Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | UNION BANKSHARES INC | |
Entity Central Index Key | 706,863 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,462,522 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Ju
Consolidated Balance Sheets (June 30, 2017 Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 3,466 | $ 4,272 |
Federal funds sold and overnight deposits | 10,969 | 35,003 |
Cash and cash equivalents | 14,435 | 39,275 |
Interest bearing deposits in banks | 8,356 | 9,504 |
Investment securities available-for-sale | 65,976 | 65,556 |
Investment securities held-to-maturity (fair value $998 thousand and $999 thousand at June 30, 2017 and December 31, 2016, respectively) | 1,000 | 999 |
Loans held for sale | 5,406 | 7,803 |
Loans | 536,200 | 533,290 |
Allowance for loan losses | (5,168) | (5,247) |
Net deferred loan costs | 708 | 649 |
Net loans | 531,740 | 528,692 |
Accrued interest receivable | 2,029 | 2,259 |
Premises and equipment, net | 13,233 | 13,525 |
Core deposit intangible | 668 | 754 |
Goodwill | 2,223 | 2,223 |
Investment in real estate limited partnerships | 2,659 | 2,783 |
Company-owned life insurance | 8,736 | 8,617 |
Other assets | 8,462 | 9,391 |
Total assets | 664,923 | 691,381 |
Deposits | ||
Noninterest bearing | 108,169 | 112,384 |
Interest bearing | 356,541 | 382,083 |
Time | 99,913 | 103,193 |
Total deposits | 564,623 | 597,660 |
Borrowed funds | 36,395 | 31,595 |
Accrued interest and other liabilities | 5,448 | 5,847 |
Total liabilities | 606,466 | 635,102 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,936,652 shares issued at June 30, 2017 and December 31, 2016 | 9,874 | 9,874 |
Additional paid-in capital | 697 | 620 |
Retained earnings | 54,655 | 53,086 |
Treasury stock at cost; 474,919 shares at June 30, 2017 and 474,517 shares at December 31, 2016 | (4,047) | (4,022) |
Accumulated other comprehensive loss | (2,722) | (3,279) |
Total stockholders' equity | 58,457 | 56,279 |
Total liabilities and stockholders' equity | $ 664,923 | $ 691,381 |
Consolidated Balance Sheets (J3
Consolidated Balance Sheets (June 30, 2017 Unaudited) Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Investment securities held-to-maturity, fair value | $ 998 | $ 999 |
Stockholders' Equity | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 4,936,652 | 4,936,652 |
Treasury stock, shares | 474,919 | 474,517 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 6,608 | $ 6,254 | $ 12,930 | $ 12,249 |
Interest on debt securities: | ||||
Taxable | 249 | 223 | 491 | 472 |
Tax exempt | 162 | 146 | 327 | 283 |
Dividends | 27 | 18 | 72 | 35 |
Interest on federal funds sold and overnight deposits | 19 | 6 | 49 | 11 |
Interest on interest bearing deposits in banks | 36 | 41 | 71 | 86 |
Total interest and dividend income | 7,101 | 6,688 | 13,940 | 13,136 |
Interest expense | ||||
Interest on deposits | 396 | 412 | 818 | 837 |
Interest on borrowed funds | 120 | 107 | 235 | 195 |
Total interest expense | 516 | 519 | 1,053 | 1,032 |
Net interest income | 6,585 | 6,169 | 12,887 | 12,104 |
Provision for loan losses | 0 | 75 | 0 | 150 |
Net interest income after provision for loan losses | 6,585 | 6,094 | 12,887 | 11,954 |
Noninterest income | ||||
Trust income | 191 | 180 | 369 | 352 |
Service fees | 1,451 | 1,427 | 2,891 | 2,839 |
Net gains on sales of investment securities available-for-sale | 9 | 18 | 9 | 18 |
Net gains on sales of loans held for sale | 597 | 775 | 1,105 | 1,275 |
Other income | 85 | 197 | 192 | 299 |
Total noninterest income | 2,333 | 2,597 | 4,566 | 4,783 |
Noninterest expenses | ||||
Salaries and wages | 2,504 | 2,442 | 5,072 | 4,900 |
Pension and employee benefits | 951 | 851 | 1,830 | 1,794 |
Occupancy expense, net | 363 | 309 | 753 | 626 |
Equipment expense | 523 | 541 | 1,057 | 1,050 |
Other expenses | 1,530 | 1,665 | 3,100 | 3,141 |
Total noninterest expenses | 5,871 | 5,808 | 11,812 | 11,511 |
Income before provision for income taxes | 3,047 | 2,883 | 5,641 | 5,226 |
Provision for income taxes | 820 | 744 | 1,484 | 1,328 |
Net income | $ 2,227 | $ 2,139 | $ 4,157 | $ 3,898 |
Earnings per common share | $ 0.50 | $ 0.48 | $ 0.93 | $ 0.87 |
Weighted average number of common shares outstanding | 4,461,865 | 4,458,488 | 4,461,961 | 4,458,326 |
Dividends per common share | $ 0.29 | $ 0.28 | $ 0.58 | $ 0.55 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Income | $ 2,227 | $ 2,139 | $ 4,157 | $ 3,898 |
Investment securities available-for-sale: | ||||
Net unrealized holding gains arising during the period on investment securities available-for-sale | 338 | 384 | 563 | 896 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | (6) | (12) | (6) | (12) |
Total other comprehensive income | 332 | 372 | 557 | 884 |
Total comprehensive income | $ 2,559 | $ 2,511 | $ 4,714 | $ 4,782 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive loss |
Balances at Dec. 31, 2015 | $ 53,568 | $ 9,864 | $ 501 | $ 49,524 | $ (4,019) | $ (2,302) |
Common Stock, Shares, net of treasury at Dec. 31, 2015 | 4,457,177 | |||||
Net income | 3,898 | 3,898 | ||||
Other comprehensive income | 884 | 884 | ||||
Dividend reinvestment plan | 2 | 1 | 1 | |||
Dividend reinvestment plan, shares | 71 | |||||
Cash dividends declared ($0.58 and $0.55 per share for the six months ended June 30, 2017 and 2016, respectively) | (2,452) | (2,452) | ||||
Stock based compensation expense | 33 | 33 | ||||
Exercise of stock options | 56 | $ 5 | 51 | |||
Exercise of stock options, shares | 2,500 | |||||
Purchase of treasury stock | (6) | (6) | ||||
Purchase of treasury stock, shares | (213) | |||||
Balances at Jun. 30, 2016 | 55,983 | $ 9,869 | 586 | 50,970 | (4,024) | (1,418) |
Common Stock, Shares, net of treasury at Jun. 30, 2016 | 4,459,535 | |||||
Balances at Dec. 31, 2016 | 56,279 | $ 9,874 | 620 | 53,086 | (4,022) | (3,279) |
Common Stock, Shares, net of treasury at Dec. 31, 2016 | 4,462,135 | |||||
Net income | 4,157 | 4,157 | ||||
Other comprehensive income | 557 | 557 | ||||
Dividend reinvestment plan | 11 | 9 | 2 | |||
Dividend reinvestment plan, shares | 273 | |||||
Cash dividends declared ($0.58 and $0.55 per share for the six months ended June 30, 2017 and 2016, respectively) | (2,588) | (2,588) | ||||
Stock based compensation expense | 68 | 68 | ||||
Purchase of treasury stock | (27) | (27) | ||||
Purchase of treasury stock, shares | (675) | |||||
Balances at Jun. 30, 2017 | $ 58,457 | $ 9,874 | $ 697 | $ 54,655 | $ (4,047) | $ (2,722) |
Common Stock, Shares, net of treasury at Jun. 30, 2017 | 4,461,733 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Dividends per common share | $ 0.29 | $ 0.28 | $ 0.58 | $ 0.55 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net Income | $ 4,157 | $ 3,898 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 611 | 638 |
Provision for loan losses | 0 | 150 |
Deferred income tax provision | 337 | 311 |
Net amortization of investment securities | 222 | 188 |
Equity in losses of limited partnerships | 314 | 236 |
Stock based compensation expense | 68 | 33 |
Net increase in unamortized loan costs | (59) | (87) |
Proceeds from sales of loans held for sale | 59,661 | 59,619 |
Origination of loans held for sale | (56,159) | (59,458) |
Net gains on sales of loans held for sale | (1,105) | (1,275) |
Net loss on disposals of premises and equipment | 13 | 0 |
Net gains on sales of investment securities available-for-sale | (9) | (18) |
Decrease (increase) in accrued interest receivable | 230 | (171) |
Amortization of core deposit intangible | 86 | 86 |
Decrease (increase) in other assets | 457 | (635) |
Contribution to defined benefit pension plan | (750) | (750) |
Increase in other liabilities | 378 | 125 |
Net cash provided by operating activities | 8,452 | 2,890 |
Interest bearing deposits in banks | ||
Proceeds from maturities and redemptions | 4,384 | 3,286 |
Purchases | (3,236) | (747) |
Investment securities held-to-maturity | ||
Proceeds from maturities, calls and paydowns | 0 | 3,220 |
Investment securities available-for-sale | ||
Proceeds from sales | 1,445 | 2,673 |
Proceeds from maturities, calls and paydowns | 3,233 | 6,617 |
Purchases | (4,468) | (12,151) |
Purchase of nonmarketable stock | (272) | (776) |
Redemption of nonmarketable stock | 0 | 576 |
Net increase in loans | (2,999) | (2,108) |
Recoveries of loans charged off | 10 | 31 |
Purchases of premises and equipment | (332) | (673) |
Investments in limited partnerships | (216) | 0 |
Net cash used in investing activities | (2,451) | (52) |
Cash Flows From Financing Activities | ||
Advances on long-term borrowings | 0 | 5,070 |
Repayment of long-term debt | (138) | (152) |
Net increase in short-term borrowings outstanding | 4,938 | 13,326 |
Net (decrease) increase in noninterest bearing deposits | (4,215) | 4,092 |
Net (decrease) increase in interest bearing deposits | (25,542) | 23,199 |
Net decrease in time deposits | (3,280) | (39,735) |
Issuance of common stock | 0 | 56 |
Purchase of treasury stock | (27) | (6) |
Dividends paid | (2,577) | (2,450) |
Net cash (used in) provided by financing activities | (30,841) | 3,400 |
Net (decrease) increase in cash and cash equivalents | (24,840) | 6,238 |
Cash and cash equivalents | ||
Beginning of period | 39,275 | 17,961 |
End of period | 14,435 | 24,199 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 1,072 | 1,210 |
Income taxes paid | 325 | 800 |
Dividends paid on Common Stock: | ||
Dividends declared | 2,588 | 2,452 |
Dividends reinvested | (11) | (2) |
Dividends paid on Common Stock | $ 2,577 | $ 2,450 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of June 30, 2017 , and for the three and six months ended June 30, 2017 and 2016 , have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , as amended ("2016 Annual Report on Form 10-K). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2016 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017 , or any interim period. Certain amounts in the 2016 consolidated financial statements have been reclassified to conform to the 2017 presentation. In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q. AFS: Available-for-sale IRS: Internal Revenue Service ALCO: Asset Liability Committee MBS: Mortgage-backed security ALL: Allowance for loan losses MSRs: Mortgage servicing rights ASC: Accounting Standards Codification OAO: Other assets owned ASU: Accounting Standards Update OCI: Other comprehensive income (loss) Board: Board of Directors OFAC: U.S. Office of Foreign Assets Control bp or bps: Basis point(s) OREO: Other real estate owned Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OTTI: Other-than-temporary impairment CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OTT: Other-than-temporary Company: Union Bankshares, Inc. and Subsidiary Plan: The Union Bank Pension Plan DRIP: Dividend Reinvestment Plan RD: USDA Rural Development FASB: Financial Accounting Standards Board RSU: Restricted Stock Unit FDIC: Federal Deposit Insurance Corporation SBA: U.S. Small Business Administration FHA: U.S. Federal Housing Administration SEC: U.S. Securities and Exchange Commission FHLB: Federal Home Loan Bank of Boston TDR: Troubled-debt restructuring FRB: Federal Reserve Board Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation USDA: U.S. Department of Agriculture GAAP: Generally Accepted Accounting Principles in the United States VA: U.S. Veterans Administration HTM: Held-to-maturity 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company HUD: U.S. Department of Housing and Urban Development 2014 Equity Plan: 2014 Equity Incentive Plan ICS: Insured Cash Sweeps of the Promontory Interfinancial Network |
Legal Contingencies
Legal Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies Disclosure [Text Block] | Legal Contingencies In the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations. |
Per Share Information
Per Share Information | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Per Share Information Earnings per common share are computed based on the weighted average number of shares of common stock outstanding during the period and reduced for shares held in treasury. The assumed exercise of outstanding exercisable stock options and vesting of restricted stock units does not result in material dilution and is not included in the calculation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company will adopt the guidance as of January 1, 2018 using a modified retrospective method with a cumulative-effect adjustment to opening retained earnings. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenues, including net interest income. While in scope of the new guidance, the Company does not expect a material change in the timing or measurement of revenues related to deposit fees. Mortgage servicing fees have been concluded to be out of scope of the standard and therefore will not be impacted by the issuance of this guidance. The Company continues to evaluate the effect that the guidance will have on other revenue streams within its scope, as well as changes in disclosures required by the new guidance. Based on the Company’s current interpretations of the new guidance, the overall impact to net income is expected to be immaterial. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Previous lease accounting did not require the inclusion of operating leases in the balance sheet. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company has established a CECL implementation team and developed a transition project plan. Team members have been assigned specific tasks to facilitate the implementation process and evaluation of the potential impact of the ASU on the Company's consolidated financial statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million . The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also initially recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. Amortization expense for the core deposit intangible was $43 thousand for the three months ended June 30, 2017 and 2016 and $86 thousand for the six months ended June 30, 2017 and 2016 . The amortization expense is included in other expenses on the consolidated statement of income and is deductible for tax purposes. As of June 30, 2017 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2017 $ 85 2018 171 2019 171 2020 171 2021 70 Total $ 668 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Investment securities as of the balance sheet dates consisted of the following: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 9,744 $ 10 $ (147 ) $ 9,607 Agency mortgage-backed 19,514 40 (159 ) 19,395 State and political subdivisions 26,505 265 (254 ) 26,516 Corporate 9,930 135 (52 ) 10,013 Total debt securities 65,693 450 (612 ) 65,531 Mutual funds 445 — — 445 Total $ 66,138 $ 450 $ (612 ) $ 65,976 Held-to-maturity U.S. Government-sponsored enterprises $ 1,000 $ — $ (2 ) $ 998 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 10,221 $ 15 $ (196 ) $ 10,040 Agency mortgage-backed 18,283 27 (269 ) 18,041 State and political subdivisions 27,909 113 (650 ) 27,372 Corporate 9,745 84 (129 ) 9,700 Total debt securities 66,158 239 (1,244 ) 65,153 Mutual funds 403 — — 403 Total $ 66,561 $ 239 $ (1,244 ) $ 65,556 Held-to-maturity U.S. Government-sponsored enterprises $ 999 $ — $ — $ 999 Investment securities with a carrying amount of $9.7 million and $8.4 million at June 30, 2017 and December 31, 2016 , respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law. The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of June 30, 2017 were as follows: Amortized Cost Fair Value (Dollars in thousands) Available-for-sale Due in one year or less $ 625 $ 625 Due from one to five years 5,745 5,833 Due from five to ten years 23,770 23,842 Due after ten years 16,039 15,836 46,179 46,136 Agency mortgage-backed 19,514 19,395 Total debt securities available-for-sale $ 65,693 $ 65,531 Held-to-maturity Due in one year or less $ 1,000 $ 998 Total debt securities held-to-maturity $ 1,000 $ 998 Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities usually differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and are not included in the contractual maturity categories in the above maturity summary. Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2017 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 11 $ 6,812 $ (132 ) 5 $ 1,937 $ (17 ) 16 $ 8,749 $ (149 ) Agency mortgage-backed 21 13,748 (155 ) 1 302 (4 ) 22 14,050 (159 ) State and political subdivisions 25 11,150 (244 ) 1 457 (10 ) 26 11,607 (254 ) Corporate 3 1,386 (23 ) 3 1,469 (29 ) 6 2,855 (52 ) Total 60 $ 33,096 $ (554 ) 10 $ 4,165 $ (60 ) 70 $ 37,261 $ (614 ) December 31, 2016 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 13 $ 8,351 $ (180 ) 3 $ 1,172 $ (16 ) 16 $ 9,523 $ (196 ) Agency mortgage-backed 22 15,141 (261 ) 1 344 (8 ) 23 15,485 (269 ) State and political subdivisions 40 16,481 (650 ) — — — 40 16,481 (650 ) Corporate 8 3,973 (56 ) 4 1,627 (73 ) 12 5,600 (129 ) Total 83 $ 43,946 $ (1,147 ) 8 $ 3,143 $ (97 ) 91 $ 47,089 $ (1,244 ) The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Declines in the fair values of individual equity securities that are deemed by management to be OTT are reflected in noninterest income when identified. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. The Company has the ability to hold the investment securities that had unrealized losses at June 30, 2017 for the foreseeable future and no declines were deemed by management to be OTT. The following table presents the proceeds, gross realized gains and gross realized losses from the sale of AFS securities: For The Three and Six Months Ended June 30, (1) 2017 2016 (Dollars in thousands) Proceeds $ 1,445 $ 2,673 Gross gains 32 19 Gross losses (23 ) (1 ) Net gains on sales of investment securities AFS $ 9 $ 18 __________________ (1) There were no sales of AFS securities during the first quarter of 2017 or 2016. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivables [Text Block] | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. The composition of Net loans as of the balance sheet dates were as follows: June 30, December 31, (Dollars in thousands) Residential real estate $ 175,322 $ 172,727 Construction real estate 40,735 34,189 Commercial real estate 252,354 249,063 Commercial 46,598 41,999 Consumer 3,537 3,962 Municipal 17,654 31,350 Gross loans 536,200 533,290 Allowance for loan losses (5,168 ) (5,247 ) Net deferred loan costs 708 649 Net loans $ 531,740 $ 528,692 There were no loans pledged as collateral on deposits of municipalities at June 30, 2017 and December 31, 2016 . Qualifying residential first mortgage loans and certain commercial real estate loans held by Union may be pledged as collateral for borrowings from the FHLB under a blanket lien. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: June 30, 2017 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 172,319 $ 400 $ 851 $ 227 $ 1,525 $ 175,322 Construction real estate 40,531 140 — — 64 40,735 Commercial real estate 250,476 270 352 130 1,126 252,354 Commercial 46,414 37 134 — 13 46,598 Consumer 3,529 7 1 — — 3,537 Municipal 17,654 — — — — 17,654 Total $ 530,923 $ 854 $ 1,338 $ 357 $ 2,728 $ 536,200 December 31, 2016 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 168,125 $ 1,661 $ 472 $ 672 $ 1,797 $ 172,727 Construction real estate 34,148 17 — — 24 34,189 Commercial real estate 245,402 1,642 153 157 1,709 249,063 Commercial 41,920 12 42 10 15 41,999 Consumer 3,946 12 3 1 — 3,962 Municipal 31,350 — — — — 31,350 Total $ 524,891 $ 3,344 $ 670 $ 840 $ 3,545 $ 533,290 There were two residential real estate loans totaling $436 thousand in process of foreclosure at June 30, 2017 . Aggregate interest on nonaccrual loans not recognized was $1.4 million and $1.3 million as of June 30, 2017 and 2016 , respectively, and $1.3 million as of December 31, 2016 . |
Allowance for loan losses and c
Allowance for loan losses and credit quality | 6 Months Ended |
Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses [Text Block] | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There has been no change to the methodology used to estimate the ALL during the second quarter of 2017 . While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan. Changes in the ALL, by class of loans, for the three and six months ended June 30, 2017 and 2016 were as follows: For The Three Months Ended June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2017 $ 1,372 $ 442 $ 2,661 $ 346 $ 24 $ 42 $ 305 $ 5,192 Provision (credit) for loan losses 39 36 92 15 4 (16 ) (170 ) — Recoveries of amounts charged off — 3 — 1 — — — 4 1,411 481 2,753 362 28 26 135 5,196 Amounts charged off (24 ) — — — (4 ) — — (28 ) Balance, June 30, 2017 $ 1,387 $ 481 $ 2,753 $ 362 $ 24 $ 26 $ 135 $ 5,168 For The Three Months Ended June 30, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2016 $ 1,386 $ 466 $ 2,729 $ 218 $ 25 $ 47 $ 254 $ 5,125 Provision (credit) for loan losses (19 ) (96 ) 108 16 — (21 ) 87 75 Recoveries of amounts charged off 15 3 — 6 2 — — 26 1,382 373 2,837 240 27 26 341 5,226 Amounts charged off — — — — — — — — Balance, June 30, 2016 $ 1,382 $ 373 $ 2,837 $ 240 $ 27 $ 26 $ 341 $ 5,226 For The Six Months Ended June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2016 $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 Provision (credit) for loan losses 68 84 66 19 4 (14 ) (227 ) — Recoveries of amounts charged off 2 6 — 1 1 — — 10 1,469 481 2,753 362 31 26 135 5,257 Amounts charged off (82 ) — — — (7 ) — — (89 ) Balance, June 30, 2017 $ 1,387 $ 481 $ 2,753 $ 362 $ 24 $ 26 $ 135 $ 5,168 For The Six Months Ended June 30, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2015 $ 1,419 $ 514 $ 2,792 $ 209 $ 28 $ 38 $ 201 $ 5,201 Provision (credit) for loan losses 68 (147 ) 45 57 (1 ) (12 ) 140 150 Recoveries of amounts charged off 15 6 — 7 3 — — 31 1,502 373 2,837 273 30 26 341 5,382 Amounts charged off (120 ) — — (33 ) (3 ) — — (156 ) Balance, June 30, 2016 $ 1,382 $ 373 $ 2,837 $ 240 $ 27 $ 26 $ 341 $ 5,226 The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates were as follows: June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 59 $ — $ 24 $ — $ — $ — $ — $ 83 Collectively evaluated for impairment 1,328 481 2,729 362 24 26 135 5,085 Total allocated $ 1,387 $ 481 $ 2,753 $ 362 $ 24 $ 26 $ 135 $ 5,168 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 63 $ — $ 40 $ — $ — $ — $ — $ 103 Collectively evaluated for impairment 1,336 391 2,647 342 26 40 362 5,144 Total allocated $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates were as follows: June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,770 $ 85 $ 1,768 $ 408 $ — $ — $ 4,031 Collectively evaluated for impairment 173,552 40,650 250,586 46,190 3,537 17,654 532,169 Total $ 175,322 $ 40,735 $ 252,354 $ 46,598 $ 3,537 $ 17,654 $ 536,200 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,448 $ 88 $ 3,328 $ 432 $ — $ — $ 5,296 Collectively evaluated for impairment 171,279 34,101 245,735 41,567 3,962 31,350 527,994 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise those loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4/M Rating - Satisfactory/Monitor Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list. 5-7 Rating - Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate. The following tables summarize the loan ratings applied to the Company's loans by class as of the balance sheet dates: June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 161,187 $ 30,693 $ 166,271 $ 41,817 $ 3,475 $ 17,654 $ 421,097 Satisfactory/Monitor 10,535 9,893 82,212 3,933 62 — 106,635 Substandard 3,600 149 3,871 848 — — 8,468 Total $ 175,322 $ 40,735 $ 252,354 $ 46,598 $ 3,537 $ 17,654 $ 536,200 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 158,140 $ 29,248 $ 182,247 $ 38,219 $ 3,928 $ 31,350 $ 443,132 Satisfactory/Monitor 10,641 4,830 62,193 3,109 34 — 80,807 Substandard 3,946 111 4,623 671 — — 9,351 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 The following tables provide information with respect to impaired loans by class of loan as of and for the three and six months ended June 30, 2017 and June 30, 2016 : As of June 30, 2017 For The Three Months Ended June 30, 2017 For The Six Months Ended June 30, 2017 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 303 $ 312 $ 59 Commercial real estate 393 393 24 With an allowance recorded 696 705 83 Residential real estate 1,467 1,977 — Construction real estate 85 85 — Commercial real estate 1,375 1,447 — Commercial 408 408 — With no allowance recorded 3,335 3,917 — Residential real estate 1,770 2,289 59 $ 1,675 $ 20 $ 1,599 $ 31 Construction real estate 85 85 — 86 1 86 2 Commercial real estate 1,768 1,840 24 1,994 22 2,439 54 Commercial 408 408 — 412 5 419 12 Total $ 4,031 $ 4,622 $ 83 $ 4,167 $ 48 $ 4,543 $ 99 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2017 totaling $635 thousand . As of June 30, 2016 For The Three Months Ended June 30, 2016 For The Six Months Ended June 30, 2016 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 1,304 $ 1,663 $ 58 $ 1,240 $ 8 $ 1,226 $ 16 Construction real estate 90 90 — 90 1 91 2 Commercial real estate 3,153 3,247 84 3,130 17 3,118 31 Commercial 460 461 — 468 — 476 — Total $ 5,007 $ 5,461 $ 142 $ 4,928 $ 26 $ 4,911 $ 49 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2016 totaling $578 thousand . The following table provides information with respect to impaired loans as of December 31, 2016 : December 31, 2016 Recorded Investment (1) Principal Balance (1) Related Allowance (Dollars in thousands) Residential real estate $ 308 $ 317 $ 63 Commercial real estate 488 520 40 With an allowance recorded 796 837 103 Residential real estate 1,140 1,561 — Construction real estate 88 88 — Commercial real estate 2,840 2,910 — Commercial 432 432 — With no allowance recorded 4,500 4,991 — Residential real estate 1,448 1,878 63 Construction real estate 88 88 — Commercial real estate 3,328 3,430 40 Commercial 432 432 — Total $ 5,296 $ 5,828 $ 103 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2016 totaling $637 thousand . The following is a summary of TDR loans by class of loan as of the balance sheet dates: June 30, 2017 December 31, 2016 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 26 $ 1,770 20 $ 1,448 Construction real estate 1 85 1 88 Commercial real estate 10 965 10 1,452 Commercial 2 408 2 431 Total 39 $ 3,228 33 $ 3,419 The TDR loans above represent loan modifications in which a concession was provided to the borrower, including due date extensions, maturity date extensions, interest rate reductions or the forgiveness of accrued interest. Troubled loans, that are restructured and meet established thresholds, are classified as impaired and a specific reserve amount is allocated to the ALL on the basis of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The following tables provide new TDR activity for the three and six months ended June 30, 2017 and June 30, 2016 : New TDRs During the New TDRs During the Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 3 $ 240 $ 248 6 $ 380 $ 397 Commercial real estate 1 144 144 1 144 144 New TDRs During the New TDRs During the Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 2 $ 132 $ 139 3 $ 189 $ 196 Commercial real estate 2 160 160 2 160 160 There were no TDR loans modified within the previous twelve months that had subsequently defaulted during the three and six month periods ended June 30, 2017 or June 30, 2016 . TDR loans are considered defaulted at 90 days past due. At June 30, 2017 and December 31, 2016 , the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Defined Benefit Pension Plan Union sponsors a noncontributory defined benefit pension plan covering all eligible employees employed prior to October 5, 2012. On October 5, 2012, the Company closed the Plan to new participants and froze the accrual of retirement benefits for current participants. It is Union's current intent to continue to maintain the frozen Plan and related Trust account and to distribute benefits to participants at such time and in such manner as provided under the terms of the Plan. The Company will continue to recognize the pension benefit and cash funding obligations for the remaining life of the associated liability for the frozen benefits under the Plan. The Plan provides defined benefits based on years of service and final average salary prior to October 5, 2012. The Company's defined pension benefit obligation and net periodic benefit cost are actuarially determined based on assumptions regarding the appropriate discount rate, current and expected future return on Plan assets, and anticipated mortality rates. Weighted average assumptions used to determine the net periodic pension benefit for the three and six months ended June 30, 2017 and 2016 have remained consistent with assumptions disclosed in the Company's 2016 Annual Report on Form 10-K. However, the expected rate of return on plan assets for 2017 has been reduced to 6.00% compared to 6.75% as disclosed in the 2016 Annual Report on Form 10-K. This reduction results in an estimated net periodic pension benefit for the year ended December 31, 2017 of $80 thousand . Net periodic pension benefit for the three and six months ended June 30 consisted of the following components: Three Months Ended Six Months Ended 2017 2016 2017 2016 (Dollars in thousands) Interest cost on projected benefit obligation $ 172 $ 175 $ 344 $ 350 Expected return on plan assets (243 ) (259 ) (486 ) (518 ) Amortization of net loss 51 41 102 82 Net periodic benefit $ (20 ) $ (43 ) $ (40 ) $ (86 ) |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Based Compensation The Company's current stock-based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock are available for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of June 30, 2017 , there were outstanding grants under the plan of RSUs and incentive stock options. RSUs. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The general terms of the awards are described in the Company's 2016 Annual Report on Form 10-K. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table presents a summary of the unvested RSUs from the 2015 and 2016 Award Plan Summaries as of June 30, 2017 : Number of Unvested RSUs Weighted-Average Grant Date Fair Value 2015 Award 3,089 $ 27.91 2016 Award 3,569 45.45 Total 6,658 $ 37.31 Unrecognized compensation expense related to the unvested RSUs as of June 30, 2017 and June 30, 2016 was $124 thousand and $121 thousand , respectively. During the six months ended June 30, 2017 , a total of 3,308 contingent RSUs were provisionally granted. The estimated number of contingent RSUs provisionally granted was based on target performance-based payout amounts detailed in the 2017 Award Plan Summary approved by the Board of Directors and on the closing market price of the Company's stock on the March 15, 2017 grant date ( $41.20 per share). As with the 2015 and 2016 grants, one half is in the form of Time-Based RSUs and one-half is in the form of Performance-Based RSUs. The actual number of Time-Based RSUs granted (if any) will be determined as of the earned date of December 31, 2017, while the actual number of Performance-Based RSUs granted (if any) will be determined during the first quarter of 2018, based on actual 2017 performance. The contingent RSUs were granted on substantially the same terms and conditions as the RSUs granted under the 2016 Award Plan Summary. As of June 30, 2017 , the estimated unrecognized compensation expense related to the provisionally granted RSUs, based on the closing market price of the Company's stock on the grant date of March 15, 2017 was $136 thousand . Stock options. As of June 30, 2017 , 4,500 incentive stock options granted in December 2014 under the 2014 Equity Plan remained outstanding and exercisable and will expire in December 2021. There was no unrecognized compensation cost related to these options as of June 30, 2017 . The estimated intrinsic value of these options was $106 thousand as of June 30, 2017 . As of June 30, 2017 , 34,986 shares remained available for future equity awards under the 2014 Equity Plan. As of June 30, 2017 , 4,000 incentive stock options granted under the 2008 ISO Plan remained outstanding and exercisable, with the last of such options expiring in December 2020. There was no unrecognized compensation cost related to these options as of June 30, 2017 . The estimated intrinsic value of these options was $104 thousand as of June 30, 2017 . |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive Income (Loss) Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheet (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. As of the balance sheet dates, the components of Accumulated OCI, net of tax, were: June 30, December 31, (Dollars in thousands) Net unrealized loss on investment securities available-for-sale $ (107 ) $ (664 ) Defined benefit pension plan net unrealized actuarial loss (2,615 ) (2,615 ) Total $ (2,722 ) $ (3,279 ) The following tables disclose the tax effects allocated to each component of OCI for the three and six months ended June 30 : Three Months Ended June 30, 2017 June 30, 2016 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains arising during the period on investment securities available-for-sale $ 512 $ (174 ) $ 338 $ 582 $ (198 ) $ 384 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (9 ) 3 (6 ) (18 ) 6 (12 ) Total other comprehensive income $ 503 $ (171 ) $ 332 $ 564 $ (192 ) $ 372 Six Months Ended June 30, 2017 June 30, 2016 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains arising during the period on investment securities available-for-sale $ 853 $ (290 ) $ 563 $ 1,358 $ (462 ) $ 896 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (9 ) 3 (6 ) (18 ) 6 (12 ) Total other comprehensive income $ 844 $ (287 ) $ 557 $ 1,340 $ (456 ) $ 884 The following table discloses information concerning the reclassification adjustments from OCI for the three and six months ended June 30 , 2017 and 2016 . Three Months Ended Six Months Ended Reclassification Adjustment Description June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Affected Line Item in Consolidated Statement of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (9 ) $ (18 ) $ (9 ) $ (18 ) Net gains on sales of investment securities available-for-sale Tax benefit 3 6 3 6 Provision for income taxes Total reclassifications $ (6 ) $ (12 ) $ (6 ) $ (12 ) Net income |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • 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 for similar assets or liabilities in active markets, 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 by little or no market activity). The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS : Marketable equity securities and mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of the Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Assets measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2017: (Dollars in thousands) Investment securities available-for-sale (market approach) Debt securities: U.S. Government-sponsored enterprises $ 9,607 $ — $ 9,607 $ — Agency mortgage-backed 19,395 — 19,395 — State and political subdivisions 26,516 — 26,516 — Corporate 10,013 — 10,013 — Total debt securities 65,531 — 65,531 — Mutual funds 445 445 — — Total $ 65,976 $ 445 $ 65,531 $ — December 31, 2016: Investment securities available-for-sale (market approach) Debt securities: U.S. Government-sponsored enterprises $ 10,040 $ — $ 10,040 $ — Agency mortgage-backed 18,041 — 18,041 — State and political subdivisions 27,372 — 27,372 — Corporate 9,700 — 9,700 — Total debt securities 65,153 — 65,153 — Mutual funds 403 403 — — Total $ 65,556 $ 403 $ 65,153 $ — There were no significant transfers in or out of Levels 1 and 2 during the three and six months ended June 30, 2017 , nor were there any Level 3 assets at any time during either period. Certain other 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 measured at fair value on a nonrecurring basis in periods after initial recognition, such as impaired loans, HTM securities, MSRs and OREO, were not considered material at June 30, 2017 or December 31, 2016 . The Company has not elected to apply the fair value method to any financial assets or liabilities other than those situations where other accounting pronouncements require fair value measurements. FASB ASC Topic 825 , Financial Instruments, requires disclosure of the estimated fair value of financial instruments. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Management’s estimates and assumptions are inherently subjective and involve uncertainties and matters of significant judgment. Changes in assumptions could dramatically affect the estimated fair values. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments may be excluded from disclosure requirements. Thus, the aggregate fair value amounts presented may not necessarily represent the actual underlying fair value of such instruments of the Company. The following methods and assumptions were used by the Company in estimating the fair value of its significant financial instruments: Cash and cash equivalents : The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets' fair values and are classified as Level 1. Interest bearing deposits in banks: Fair values for interest bearing deposits in banks are based on discounted present values of cash flows and are classified as Level 2. Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair value measurements consider observable data which may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Investment securities are classified as Level 1 or Level 2 depending on availability of recent trade information. Loans held for sale: The fair value of loans held for sale is estimated based on quotes from third party vendors, resulting in a Level 2 classification. Loans : The fair values of loans are estimated for portfolios of loans with similar financial characteristics and segregated by loan class or segment. For variable-rate loan categories that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts adjusted for credit risk. The fair values for other loans (for example, fixed-rate residential, commercial real estate, and rental property mortgage loans as well as commercial and industrial loans) are estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future cash flows, future expected loss experience and risk characteristics. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values, where applicable. The fair value methods and assumptions that utilize unobservable inputs as defined by current accounting standards are classified as Level 3. Accrued interest receivable and payable: The carrying amounts of accrued interest approximate their fair values and are classified as Level 1, 2, or 3 in accordance with the classification of the related principal's valuation. Nonmarketable equity securities: It is not practical to determine the fair value of the nonmarketable securities, such as FHLB stock, due to restrictions placed on their transferability. Deposits : The fair values disclosed for noninterest bearing deposits and other interest bearing nontime deposits are, by definition, equal to the amount payable on demand at the reporting date, resulting in a Level 1 classification. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar deposits to a schedule of aggregated expected maturities on such deposits, resulting in a Level 2 classification. Borrowed funds : The fair values of the Company’s long-term debt are estimated using discounted cash flow analysis based on interest rates currently being offered on similar debt instruments, resulting in a Level 2 classification. The fair values of the Company’s short-term debt approximate the carrying amounts reported in the balance sheet, resulting in a Level 1 classification. Off-balance-sheet financial instruments : Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The only commitments to extend credit that are normally longer than one year in duration are the home equity lines whose interest rates are variable quarterly. The only fees collected for commitments are an annual fee on credit card arrangements and often a flat fee on commercial lines of credit and standby letters of credit. The fair value of off-balance-sheet financial instruments as of the balance sheet dates was not significant. As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: June 30, 2017 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 14,435 $ 14,435 $ 14,435 $ — $ — Interest bearing deposits in banks 8,356 8,356 — 8,356 — Investment securities 66,976 66,974 445 66,529 — Loans held for sale 5,406 5,496 — 5,496 — Loans, net Residential real estate 174,166 176,075 — — 176,075 Construction real estate 40,308 40,234 — — 40,234 Commercial real estate 249,799 247,772 — — 247,772 Commercial 46,298 45,661 — — 45,661 Consumer 3,518 3,581 — — 3,581 Municipal 17,651 18,069 — — 18,069 Accrued interest receivable 2,029 2,029 — 417 1,612 Nonmarketable equity securities 2,354 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 108,169 $ 108,169 $ 108,169 $ — $ — Interest bearing 356,541 356,541 356,541 — — Time 99,913 99,207 — 99,207 — Borrowed funds Short-term 6,038 6,037 6,037 — — Long-term 30,357 30,303 — 30,303 — Accrued interest payable 73 73 — 73 — December 31, 2016 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 39,275 $ 39,275 $ 39,275 $ — $ — Interest bearing deposits in banks 9,504 9,528 — 9,528 — Investment securities 66,555 66,555 403 66,152 — Loans held for sale 7,803 7,958 — 7,958 — Loans, net Residential real estate 171,538 173,024 — — 173,024 Construction real estate 33,840 33,963 — — 33,963 Commercial real estate 246,317 245,979 — — 245,979 Commercial 41,708 41,491 — — 41,491 Consumer 3,941 4,014 — — 4,014 Municipal 31,348 31,749 — — 31,749 Accrued interest receivable 2,259 2,259 — 414 1,845 Nonmarketable equity securities 2,354 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 112,384 $ 112,384 $ 112,384 $ — $ — Interest bearing 382,083 382,083 382,083 — — Time 103,193 102,594 — 102,594 — Borrowed funds Short-term 1,099 1,099 1,099 — — Long-term 30,496 30,423 — 30,423 — Accrued interest payable 92 92 — 92 — The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent events represent events or transactions occurring after the balance sheet date but before the financial statements are issued. Financial statements are considered “issued” when they are widely distributed to shareholders and others for general use and reliance in a form and format that complies with GAAP. Events occurring subsequent to June 30, 2017 have been evaluated as to their potential impact to the consolidated financial statements. On July 19, 2017 , the Company declared a regular quarterly cash dividend of $0.29 per share, payable August 9, 2017 , to stockholders of record on July 28, 2017 . |
Basis of Presentation Accountin
Basis of Presentation Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of financial statement presentation [Policy Text Block] | The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of June 30, 2017 , and for the three and six months ended June 30, 2017 and 2016 , have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , as amended ("2016 Annual Report on Form 10-K). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2016 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017 , or any interim period. Certain amounts in the 2016 consolidated financial statements have been reclassified to conform to the 2017 presentation. |
Earnings per common share [Policy Text Block] | Earnings per common share are computed based on the weighted average number of shares of common stock outstanding during the period and reduced for shares held in treasury. The assumed exercise of outstanding exercisable stock options and vesting of restricted stock units does not result in material dilution and is not included in the calculation. |
Recent accounting pronouncements [Policy Text Block] | In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company will adopt the guidance as of January 1, 2018 using a modified retrospective method with a cumulative-effect adjustment to opening retained earnings. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenues, including net interest income. While in scope of the new guidance, the Company does not expect a material change in the timing or measurement of revenues related to deposit fees. Mortgage servicing fees have been concluded to be out of scope of the standard and therefore will not be impacted by the issuance of this guidance. The Company continues to evaluate the effect that the guidance will have on other revenue streams within its scope, as well as changes in disclosures required by the new guidance. Based on the Company’s current interpretations of the new guidance, the overall impact to net income is expected to be immaterial. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Previous lease accounting did not require the inclusion of operating leases in the balance sheet. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company has established a CECL implementation team and developed a transition project plan. Team members have been assigned specific tasks to facilitate the implementation process and evaluation of the potential impact of the ASU on the Company's consolidated financial statements. |
Intangible assets [Policy Text Block] | As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million . The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also initially recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. |
Investment securities [Policy Text Block] | The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Declines in the fair values of individual equity securities that are deemed by management to be OTT are reflected in noninterest income when identified. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. |
Loans [Policy Text Block] | Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. |
Allowance for loan losses [Policy Text Block] | The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There has been no change to the methodology used to estimate the ALL during the second quarter of 2017 . While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. |
Pension plans [Policy Text Block] | Union sponsors a noncontributory defined benefit pension plan covering all eligible employees employed prior to October 5, 2012. On October 5, 2012, the Company closed the Plan to new participants and froze the accrual of retirement benefits for current participants. It is Union's current intent to continue to maintain the frozen Plan and related Trust account and to distribute benefits to participants at such time and in such manner as provided under the terms of the Plan. The Company will continue to recognize the pension benefit and cash funding obligations for the remaining life of the associated liability for the frozen benefits under the Plan. The Plan provides defined benefits based on years of service and final average salary prior to October 5, 2012. |
Comprehensive income (loss) [Policy Text Block] | Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheet (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Fair value measurements [Policy Text Block] | The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • 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 for similar assets or liabilities in active markets, 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 by little or no market activity). |
Goodwill and Other Intangible23
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of June 30, 2017 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2017 $ 85 2018 171 2019 171 2020 171 2021 70 Total $ 668 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale and held-to-maturity securities [Table Text Block] | Investment securities as of the balance sheet dates consisted of the following: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 9,744 $ 10 $ (147 ) $ 9,607 Agency mortgage-backed 19,514 40 (159 ) 19,395 State and political subdivisions 26,505 265 (254 ) 26,516 Corporate 9,930 135 (52 ) 10,013 Total debt securities 65,693 450 (612 ) 65,531 Mutual funds 445 — — 445 Total $ 66,138 $ 450 $ (612 ) $ 65,976 Held-to-maturity U.S. Government-sponsored enterprises $ 1,000 $ — $ (2 ) $ 998 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 10,221 $ 15 $ (196 ) $ 10,040 Agency mortgage-backed 18,283 27 (269 ) 18,041 State and political subdivisions 27,909 113 (650 ) 27,372 Corporate 9,745 84 (129 ) 9,700 Total debt securities 66,158 239 (1,244 ) 65,153 Mutual funds 403 — — 403 Total $ 66,561 $ 239 $ (1,244 ) $ 65,556 Held-to-maturity U.S. Government-sponsored enterprises $ 999 $ — $ — $ 999 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of June 30, 2017 were as follows: Amortized Cost Fair Value (Dollars in thousands) Available-for-sale Due in one year or less $ 625 $ 625 Due from one to five years 5,745 5,833 Due from five to ten years 23,770 23,842 Due after ten years 16,039 15,836 46,179 46,136 Agency mortgage-backed 19,514 19,395 Total debt securities available-for-sale $ 65,693 $ 65,531 Held-to-maturity Due in one year or less $ 1,000 $ 998 Total debt securities held-to-maturity $ 1,000 $ 998 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2017 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 11 $ 6,812 $ (132 ) 5 $ 1,937 $ (17 ) 16 $ 8,749 $ (149 ) Agency mortgage-backed 21 13,748 (155 ) 1 302 (4 ) 22 14,050 (159 ) State and political subdivisions 25 11,150 (244 ) 1 457 (10 ) 26 11,607 (254 ) Corporate 3 1,386 (23 ) 3 1,469 (29 ) 6 2,855 (52 ) Total 60 $ 33,096 $ (554 ) 10 $ 4,165 $ (60 ) 70 $ 37,261 $ (614 ) December 31, 2016 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 13 $ 8,351 $ (180 ) 3 $ 1,172 $ (16 ) 16 $ 9,523 $ (196 ) Agency mortgage-backed 22 15,141 (261 ) 1 344 (8 ) 23 15,485 (269 ) State and political subdivisions 40 16,481 (650 ) — — — 40 16,481 (650 ) Corporate 8 3,973 (56 ) 4 1,627 (73 ) 12 5,600 (129 ) Total 83 $ 43,946 $ (1,147 ) 8 $ 3,143 $ (97 ) 91 $ 47,089 $ (1,244 ) |
Realized Gain (Loss) on Investments [Table Text Block] | The following table presents the proceeds, gross realized gains and gross realized losses from the sale of AFS securities: For The Three and Six Months Ended June 30, (1) 2017 2016 (Dollars in thousands) Proceeds $ 1,445 $ 2,673 Gross gains 32 19 Gross losses (23 ) (1 ) Net gains on sales of investment securities AFS $ 9 $ 18 __________________ (1) There were no sales of AFS securities during the first quarter of 2017 or 2016. |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of Net Loans [Table Text Block] | The composition of Net loans as of the balance sheet dates were as follows: June 30, December 31, (Dollars in thousands) Residential real estate $ 175,322 $ 172,727 Construction real estate 40,735 34,189 Commercial real estate 252,354 249,063 Commercial 46,598 41,999 Consumer 3,537 3,962 Municipal 17,654 31,350 Gross loans 536,200 533,290 Allowance for loan losses (5,168 ) (5,247 ) Net deferred loan costs 708 649 Net loans $ 531,740 $ 528,692 |
Past Due Financing Receivables [Table Text Block] | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: June 30, 2017 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 172,319 $ 400 $ 851 $ 227 $ 1,525 $ 175,322 Construction real estate 40,531 140 — — 64 40,735 Commercial real estate 250,476 270 352 130 1,126 252,354 Commercial 46,414 37 134 — 13 46,598 Consumer 3,529 7 1 — — 3,537 Municipal 17,654 — — — — 17,654 Total $ 530,923 $ 854 $ 1,338 $ 357 $ 2,728 $ 536,200 December 31, 2016 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 168,125 $ 1,661 $ 472 $ 672 $ 1,797 $ 172,727 Construction real estate 34,148 17 — — 24 34,189 Commercial real estate 245,402 1,642 153 157 1,709 249,063 Commercial 41,920 12 42 10 15 41,999 Consumer 3,946 12 3 1 — 3,962 Municipal 31,350 — — — — 31,350 Total $ 524,891 $ 3,344 $ 670 $ 840 $ 3,545 $ 533,290 |
Allowance for loan losses and26
Allowance for loan losses and credit quality (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Changes in the ALL, by class of loans, for the three and six months ended June 30, 2017 and 2016 were as follows: For The Three Months Ended June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2017 $ 1,372 $ 442 $ 2,661 $ 346 $ 24 $ 42 $ 305 $ 5,192 Provision (credit) for loan losses 39 36 92 15 4 (16 ) (170 ) — Recoveries of amounts charged off — 3 — 1 — — — 4 1,411 481 2,753 362 28 26 135 5,196 Amounts charged off (24 ) — — — (4 ) — — (28 ) Balance, June 30, 2017 $ 1,387 $ 481 $ 2,753 $ 362 $ 24 $ 26 $ 135 $ 5,168 For The Three Months Ended June 30, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2016 $ 1,386 $ 466 $ 2,729 $ 218 $ 25 $ 47 $ 254 $ 5,125 Provision (credit) for loan losses (19 ) (96 ) 108 16 — (21 ) 87 75 Recoveries of amounts charged off 15 3 — 6 2 — — 26 1,382 373 2,837 240 27 26 341 5,226 Amounts charged off — — — — — — — — Balance, June 30, 2016 $ 1,382 $ 373 $ 2,837 $ 240 $ 27 $ 26 $ 341 $ 5,226 For The Six Months Ended June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2016 $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 Provision (credit) for loan losses 68 84 66 19 4 (14 ) (227 ) — Recoveries of amounts charged off 2 6 — 1 1 — — 10 1,469 481 2,753 362 31 26 135 5,257 Amounts charged off (82 ) — — — (7 ) — — (89 ) Balance, June 30, 2017 $ 1,387 $ 481 $ 2,753 $ 362 $ 24 $ 26 $ 135 $ 5,168 For The Six Months Ended June 30, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2015 $ 1,419 $ 514 $ 2,792 $ 209 $ 28 $ 38 $ 201 $ 5,201 Provision (credit) for loan losses 68 (147 ) 45 57 (1 ) (12 ) 140 150 Recoveries of amounts charged off 15 6 — 7 3 — — 31 1,502 373 2,837 273 30 26 341 5,382 Amounts charged off (120 ) — — (33 ) (3 ) — — (156 ) Balance, June 30, 2016 $ 1,382 $ 373 $ 2,837 $ 240 $ 27 $ 26 $ 341 $ 5,226 |
Allocation of Allowance for Loan Losses by Impairment Methodology [Table Text Block] | The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates were as follows: June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 59 $ — $ 24 $ — $ — $ — $ — $ 83 Collectively evaluated for impairment 1,328 481 2,729 362 24 26 135 5,085 Total allocated $ 1,387 $ 481 $ 2,753 $ 362 $ 24 $ 26 $ 135 $ 5,168 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 63 $ — $ 40 $ — $ — $ — $ — $ 103 Collectively evaluated for impairment 1,336 391 2,647 342 26 40 362 5,144 Total allocated $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 |
Allocation of Investment in Loans by Impairment Methodology [Table Text Block] | The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates were as follows: June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,770 $ 85 $ 1,768 $ 408 $ — $ — $ 4,031 Collectively evaluated for impairment 173,552 40,650 250,586 46,190 3,537 17,654 532,169 Total $ 175,322 $ 40,735 $ 252,354 $ 46,598 $ 3,537 $ 17,654 $ 536,200 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,448 $ 88 $ 3,328 $ 432 $ — $ — $ 5,296 Collectively evaluated for impairment 171,279 34,101 245,735 41,567 3,962 31,350 527,994 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables summarize the loan ratings applied to the Company's loans by class as of the balance sheet dates: June 30, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 161,187 $ 30,693 $ 166,271 $ 41,817 $ 3,475 $ 17,654 $ 421,097 Satisfactory/Monitor 10,535 9,893 82,212 3,933 62 — 106,635 Substandard 3,600 149 3,871 848 — — 8,468 Total $ 175,322 $ 40,735 $ 252,354 $ 46,598 $ 3,537 $ 17,654 $ 536,200 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 158,140 $ 29,248 $ 182,247 $ 38,219 $ 3,928 $ 31,350 $ 443,132 Satisfactory/Monitor 10,641 4,830 62,193 3,109 34 — 80,807 Substandard 3,946 111 4,623 671 — — 9,351 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 |
Impaired Financing Receivables [Table Text Block] | The following tables provide information with respect to impaired loans by class of loan as of and for the three and six months ended June 30, 2017 and June 30, 2016 : As of June 30, 2017 For The Three Months Ended June 30, 2017 For The Six Months Ended June 30, 2017 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 303 $ 312 $ 59 Commercial real estate 393 393 24 With an allowance recorded 696 705 83 Residential real estate 1,467 1,977 — Construction real estate 85 85 — Commercial real estate 1,375 1,447 — Commercial 408 408 — With no allowance recorded 3,335 3,917 — Residential real estate 1,770 2,289 59 $ 1,675 $ 20 $ 1,599 $ 31 Construction real estate 85 85 — 86 1 86 2 Commercial real estate 1,768 1,840 24 1,994 22 2,439 54 Commercial 408 408 — 412 5 419 12 Total $ 4,031 $ 4,622 $ 83 $ 4,167 $ 48 $ 4,543 $ 99 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2017 totaling $635 thousand . As of June 30, 2016 For The Three Months Ended June 30, 2016 For The Six Months Ended June 30, 2016 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 1,304 $ 1,663 $ 58 $ 1,240 $ 8 $ 1,226 $ 16 Construction real estate 90 90 — 90 1 91 2 Commercial real estate 3,153 3,247 84 3,130 17 3,118 31 Commercial 460 461 — 468 — 476 — Total $ 5,007 $ 5,461 $ 142 $ 4,928 $ 26 $ 4,911 $ 49 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2016 totaling $578 thousand . The following table provides information with respect to impaired loans as of December 31, 2016 : December 31, 2016 Recorded Investment (1) Principal Balance (1) Related Allowance (Dollars in thousands) Residential real estate $ 308 $ 317 $ 63 Commercial real estate 488 520 40 With an allowance recorded 796 837 103 Residential real estate 1,140 1,561 — Construction real estate 88 88 — Commercial real estate 2,840 2,910 — Commercial 432 432 — With no allowance recorded 4,500 4,991 — Residential real estate 1,448 1,878 63 Construction real estate 88 88 — Commercial real estate 3,328 3,430 40 Commercial 432 432 — Total $ 5,296 $ 5,828 $ 103 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2016 totaling $637 thousand . |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following is a summary of TDR loans by class of loan as of the balance sheet dates: June 30, 2017 December 31, 2016 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 26 $ 1,770 20 $ 1,448 Construction real estate 1 85 1 88 Commercial real estate 10 965 10 1,452 Commercial 2 408 2 431 Total 39 $ 3,228 33 $ 3,419 |
New Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables provide new TDR activity for the three and six months ended June 30, 2017 and June 30, 2016 : New TDRs During the New TDRs During the Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 3 $ 240 $ 248 6 $ 380 $ 397 Commercial real estate 1 144 144 1 144 144 New TDRs During the New TDRs During the Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 2 $ 132 $ 139 3 $ 189 $ 196 Commercial real estate 2 160 160 2 160 160 |
Defined Benefit Pension Plan (T
Defined Benefit Pension Plan (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic pension benefit for the three and six months ended June 30 consisted of the following components: Three Months Ended Six Months Ended 2017 2016 2017 2016 (Dollars in thousands) Interest cost on projected benefit obligation $ 172 $ 175 $ 344 $ 350 Expected return on plan assets (243 ) (259 ) (486 ) (518 ) Amortization of net loss 51 41 102 82 Net periodic benefit $ (20 ) $ (43 ) $ (40 ) $ (86 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Performance Shares Award Unvested Activity [Table Text Block] | The following table presents a summary of the unvested RSUs from the 2015 and 2016 Award Plan Summaries as of June 30, 2017 : Number of Unvested RSUs Weighted-Average Grant Date Fair Value 2015 Award 3,089 $ 27.91 2016 Award 3,569 45.45 Total 6,658 $ 37.31 |
Other Comprehensive Income (L29
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of the balance sheet dates, the components of Accumulated OCI, net of tax, were: June 30, December 31, (Dollars in thousands) Net unrealized loss on investment securities available-for-sale $ (107 ) $ (664 ) Defined benefit pension plan net unrealized actuarial loss (2,615 ) (2,615 ) Total $ (2,722 ) $ (3,279 ) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The following tables disclose the tax effects allocated to each component of OCI for the three and six months ended June 30 : Three Months Ended June 30, 2017 June 30, 2016 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains arising during the period on investment securities available-for-sale $ 512 $ (174 ) $ 338 $ 582 $ (198 ) $ 384 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (9 ) 3 (6 ) (18 ) 6 (12 ) Total other comprehensive income $ 503 $ (171 ) $ 332 $ 564 $ (192 ) $ 372 Six Months Ended June 30, 2017 June 30, 2016 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains arising during the period on investment securities available-for-sale $ 853 $ (290 ) $ 563 $ 1,358 $ (462 ) $ 896 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (9 ) 3 (6 ) (18 ) 6 (12 ) Total other comprehensive income $ 844 $ (287 ) $ 557 $ 1,340 $ (456 ) $ 884 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table discloses information concerning the reclassification adjustments from OCI for the three and six months ended June 30 , 2017 and 2016 . Three Months Ended Six Months Ended Reclassification Adjustment Description June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Affected Line Item in Consolidated Statement of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (9 ) $ (18 ) $ (9 ) $ (18 ) Net gains on sales of investment securities available-for-sale Tax benefit 3 6 3 6 Provision for income taxes Total reclassifications $ (6 ) $ (12 ) $ (6 ) $ (12 ) Net income |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2017: (Dollars in thousands) Investment securities available-for-sale (market approach) Debt securities: U.S. Government-sponsored enterprises $ 9,607 $ — $ 9,607 $ — Agency mortgage-backed 19,395 — 19,395 — State and political subdivisions 26,516 — 26,516 — Corporate 10,013 — 10,013 — Total debt securities 65,531 — 65,531 — Mutual funds 445 445 — — Total $ 65,976 $ 445 $ 65,531 $ — December 31, 2016: Investment securities available-for-sale (market approach) Debt securities: U.S. Government-sponsored enterprises $ 10,040 $ — $ 10,040 $ — Agency mortgage-backed 18,041 — 18,041 — State and political subdivisions 27,372 — 27,372 — Corporate 9,700 — 9,700 — Total debt securities 65,153 — 65,153 — Mutual funds 403 403 — — Total $ 65,556 $ 403 $ 65,153 $ — |
Fair Values and Carrying Amounts, Significant Financial Instruments [Table Text Block] | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: June 30, 2017 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 14,435 $ 14,435 $ 14,435 $ — $ — Interest bearing deposits in banks 8,356 8,356 — 8,356 — Investment securities 66,976 66,974 445 66,529 — Loans held for sale 5,406 5,496 — 5,496 — Loans, net Residential real estate 174,166 176,075 — — 176,075 Construction real estate 40,308 40,234 — — 40,234 Commercial real estate 249,799 247,772 — — 247,772 Commercial 46,298 45,661 — — 45,661 Consumer 3,518 3,581 — — 3,581 Municipal 17,651 18,069 — — 18,069 Accrued interest receivable 2,029 2,029 — 417 1,612 Nonmarketable equity securities 2,354 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 108,169 $ 108,169 $ 108,169 $ — $ — Interest bearing 356,541 356,541 356,541 — — Time 99,913 99,207 — 99,207 — Borrowed funds Short-term 6,038 6,037 6,037 — — Long-term 30,357 30,303 — 30,303 — Accrued interest payable 73 73 — 73 — December 31, 2016 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 39,275 $ 39,275 $ 39,275 $ — $ — Interest bearing deposits in banks 9,504 9,528 — 9,528 — Investment securities 66,555 66,555 403 66,152 — Loans held for sale 7,803 7,958 — 7,958 — Loans, net Residential real estate 171,538 173,024 — — 173,024 Construction real estate 33,840 33,963 — — 33,963 Commercial real estate 246,317 245,979 — — 245,979 Commercial 41,708 41,491 — — 41,491 Consumer 3,941 4,014 — — 4,014 Municipal 31,348 31,749 — — 31,749 Accrued interest receivable 2,259 2,259 — 414 1,845 Nonmarketable equity securities 2,354 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 112,384 $ 112,384 $ 112,384 $ — $ — Interest bearing 382,083 382,083 382,083 — — Time 103,193 102,594 — 102,594 — Borrowed funds Short-term 1,099 1,099 1,099 — — Long-term 30,496 30,423 — 30,423 — Accrued interest payable 92 92 — 92 — |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets Core Deposit Intangible Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | $ 85 | |
2,018 | 171 | |
2,019 | 171 | |
2,020 | 171 | |
2,021 | 70 | |
Total | $ 668 | $ 754 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets Narrative Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | May 27, 2011 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill at Acquisition | $ 2,200 | ||||
Core Deposit Intangible at Acquisition | $ 1,700 | ||||
Amortization of core deposit intangible | $ 43 | $ 43 | $ 86 | $ 86 |
Investment Securities Available
Investment Securities Available-for-sale and held-to-maturity securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities | ||
Amortized Cost | $ 65,693 | |
Amortized Cost | 66,138 | $ 66,561 |
Gross Unrealized Gains | 450 | 239 |
Gross Unrealized Losses | (612) | (1,244) |
Fair Value | 65,531 | |
Investment securities available-for-sale | 65,976 | 65,556 |
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 1,000 | 999 |
Fair Value | 998 | 999 |
US Government-sponsored enterprises [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 9,744 | 10,221 |
Gross Unrealized Gains | 10 | 15 |
Gross Unrealized Losses | (147) | (196) |
Fair Value | 9,607 | 10,040 |
Investment securities available-for-sale | 9,607 | 10,040 |
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 1,000 | 999 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | 0 |
Fair Value | 998 | 999 |
Agency mortgage-backed [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 19,514 | 18,283 |
Gross Unrealized Gains | 40 | 27 |
Gross Unrealized Losses | (159) | (269) |
Fair Value | 19,395 | 18,041 |
Investment securities available-for-sale | 19,395 | 18,041 |
State and political subdivisions [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 26,505 | 27,909 |
Gross Unrealized Gains | 265 | 113 |
Gross Unrealized Losses | (254) | (650) |
Fair Value | 26,516 | 27,372 |
Investment securities available-for-sale | 26,516 | 27,372 |
Corporate [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 9,930 | 9,745 |
Gross Unrealized Gains | 135 | 84 |
Gross Unrealized Losses | (52) | (129) |
Fair Value | 10,013 | 9,700 |
Investment securities available-for-sale | 10,013 | 9,700 |
Total debt securities [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 65,693 | 66,158 |
Gross Unrealized Gains | 450 | 239 |
Gross Unrealized Losses | (612) | (1,244) |
Fair Value | 65,531 | 65,153 |
Investment securities available-for-sale | 65,531 | 65,153 |
Mutual funds [Member] | ||
Available-for-sale Securities | ||
Mutual Funds, Amortized Cost | 445 | 403 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Mutual Funds, Fair Value | 445 | 403 |
Investment securities available-for-sale | $ 445 | $ 403 |
Investment Securities Debt Secu
Investment Securities Debt Securities by Contactual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities | ||
Due in one year or less, Amortized Cost | $ 625 | |
Due from one to five years, Amortized Cost | 5,745 | |
Due from five to ten years, Amortized Cost | 23,770 | |
Due after ten years, Amortized Cost | 16,039 | |
Debt Securities with Single Maturity Date, Amortized Cost | 46,179 | |
Agency mortgage-backed, Amortized Cost | 19,514 | |
Total debt securities available-for-sale, Amortized Cost | 65,693 | |
Due in one year or less, Fair Value | 625 | |
Due from one to five years, Fair Value | 5,833 | |
Due from five to ten years, Fair Value | 23,842 | |
Due after ten years, Fair Value | 15,836 | |
Debt Securities with Single Maturity Date, Fair Value | 46,136 | |
Agency mortgage-backed, Fair Value | 19,395 | |
Total debt securities available-for-sale, Fair Value | 65,531 | |
Held-to-maturity Securities [Abstract] | ||
Due in one year or less, Amortized Cost | 1,000 | |
Total debt securities held-to-maturity, Amortized Cost | 1,000 | $ 999 |
Due in one year or less, Fair Value | 998 | |
Total debt securities held-to-maturity, Fair Value | $ 998 | $ 999 |
Investment Securities Schedule
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Jun. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 60 | |
Less than 12 Months, Number of Securities | Securities | 83 | |
Less than 12 Months, Fair Value | $ 33,096 | |
Less than 12 Months, Fair Value | $ 43,946 | |
Less than 12 Months, Gross Unrealized Losses | $ (554) | |
Less than 12 Months, Gross Unrealized Losses | $ (1,147) | |
12 Months and over, Number of Securities | Securities | 10 | 8 |
12 Months and over, Fair Value | $ 4,165 | $ 3,143 |
12 Months and over, Gross Unrealized Losses | $ (60) | $ (97) |
Total, Number of Securities | Securities | 70 | |
Total, Number of Securities | Securities | 91 | |
Total, Fair Value | $ 37,261 | |
Total, Fair Value | $ 47,089 | |
Total, Gross Unrealized Losses | $ (614) | |
Total, Gross Unrealized Losses | $ (1,244) | |
US Government-sponsored enterprises [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 11 | |
Less than 12 Months, Number of Securities | Securities | 13 | |
Less than 12 Months, Fair Value | $ 6,812 | |
Less than 12 Months, Fair Value | $ 8,351 | |
Less than 12 Months, Gross Unrealized Losses | $ (132) | |
Less than 12 Months, Gross Unrealized Losses | $ (180) | |
12 Months and over, Number of Securities | Securities | 5 | 3 |
12 Months and over, Fair Value | $ 1,937 | $ 1,172 |
12 Months and over, Gross Unrealized Losses | $ (17) | $ (16) |
Total, Number of Securities | Securities | 16 | |
Total, Number of Securities | Securities | 16 | |
Total, Fair Value | $ 8,749 | |
Total, Fair Value | $ 9,523 | |
Total, Gross Unrealized Losses | $ (149) | |
Total, Gross Unrealized Losses | $ (196) | |
Agency mortgage-backed [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 21 | 22 |
Less than 12 Months, Fair Value | $ 13,748 | $ 15,141 |
Less than 12 Months, Gross Unrealized Losses | $ (155) | $ (261) |
12 Months and over, Number of Securities | Securities | 1 | 1 |
12 Months and over, Fair Value | $ 302 | $ 344 |
12 Months and over, Gross Unrealized Losses | $ (4) | $ (8) |
Total, Number of Securities | Securities | 22 | 23 |
Total, Fair Value | $ 14,050 | $ 15,485 |
Total, Gross Unrealized Losses | $ (159) | $ (269) |
State and political subdivisions [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 25 | 40 |
Less than 12 Months, Fair Value | $ 11,150 | $ 16,481 |
Less than 12 Months, Gross Unrealized Losses | $ (244) | $ (650) |
12 Months and over, Number of Securities | Securities | 1 | 0 |
12 Months and over, Fair Value | $ 457 | $ 0 |
12 Months and over, Gross Unrealized Losses | $ (10) | $ 0 |
Total, Number of Securities | Securities | 26 | 40 |
Total, Fair Value | $ 11,607 | $ 16,481 |
Total, Gross Unrealized Losses | $ (254) | $ (650) |
Corporate [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 3 | 8 |
Less than 12 Months, Fair Value | $ 1,386 | $ 3,973 |
Less than 12 Months, Gross Unrealized Losses | $ (23) | $ (56) |
12 Months and over, Number of Securities | Securities | 3 | 4 |
12 Months and over, Fair Value | $ 1,469 | $ 1,627 |
12 Months and over, Gross Unrealized Losses | $ (29) | $ (73) |
Total, Number of Securities | Securities | 6 | 12 |
Total, Fair Value | $ 2,855 | $ 5,600 |
Total, Gross Unrealized Losses | $ (52) | $ (129) |
Investment Securities Realized
Investment Securities Realized Gains (Loss) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 1,445 | $ 2,673 | $ 1,445 | $ 2,673 |
Gross gains | 32 | 19 | 32 | 19 |
Gross losses | (23) | (1) | (23) | (1) |
Net gains on sales of investment securities AFS | $ 9 | $ 18 | $ 9 | $ 18 |
Investment Securities Narrative
Investment Securities Narrative Data (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Available-for-sale Securities | ||
Investment securities pledged as collateral | $ 9,700 | $ 8,400 |
Other than temporary declines in investment securities | $ 0 |
Loans Composition of Net Loans
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 536,200 | $ 533,290 | ||||
Allowance for loan losses | (5,168) | $ (5,192) | (5,247) | $ (5,226) | $ (5,125) | $ (5,201) |
Net deferred loan costs | 708 | 649 | ||||
Net loans | 531,740 | 528,692 | ||||
Residential Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 175,322 | 172,727 | ||||
Allowance for loan losses | (1,387) | (1,372) | (1,399) | (1,382) | (1,386) | (1,419) |
Construction Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 40,735 | 34,189 | ||||
Commercial Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 252,354 | 249,063 | ||||
Allowance for loan losses | (2,753) | (2,661) | (2,687) | (2,837) | (2,729) | (2,792) |
Commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 46,598 | 41,999 | ||||
Allowance for loan losses | (362) | (346) | (342) | (240) | (218) | (209) |
Consumer [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 3,537 | 3,962 | ||||
Allowance for loan losses | (24) | (24) | (26) | (27) | (25) | (28) |
Municipal [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 17,654 | 31,350 | ||||
Allowance for loan losses | $ (26) | $ (42) | $ (40) | $ (26) | $ (47) | $ (38) |
Loans Past Due Loans (Details)
Loans Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | $ 530,923 | $ 524,891 |
Loans, Nonaccrual | 2,728 | 3,545 |
Loans | 536,200 | 533,290 |
30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 854 | 3,344 |
60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 1,338 | 670 |
90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 357 | 840 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 172,319 | 168,125 |
Loans, Nonaccrual | 1,525 | 1,797 |
Loans | 175,322 | 172,727 |
Residential Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 400 | 1,661 |
Residential Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 851 | 472 |
Residential Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 227 | 672 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 40,531 | 34,148 |
Loans, Nonaccrual | 64 | 24 |
Loans | 40,735 | 34,189 |
Construction Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 140 | 17 |
Construction Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Construction Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 250,476 | 245,402 |
Loans, Nonaccrual | 1,126 | 1,709 |
Loans | 252,354 | 249,063 |
Commercial Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 270 | 1,642 |
Commercial Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 352 | 153 |
Commercial Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 130 | 157 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 46,414 | 41,920 |
Loans, Nonaccrual | 13 | 15 |
Loans | 46,598 | 41,999 |
Commercial [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 37 | 12 |
Commercial [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 134 | 42 |
Commercial [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 10 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 3,529 | 3,946 |
Loans, Nonaccrual | 0 | 0 |
Loans | 3,537 | 3,962 |
Consumer [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 7 | 12 |
Consumer [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 1 | 3 |
Consumer [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 1 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 17,654 | 31,350 |
Loans, Nonaccrual | 0 | 0 |
Loans | 17,654 | 31,350 |
Municipal [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | $ 0 | $ 0 |
Loans Narrative Data (Details)
Loans Narrative Data (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)loans | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans Pledged as Collateral | $ 0 | $ 0 | |
Number of residential real estate loans in process of foreclosure | loans | 2 | ||
Recorded investment in residential real estate loans in process of foreclosure | $ 436 | ||
Interest on Nonaccrual Loans not recognized | $ 1,400 | $ 1,300 | $ 1,300 |
Allowance for loan losses and41
Allowance for loan losses and credit quality Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | $ 5,192 | $ 5,125 | $ 5,247 | $ 5,201 |
Provision (credit) for loan losses | 0 | 75 | 0 | 150 |
Recoveries of amounts charged off | 4 | 26 | 10 | 31 |
Balance, before amounts charged off | 5,196 | 5,226 | 5,257 | 5,382 |
Amounts charged off | (28) | 0 | (89) | (156) |
Balance, End of Period | 5,168 | 5,226 | 5,168 | 5,226 |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 1,372 | 1,386 | 1,399 | 1,419 |
Provision (credit) for loan losses | 39 | (19) | 68 | 68 |
Recoveries of amounts charged off | 0 | 15 | 2 | 15 |
Balance, before amounts charged off | 1,411 | 1,382 | 1,469 | 1,502 |
Amounts charged off | (24) | 0 | (82) | (120) |
Balance, End of Period | 1,387 | 1,382 | 1,387 | 1,382 |
Construction Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 442 | 466 | 391 | 514 |
Provision (credit) for loan losses | 36 | (96) | 84 | (147) |
Recoveries of amounts charged off | 3 | 3 | 6 | 6 |
Balance, before amounts charged off | 481 | 373 | 481 | 373 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | 481 | 373 | 481 | 373 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 2,661 | 2,729 | 2,687 | 2,792 |
Provision (credit) for loan losses | 92 | 108 | 66 | 45 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 2,753 | 2,837 | 2,753 | 2,837 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | 2,753 | 2,837 | 2,753 | 2,837 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 346 | 218 | 342 | 209 |
Provision (credit) for loan losses | 15 | 16 | 19 | 57 |
Recoveries of amounts charged off | 1 | 6 | 1 | 7 |
Balance, before amounts charged off | 362 | 240 | 362 | 273 |
Amounts charged off | 0 | 0 | 0 | (33) |
Balance, End of Period | 362 | 240 | 362 | 240 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 24 | 25 | 26 | 28 |
Provision (credit) for loan losses | 4 | 0 | 4 | (1) |
Recoveries of amounts charged off | 0 | 2 | 1 | 3 |
Balance, before amounts charged off | 28 | 27 | 31 | 30 |
Amounts charged off | (4) | 0 | (7) | (3) |
Balance, End of Period | 24 | 27 | 24 | 27 |
Municipal [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 42 | 47 | 40 | 38 |
Provision (credit) for loan losses | (16) | (21) | (14) | (12) |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 26 | 26 | 26 | 26 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | 26 | 26 | 26 | 26 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 305 | 254 | 362 | 201 |
Provision (credit) for loan losses | (170) | 87 | (227) | 140 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 135 | 341 | 135 | 341 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | $ 135 | $ 341 | $ 135 | $ 341 |
Allowance for loan losses and42
Allowance for loan losses and credit quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 83 | $ 103 | ||||
Collectively evaluated for impairment | 5,085 | 5,144 | ||||
Total allocated | 5,168 | $ 5,192 | 5,247 | $ 5,226 | $ 5,125 | $ 5,201 |
Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 59 | 63 | ||||
Collectively evaluated for impairment | 1,328 | 1,336 | ||||
Total allocated | 1,387 | 1,372 | 1,399 | 1,382 | 1,386 | 1,419 |
Construction Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 481 | 391 | ||||
Total allocated | 481 | 442 | 391 | 373 | 466 | 514 |
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 24 | 40 | ||||
Collectively evaluated for impairment | 2,729 | 2,647 | ||||
Total allocated | 2,753 | 2,661 | 2,687 | 2,837 | 2,729 | 2,792 |
Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 362 | 342 | ||||
Total allocated | 362 | 346 | 342 | 240 | 218 | 209 |
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 24 | 26 | ||||
Total allocated | 24 | 24 | 26 | 27 | 25 | 28 |
Municipal [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 26 | 40 | ||||
Total allocated | 26 | 42 | 40 | 26 | 47 | 38 |
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 135 | 362 | ||||
Total allocated | $ 135 | $ 305 | $ 362 | $ 341 | $ 254 | $ 201 |
Allowance for loan losses and43
Allowance for loan losses and credit quality Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 4,031 | $ 5,296 |
Collectively evaluated for impairment | 532,169 | 527,994 |
Loans | 536,200 | 533,290 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,770 | 1,448 |
Collectively evaluated for impairment | 173,552 | 171,279 |
Loans | 175,322 | 172,727 |
Construction Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 85 | 88 |
Collectively evaluated for impairment | 40,650 | 34,101 |
Loans | 40,735 | 34,189 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,768 | 3,328 |
Collectively evaluated for impairment | 250,586 | 245,735 |
Loans | 252,354 | 249,063 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 408 | 432 |
Collectively evaluated for impairment | 46,190 | 41,567 |
Loans | 46,598 | 41,999 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,537 | 3,962 |
Loans | 3,537 | 3,962 |
Municipal [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 17,654 | 31,350 |
Loans | $ 17,654 | $ 31,350 |
Allowance for loan losses and44
Allowance for loan losses and credit quality Loan Ratings by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 536,200 | $ 533,290 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 421,097 | 443,132 |
Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 106,635 | 80,807 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,468 | 9,351 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 175,322 | 172,727 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 161,187 | 158,140 |
Residential Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,535 | 10,641 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,600 | 3,946 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,735 | 34,189 |
Construction Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 30,693 | 29,248 |
Construction Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,893 | 4,830 |
Construction Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 149 | 111 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 252,354 | 249,063 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 166,271 | 182,247 |
Commercial Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 82,212 | 62,193 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,871 | 4,623 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 46,598 | 41,999 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 41,817 | 38,219 |
Commercial [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,933 | 3,109 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 848 | 671 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,537 | 3,962 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,475 | 3,928 |
Consumer [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 62 | 34 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 17,654 | 31,350 |
Municipal [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 17,654 | 31,350 |
Municipal [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Allowance for loan losses and45
Allowance for loan losses and credit quality Impaired Loans by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
With an alowance recorded, Recorded Investment | $ 696 | $ 696 | $ 796 | |||||||
With an allowance recorded, Principal Balance | 705 | 705 | 837 | |||||||
Related Allowance | 83 | $ 142 | 83 | $ 142 | 103 | |||||
With no allowance recorded, Recorded Investment | 3,335 | [1] | 3,335 | [1] | 4,500 | [2] | ||||
With no allowance recorded, Principal Balance | 3,917 | [1] | 3,917 | [1] | 4,991 | [2] | ||||
Total, Recorded Investment | 4,031 | [1] | 5,007 | [3] | 4,031 | [1] | 5,007 | [3] | 5,296 | [2] |
Total, Principal Balance | 4,622 | [1] | 5,461 | [3] | 4,622 | [1] | 5,461 | [3] | 5,828 | [2] |
Total, Average Recorded Investment | 4,167 | 4,928 | 4,543 | 4,911 | ||||||
Total, Interest Income Recognized | 48 | 26 | 99 | 49 | ||||||
Government Guarantees on Impaired Loans | 635 | 578 | 635 | 578 | 637 | |||||
Residential Real Estate [Member] | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
With an alowance recorded, Recorded Investment | 303 | 303 | 308 | |||||||
With an allowance recorded, Principal Balance | 312 | 312 | 317 | |||||||
Related Allowance | 59 | 58 | 59 | 58 | 63 | |||||
With no allowance recorded, Recorded Investment | 1,467 | [1] | 1,467 | [1] | 1,140 | [2] | ||||
With no allowance recorded, Principal Balance | 1,977 | [1] | 1,977 | [1] | 1,561 | [2] | ||||
Total, Recorded Investment | 1,770 | [1] | 1,304 | [3] | 1,770 | [1] | 1,304 | [3] | 1,448 | [2] |
Total, Principal Balance | 2,289 | [1] | 1,663 | [3] | 2,289 | [1] | 1,663 | [3] | 1,878 | [2] |
Total, Average Recorded Investment | 1,675 | 1,240 | 1,599 | 1,226 | ||||||
Total, Interest Income Recognized | 20 | 8 | 31 | 16 | ||||||
Construction Real Estate [Member] | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Related Allowance | 0 | 0 | 0 | 0 | 0 | |||||
With no allowance recorded, Recorded Investment | 85 | 85 | 88 | |||||||
With no allowance recorded, Principal Balance | 85 | 85 | 88 | |||||||
Total, Recorded Investment | 85 | 90 | 85 | 90 | 88 | |||||
Total, Principal Balance | 85 | 90 | 85 | 90 | 88 | |||||
Total, Average Recorded Investment | 86 | 90 | 86 | 91 | ||||||
Total, Interest Income Recognized | 1 | 1 | 2 | 2 | ||||||
Commercial Real Estate [Member] | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
With an alowance recorded, Recorded Investment | 393 | 393 | 488 | |||||||
With an allowance recorded, Principal Balance | 393 | 393 | 520 | |||||||
Related Allowance | 24 | 84 | 24 | 84 | 40 | |||||
With no allowance recorded, Recorded Investment | 1,375 | [1] | 1,375 | [1] | 2,840 | [2] | ||||
With no allowance recorded, Principal Balance | 1,447 | [1] | 1,447 | [1] | 2,910 | [2] | ||||
Total, Recorded Investment | 1,768 | [1] | 3,153 | 1,768 | [1] | 3,153 | 3,328 | [2] | ||
Total, Principal Balance | 1,840 | [1] | 3,247 | 1,840 | [1] | 3,247 | 3,430 | [2] | ||
Total, Average Recorded Investment | 1,994 | 3,130 | 2,439 | 3,118 | ||||||
Total, Interest Income Recognized | 22 | 17 | 54 | 31 | ||||||
Commercial [Member] | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Related Allowance | 0 | 0 | 0 | 0 | 0 | |||||
With no allowance recorded, Recorded Investment | 408 | [1] | 408 | [1] | 432 | [2] | ||||
With no allowance recorded, Principal Balance | 408 | [1] | 408 | [1] | 432 | [2] | ||||
Total, Recorded Investment | 408 | [1] | 460 | [3] | 408 | [1] | 460 | [3] | 432 | [2] |
Total, Principal Balance | 408 | [1] | 461 | [3] | 408 | [1] | 461 | [3] | $ 432 | [2] |
Total, Average Recorded Investment | 412 | 468 | 419 | 476 | ||||||
Total, Interest Income Recognized | $ 5 | $ 0 | $ 12 | $ 0 | ||||||
[1] | Does not reflect government guaranties on impaired loans as of June 30, 2017 totaling $635 thousand. | |||||||||
[2] | Does not reflect government guaranties on impaired loans as of December 31, 2016 totaling $637 thousand. | |||||||||
[3] | Does not reflect government guaranties on impaired loans as of June 30, 2016 totaling $578 thousand. |
Allowance for loan losses and46
Allowance for loan losses and credit quality Troubled Debt Restured Loans (Details) $ in Thousands | Jun. 30, 2017USD ($)loans | Dec. 31, 2016USD ($)loans |
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 39 | 33 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 3,228 | $ 3,419 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 26 | 20 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,770 | $ 1,448 |
Construction Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 1 | 1 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 85 | $ 88 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 10 | 10 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 965 | $ 1,452 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 2 | 2 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 408 | $ 431 |
Allowance for loan losses and47
Allowance for loan losses and credit quality New Troubled Debt Restructured Loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)loans | Jun. 30, 2016USD ($)loans | Jun. 30, 2017USD ($)loans | Jun. 30, 2016USD ($)loans | |
Residential Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
New TDRs, Number of Loans | loans | 3 | 2 | 6 | 3 |
New TDRs, Pre-Modification Outstanding Recorded Investment | $ 240 | $ 132 | $ 380 | $ 189 |
New TDRs, Post-Modification Outstanding Recorded Investment | $ 248 | $ 139 | $ 397 | $ 196 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
New TDRs, Number of Loans | loans | 1 | 2 | 1 | 2 |
New TDRs, Pre-Modification Outstanding Recorded Investment | $ 144 | $ 160 | $ 144 | $ 160 |
New TDRs, Post-Modification Outstanding Recorded Investment | $ 144 | $ 160 | $ 144 | $ 160 |
Allowance for loan losses and48
Allowance for loan losses and credit quality Narrative Data (Details) - loans | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of TDR loans modified within the previous twelve months that had subsequently defaulted | 0 | 0 | 0 | 0 |
Defined Benefit Pension Plan Ne
Defined Benefit Pension Plan Net Periodic Pension Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on projected benefit obligation | $ 172 | $ 175 | $ 344 | $ 350 |
Expected return on plan assets | (243) | (259) | (486) | (518) |
Amortization of net loss | 51 | 41 | 102 | 82 |
Net periodic benefit | $ (20) | $ (43) | $ (40) | $ (86) |
Defined Benefit Pension Plan Na
Defined Benefit Pension Plan Narrative Data (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Estimated net periodic pension benefit | $ 80 | |
Expected rate of return on plan assets | 6.00% | 6.75% |
Stock Based Compensation Summar
Stock Based Compensation Summary of Unvested RSUs (Details) - 2014 Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] - $ / shares | Jun. 30, 2017 | Mar. 15, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Unvested RSUs | 6,658 | |
Weighted Average Grant Date Fair Value | $ 37.31 | $ 41.20 |
2015 Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Unvested RSUs | 3,089 | |
Weighted Average Grant Date Fair Value | $ 27.91 | |
2016 Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Unvested RSUs | 3,569 | |
Weighted Average Grant Date Fair Value | $ 45.45 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative Data (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2017 | Mar. 15, 2017 | Jun. 30, 2016 |
2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for equity awards | 50,000 | ||
Stock options outstanding | 4,500 | ||
Stock options exercisable | 4,500 | ||
Unrecognized compensation expense, stock options | $ 0 | ||
Intrinsic value of stock options | $ 106 | ||
Shares available for future equity awards | 34,986 | ||
2014 Equity Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, unvested RSUs | $ 124 | $ 121 | |
Contingent RSUs provisionally granted | 3,308 | ||
Grant date fair value | $ 37.31 | $ 41.20 | |
Unrecognized compensation expense, contingent unvested RSUs | $ 136 | ||
2008 ISO Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 4,000 | ||
Stock options exercisable | 4,000 | ||
Unrecognized compensation expense, stock options | $ 0 | ||
Intrinsic value of stock options | $ 104 |
Other Comprehensive Income (L53
Other Comprehensive Income (Loss) Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Net unrealized loss on investment securities available-for-sale | $ (107) | $ (664) |
Defined benefit pension plan net unrealized actuarial loss | (2,615) | (2,615) |
Total | $ (2,722) | $ (3,279) |
Other Comprehensive Income (L54
Other Comprehensive Income (Loss) Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Comprehensive Income, before Tax [Abstract] | ||||
Net unrealized holding gains arising during the period on investment securities available-for-sale, Before Tax Amount | $ 512 | $ 582 | $ 853 | $ 1,358 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before Tax Amount | (9) | (18) | (9) | (18) |
Total other comprehensive income, Before Tax Amount | 503 | 564 | 844 | 1,340 |
Other Comprehensive Income, Tax [Abstract] | ||||
Net unrealized holding gains arising during the period on investment securities available-for-sale, Tax | (174) | (198) | (290) | (462) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 3 | 6 | 3 | 6 |
Total other comprehensive income income, Tax | (171) | (192) | (287) | (456) |
Net unrealized holding gains arising during the period on investment securities available-for-sale | 338 | 384 | 563 | 896 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | (6) | (12) | (6) | (12) |
Total other comprehensive income, Net of Tax Amount | $ 332 | $ 372 | $ 557 | $ 884 |
Other Comprehensive Income (L55
Other Comprehensive Income (Loss) Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before Tax Amount | $ (9) | $ (18) | $ (9) | $ (18) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 3 | 6 | 3 | 6 |
Total reclassifications | $ (6) | $ (12) | $ (6) | $ (12) |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 65,976 | $ 65,556 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 445 | 403 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 65,531 | 65,153 |
US Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 9,607 | 10,040 |
US Government-sponsored enterprises [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 9,607 | 10,040 |
Agency mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 19,395 | 18,041 |
Agency mortgage-backed [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 19,395 | 18,041 |
State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 26,516 | 27,372 |
State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 26,516 | 27,372 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,013 | 9,700 |
Corporate [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,013 | 9,700 |
Total debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 65,531 | 65,153 |
Total debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 65,531 | 65,153 |
Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 445 | 403 |
Mutual funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 445 | $ 403 |
Fair Value Measurement Fair V57
Fair Value Measurement Fair Values and Carrying Amounts, Significant Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 14,435 | $ 39,275 | $ 24,199 | $ 17,961 |
Interest bearing deposits in banks | 8,356 | 9,504 | ||
Loans held for sale | 5,406 | 7,803 | ||
Loans, net | 536,200 | 533,290 | ||
Accrued interest receivable | 2,029 | 2,259 | ||
Deposits | ||||
Noninterest bearing | 108,169 | 112,384 | ||
Interest bearing | 356,541 | 382,083 | ||
Time | 99,913 | 103,193 | ||
Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 175,322 | 172,727 | ||
Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 40,735 | 34,189 | ||
Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 252,354 | 249,063 | ||
Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 46,598 | 41,999 | ||
Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 3,537 | 3,962 | ||
Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 17,654 | 31,350 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 14,435 | 39,275 | ||
Investment securities | 445 | 403 | ||
Deposits | ||||
Noninterest bearing | 108,169 | 112,384 | ||
Interest bearing | 356,541 | 382,083 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 6,037 | 1,099 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest bearing deposits in banks | 8,356 | 9,528 | ||
Investment securities | 66,529 | 66,152 | ||
Loans held for sale | 5,496 | 7,958 | ||
Accrued interest receivable | 417 | 414 | ||
Deposits | ||||
Time | 99,207 | 102,594 | ||
Borrowed funds [Abstract] | ||||
Long-term, Fair Value | 30,303 | 30,423 | ||
Accrued interest payable | 73 | 92 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accrued interest receivable | 1,612 | 1,845 | ||
Significant Unobservable Inputs (Level 3) [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 176,075 | 173,024 | ||
Significant Unobservable Inputs (Level 3) [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 40,234 | 33,963 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 247,772 | 245,979 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 45,661 | 41,491 | ||
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 3,581 | 4,014 | ||
Significant Unobservable Inputs (Level 3) [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 18,069 | 31,749 | ||
Carrying Amount [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 14,435 | 39,275 | ||
Interest bearing deposits in banks | 8,356 | 9,504 | ||
Investment securities | 66,976 | 66,555 | ||
Loans held for sale | 5,406 | 7,803 | ||
Accrued interest receivable | 2,029 | 2,259 | ||
Nonmarketable equity securities | 2,354 | 2,354 | ||
Deposits | ||||
Noninterest bearing | 108,169 | 112,384 | ||
Interest bearing | 356,541 | 382,083 | ||
Time | 99,913 | 103,193 | ||
Borrowed funds [Abstract] | ||||
Short-term | 6,038 | 1,099 | ||
Long-term | 30,357 | 30,496 | ||
Accrued interest payable | 73 | 92 | ||
Carrying Amount [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 174,166 | 171,538 | ||
Carrying Amount [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 40,308 | 33,840 | ||
Carrying Amount [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 249,799 | 246,317 | ||
Carrying Amount [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 46,298 | 41,708 | ||
Carrying Amount [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 3,518 | 3,941 | ||
Carrying Amount [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 17,651 | 31,348 | ||
Estimated Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 14,435 | 39,275 | ||
Interest bearing deposits in banks | 8,356 | 9,528 | ||
Investment securities | 66,974 | 66,555 | ||
Loans held for sale | 5,496 | 7,958 | ||
Accrued interest receivable | 2,029 | 2,259 | ||
Deposits | ||||
Noninterest bearing | 108,169 | 112,384 | ||
Interest bearing | 356,541 | 382,083 | ||
Time | 99,207 | 102,594 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 6,037 | 1,099 | ||
Long-term, Fair Value | 30,303 | 30,423 | ||
Accrued interest payable | 73 | 92 | ||
Estimated Fair Value [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 176,075 | 173,024 | ||
Estimated Fair Value [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 40,234 | 33,963 | ||
Estimated Fair Value [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 247,772 | 245,979 | ||
Estimated Fair Value [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 45,661 | 41,491 | ||
Estimated Fair Value [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 3,581 | 4,014 | ||
Estimated Fair Value [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | $ 18,069 | $ 31,749 |
Subsequent Events Narrative Dat
Subsequent Events Narrative Data (Details) - Dividend Declared [Member] | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Subsequent Event [Line Items] | |
Declaration date, cash dividend | Jul. 19, 2017 |
Cash dividend declared, per share | $ 0.29 |
Payable date, cash dividend | Aug. 9, 2017 |
Record date, cash dividend | Jul. 28, 2017 |