ten years | 79,928 | |
Total | $ 163,725 | 155,782 |
Yield | ||
Due in one year or less | 3.01% | |
Due after one year through five years | 2.65% | |
Due after five years through ten years | 2.52% | |
Due after ten years | 2.39% | |
Total | 2.52% | |
Carrying Value | ||
Due in one year or less | $ 19,871 | |
Due after one year through five years | 11,855 | |
Due after five years through ten years | 16,925 | |
Due after ten years | 39,730 | |
Carrying Value | 88,381 | 76,620 |
Fair Value | ||
Due in one year or less | 19,946 | |
Due after one year through five years | 12,117 | |
Due after five years through ten years | 17,560 | |
Due after ten years | 41,515 | |
Total | $ 91,138 | $ 78,223 |
Yield | ||
Due in one year or less | 2.19% | |
Due after one year through five years | 3.67% | |
Due after five years through ten years | 3.09% | |
Due after ten years | 2.82% | |
Total | 2.84% |
Investment Securities (Unrealiz
Investment Securities (Unrealized Losses on Available for Sale and Held to Maturity Securities) (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 59 | 75 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 42,614 | $ 43,594 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (1,211) | (388) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 23,029 | 28,821 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (1,065) | (368) |
Securities in a continuous unrealized loss position, fair value | 65,643 | 72,415 |
Securities in a continuous unrealized loss position, unrealized losses | $ (2,276) | $ (756) |
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 | 1 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 3,952 | $ 764 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (16) | (10) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, fair value | 3,952 | 764 |
Securities in a continuous unrealized loss position, unrealized losses | $ (16) | $ (10) |
Residential collateralized mortgage obligations - GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 9 | 39 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 4,352 | $ 18,328 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (22) | (138) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 12,966 | 13,300 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (270) | (139) |
Securities in a continuous unrealized loss position, fair value | 17,318 | 31,628 |
Securities in a continuous unrealized loss position, unrealized losses | $ (292) | $ (277) |
Residential mortgage backed securities - GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 23 | 13 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 2,158 | $ 5,505 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (23) | (59) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, fair value | 2,158 | 5,505 |
Securities in a continuous unrealized loss position, unrealized losses | $ (23) | $ (59) |
Obligations of state and political subdivisions [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 4 | 4 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 1,424 | $ 2,311 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (1) | (25) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 527 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, fair value | 1,424 | 2,838 |
Securities in a continuous unrealized loss position, unrealized losses | $ (1) | $ (25) |
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 | $ 0 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 1,263 | 1,442 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (230) | (50) |
Securities in a continuous unrealized loss position, fair value | 1,263 | 1,442 |
Securities in a continuous unrealized loss position, unrealized losses | $ (230) | $ (50) |
Corporate debt securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 8 | 4 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 17,858 | $ 2,994 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (836) | (5) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 1,784 | 7,954 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (216) | (79) |
Securities in a continuous unrealized loss position, fair value | 19,642 | 10,948 |
Securities in a continuous unrealized loss position, unrealized losses | $ (1,052) | $ (84) |
Other debt securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 11 | 12 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 12,870 | $ 13,692 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (313) | (151) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 7,016 | 5,598 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (349) | (100) |
Securities in a continuous unrealized loss position, fair value | 19,886 | 19,290 |
Securities in a continuous unrealized loss position, unrealized losses | $ (662) | $ (251) |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Credit Quality (Aging of Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 1,217,390 | $ 1,215,537 |
Deferred loan costs, net | 417 | 491 |
Total loans | 1,217,807 | 1,216,028 |
Total Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 18,903 | 10,772 |
Current | 1,198,487 | 1,204,765 |
Total Loans Receivable | 1,217,390 | 1,215,537 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 13,198 | 4,497 |
Total Loans [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11,633 | 3,374 |
Total Loans [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 292 | 2,198 |
Total Loans [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,978 | 5,200 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,973 | 6,047 |
Current | 570,914 | 561,608 |
Total Loans Receivable | 576,887 | 567,655 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 3,842 | 2,596 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 347 | 238 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1,927 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,626 | 3,882 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 224,794 | 236,672 |
Total Loans Receivable | 224,794 | 236,672 |
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 | 9,307 | 0 |
Current | 136,292 | 148,939 |
Total Loans Receivable | 145,599 | 148,939 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 7,500 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,307 | 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 | 962 | 711 |
Current | 149,105 | 138,560 |
Total Loans Receivable | 150,067 | 139,271 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 644 | 501 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 437 | 381 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 525 | 330 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,927 | 3,407 |
Current | 87,420 | 86,852 |
Total Loans Receivable | 89,347 | 90,259 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 687 | 708 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 962 | 2,459 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 292 | 271 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 673 | 677 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 734 | 607 |
Current | 29,821 | 31,997 |
Total Loans Receivable | 30,555 | 32,604 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 525 | 692 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 580 | 296 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 154 | 311 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 141 | 137 |
Total Loans Receivable | 141 | 137 |
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 | 3 Months Ended | ||||
Mar. 31, 2020USD ($)contractloan | Mar. 31, 2019contract | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 08, 2019USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Loans | $ 1,217,807 | $ 1,216,028 | |||
Number of contracts modified as TDR | contract | 0 | ||||
Number of TDRs that subsequently defaulted | 0 | 0 | |||
Loans modified to defer payment of interest and or principal for up to 90 days | $ 16,600 | ||||
Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Loans | 6,005 | 6,257 | |||
Shore Community Bank [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Loans | $ 4,600 | ||||
Purchased credit-impaired loans, book value | $ 6,300 | ||||
Performing [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Loans | $ 5,200 | $ 5,400 | |||
Subsequent Event [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Loans modified to defer payment of interest and or principal for up to 90 days | $ 77,500 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 1,217,390 | $ 1,215,537 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 145,599 | 148,939 |
Commercial Portfolio Segment [Member] | Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 136,292 | 147,132 |
Commercial Portfolio Segment [Member] | Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 9,307 | 1,807 |
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 | 150,067 | 139,271 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 146,829 | 135,804 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,871 | 1,990 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,283 | 1,477 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 84 | 0 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 576,887 | 567,655 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 549,099 | 538,104 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 8,262 | 9,994 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 19,526 | 19,557 |
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 | 224,794 | 236,672 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 224,105 | 235,808 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 689 | 864 |
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 | 89,347 | 90,259 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 86,467 | 87,512 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,062 | 922 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,818 | 1,825 |
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 | 30,555 | 32,604 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 30,030 | 31,912 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 525 | 692 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 141 | 137 |
Consumer Portfolio Segment [Member] | Other [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 141 | 137 |
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 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | $ 91 | $ 65 | ||
Allowance for loan losses, ending balance | 10,001 | 9,271 | $ 8,704 | $ 8,402 |
Allowance for loan losses, collectively evaluated for impairment | 9,910 | 9,202 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 19,311 | 10,629 | ||
Loans receivables, ending balance | 1,217,390 | 1,215,537 | ||
Loans receivables, collectively evaluated for impairment | 1,192,074 | 1,198,651 | ||
Deferred loan costs, net | 417 | 491 | ||
Total loans | 1,217,807 | 1,216,028 | ||
Financial Asset Acquired with Credit Deterioration [Member] | ||||
Allowance for loan losses: | ||||
Allowance for loan losses, ending balance | 0 | 4 | ||
Loans receivable: | ||||
Loans receivables, ending balance | 6,005 | 6,257 | ||
Total loans | 6,005 | 6,257 | ||
Commercial Portfolio Segment [Member] | Construction [Member] | ||||
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | 0 | 8 | ||
Allowance for loan losses, ending balance | 1,706 | 1,389 | 1,794 | 1,732 |
Allowance for loan losses, collectively evaluated for impairment | 1,706 | 1,381 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 9,307 | 1,807 | ||
Loans receivables, ending balance | 145,599 | 148,939 | ||
Loans receivables, collectively evaluated for impairment | 136,292 | 147,132 | ||
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 | 19 | 7 | ||
Allowance for loan losses, ending balance | 1,771 | 1,409 | 1,615 | 1,829 |
Allowance for loan losses, collectively evaluated for impairment | 1,752 | 1,399 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 1,393 | 1,251 | ||
Loans receivables, ending balance | 150,067 | 139,271 | ||
Loans receivables, collectively evaluated for impairment | 148,346 | 137,686 | ||
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 | 3 | ||
Loans receivable: | ||||
Loans receivables, ending balance | 328 | 334 | ||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | 72 | 50 | ||
Allowance for loan losses, ending balance | 4,800 | 4,524 | 3,640 | 3,439 |
Allowance for loan losses, collectively evaluated for impairment | 4,728 | 4,473 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 7,398 | 6,171 | ||
Loans receivables, ending balance | 576,887 | 567,655 | ||
Loans receivables, collectively evaluated for impairment | 564,325 | 556,065 | ||
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 | 0 | 1 | ||
Loans receivable: | ||||
Loans receivables, ending balance | 5,164 | 5,419 | ||
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 | 1,027 | 1,083 | 582 | 731 |
Allowance for loan losses, collectively evaluated for impairment | 1,027 | 1,083 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||
Loans receivables, ending balance | 224,794 | 236,672 | ||
Loans receivables, collectively evaluated for impairment | 224,794 | 236,672 | ||
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 | 430 | 412 | 426 | 431 |
Allowance for loan losses, collectively evaluated for impairment | 430 | 412 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 688 | 708 | ||
Loans receivables, ending balance | 89,347 | 90,259 | ||
Loans receivables, collectively evaluated for impairment | 88,146 | 89,047 | ||
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 | 513 | 504 | ||
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 | 188 | 185 | 155 | 148 |
Allowance for loan losses, collectively evaluated for impairment | 188 | 185 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 525 | 692 | ||
Loans receivables, ending balance | 30,555 | 32,604 | ||
Loans receivables, collectively evaluated for impairment | 30,030 | 31,912 | ||
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 |
Allowance for loan losses, collectively evaluated for impairment | 0 | |||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||
Loans receivables, ending balance | 141 | 137 | ||
Loans receivables, collectively evaluated for impairment | 141 | 137 | ||
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 | 79 | 269 | $ 492 | $ 92 |
Allowance for loan losses, collectively evaluated for impairment | 79 | 269 | ||
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 9,271 | $ 8,402 |
Provision charged/(credited) to operations | 895 | 300 |
Loans charged off | (165) | 0 |
Recoveries of loans charged off | 0 | 2 |
Ending Balance | 10,001 | 8,704 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 1,389 | 1,732 |
Provision charged/(credited) to operations | 317 | 62 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 1,706 | 1,794 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 1,409 | 1,829 |
Provision charged/(credited) to operations | 527 | (214) |
Loans charged off | (165) | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 1,771 | 1,615 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 4,524 | 3,439 |
Provision charged/(credited) to operations | 276 | 201 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 4,800 | 3,640 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 1,083 | 731 |
Provision charged/(credited) to operations | (56) | (149) |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 1,027 | 582 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 412 | 431 |
Provision charged/(credited) to operations | 18 | (5) |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 430 | 426 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 185 | 148 |
Provision charged/(credited) to operations | 3 | 5 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 2 |
Ending Balance | 188 | 155 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Provision charged/(credited) to operations | 0 | 0 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 0 | 0 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 269 | 92 |
Provision charged/(credited) to operations | (190) | 400 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | $ 79 | $ 492 |
Allowance for Loan Losses and_8
Allowance for Loan Losses and Credit Quality (Impaired Loans Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
With no allowance: | |||
Recorded Investment | $ 21,045 | $ 9,725 | |
Unpaid Principal Balance | 24,107 | 12,442 | |
Average Recorded Investment | 13,873 | $ 4,515 | |
Interest Income Recognized | 146 | 44 | |
With an allowance: | |||
Recorded Investment | 4,271 | 7,161 | |
Unpaid Principal Balance | 5,579 | 8,557 | |
Related Allowance | 91 | 69 | |
Average Recorded Investment | 6,412 | 6,496 | |
Interest Income Recognized | 50 | 60 | |
Total: | |||
Recorded Investment | 25,316 | 16,886 | |
Unpaid Principal Balance | 29,686 | 20,999 | |
Related Allowance | 91 | 69 | |
Average Recorded Investment | 20,285 | 11,011 | |
Interest Income Recognized | 196 | 104 | |
Commercial Portfolio Segment [Member] | |||
With no allowance: | |||
Recorded Investment | 19,319 | 7,821 | |
Unpaid Principal Balance | 22,007 | 10,175 | |
Average Recorded Investment | 11,989 | 2,811 | |
Interest Income Recognized | 137 | 44 | |
With an allowance: | |||
Recorded Investment | 4,271 | 7,161 | |
Unpaid Principal Balance | 5,579 | 8,557 | |
Related Allowance | 91 | 69 | |
Average Recorded Investment | 6,412 | 6,496 | |
Interest Income Recognized | 50 | 60 | |
Total: | |||
Related Allowance | 91 | 69 | |
Commercial Portfolio Segment [Member] | Construction [Member] | |||
With no allowance: | |||
Recorded Investment | 9,307 | 0 | |
Unpaid Principal Balance | 9,307 | 0 | |
Average Recorded Investment | 3,102 | 103 | |
Interest Income Recognized | 25 | 2 | |
With an allowance: | |||
Recorded Investment | 0 | 1,807 | |
Unpaid Principal Balance | 0 | 1,807 | |
Related Allowance | 0 | 8 | |
Average Recorded Investment | 1,204 | 0 | |
Interest Income Recognized | 0 | 0 | |
Total: | |||
Recorded Investment | 9,307 | 1,807 | |
Unpaid Principal Balance | 9,307 | 1,807 | |
Related Allowance | 0 | 8 | |
Average Recorded Investment | 4,306 | 103 | |
Interest Income Recognized | 25 | 2 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
With no allowance: | |||
Recorded Investment | 1,658 | 680 | |
Unpaid Principal Balance | 3,190 | 1,971 | |
Average Recorded Investment | 1,095 | 951 | |
Interest Income Recognized | 18 | 26 | |
With an allowance: | |||
Recorded Investment | 63 | 905 | |
Unpaid Principal Balance | 63 | 993 | |
Related Allowance | 19 | 10 | |
Average Recorded Investment | 656 | 2,145 | |
Interest Income Recognized | 0 | 2 | |
Total: | |||
Recorded Investment | 1,721 | 1,585 | |
Unpaid Principal Balance | 3,253 | 2,964 | |
Related Allowance | 19 | 10 | |
Average Recorded Investment | 1,751 | 3,096 | |
Interest Income Recognized | 18 | 28 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||
With no allowance: | |||
Recorded Investment | 8,354 | 7,141 | |
Unpaid Principal Balance | 9,510 | 8,204 | |
Average Recorded Investment | 7,792 | 1,757 | |
Interest Income Recognized | 94 | 16 | |
With an allowance: | |||
Recorded Investment | 4,208 | 4,449 | |
Unpaid Principal Balance | 5,516 | 5,757 | |
Related Allowance | 72 | 51 | |
Average Recorded Investment | 4,552 | 4,351 | |
Interest Income Recognized | 50 | 58 | |
Total: | |||
Recorded Investment | 12,562 | 11,590 | |
Unpaid Principal Balance | 15,026 | 13,961 | |
Related Allowance | 72 | 51 | |
Average Recorded Investment | 12,344 | 6,108 | |
Interest Income Recognized | 144 | 74 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||
With no allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
With an allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Total: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | |||
With no allowance: | |||
Recorded Investment | 1,201 | 1,212 | |
Unpaid Principal Balance | 1,460 | 1,465 | |
Average Recorded Investment | 1,204 | 1,152 | |
Interest Income Recognized | 9 | 0 | |
With an allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Total: | |||
Recorded Investment | 1,201 | 1,212 | |
Unpaid Principal Balance | 1,460 | 1,465 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 1,204 | 1,152 | |
Interest Income Recognized | 9 | 0 | |
Consumer Portfolio Segment [Member] | |||
With no allowance: | |||
Recorded Investment | 525 | 692 | |
Unpaid Principal Balance | 640 | 802 | |
Average Recorded Investment | 680 | 552 | |
Interest Income Recognized | 0 | 0 | |
With an allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Total: | |||
Recorded Investment | 525 | 692 | |
Unpaid Principal Balance | 640 | 802 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 680 | 552 | |
Interest Income Recognized | 0 | 0 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | |||
With no allowance: | |||
Recorded Investment | 525 | 692 | |
Unpaid Principal Balance | 640 | 802 | |
Average Recorded Investment | 680 | 552 | |
Interest Income Recognized | 0 | 0 | |
With an allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Total: | |||
Related Allowance | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other [Member] | |||
With no allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
With an allowance: | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | $ 0 | |
Total: | |||
Related Allowance | $ 0 | $ 0 |
Allowance for Loan Losses and_9
Allowance for Loan Losses and Credit Quality (Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 29,686 | $ 20,999 |
Carrying amount | 1,217,807 | 1,216,028 |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 7,625 | 8,038 |
Carrying amount | $ 6,005 | $ 6,257 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 657 | $ 164 |
Accretion of discount | (135) | (35) |
Balance at end of period | $ 522 | $ 129 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 1 | 2 |
Recorded Investment | $ | $ 311 | $ 382 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Service charges on deposit accounts | $ 213 | $ 166 |
Income on bank-owned life insurance | 180 | 139 |
Net gains on sales of loans | 1,470 | 1,045 |
Loan servicing fees | 166 | 179 |
Net gains on sales and calls of securities | 8 | 0 |
Other income | 167 | 140 |
Total non-interest income | 2,456 | 1,866 |
Service Charges on Deposits, Overdraft fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service charges on deposit accounts | 95 | 89 |
Service Charges on Deposits, Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service charges on deposit accounts | 118 | 77 |
Interchange income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service charges on deposit accounts | 149 | 103 |
Other income - in scope [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service charges on deposit accounts | $ 103 | $ 94 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 19, 2020 | |
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) | 356,341 | ||
Compensation not yet recognized, stock options | $ 134 | ||
Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 32 | $ 23 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 258 | 246 | |
Compensation not yet recognized, other than options | $ 1,800 | ||
Granted (in Shares) | 15,650 | ||
Weighted average grant date fair value, grants in period (in Dollars per share) | $ 21.92 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 76 | $ 17 | |
Compensation not yet recognized, other than options | $ 305 | ||
Granted (in Shares) | 18,950 | ||
Weighted average grant date fair value, grants in period (in Dollars per share) | $ 21.92 | ||
Award vesting period | 3 years | ||
Award performance achieved percentage of target | 138.00% |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Transactions under Stock Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Outstanding, beginning of period (in Shares) | 122,151 | |
Granted (in Shares) | 27,000 | |
Outstanding, end of period (in Shares) | 149,151 | 122,151 |
Exercisable, end of period (in Shares) | 110,351 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in Dollars per share) | $ 9.85 | |
Granted (in Dollars per share) | 17.53 | |
Outstanding, end of period (in Dollars per share) | 11.24 | $ 9.85 |
Exercisable, end of period (in Dollars per share) | $ 8.88 | |
Weighted Average Remaining Contractual Term (Years) | ||
Outstanding, end of period | 4 years 8 months 12 days | 3 years 10 months 24 days |
Exercisable, end of period | 3 years 1 month 6 days | |
Aggregate Intrinsic Value | ||
Outstanding, end of period | $ 572 | $ 1,500 |
Exercisable, end of period | $ 570 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value and Weighted Average Assumptions) (Details) - $ / shares | Mar. 19, 2020 | Jan. 06, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Fair value of options granted (in Dollars per share) | $ 2.09 | $ 5.27 |
Risk-free rate of return | 1.00% | 1.72% |
Expected option life in years | 7 years | 7 years |
Expected volatility | 24.53% | 24.53% |
Expected dividends | 2.86% | 1.35% |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Restricted Shares Activity) (Details) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period (in Shares) | shares | 134,359 |
Granted (in Shares) | shares | 15,650 |
Vested (in Shares) | shares | (25,165) |
Non-vested, end of period (in Shares) | shares | 124,844 |
Average Grant Date Fair Value (in dollars per share) | |
Outstanding, beginning of period (in Dollars per share) | $ / shares | $ 13.84 |
Granted (in Dollars per share) | $ / shares | 21.92 |
Vested (in Dollars per share) | $ / shares | 16.73 |
Non-vested, end of period (in Dollars per share) | $ / shares | $ 14.27 |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period (in Shares) | shares | 10,300 |
Granted (in Shares) | shares | 18,950 |
Vested (in Shares) | shares | (3,433) |
Forfeited (in Shares) | shares | 0 |
Non-vested, end of period (in Shares) | shares | 25,817 |
Average Grant Date Fair Value (in dollars per share) | |
Outstanding, beginning of period (in Dollars per share) | $ / shares | $ 19.38 |
Granted (in Dollars per share) | $ / shares | 21.92 |
Vested (in Dollars per share) | $ / shares | 19.38 |
Forfeited (in Dollars per share) | $ / shares | 0 |
Non-vested, end of period (in Dollars per share) | $ / shares | $ 21.24 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Period of service | 6 months | |
Cash surrender value of life insurance | $ 36.9 | $ 36.7 |
Benefit Plans (Schedule of Comp
Benefit Plans (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 47 | $ 47 |
Interest cost | 41 | 41 |
Actuarial gain recognized | (44) | (44) |
Net periodic benefit cost | $ 44 | $ 44 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | $ 113 | $ 286 |
Other Comprehensive Income (Loss), Tax | (54) | (95) |
Other Comprehensive Income (Loss), Net of Tax | 59 | 191 |
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 | 226 | 414 |
Other Comprehensive Income (Loss), Tax | (65) | (111) |
Other Comprehensive Income (Loss), Net of Tax | 161 | 303 |
Unrealized impairment (loss) on held to maturity security [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | (489) | (492) |
Other Comprehensive Income (Loss), Tax | 117 | 118 |
Other Comprehensive Income (Loss), Net of Tax | (372) | (374) |
Gains on unfunded pension liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 376 | 364 |
Other Comprehensive Income (Loss), Tax | (106) | (102) |
Other Comprehensive Income (Loss), Net of Tax | $ 270 | $ 262 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | $ 170,578 | $ 127,085 |
Other comprehensive income before reclassifications | (102) | 1,109 |
Amounts reclassified from accumulated other comprehensive income | (29) | (30) |
Reclassification adjustment for gains realized in income | (1) | 0 |
Total other comprehensive (loss) income | (132) | 1,079 |
Ending balance | 173,105 | 131,207 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | 191 | (1,833) |
Total other comprehensive (loss) income | (132) | 1,079 |
Ending balance | 59 | (754) |
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 | 303 | (1,679) |
Other comprehensive income before reclassifications | (141) | 1,071 |
Reclassification adjustment for gains realized in income | (1) | |
Total other comprehensive (loss) income | (142) | 1,071 |
Ending balance | 161 | (608) |
Unrealized Impairment Loss on Held to Maturity Security [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | (374) | (382) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 2 | 1 |
Total other comprehensive (loss) income | 2 | 1 |
Ending balance | (372) | (381) |
Unfunded Pension Liability [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | 262 | 228 |
Other comprehensive income before reclassifications | 39 | 38 |
Amounts reclassified from accumulated other comprehensive income | (31) | (31) |
Total other comprehensive (loss) income | 8 | 7 |
Ending balance | $ 270 | $ 235 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 163,725 | $ 155,782 |
Interest rate lock derivative | 159 | |
Total | 164,084 | 155,941 |
Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock derivative | 0 | |
Total | 11,808 | 11,151 |
Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock derivative | 159 | |
Total | 152,276 | 144,790 |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock derivative | 0 | |
Total | 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] | ||
Securities available for sale | 3,952 | 764 |
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] | ||
Securities available for sale | 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] | ||
Securities available for sale | 3,952 | 764 |
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] | ||
Securities available for sale | 0 | 0 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 47,770 | 53,175 |
Residential collateralized mortgage obligations - GSE [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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] | ||
Securities available for sale | 47,770 | 53,175 |
Residential collateralized mortgage obligations - GSE [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage backed securities - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 19,847 | 18,387 |
Residential mortgage backed securities - GSE [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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] | ||
Securities available for sale | 19,847 | 18,387 |
Residential mortgage backed securities - GSE [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Obligations of state and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,577 | 33,519 |
Obligations of state and political subdivisions [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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] | ||
Securities available for sale | 35,577 | 33,519 |
Obligations of state and political subdivisions [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Trust preferred debt securities – single issuer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,263 | 1,442 |
Trust preferred debt securities – single issuer [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 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] | ||
Securities available for sale | 1,263 | 1,442 |
Trust preferred debt securities – single issuer [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 25,810 | 23,279 |
Corporate debt securities [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,808 | 11,151 |
Corporate debt securities [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 14,002 | 12,128 |
Corporate debt securities [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Other debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 29,506 | 25,216 |
Other debt securities [Member] | Level 1 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Other debt securities [Member] | Level 2 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 29,506 | 25,216 |
Other debt securities [Member] | Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 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 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 4,180 | $ 7,092 |
Other real estate owned | 93 | 93 |
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 | 4,180 | 7,092 |
Other real estate owned | $ 93 | $ 93 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) $ in Thousands | Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investment | $ 25,316 | $ 16,886 |
Related Allowance | $ 91 | $ 69 |
Level 3 Inputs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans | loan | 6 | 12 |
Impaired loans, recorded investment | $ 4,300 | $ 7,200 |
Related Allowance | $ 91 | $ 69 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Qualitative Information) (Details) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Qualitative Information [Line Items] | ||
Impaired loans | $ 4,180 | $ 7,092 |
Other real estate owned | $ 93 | $ 93 |
Appraisal adjustments [Member] | Minimum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Loans and leases, measurement input | 0.001 | 0.001 |
Other real estate owned, measurement input | 0.470 | 0.470 |
Appraisal adjustments [Member] | Maximum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Loans and leases, measurement input | 0.404 | 0.404 |
Appraisal adjustments [Member] | Weighted Average [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Loans and leases, measurement input | 0.126 | 0.126 |
Other real estate owned, measurement input | 0.470 | 0.470 |
Fair Value Disclosures (Estimat
Fair Value Disclosures (Estimated Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 12,039 | $ 14,842 |
Securities available for sale | 163,725 | 155,782 |
Securities held to maturity | 88,381 | 76,620 |
Securities held to maturity, fair value | 91,138 | 78,223 |
Loans, net | 1,207,806 | 1,206,757 |
Interest rate lock derivative | 159 | |
Accrued interest receivable | 4,843 | 4,945 |
Deposits | (1,298,032) | (1,277,362) |
Accrued interest payable | (1,430) | (1,592) |
Level 1 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate lock derivative | 0 | |
Level 2 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate lock derivative | 159 | |
Level 3 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate lock derivative | 0 | |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 12,039 | 14,842 |
Securities available for sale | 163,725 | 155,782 |
Securities held to maturity | 88,381 | 76,620 |
Loans held for sale | 11,755 | 5,927 |
Loans, net | 1,207,806 | 1,206,757 |
SBA servicing asset | 902 | 930 |
Interest rate lock derivative | 359 | 159 |
Accrued interest receivable | 4,843 | 4,945 |
FHLB stock | 5,214 | 4,176 |
Deposits | (1,298,032) | (1,277,362) |
Borrowings | (94,125) | (92,050) |
Redeemable subordinated debentures | (18,557) | (18,557) |
Accrued interest payable | (1,430) | (1,592) |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 12,039 | 14,842 |
Securities available for sale | 163,725 | 155,782 |
Securities held to maturity, fair value | 91,138 | 78,223 |
Loans held for sale, fair value | 12,100 | 6,093 |
Loans, net, fair value | 1,222,317 | 1,243,088 |
SBA servicing asset | 1,245 | 1,245 |
Interest rate lock derivative | 359 | 159 |
Accrued interest receivable, fair value | 4,843 | 4,945 |
FHLB stock | 5,214 | 4,176 |
Deposits, fair value | (1,301,168) | (1,278,166) |
Borrowings, fair value | (94,125) | (92,050) |
Redeemable subordinated debentures | (12,441) | (12,837) |
Accrued interest payable, fair value | (1,430) | (1,592) |
Fair Value [Member] | Level 1 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 12,039 | 14,842 |
Securities available for sale | 11,808 | 11,151 |
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 | 151,917 | 144,631 |
Securities held to maturity, fair value | 91,138 | 78,223 |
Loans held for sale, fair value | 12,100 | 6,093 |
Loans, net, fair value | 0 | 0 |
SBA servicing asset | 1,245 | 1,245 |
Interest rate lock derivative | 359 | 159 |
Accrued interest receivable, fair value | 4,843 | 4,945 |
FHLB stock | 5,214 | 4,176 |
Deposits, fair value | (1,301,168) | (1,278,166) |
Borrowings, fair value | (94,125) | (92,050) |
Redeemable subordinated debentures | (12,441) | (12,837) |
Accrued interest payable, fair value | (1,430) | (1,592) |
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 | 1,222,317 | 1,243,088 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 37 | |
Weighted average remaining lease term | 15 years 1 month 6 days | |
Weighted average discount rate | 3.43% | |
Building [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 23 | |
Building, Branch Offices [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 19 | |
Building, General Office Space [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 4 | |
Land [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 4 | |
Office Equipment [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating leases | 12 | |
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 | 2 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating lease cost: | ||
Fixed rent expense | $ 667 | $ 484 |
Short-term lease expense | 12 | 2 |
Net lease cost | 679 | 486 |
Occupancy, Net [Member] | ||
Operating lease cost: | ||
Net lease cost | 614 | 427 |
Other Expense [Member] | ||
Operating lease cost: | ||
Net lease cost | $ 65 | $ 59 |
Leases - Summary of Cash and No
Leases - Summary of Cash and Non-Cash Items (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 630 | $ 433 |
Additions to ROU assets obtained from: | ||
New operating lease liabilities | $ 0 | $ 60 |
Leases - Future Payments Under
Leases - Future Payments Under Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Operating Lease, After Adoption of 842 | ||
Due in less than one year | $ 2,065 | |
Due in one year but less than two years | 2,033 | |
Due in two years but less than three years | 2,018 | |
Due in three years but less than four years | 1,969 | |
Due in four years but less than five years | 1,802 | |
Thereafter | 14,673 | |
Total | $ 24,560 | |
Operating Leases, Before Adoption 842 | ||
Due in less than one year | $ 1,778 | |
Due in one year but less than two years | 1,762 | |
Due in two years but less than three years | 1,730 | |
Due in three years but less than four years | 1,719 | |
Due in four years but less than five years | 1,673 | |
Thereafter | 12,988 | |
Total | $ 21,650 |