Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AMERISERV FINANCIAL INC /PA/ | |
Entity Central Index Key | 0000707605 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 17,043,644 | |
COMMON STOCK [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | ASRV | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Beneficial Unsecured Securities | ||
Document Information [Line Items] | ||
Trading Symbol | ASRVP | |
Title of 12(b) Security | Beneficial Unsecured Securities | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from depository institutions | $ 17,675 | $ 15,642 |
Interest bearing deposits | 2,890 | 2,755 |
Short-term investments in money market funds | 3,541 | 3,771 |
Total cash and cash equivalents | 24,106 | 22,168 |
Investment securities: | ||
Available for sale, at fair value | 142,716 | 141,749 |
Held to maturity (fair value $44,236 on March 31, 2020 and $41,082 on December 31, 2019) | 42,068 | 39,936 |
Loans held for sale | 4,750 | 4,868 |
Loans | 873,055 | 883,090 |
Less: Unearned income | 406 | 384 |
Allowance for loan losses | 9,334 | 9,279 |
Net loans | 863,315 | 873,427 |
Premises and equipment: | ||
Operating lease right-of-use asset | 825 | 846 |
Financing lease right-of-use asset | 3,074 | 3,078 |
Other premises and equipment, net | 14,660 | 14,643 |
Accrued interest income receivable | 3,759 | 3,449 |
Goodwill | 11,944 | 11,944 |
Bank owned life insurance | 39,041 | 38,916 |
Net deferred tax asset | 3,705 | 3,976 |
Federal Home Loan Bank stock | 3,988 | 3,985 |
Federal Reserve Bank stock | 2,125 | 2,125 |
Other assets | 8,279 | 6,074 |
TOTAL ASSETS | 1,168,355 | 1,171,184 |
LIABILITIES | ||
Non-interest bearing deposits | 145,630 | 136,462 |
Interest bearing deposits | 811,963 | 824,051 |
Total deposits | 957,593 | 960,513 |
Short-term borrowings | 16,354 | 22,412 |
Advances from Federal Home Loan Bank | 58,218 | 53,668 |
Operating lease liabilities | 842 | 865 |
Financing lease liabilities | 3,177 | 3,163 |
Guaranteed junior subordinated deferrable interest debentures, net | 12,959 | 12,955 |
Subordinated debt, net | 7,517 | 7,511 |
Total borrowed funds | 99,067 | 100,574 |
Other liabilities | 10,855 | 11,483 |
TOTAL LIABILITIES | 1,067,515 | 1,072,570 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,672,463 shares issued and 17,043,644 shares outstanding on March 31, 2020; 26,650,728 shares issued and 17,057,871 shares outstanding on December 31, 2019 | 267 | 267 |
Treasury stock at cost, 9,628,819 shares on March 31, 2020 and 9,592,857 shares on December 31, 2019 | (83,280) | (83,129) |
Capital surplus | 145,938 | 145,888 |
Retained earnings | 52,745 | 51,759 |
Accumulated other comprehensive loss, net | (14,830) | (16,171) |
TOTAL SHAREHOLDERS' EQUITY | 100,840 | 98,614 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,168,355 | $ 1,171,184 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Held to maturity securities, fair value | $ 44,236 | $ 41,082 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 26,672,463 | 26,650,728 |
Common stock, shares outstanding | 17,043,644 | 17,057,871 |
Treasury stock, shares | 9,628,819 | 9,592,857 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 10,332 | $ 10,418 |
Interest bearing deposits | 4 | 6 |
Short-term investments in money market funds | 72 | 69 |
Investment securities: | ||
Available for sale | 1,183 | 1,319 |
Held to maturity | 353 | 352 |
Total Interest Income | 11,944 | 12,164 |
INTEREST EXPENSE | ||
Deposits | 2,458 | 2,730 |
Short-term borrowings | 12 | 102 |
Advances from Federal Home Loan Bank | 284 | 235 |
Financing lease liabilities | 29 | 30 |
Guaranteed junior subordinated deferrable interest debentures | 280 | 280 |
Subordinated debt | 130 | 130 |
Total Interest Expense | 3,193 | 3,507 |
NET INTEREST INCOME | 8,751 | 8,657 |
Provision (credit) for loan losses | 175 | (400) |
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES | 8,576 | 9,057 |
NON-INTEREST INCOME | ||
Wealth management fees | 2,554 | 2,396 |
Service charges on deposit accounts | 286 | 310 |
Net gains on sale of loans | 237 | 62 |
Mortgage related fees | 126 | 44 |
Bank owned life insurance | 125 | 128 |
Other income | 504 | 665 |
Total Non-Interest Income | 3,832 | 3,605 |
NON-INTEREST EXPENSE | ||
Salaries and employee benefits | 6,704 | 6,301 |
Net occupancy expense | 671 | 658 |
Equipment expense | 395 | 361 |
Professional fees | 1,154 | 1,120 |
Supplies, postage and freight | 179 | 173 |
Miscellaneous taxes and insurance | 275 | 277 |
Federal deposit insurance expense | 26 | 80 |
Other expense | 1,229 | 1,323 |
Total Non-Interest Expense | 10,633 | 10,293 |
PRETAX INCOME | 1,775 | 2,369 |
Provision for income tax expense | 366 | 491 |
NET INCOME | $ 1,409 | $ 1,878 |
Basic: | ||
Net income | $ 0.08 | $ 0.11 |
Average number of shares outstanding | 17,043 | 17,578 |
Diluted: | ||
Net income | $ 0.08 | $ 0.11 |
Average number of shares outstanding | 17,099 | 17,664 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
COMPREHENSIVE INCOME | ||
Net income | $ 1,409 | $ 1,878 |
Other comprehensive income (loss), before tax: | ||
Pension obligation change for defined benefit plan | 528 | (1,835) |
Income tax effect | (111) | 385 |
Unrealized holding gains on available for sale securities arising during period | 1,170 | 1,763 |
Income tax effect | (246) | (370) |
Other comprehensive income (loss) | 1,341 | (57) |
Comprehensive income | $ 2,750 | $ 1,821 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | COMMON STOCK [Member] | TREASURY STOCK [Member] | CAPITAL SURPLUS [Member] | RETAINED EARNINGS [Member] | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET [Member] | Total |
Balance at beginning of period at Dec. 31, 2018 | $ 266 | $ (80,579) | $ 145,782 | $ 46,733 | $ (14,225) | |
New common shares issued for exercise of stock options | 0 | 85 | ||||
Treasury stock, purchased at cost (35,962 and 112,311 shares for the three months ended March 31, 2020 and 2019, respectively) | (476) | |||||
Stock option expense | 3 | |||||
Net income | 1,878 | $ 1,878 | ||||
Cash dividend declared on common stock ($0.025 and $0.020 per share for the three months ended March 31, 2020 and 2019, respectively) | (349) | |||||
Other comprehensive income (loss) | (57) | (57) | ||||
Balance at end of period at Mar. 31, 2019 | 266 | (81,055) | 145,870 | 48,262 | (14,282) | 99,061 |
Balance at beginning of period at Dec. 31, 2019 | 267 | (83,129) | 145,888 | 51,759 | (16,171) | 98,614 |
New common shares issued for exercise of stock options | 0 | 49 | ||||
Treasury stock, purchased at cost (35,962 and 112,311 shares for the three months ended March 31, 2020 and 2019, respectively) | (151) | |||||
Stock option expense | 1 | |||||
Net income | 1,409 | 1,409 | ||||
Cash dividend declared on common stock ($0.025 and $0.020 per share for the three months ended March 31, 2020 and 2019, respectively) | (423) | |||||
Other comprehensive income (loss) | 1,341 | 1,341 | ||||
Balance at end of period at Mar. 31, 2020 | $ 267 | $ (83,280) | $ 145,938 | $ 52,745 | $ (14,830) | $ 100,840 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Treasury stock, purchased at cost, shares | 35,962 | 112,311 |
New common shares issued for exercise of stock options, shares | 21,735 | 33,684 |
Cash dividend declared per common share | $ 0.025 | $ 0.020 |
COMMON STOCK [Member] | ||
New common shares issued for exercise of stock options, shares | 21,735 | 33,684 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,409 | $ 1,878 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision (credit) for loan losses | 175 | (400) |
Depreciation and amortization expense | 492 | 450 |
Net amortization of investment securities | 65 | 66 |
Net gains on loans held for sale | (237) | (62) |
Amortization of deferred loan fees | (26) | (30) |
Origination of mortgage loans held for sale | (15,264) | (3,866) |
Sales of mortgage loans held for sale | 15,619 | 4,156 |
Increase in accrued interest receivable | (310) | (443) |
Decrease in accrued interest payable | (150) | (17) |
Earnings on bank owned life insurance | (125) | (128) |
Deferred income taxes | 351 | 532 |
Stock compensation expense | 1 | 3 |
Net change in operating leases | (23) | (4) |
Other, net | (2,603) | (434) |
Net cash provided by (used in) operating activities | (626) | 1,701 |
INVESTING ACTIVITIES | ||
Purchase of investment securities - available for sale | (6,223) | (9,063) |
Purchase of investment securities - held to maturity | (2,618) | 0 |
Proceeds from maturities of investment securities - available for sale | 6,380 | 3,484 |
Proceeds from maturities of investment securities - held to maturity | 467 | 214 |
Purchase of regulatory stock | (2,010) | (4,104) |
Proceeds from redemption of regulatory stock | 2,007 | 4,589 |
Long-term loans originated | (42,615) | (49,039) |
Principal collected on long-term loans | 52,578 | 48,654 |
Proceeds from sale of other real estate owned | 21 | 176 |
Purchase of premises and equipment | (421) | (1,395) |
Net cash provided by (used in) investing activities | 7,566 | (6,484) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposit balances | (2,920) | 8,608 |
Net decrease in other short-term borrowings | (6,058) | (10,117) |
Principal borrowings on advances from Federal Home Loan Bank | 11,050 | 2,850 |
Principal repayments on advances from Federal Home Loan Bank | (6,500) | (1,000) |
Principal payments on financing lease liabilities | (49) | (41) |
Stock options exercised | 49 | 85 |
Purchase of treasury stock | (151) | (476) |
Common stock dividends | (423) | (349) |
Net cash used in financing activities | (5,002) | (440) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,938 | (5,223) |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 22,168 | 34,894 |
CASH AND CASH EQUIVALENTS AT MARCH 31 | $ 24,106 | $ 29,671 |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Mar. 31, 2020 | |
Principles of Consolidation | |
Principles of Consolidation | 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of AmeriServ Financial, Inc. (the Company) and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), AmeriServ Trust and Financial Services Company (the Trust Company), and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a Pennsylvania state-chartered full service bank with 15 locations in Pennsylvania and 1 location in Maryland. The Trust Company offers a complete range of trust and financial services and administers assets valued at $2.0 billion that are not reported on the Company’s Consolidated Balance Sheets at March 31, 2020. AmeriServ Life is a captive insurance company that engages in underwriting as a reinsurer of credit life and disability insurance. In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Significant intercompany accounts and transactions have been eliminated in preparing the consolidated financial statements. |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Preparation | |
Basis of Preparation | 2. Basis of Preparation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. They are not, however, necessarily indicative of the results of consolidated operations for a full-year. For further information, refer to the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016‑13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016‑13), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies , non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company, as a smaller reporting company, continues to evaluate the impact that the Update will have on our consolidated financial statements. We are currently working with an industry leading third-party consultant and software provider to assist us in the implementation of this standard. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The overall impact of the amendment will be affected by the portfolio composition and quality at the adoption date as well as economic conditions and forecasts at that time. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition | |
Revenue Recognition | 4. Revenue Recognition ASU 2014-09, Revenue from Contracts with Customers – Topic 606 , requires the Company to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers at the time the transfer of goods or services takes place. Management determined that the primary sources of revenue associated with financial instruments, including interest and fee income on loans and interest on investments, along with certain noninterest revenue sources including net realized gains (losses) on investment securities, mortgage related fees, net gains on loans held for sale, and bank owned life insurance are not within the scope of Topic 606. These sources of revenue cumulatively comprise 79.5% of the total revenue of the Company. Non-interest income within the scope of Topic 606 are as follows: · Wealth management fees - Wealth management fee income is primarily comprised of fees earned from the management and administration of trusts and customer investment portfolios. The Company’s performance obligation is generally satisfied over a period of time and the resulting fees are billed monthly or quarterly, based upon the month end market value of the assets under management. Payment is generally received after month end through a direct charge to customers’ accounts. Due to this delay in payment, a receivable of $825,000 has been established as of March 31, 2020 and is included in other assets on the Consolidated Balance Sheets in order to properly recognize the revenue earned but not yet received. Other performance obligations (such as delivery of account statements to customers) are generally considered immaterial to the overall transactions price. Commissions on transactions are recognized on a trade-date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Also included within wealth management fees are commissions from the sale of mutual funds, annuities, and life insurance products. Commissions on the sale of mutual funds, annuities, and life insurance products are recognized when sold, which is when the Company has satisfied its performance obligation. · Service charges on deposit accounts - The Company has contracts with its deposit account customers where fees are charged for certain items or services. Service charges include account analysis fees, monthly service fees, overdraft fees, and other deposit account related fees. Revenue related to account analysis fees and service fees is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. Fees attributable to specific performance obligations of the Company (i.e. overdraft fees, etc.) are recognized at a defined point in time based on completion of the requested service or transaction. · Other non-interest income - Other non-interest income consists of other recurring revenue streams such as safe deposit box rental fees, gain (loss) on sale of other real estate owned and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized when billed. However, if the safe deposit box rental fee is prepaid (i.e. paid prior to issuance of annual bill), the revenue is recognized upon receipt of payment. The Company has determined that since rentals and renewals occur consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gains and losses on the sale of other real estate owned are recognized at the completion of the property sale when the buyer obtains control of the real estate and all the performance obligations of the Company have been satisfied. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three month periods ending March 31, 2020 and 2019 (in thousands). Three months ended March 31, 2020 2019 Non-interest income: In-scope of Topic 606 Wealth management fees $ 2,554 $ 2,396 Service charges on deposit accounts 286 310 Other 390 420 Non-interest income (in-scope of Topic 606) 3,230 3,126 Non-interest income (out-of-scope of Topic 606) 602 479 Total non-interest income $ 3,832 $ 3,605 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Common Share | |
Earnings Per Common Share | 5. Earnings Per Common Share Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. For the three month periods ending March 31, 2020 and 2019, options to purchase 29,500 common shares, with an exercise price of $3.90 to $4.22, and options to purchase 12,000 common shares, with an exercise price of $4.19 to $4.22, respectively, were outstanding but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Three months ended March 31, 2020 2019 (In thousands, except per share data) Numerator: Net income $ 1,409 $ 1,878 Denominator: Weighted average common shares outstanding (basic) 17,043 17,578 Effect of stock options 56 86 Weighted average common shares outstanding (diluted) 17,099 17,664 Earnings per common share: Basic $ 0.08 $ 0.11 Diluted 0.08 0.11 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows | 3 Months Ended |
Mar. 31, 2020 | |
Consolidated Statement of Cash Flows. | |
Consolidated Statement of Cash Flows | 6. Consolidated Statement of Cash Flows On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest bearing deposits and short-term investments in money market funds. The Company made no income tax payments in the first three months of 2020 and 2019. The Company made total interest payments of $3,343,000 in the first three months of 2020 compared to $3,524,000 in the same 2019 period. The Company had no non-cash transfers to other real estate owned (OREO) in the first three months of 2020 compared to $18,000 non-cash transfers in the same 2019 period. During the first three months of 2020, the Company entered into a new financing lease related to office equipment and recorded a right-of-use asset and lease liability of $63,000. As a result of the adoption of ASU 2016-02, Leases (Topic 842) as of January 1, 2019, the Company had non-cash transactions associated with the recognition of the right-of-use assets and lease liabilities. Specifically, the Company recognized a right-of-use asset and lease liability of $932,000 related to operating leases and a right-of-use asset and lease liability of $3.3 million related to financing leases during the first three months of 2019. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investment Securities | |
Investment Securities | 7. Investment Securities The cost basis and fair values of investment securities are summarized as follows (in thousands): Investment securities available for sale (AFS): March 31, 2020 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 3,895 $ 72 $ — $ 3,967 US Agency mortgage- backed securities 78,862 3,278 (56) 82,084 Municipal 14,925 899 — 15,824 Corporate bonds 41,693 470 (1,322) 40,841 Total $ 139,375 $ 4,719 $ (1,378) $ 142,716 Investment securities held to maturity (HTM): March 31, 2020 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 10,510 $ 508 $ — $ 11,018 Municipal 25,527 1,674 (50) 27,151 Corporate bonds and other securities 6,031 42 (6) 6,067 Total $ 42,068 $ 2,224 $ (56) $ 44,236 Investment securities available for sale (AFS): December 31, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 5,084 $ $ — $ 5,116 US Agency mortgage- backed securities 80,046 1,681 (94) 81,633 Municipal 14,678 509 (17) 15,170 Corporate bonds 39,769 342 (281) 39,830 Total $ 139,577 $ 2,564 $ (392) $ 141,749 Investment securities held to maturity (HTM): December 31, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 9,466 $ 251 $ (4) $ 9,713 Municipal 24,438 941 (53) 25,326 Corporate bonds and other securities 6,032 58 (47) 6,043 Total $ 39,936 $ 1,250 $ (104) $ 41,082 Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investor’s Service or Standard & Poor’s rating of “A.” At March 31, 2020, 52.1% of the portfolio was rated “AAA” as compared to 53.4% at December 31, 2019. Approximately 9.8% of the portfolio was either rated below “A” or unrated at March 31, 2020 as compared to 9.1% at December 31, 2019. The Company sold no AFS securities during the first quarter of 2020 and 2019. The carrying value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $117,364,000 at March 31, 2020 and $117,076,000 at December 31, 2019. The following tables present information concerning investments with unrealized losses as of March 31, 2020 and December 31, 2019 (in thousands): Total investment securities: March 31, 2020 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ — $ — $ — $ — $ — $ — US Agency mortgage-backed securities 2,363 (19) 1,885 (37) 4,248 (56) Municipal 144 (1) 757 (49) 901 (50) Corporate bonds and other securities 12,784 (786) 6,958 (542) 19,742 (1,328) Total $ 15,291 $ (806) $ 9,600 $ (628) $ 24,891 $ (1,434) Total investment securities: December 31, 2019 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ — $ — $ — $ — $ — $ — US Agency mortgage-backed securities 7,084 (23) 8,562 (75) 15,646 (98) Municipal 2,269 (18) 1,123 (52) 3,392 (70) Corporate bonds and other securities 7,797 (85) 11,783 (243) 19,580 (328) Total $ 17,150 $ (126) $ 21,468 $ (370) $ 38,618 $ (496) The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 34 positions that are considered temporarily impaired at March 31, 2020. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature. Contractual maturities of securities at March 31, 2020 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. The weighted average duration of the total investment securities portfolio at March 31, 2020 is 24.7 months and is lower than the duration at December 31, 2019 which was 36.9 months. The duration remains within our internal established guideline range of 24 to 60 months which we believe is appropriate to maintain proper levels of liquidity, interest rate risk, market valuation sensitivity and profitability. Total investment securities: March 31, 2020 Available for sale Held to maturity Cost Fair Cost Fair Basis Value Basis Value Within 1 year $ 3,491 $ 3,486 $ — $ — After 1 year but within 5 years 23,276 23,068 7,530 7,732 After 5 years but within 10 years 39,693 40,334 20,094 21,386 After 10 years but within15 years 21,766 22,749 7,707 8,116 Over 15 years 51,149 53,079 6,737 7,002 Total $ 139,375 $ 142,716 $ 42,068 $ 44,236 As of March 31, 2020 and December 31, 2019, the Company reported $386,000 and $366,000, respectively, of equity securities within other assets on the Consolidated Balance Sheets. These equity securities are held within a nonqualified deferred compensation plan in which a select group of executives of the Company can participate. An eligible executive can defer a certain percentage of their current salary to be placed into the plan and held within a rabbi trust. The assets of the rabbi trust are invested in various publicly listed mutual funds. The gain or loss on the equity securities (both realized and unrealized) is reported within other income on the Consolidated Statements of Operations. For the first quarter of 2020, the Company recorded a realized gain of $6,000 and an unrealized loss of $6,000 was recognized in income on these equity securities. No gain or loss on equity securities (both realized and unrealized) was recognized during the first quarter of 2019. Additionally, the Company has recognized a deferred compensation liability, which is equal to the balance of the equity securities and is reported within other liabilities on the Consolidated Balance Sheets. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Loans | |
Loans | 8. Loans The loan portfolio of the Company consists of the following (in thousands): March 31, December 31, 2020 2019 Commercial: Commercial and industrial $ 166,911 $ 173,922 Commercial loans secured by owner occupied real estate 87,310 91,655 Commercial loans secured by non-owner occupied real estate 370,266 363,635 Real estate – residential mortgage 230,207 235,239 Consumer 17,955 18,255 Loans, net of unearned income $ 872,649 $ 882,706 Loan balances at March 31, 2020 and December 31, 2019 are net of unearned income of $406,000 and $384,000, respectively. Real estate construction loans comprised 5.4% and 4.9% of total loans, net of unearned income at March 31, 2020 and December 31, 2019, respectively. The effects of the COVID-19 pandemic are not fully reflected in the Company’s first quarter operating results. Certain loans within our commercial and commercial real estate portfolios are expected to be disproportionately adversely affected by the pandemic. Due to mandatory lockdowns and travel restrictions, certain industries, such as hospitality, travel, food service and restaurants and bars, may suffer greater losses as a result of COVID-19. The following table provides information regarding our potential COVID-19 risk concentrations for commercial and commercial real estate loans by industry type at March 31, 2020 (in thousands). Commercial loans Commercial loans Commercial secured by owner secured by non-owner and industrial occupied real estate occupied real estate Total 1-4 unit residential $ 1,603 $ 133 $ 3,439 $ 5,175 Multifamily/apartments/student housing — 359 53,065 53,424 Office 37,929 10,280 38,218 86,427 Retail 4,129 21,333 108,763 134,225 Industrial/manufacturing/warehouse 101,464 17,698 40,115 159,277 Hotels 419 — 45,764 46,183 Eating and drinking places 887 4,434 597 5,918 Amusement and recreation 210 3,384 57 3,651 Mixed use — 1,574 65,631 67,205 Other 20,270 28,115 14,617 63,002 Total $ 166,911 $ 87,310 $ 370,266 $ 624,487 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Allowance for Loan Losses | |
Allowance for Loan Losses | 9. Allowance for Loan Losses The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2020 and 2019 (in thousands). Three months ended March 31, 2020 Balance at Balance at December 31, Charge- Provision March 31, 2019 Offs Recoveries (Credit) 2020 Commercial $ 3,951 $ — $ — $ (91) $ 3,860 Commercial loans secured by non-owner occupied real estate 3,119 — 14 155 3,288 Real estate-residential mortgage 1,159 (92) 6 68 1,141 Consumer 126 (62) 14 42 120 Allocation for general risk 924 — — 1 925 Total $ 9,279 $ (154) $ 34 $ 175 $ 9,334 Three months ended March 31, 2019 Balance at Balance at December 31, Charge- Provision March 31, 2018 Offs Recoveries (Credit) 2019 Commercial $ 3,057 $ — $ 5 $ (448) $ 2,614 Commercial loans secured by non-owner occupied real estate 3,389 (63) 11 36 3,373 Real estate-residential mortgage 1,235 (61) 8 31 1,213 Consumer 127 (82) 18 62 125 Allocation for general risk 863 — — (81) 782 Total $ 8,671 $ (206) $ 42 $ (400) $ 8,107 The Company recorded a $175,000 provision expense for loan losses in the first quarter of 2020 compared to a $400,000 provision recovery in the first quarter of 2019. The 2020 provision reflects the loan growth experienced since last year along with our decision to strengthen certain qualitative factors within our allowance for loan losses calculation due to the economic uncertainty caused by the COVID-19 pandemic. While future losses are possible due to the COVID-19 pandemic, losses were not incurred as of March 31, 2020 which is why the provision for the period isn’t higher. For the first three months of 2020, the Company experienced net loan charge-offs of $120,000, or 0.06% of total loans, compared to net loan charge-offs of $164,000, or 0.08% of total loans, in the first three months of 2019. Overall, the Company’s asset quality remains strong as its non-performing assets totaled $2.2 million, or only 0.26% of total loans, at March 31, 2020. The allowance for loan losses provided 416% coverage of non-performing assets, and 1.06% of total loans, at March 31, 2020, compared to 397% coverage of non-performing assets, and 1.05% of total loans, at December 31, 2019. The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands). At March 31, 2020 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 833 $ 8 $ — $ — $ 841 Collectively evaluated for impairment 253,388 370,258 230,207 17,955 871,808 Total loans $ 254,221 $ 370,266 $ 230,207 $ 17,955 $ 872,649 Allowance for loan losses: Specific reserve allocation $ 79 $ 8 $ — $ — $ — $ 87 General reserve allocation 3,781 3,280 1,141 120 925 9,247 Total allowance for loan losses $ 3,860 $ 3,288 $ 1,141 $ 120 $ 925 $ 9,334 At December 31, 2019 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 816 $ 8 $ — $ — $ 824 Collectively evaluated for impairment 264,761 363,627 235,239 18,255 881,882 Total loans $ 265,577 $ 363,635 $ 235,239 $ 18,255 $ 882,706 Allowance for loan losses: Specific reserve allocation $ 84 $ 8 $ — $ — $ — $ 92 General reserve allocation 3,867 3,111 1,159 126 924 9,187 Total allowance for loan losses $ 3,951 $ 3,119 $ 1,159 $ 126 $ 924 $ 9,279 The segments of the Company’s loan portfolio are disaggregated into classes that allows management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the commercial and industrial and the owner occupied commercial real estate loan classes while the remaining segments are not separated into classes as management monitors risk in these loans at the segment level. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. Management evaluates for possible impairment any individual loan in the commercial or commercial real estate segment that is in nonaccrual status or classified as a Troubled Debt Restructure (TDR). In addition, consumer and residential mortgage loans with a balance of $150,000 or more are evaluated for impairment. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs for collateral dependent loans. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for loan losses. At a minimum, annual documented reevaluation of the property is completed by the Bank’s internal Assigned Risk Department to support the value of the property. When reviewing an appraisal associated with an existing real estate collateral dependent transaction, the Bank’s internal Assigned Risk Department must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include: · the passage of time; · the volatility of the local market; · the availability of financing; · natural disasters; · the inventory of competing properties; · new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank; · changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or · environmental contamination. The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Assigned Risk Department personnel determine that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank’s Assigned Risk Department personnel, rests with the Assigned Risk Department and not the originating account officer. The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands). March 31, 2020 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial $ 833 $ 79 $ — $ 833 $ 833 Commercial loans secured by non-owner occupied real estate 8 8 — 8 30 Total impaired loans $ 841 $ 87 $ — $ 841 $ 863 December 31, 2019 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial $ 816 $ 84 $ — $ 816 $ 816 Commercial loans secured by non-owner occupied real estate 8 8 — 8 30 Total impaired loans $ 824 $ 92 $ — $ 824 $ 846 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands). Three months ended March 31, 2020 2019 Average loan balance: Commercial $ 825 $ — Commercial loans secured by non-owner occupied real estate 8 11 Average investment in impaired loans $ 833 $ 11 Interest income recognized: Commercial $ 12 $ — Commercial loans secured by non-owner occupied real estate — — Interest income recognized on a cash basis on impaired loans $ 12 $ — Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five “Pass” categories are aggregated, while the Pass‑6, Special Mention, Substandard and Doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for loan losses are placed in Substandard or Doubtful. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12‑month period. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for 2020 requires review of a minimum of 40% of the commercial loan portfolio. In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated Pass‑6 with aggregate balances greater than $2,000,000, all credits rated Special Mention or Substandard with aggregate balances greater than $250,000, and all credits rated Doubtful with aggregate balances greater than $100,000 on an individual basis to the Company’s Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans. The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands). March 31, 2020 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 154,456 $ 790 $ 11,665 $ — $ 166,911 Commercial loans secured by owner occupied real estate 84,661 1,345 1,304 — 87,310 Commercial loans secured by non-owner occupied real estate 368,681 — 1,577 8 370,266 Total $ 607,798 $ 2,135 $ 14,546 $ 8 $ 624,487 December 31, 2019 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 161,147 $ 853 $ 11,922 $ — $ 173,922 Commercial loans secured by owner occupied real estate 88,942 1,384 1,329 — 91,655 Commercial loans secured by non-owner occupied real estate 362,027 — 1,600 8 363,635 Total $ 612,116 $ 2,237 $ 14,851 $ 8 $ 629,212 It is generally the policy of the Bank that the outstanding balance of any residential mortgage loan that exceeds 90‑days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is generally the policy of the Bank that the outstanding balance of any consumer loan that exceeds 90‑days past due as to principal and/or interest is charged off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes (in thousands). March 31, 2020 Performing Non-Performing Total Real estate - residential mortgage $ 228,803 $ 1,404 $ 230,207 Consumer 17,955 — 17,955 Total $ 246,758 $ 1,404 $ 248,162 December 31, 2019 Performing Non-Performing Total Real estate - residential mortgage $ 233,760 $ 1,479 $ 235,239 Consumer 18,255 — 18,255 Total $ 252,015 $ 1,479 $ 253,494 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans (in thousands). March 31, 2020 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 160,550 $ 6,361 $ — $ — $ 6,361 $ 166,911 $ — Commercial loans secured by owner occupied real estate 87,197 113 — — 113 87,310 — Commercial loans secured by non-owner occupied real estate 370,266 — — — — 370,266 — Real estate - residential mortgage 226,532 1,445 1,259 971 3,675 230,207 — Consumer 17,901 42 12 — 54 17,955 — Total $ 862,446 $ 7,961 $ 1,271 $ 971 $ 10,203 $ 872,649 $ — December 31, 2019 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 173,922 $ — $ — $ — $ — $ 173,922 $ — Commercial loans secured by owner occupied real estate 91,538 117 — — 117 91,655 — Commercial loans secured by non-owner occupied real estate 363,635 — — — — 363,635 — Real estate - residential mortgage 231,022 2,331 864 1,022 4,217 235,239 — Consumer 18,190 42 23 — 65 18,255 — Total $ 878,307 $ 2,490 $ 887 $ 1,022 $ 4,399 $ 882,706 $ — The Company experienced an increase in loan delinquency during the first quarter of 2020. The increase was primarily due to the unexpected death of a borrower late in 2019, which was previously reported in our Form 10-K dated December 31, 2019. The estate, which is made up of significant real estate holdings and other unique assets, is currently in the process of liquidation. Therefore, this $6.3 million commercial and industrial loan exhibited delinquency during the quarter. An allowance for loan losses (“ALL”) is maintained to support loan growth and cover charge-offs from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are complemented by consideration of other qualitative factors. Management tracks the historical net charge-off activity at each risk rating grade level for the entire commercial portfolio and at the aggregate level for the consumer, residential mortgage and small business portfolios. A historical charge-off factor is calculated utilizing a rolling 12 consecutive historical quarters for the commercial portfolios. This historical charge-off factor for the consumer, residential mortgage and small business portfolios are based on a three-year historical average of actual loss experience. The Company uses a comprehensive methodology and procedural discipline to maintain an ALL to absorb inherent losses in the loan portfolio. The Company believes this is a critical accounting policy since it involves significant estimates and judgments. The allowance consists of three elements: (1) an allowance established on specifically identified problem loans, (2) formula driven general reserves established for loan categories based upon historical loss experience and other qualitative factors which include delinquency, non-performing and TDR loans, loan trends, economic trends, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies, and trends in policy, financial information, and documentation exceptions, and (3) a general risk reserve which provides support for variance from our assessment of the previously listed qualitative factors, provides protection against credit risks resulting from other inherent risk factors contained in the Company’s loan portfolio, and recognizes the model and estimation risk associated with the specific and formula driven allowances. The qualitative factors used in the formula driven general reserves are evaluated quarterly (and revised if necessary) by the Company’s management to establish allocations which accommodate each of the listed risk factors. “Pass” rated credits are segregated from “Criticized” and “Classified” credits for the application of qualitative factors. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. |
Non-Performing Assets Including
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | 3 Months Ended |
Mar. 31, 2020 | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | 10. Non-Performing Assets Including Troubled Debt Restructurings (TDR) The following table presents information concerning non-performing assets including TDR (in thousands, except percentages): March 31, December 31, 2020 2019 Non-accrual loans Commercial and industrial $ 25 $ — Commercial loans secured by non-owner occupied real estate 8 8 Real estate-residential mortgage 1,404 1,479 Total 1,437 1,487 Other real estate owned Real estate-residential mortgage — 37 Total — 37 TDR’s not in non-accrual Commercial and industrial 807 815 Total 807 815 Total non-performing assets including TDR $ 2,244 $ 2,339 Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned 0.26 % 0.26 % The Company had no loans past due 90 days or more for the periods presented which were accruing interest. The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands). Three months ended March 31, 2020 2019 Interest income due in accordance with original terms $ 17 $ 15 Interest income recorded — — Net reduction in interest income $ 17 $ 15 Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan. The Company had no loans modified as TDRs during the three month periods ending March 31, 2020 and 2019. All TDRs are individually evaluated for impairment and a related allowance is recorded, as needed. The specific ALL reserve for loans modified as TDRs was $85,000 and $92,000 as of March 31, 2020 and December 31, 2019, respectively. The Company had no loans that were classified as TDRs or were subsequently modified during each 12‑month period prior to the current reporting periods, which begin January 1, 2019 and 2018, respectively, and that subsequently defaulted during these reporting periods. The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above. |
Federal Home Loan Bank Borrowin
Federal Home Loan Bank Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Federal Home Loan Bank Borrowing | |
Federal Home Loan Bank Borrowings | 11. Federal Home Loan Bank Borrowings Total Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages): At March 31, 2020 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 16,354 0.36 % Advances 2020 12,229 1.74 2021 9,496 2.28 2022 20,888 2.03 2023 13,568 1.76 2024 2,037 1.86 Total advances 58,218 1.94 Total FHLB borrowings $ 74,572 1.59 % At December 31, 2019 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 22,412 1.81 % Advances 2020 18,729 1.75 2021 9,496 2.28 2022 17,838 2.21 2023 5,568 2.48 2024 2,037 1.86 Total advances 53,668 2.08 Total FHLB borrowings $ 76,080 2.00 % The rate on Open Repo Plus advances can change daily, while the rates on the advances are fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage, commercial real estate, and commercial and industrial loans with an aggregate statutory value equal to the amount of the advances are pledged as collateral to the FHLB of Pittsburgh to support these borrowings. |
Lease Commitments
Lease Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Lease Commitments | |
Lease Commitments | 12. Lease Commitments The Company has operating and financing leases for several office locations and equipment. Several assumptions and judgments were made when applying the requirements of ASU 2016-02, Leases (Topic 842) to the Company's lease commitments, including the allocation of consideration in the contracts between lease and non-lease components, determination of the lease term, and determination of the discount rate used in calculating the present value of the lease payments. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components, such as common area maintenance charges, utilities, real estate taxes, and insurance. The Company has elected to account for the variable non-lease components separately from the lease component. Such variable non-lease components are reported in net occupancy expense on the Consolidated Statements of Operations when incurred. These variable non-lease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. The following table presents the lease cost associated with both operating and financing leases for the three month periods ending March 31, 2020 and 2019 (in thousands). Three months ended Three months ended March 31, 2020 March 31, 2019 Lease cost Financing lease cost: Amortization of right-of-use asset $ 67 $ 64 Interest expense 29 30 Operating lease cost 29 29 Total lease cost $ 125 $ 123 Certain of the Company's leases contain options to renew the lease after the initial term. Management considers the Company's historical pattern of exercising renewal options on leases and the performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease. The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Operating Financing Operating Financing Weighted-average remaining term (years) 11.7 16.7 11.9 17.1 Weighted-average discount rate 3.46 % 3.57 % 3.46 % 3.60 % The following table presents the undiscounted cash flows due related to operating and financing leases, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets (in thousands). March 31, 2020 Undiscounted cash flows due: Operating Financing Within 1 year $ 118 $ 302 After 1 year but within 2 years 120 289 After 2 years but within 3 years 85 291 After 3 years but within 4 years 69 276 After 4 years but within 5 years 69 251 After 5 years 573 2,943 Total undiscounted cash flows 1,034 4,352 Discount on cash flows (192) (1,175) Total lease liabilities $ 842 $ 3,177 December 31, 2019 Undiscounted cash flows due: Operating Financing Within 1 year $ 118 $ 296 After 1 year but within 2 years 120 275 After 2 years but within 3 years 98 277 After 3 years but within 4 years 69 274 After 4 years but within 5 years 69 236 After 5 years 589 3,007 Total undiscounted cash flows 1,063 4,365 Discount on cash flows (198) (1,202) Total lease liabilities $ 865 $ 3,163 Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. As of March 31, 2020 and December 31, 2019, the Company had one short-term equipment lease which it has elected to not record on the Consolidated Balance Sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020 and 2019 (in thousands): Three months ended Three months ended March 31, 2020 March 31, 2019 Net Net Unrealized Unrealized Gains and Gains and (Losses) on Defined (Losses) on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 1,715 $ (17,886) $ (16,171) $ (1,409) $ (12,816) $ (14,225) Other comprehensive income (loss) before reclassifications 924 (95) 829 1,393 (1,739) (346) Amounts reclassified from accumulated other comprehensive loss — 512 512 — 289 289 Net current period other comprehensive income (loss) 924 417 1,341 1,393 (1,450) (57) Ending balance $ 2,639 $ (17,469) $ (14,830) $ (16) $ (14,266) $ (14,282) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) For the For the three months three months ended ended March 31, March 31, Affected line item in the Details about accumulated other comprehensive loss components 2020 2019 consolidated statement of operations Realized gains on sale of securities $ — $ — Net realized (gains) losses on investment securities — — Provision for income tax expense $ — $ — Net of tax Amortization of estimated defined benefit pension plan loss (2) $ 648 $ 366 Other expense (136) (77) Provision for income tax expense $ 512 $ 289 Net of tax Total reclassifications for the period $ 512 $ 289 Net income (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 18 for additional details). |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2020 | |
Regulatory Capital | |
Regulatory Capital | 14. Regulatory Capital The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. For a more detailed discussion see the Capital Resources section of Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A). Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, common equity tier 1, and tier 1 capital to risk-weighted assets (as defined) and tier 1 capital to average assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of March 31, 2020, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as well capitalized, the Bank must maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and tier 1 leverage ratios as set forth in the table (in thousands, except ratios). At March 31, 2020 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 133,286 13.41 % $ 120,917 12.23 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 103,726 10.44 110,766 11.20 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 115,618 11.64 110,766 11.20 6.00 8.00 Tier 1 Capital (To Average Assets) 115,618 9.94 110,766 9.64 4.00 5.00 At December 31, 2019 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 132,544 13.49 % $ 119,477 12.23 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 102,841 10.47 109,173 11.17 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 114,729 11.68 109,173 11.17 6.00 8.00 Tier 1 Capital (To Average Assets) 114,729 9.87 109,173 9.50 4.00 5.00 * Additionally, while not a regulatory capital ratio, the Company’s tangible common equity ratio was 7.69% (non-GAAP) at March 31, 2020. See the discussion of the tangible common equity ratio under the Balance Sheet section of the MD&A. |
Derivative Hedging Instruments
Derivative Hedging Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Hedging Instruments | |
Derivative Hedging Instruments | 15. Derivative Hedging Instruments The Company can use various interest rate contracts, such as interest rate swaps, caps, floors and swaptions to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities. The Company can use derivative instruments, primarily interest rate swaps, to manage interest rate risk and match the rates on certain assets by hedging the fair value of certain fixed rate debt, which converts the debt to variable rates and by hedging the cash flow variability associated with certain variable rate debt by converting the debt to fixed rates. To accommodate the needs of our customers and support the Company’s asset/liability positioning, we may enter into interest rate swap agreements with customers and a large financial institution that specializes in these types of transactions. These arrangements involve the exchange of interest payments based on the notional amounts. The Company entered into floating rate loans and fixed rate swaps with our customers. Simultaneously, the Company entered into offsetting fixed rate swaps with Pittsburgh National Bank (PNC). In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay PNC the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations. These swaps are considered free-standing derivatives and are reported at fair value within other assets and other liabilities on the Consolidated Balance Sheets. Disclosures related to the fair value of the swap transactions can be found in Note 19. The following table summarizes the interest rate swap transactions that impacted the Company’s first three months of 2020 and 2019 performance (in thousands, except percentages). At March 31, 2020 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 33,037 3.93 % MONTHLY $ (45) SWAP LIABILITIES FAIR VALUE (33,037) (3.93) MONTHLY 45 NET EXPOSURE — — — At March 31, 2019 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 21,745 4.79 % MONTHLY $ 9 SWAP LIABILITIES FAIR VALUE (21,745) (4.79) MONTHLY (9) NET EXPOSURE — — — The Company monitors and controls all derivative products with a comprehensive Board of Directors approved Hedging Policy. This policy permits a total maximum notional amount outstanding of $500 million for interest rate swaps, interest rate caps/floors, and swaptions. All hedge transactions must be approved in advance by the Investment Asset/Liability Committee (ALCO) of the Board of Directors, unless otherwise approved, as per the terms, within the Board of Directors approved Hedging Policy. The Company had no caps or floors outstanding at March 31, 2020 and 2019. None of the Company's derivatives are designated as hedging instruments. |
Segment Results
Segment Results | 3 Months Ended |
Mar. 31, 2020 | |
Segment Results | |
Segment Results | 16. Segment Results The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include community banking, wealth management, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution. The community banking segment includes both retail and commercial banking activities. Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, business services, and CRE loans. The wealth management segment includes the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm, and Financial Services. Wealth management activities include personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial Services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also include the union collective investment funds, primarily the ERECT funds which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on corporate debt, and centralized interest rate risk management. Inter-segment revenues were not material. The contribution of the major business segments to the Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 were as follows (in thousands): Three months ended March 31, 2020 Total Net revenue income (loss) Community banking $ 11,448 $ 2,524 Wealth management 2,568 487 Investment/Parent (1,433) (1,602) Total $ 12,583 $ 1,409 Three months ended March 31, 2019 Total Net revenue income (loss) Community banking $ 11,093 $ 2,948 Wealth management 2,417 444 Investment/Parent (1,248) (1,514) Total $ 12,262 $ 1,878 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | 17. Commitments and Contingent Liabilities The Company had various outstanding commitments to extend credit approximating $217.5 million and $195.5 million along with standby letters of credit of $14.1 million and $14.7 million as of March 31, 2020 and December 31, 2019, respectively. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Bank uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending. Additionally, the Company is also subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Pension Benefits
Pension Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Pension Benefits | |
Pension Benefits | 18. Pension Benefits The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants have a vested interest in their accrued benefit after five full years of service. The benefits of the plan are based upon the employee’s years of service and average annual earnings for the highest five consecutive calendar years during the final ten-year period of employment. Plan assets are primarily debt securities (including US Treasury and Agency securities, corporate notes and bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 10% of the plan’s assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension cost for the three months ended March 31, 2020 and 2019 were as follows (in thousands): Three months ended March 31, 2020 2019 Components of net periodic benefit cost Service cost $ 441 $ 374 Interest cost 319 402 Expected return on plan assets (817) (762) Recognized net actuarial loss 648 366 Net periodic pension cost $ 591 $ 380 The service cost component of net periodic benefit cost is included in “Salaries and employee benefits” and all other components of net periodic benefit cost are included in “Other expense” in the Consolidated Statements of Operations. The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods. |
Disclosures about Fair Value Me
Disclosures about Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Disclosures about Fair Value Measurements and Financial Instruments | |
Disclosures about Fair Value Measurements and Financial Instruments | 19. Disclosures about Fair Value Measurements and Financial Instruments The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three broad levels defined within this hierarchy are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Assets and Liability Measured and Recorded on a Recurring Basis Equity securities are reported at fair value utilizing Level 1 inputs. These securities are mutual funds held within a rabbi trust for the Company's executive deferred compensation plan. The mutual funds held are open-end funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. Securities classified as available for sale are reported at fair value 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 dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair values of the fair value swaps used for interest rate risk management represents the amount the Company would expect to receive or pay to terminate such agreements. These fair values are based on an external derivative valuation model using data inputs as of the valuation date and classified Level 2. The following table presents the assets and liability measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of March 31, 2020 and December 31, 2019, by level within the fair value hierarchy (in thousands). Fair Value Measurements at March 31, 2020 Total (Level 1) (Level 2) (Level 3) Equity securities $ 386 $ 386 $ — $ — Available for sale securities: US Agency 3,967 — 3,967 — US Agency mortgage-backed securities 82,084 — 82,084 — Municipal 15,824 — 15,824 — Corporate bonds 40,841 — 40,841 — Fair value swap asset 3,520 — 3,520 — Fair value swap liability (3,520) — (3,520) — Fair Value Measurements at December 31, 2019 Total (Level 1) (Level 2) (Level 3) Equity securities $ 366 $ 366 $ — $ — Available for sale securities: US Agency 5,116 — 5,116 — US Agency mortgage-backed securities 81,633 — 81,633 — Municipal 15,170 — 15,170 — Corporate bonds 39,830 — 39,830 — Fair value swap asset 959 — 959 — Fair value swap liability (959) — (959) — Assets Measured and Recorded on a Non-Recurring Basis Loans considered impaired are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are reported at the fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted using unobservable inputs. At March 31, 2020, impaired loans with a carrying value of $266,000 were reduced by a specific valuation allowance totaling $8,000 resulting in a net fair value of $258,000. At December 31, 2019, impaired loans with a carrying value of $263,000 were reduced by a specific valuation allowance totaling $8,000 resulting in a net fair value of $255,000. Other real estate owned is measured at fair value based on appraisals, less estimated costs to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO. Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): Fair Value Measurements at March 31, 2020 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 258 $ — $ — $ 258 Fair Value Measurements at December 31, 2019 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 255 $ — $ — $ 255 Other real estate owned 37 — — 37 Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range March 31, 2020 Estimate Techniques Input (Wgtd Avg) Impaired loans $ 258 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 100% (3%) Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range December 31, 2019 Estimate Techniques Input (Wgtd Avg) Impaired loans $ 255 Appraisal of collateral(1) Appraisal adjustments (2) 0% to 100% (3%) Other real estate owned 37 Appraisal of collateral (1) Appraisal adjustments (2) Liquidation expenses 0% to 57% (38%) 21% to 134% (30%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. FAIR VALUE OF FINANCIAL INSTRUMENTS For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure. Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, and short-term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements. The estimated fair values based on US GAAP measurements and recorded carrying values at March 31, 2020 and December 31, 2019, for the remaining financial instruments not required to be measured or reported at fair value were as follows (in thousands): March 31, 2020 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 42,068 $ 44,236 $ — $ 41,242 $ 2,994 Loans held for sale 4,750 4,889 4,889 — — Loans, net of allowance for loan loss and unearned income 863,315 867,308 — — 867,308 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 646,074 $ 642,965 $ — $ — $ 642,965 Deposits with stated maturities 311,519 315,616 — — 315,616 All other borrowings (1) 78,694 85,321 — — 85,321 December 31, 2019 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 39,936 $ 41,082 $ — $ 38,129 $ 2,953 Loans held for sale 4,868 4,970 4,970 — — Loans, net of allowance for loan loss and unearned income 873,427 873,908 — — 873,908 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 651,469 $ 631,023 $ — $ — $ 631,023 Deposits with stated maturities 309,044 310,734 — — 310,734 All other borrowings (1) 74,134 76,323 — — 76,323 (1) All other borrowings include advances from Federal Home Loan Bank, guaranteed junior subordinated deferrable interest debentures, and subordinated debt. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting. |
Subsequent Events Related to th
Subsequent Events Related to the COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events Related to the COVID-19 Pandemic | |
Subsequent Events Related to the COVID-19 Pandemic | 20. Subsequent Events Related to the COVID-19 Pandemic Paycheck Protection Program The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (SBA) to temporarily guarantee loans under a new 7(a) program called the Paycheck Protection Program (PPP). As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. As of May 4, 2020, the Company has obtained SBA approval for approximately 400 PPP loans totaling in excess of $61 million. These loans will generate approximately $1.9 million in fee income for the Company. Loan Modifications Related to COVID-19 Under section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (TDR), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either December 31, 2020 or the 60 th day after the end of the COVID-19 national emergency. Similarly, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. In response to the COVID-19 pandemic, the Company has begun to prudently execute loan modifications for existing loan customers. The following table presents information regarding loans for which payment relief has been requested, as of May 4, 2020, related to COVID-19. Balance % of Outstanding (in thousands) Loans CRE/Commercial $ 201,658 31.2 % Home Equity/Consumer 5,551 5.5 Residential Mortgage 4,033 3.1 Total $ 211,242 24.1 Requested modifications primarily consist of the deferral of principal and/or interest payments for a period of three to six months. The following table presents the composition of the types of payment relief that have been granted. Number Balance of Loans (in thousands) Type of Payment Relief Interest only payments 84 $ 96,163 Complete payment deferrals 304 115,079 Total 388 $ 211,242 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition | |
Schedule of non-interest income, segregated by revenue | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three month periods ending March 31, 2020 and 2019 (in thousands). Three months ended March 31, 2020 2019 Non-interest income: In-scope of Topic 606 Wealth management fees $ 2,554 $ 2,396 Service charges on deposit accounts 286 310 Other 390 420 Non-interest income (in-scope of Topic 606) 3,230 3,126 Non-interest income (out-of-scope of Topic 606) 602 479 Total non-interest income $ 3,832 $ 3,605 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Common Share | |
Schedule of Earnings Per Common Share | Three months ended March 31, 2020 2019 (In thousands, except per share data) Numerator: Net income $ 1,409 $ 1,878 Denominator: Weighted average common shares outstanding (basic) 17,043 17,578 Effect of stock options 56 86 Weighted average common shares outstanding (diluted) 17,099 17,664 Earnings per common share: Basic $ 0.08 $ 0.11 Diluted 0.08 0.11 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment Securities | |
Schedule of cost basis and fair values of investment securities | March 31, 2020 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 3,895 $ 72 $ — $ 3,967 US Agency mortgage- backed securities 78,862 3,278 (56) 82,084 Municipal 14,925 899 — 15,824 Corporate bonds 41,693 470 (1,322) 40,841 Total $ 139,375 $ 4,719 $ (1,378) $ 142,716 Investment securities held to maturity (HTM): March 31, 2020 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 10,510 $ 508 $ — $ 11,018 Municipal 25,527 1,674 (50) 27,151 Corporate bonds and other securities 6,031 42 (6) 6,067 Total $ 42,068 $ 2,224 $ (56) $ 44,236 Investment securities available for sale (AFS): December 31, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 5,084 $ $ — $ 5,116 US Agency mortgage- backed securities 80,046 1,681 (94) 81,633 Municipal 14,678 509 (17) 15,170 Corporate bonds 39,769 342 (281) 39,830 Total $ 139,577 $ 2,564 $ (392) $ 141,749 Investment securities held to maturity (HTM): December 31, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 9,466 $ 251 $ (4) $ 9,713 Municipal 24,438 941 (53) 25,326 Corporate bonds and other securities 6,032 58 (47) 6,043 Total $ 39,936 $ 1,250 $ (104) $ 41,082 |
Schedule of investments with unrealized losses | The following tables present information concerning investments with unrealized losses as of March 31, 2020 and December 31, 2019 (in thousands): Total investment securities: March 31, 2020 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ — $ — $ — $ — $ — $ — US Agency mortgage-backed securities 2,363 (19) 1,885 (37) 4,248 (56) Municipal 144 (1) 757 (49) 901 (50) Corporate bonds and other securities 12,784 (786) 6,958 (542) 19,742 (1,328) Total $ 15,291 $ (806) $ 9,600 $ (628) $ 24,891 $ (1,434) Total investment securities: December 31, 2019 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ — $ — $ — $ — $ — $ — US Agency mortgage-backed securities 7,084 (23) 8,562 (75) 15,646 (98) Municipal 2,269 (18) 1,123 (52) 3,392 (70) Corporate bonds and other securities 7,797 (85) 11,783 (243) 19,580 (328) Total $ 17,150 $ (126) $ 21,468 $ (370) $ 38,618 $ (496) |
Schedule of investment securities | Total investment securities: March 31, 2020 Available for sale Held to maturity Cost Fair Cost Fair Basis Value Basis Value Within 1 year $ 3,491 $ 3,486 $ — $ — After 1 year but within 5 years 23,276 23,068 7,530 7,732 After 5 years but within 10 years 39,693 40,334 20,094 21,386 After 10 years but within15 years 21,766 22,749 7,707 8,116 Over 15 years 51,149 53,079 6,737 7,002 Total $ 139,375 $ 142,716 $ 42,068 $ 44,236 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans | |
Schedule of loan portfolio | The loan portfolio of the Company consists of the following (in thousands): March 31, December 31, 2020 2019 Commercial: Commercial and industrial $ 166,911 $ 173,922 Commercial loans secured by owner occupied real estate 87,310 91,655 Commercial loans secured by non-owner occupied real estate 370,266 363,635 Real estate – residential mortgage 230,207 235,239 Consumer 17,955 18,255 Loans, net of unearned income $ 872,649 $ 882,706 |
Summary of risk concentrations for commercial and commercial real estate loans by industry type | The following table provides information regarding our potential COVID-19 risk concentrations for commercial and commercial real estate loans by industry type at March 31, 2020 (in thousands). Commercial loans Commercial loans Commercial secured by owner secured by non-owner and industrial occupied real estate occupied real estate Total 1-4 unit residential $ 1,603 $ 133 $ 3,439 $ 5,175 Multifamily/apartments/student housing — 359 53,065 53,424 Office 37,929 10,280 38,218 86,427 Retail 4,129 21,333 108,763 134,225 Industrial/manufacturing/warehouse 101,464 17,698 40,115 159,277 Hotels 419 — 45,764 46,183 Eating and drinking places 887 4,434 597 5,918 Amusement and recreation 210 3,384 57 3,651 Mixed use — 1,574 65,631 67,205 Other 20,270 28,115 14,617 63,002 Total $ 166,911 $ 87,310 $ 370,266 $ 624,487 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Allowance for Loan Losses | |
Schedule of Loan losses by portfolio segment | The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2020 and 2019 (in thousands). Three months ended March 31, 2020 Balance at Balance at December 31, Charge- Provision March 31, 2019 Offs Recoveries (Credit) 2020 Commercial $ 3,951 $ — $ — $ (91) $ 3,860 Commercial loans secured by non-owner occupied real estate 3,119 — 14 155 3,288 Real estate-residential mortgage 1,159 (92) 6 68 1,141 Consumer 126 (62) 14 42 120 Allocation for general risk 924 — — 1 925 Total $ 9,279 $ (154) $ 34 $ 175 $ 9,334 Three months ended March 31, 2019 Balance at Balance at December 31, Charge- Provision March 31, 2018 Offs Recoveries (Credit) 2019 Commercial $ 3,057 $ — $ 5 $ (448) $ 2,614 Commercial loans secured by non-owner occupied real estate 3,389 (63) 11 36 3,373 Real estate-residential mortgage 1,235 (61) 8 31 1,213 Consumer 127 (82) 18 62 125 Allocation for general risk 863 — — (81) 782 Total $ 8,671 $ (206) $ 42 $ (400) $ 8,107 |
Schedule of Loan loss by the primary segments | The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands). At March 31, 2020 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 833 $ 8 $ — $ — $ 841 Collectively evaluated for impairment 253,388 370,258 230,207 17,955 871,808 Total loans $ 254,221 $ 370,266 $ 230,207 $ 17,955 $ 872,649 Allowance for loan losses: Specific reserve allocation $ 79 $ 8 $ — $ — $ — $ 87 General reserve allocation 3,781 3,280 1,141 120 925 9,247 Total allowance for loan losses $ 3,860 $ 3,288 $ 1,141 $ 120 $ 925 $ 9,334 At December 31, 2019 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 816 $ 8 $ — $ — $ 824 Collectively evaluated for impairment 264,761 363,627 235,239 18,255 881,882 Total loans $ 265,577 $ 363,635 $ 235,239 $ 18,255 $ 882,706 Allowance for loan losses: Specific reserve allocation $ 84 $ 8 $ — $ — $ — $ 92 General reserve allocation 3,867 3,111 1,159 126 924 9,187 Total allowance for loan losses $ 3,951 $ 3,119 $ 1,159 $ 126 $ 924 $ 9,279 |
Schedule of Present impaired loans by portfolio segment | The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands). March 31, 2020 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial $ 833 $ 79 $ — $ 833 $ 833 Commercial loans secured by non-owner occupied real estate 8 8 — 8 30 Total impaired loans $ 841 $ 87 $ — $ 841 $ 863 December 31, 2019 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial $ 816 $ 84 $ — $ 816 $ 816 Commercial loans secured by non-owner occupied real estate 8 8 — 8 30 Total impaired loans $ 824 $ 92 $ — $ 824 $ 846 |
Schedule of Investment in impaired loans and related interest income | The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands). Three months ended March 31, 2020 2019 Average loan balance: Commercial $ 825 $ — Commercial loans secured by non-owner occupied real estate 8 11 Average investment in impaired loans $ 833 $ 11 Interest income recognized: Commercial $ 12 $ — Commercial loans secured by non-owner occupied real estate — — Interest income recognized on a cash basis on impaired loans $ 12 $ — |
Schedule of Commercial and commercial real estate loan portfolios | The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands). March 31, 2020 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 154,456 $ 790 $ 11,665 $ — $ 166,911 Commercial loans secured by owner occupied real estate 84,661 1,345 1,304 — 87,310 Commercial loans secured by non-owner occupied real estate 368,681 — 1,577 8 370,266 Total $ 607,798 $ 2,135 $ 14,546 $ 8 $ 624,487 December 31, 2019 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 161,147 $ 853 $ 11,922 $ — $ 173,922 Commercial loans secured by owner occupied real estate 88,942 1,384 1,329 — 91,655 Commercial loans secured by non-owner occupied real estate 362,027 — 1,600 8 363,635 Total $ 612,116 $ 2,237 $ 14,851 $ 8 $ 629,212 |
Schedule of Residential and consumer portfolio | The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes (in thousands). March 31, 2020 Performing Non-Performing Total Real estate - residential mortgage $ 228,803 $ 1,404 $ 230,207 Consumer 17,955 — 17,955 Total $ 246,758 $ 1,404 $ 248,162 December 31, 2019 Performing Non-Performing Total Real estate - residential mortgage $ 233,760 $ 1,479 $ 235,239 Consumer 18,255 — 18,255 Total $ 252,015 $ 1,479 $ 253,494 |
Schedule of Credit quality of the loan portfolio | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans (in thousands). March 31, 2020 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 160,550 $ 6,361 $ — $ — $ 6,361 $ 166,911 $ — Commercial loans secured by owner occupied real estate 87,197 113 — — 113 87,310 — Commercial loans secured by non-owner occupied real estate 370,266 — — — — 370,266 — Real estate - residential mortgage 226,532 1,445 1,259 971 3,675 230,207 — Consumer 17,901 42 12 — 54 17,955 — Total $ 862,446 $ 7,961 $ 1,271 $ 971 $ 10,203 $ 872,649 $ — December 31, 2019 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 173,922 $ — $ — $ — $ — $ 173,922 $ — Commercial loans secured by owner occupied real estate 91,538 117 — — 117 91,655 — Commercial loans secured by non-owner occupied real estate 363,635 — — — — 363,635 — Real estate - residential mortgage 231,022 2,331 864 1,022 4,217 235,239 — Consumer 18,190 42 23 — 65 18,255 — Total $ 878,307 $ 2,490 $ 887 $ 1,022 $ 4,399 $ 882,706 $ — |
Non-Performing Assets Includi_2
Non-Performing Assets Including Troubled Debt Restructurings (TDR) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | |
Schedule of nonperforming assets including trouble debt restructurings | The following table presents information concerning non-performing assets including TDR (in thousands, except percentages): March 31, December 31, 2020 2019 Non-accrual loans Commercial and industrial $ 25 $ — Commercial loans secured by non-owner occupied real estate 8 8 Real estate-residential mortgage 1,404 1,479 Total 1,437 1,487 Other real estate owned Real estate-residential mortgage — 37 Total — 37 TDR’s not in non-accrual Commercial and industrial 807 815 Total 807 815 Total non-performing assets including TDR $ 2,244 $ 2,339 Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned 0.26 % 0.26 % |
Schedule of interest income on non accrual loans | The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands). Three months ended March 31, 2020 2019 Interest income due in accordance with original terms $ 17 $ 15 Interest income recorded — — Net reduction in interest income $ 17 $ 15 |
Federal Home Loan Bank Borrow_2
Federal Home Loan Bank Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Federal Home Loan Bank Borrowing | |
Schedule of federal home loan bank borrowings | Total Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages): At March 31, 2020 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 16,354 0.36 % Advances 2020 12,229 1.74 2021 9,496 2.28 2022 20,888 2.03 2023 13,568 1.76 2024 2,037 1.86 Total advances 58,218 1.94 Total FHLB borrowings $ 74,572 1.59 % At December 31, 2019 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 22,412 1.81 % Advances 2020 18,729 1.75 2021 9,496 2.28 2022 17,838 2.21 2023 5,568 2.48 2024 2,037 1.86 Total advances 53,668 2.08 Total FHLB borrowings $ 76,080 2.00 % |
Lease Commitments (Tables)
Lease Commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lease Commitments | |
Schedule of lease cost associated with both operating and financing leases | The following table presents the lease cost associated with both operating and financing leases for the three month periods ending March 31, 2020 and 2019 (in thousands). Three months ended Three months ended March 31, 2020 March 31, 2019 Lease cost Financing lease cost: Amortization of right-of-use asset $ 67 $ 64 Interest expense 29 30 Operating lease cost 29 29 Total lease cost $ 125 $ 123 |
Schedule of weighted average discount rates and the remaining term of the leases | The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Operating Financing Operating Financing Weighted-average remaining term (years) 11.7 16.7 11.9 17.1 Weighted-average discount rate 3.46 % 3.57 % 3.46 % 3.60 % |
Schedule of reconciliation to the discounted amount recorded on the consolidated balance sheets | The following table presents the undiscounted cash flows due related to operating and financing leases, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets (in thousands). March 31, 2020 Undiscounted cash flows due: Operating Financing Within 1 year $ 118 $ 302 After 1 year but within 2 years 120 289 After 2 years but within 3 years 85 291 After 3 years but within 4 years 69 276 After 4 years but within 5 years 69 251 After 5 years 573 2,943 Total undiscounted cash flows 1,034 4,352 Discount on cash flows (192) (1,175) Total lease liabilities $ 842 $ 3,177 December 31, 2019 Undiscounted cash flows due: Operating Financing Within 1 year $ 118 $ 296 After 1 year but within 2 years 120 275 After 2 years but within 3 years 98 277 After 3 years but within 4 years 69 274 After 4 years but within 5 years 69 236 After 5 years 589 3,007 Total undiscounted cash flows 1,063 4,365 Discount on cash flows (198) (1,202) Total lease liabilities $ 865 $ 3,163 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss | |
Schedule of accumulated other comprehensive loss, net of tax | The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020 and 2019 (in thousands): Three months ended Three months ended March 31, 2020 March 31, 2019 Net Net Unrealized Unrealized Gains and Gains and (Losses) on Defined (Losses) on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 1,715 $ (17,886) $ (16,171) $ (1,409) $ (12,816) $ (14,225) Other comprehensive income (loss) before reclassifications 924 (95) 829 1,393 (1,739) (346) Amounts reclassified from accumulated other comprehensive loss — 512 512 — 289 289 Net current period other comprehensive income (loss) 924 417 1,341 1,393 (1,450) (57) Ending balance $ 2,639 $ (17,469) $ (14,830) $ (16) $ (14,266) $ (14,282) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. |
Schedule of reclassification out of accumulated other comprehensive loss | The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) For the For the three months three months ended ended March 31, March 31, Affected line item in the Details about accumulated other comprehensive loss components 2020 2019 consolidated statement of operations Realized gains on sale of securities $ — $ — Net realized (gains) losses on investment securities — — Provision for income tax expense $ — $ — Net of tax Amortization of estimated defined benefit pension plan loss (2) $ 648 $ 366 Other expense (136) (77) Provision for income tax expense $ 512 $ 289 Net of tax Total reclassifications for the period $ 512 $ 289 Net income (1) Amounts in parentheses indicate credits. These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 18 for additional details). |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Regulatory Capital | |
Schedule of compliance with regulatory capital requirements under banking regulations | The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as well capitalized, the Bank must maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and tier 1 leverage ratios as set forth in the table (in thousands, except ratios). At March 31, 2020 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 133,286 13.41 % $ 120,917 12.23 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 103,726 10.44 110,766 11.20 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 115,618 11.64 110,766 11.20 6.00 8.00 Tier 1 Capital (To Average Assets) 115,618 9.94 110,766 9.64 4.00 5.00 At December 31, 2019 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 132,544 13.49 % $ 119,477 12.23 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 102,841 10.47 109,173 11.17 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 114,729 11.68 109,173 11.17 6.00 8.00 Tier 1 Capital (To Average Assets) 114,729 9.87 109,173 9.50 4.00 5.00 * |
Derivative Hedging Instruments
Derivative Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Hedging Instruments | |
Schedule of interest rate swap transactions | The following table summarizes the interest rate swap transactions that impacted the Company’s first three months of 2020 and 2019 performance (in thousands, except percentages). At March 31, 2020 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 33,037 3.93 % MONTHLY $ (45) SWAP LIABILITIES FAIR VALUE (33,037) (3.93) MONTHLY 45 NET EXPOSURE — — — At March 31, 2019 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 21,745 4.79 % MONTHLY $ 9 SWAP LIABILITIES FAIR VALUE (21,745) (4.79) MONTHLY (9) NET EXPOSURE — — — |
Segment Results (Tables)
Segment Results (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Results | |
Schedule of business segments | The contribution of the major business segments to the Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 were as follows (in thousands): Three months ended March 31, 2020 Total Net revenue income (loss) Community banking $ 11,448 $ 2,524 Wealth management 2,568 487 Investment/Parent (1,433) (1,602) Total $ 12,583 $ 1,409 Three months ended March 31, 2019 Total Net revenue income (loss) Community banking $ 11,093 $ 2,948 Wealth management 2,417 444 Investment/Parent (1,248) (1,514) Total $ 12,262 $ 1,878 |
Pension Benefits (Tables)
Pension Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Pension Benefits | |
Schedule of net periodic pension cost | The net periodic pension cost for the three months ended March 31, 2020 and 2019 were as follows (in thousands): Three months ended March 31, 2020 2019 Components of net periodic benefit cost Service cost $ 441 $ 374 Interest cost 319 402 Expected return on plan assets (817) (762) Recognized net actuarial loss 648 366 Net periodic pension cost $ 591 $ 380 |
Disclosures about Fair Value _2
Disclosures about Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosures about Fair Value Measurements and Financial Instruments | |
Schedule of assets and liabilities measured and recorded at fair value on a recurring basis | The following table presents the assets and liability measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of March 31, 2020 and December 31, 2019, by level within the fair value hierarchy (in thousands). Fair Value Measurements at March 31, 2020 Total (Level 1) (Level 2) (Level 3) Equity securities $ 386 $ 386 $ — $ — Available for sale securities: US Agency 3,967 — 3,967 — US Agency mortgage-backed securities 82,084 — 82,084 — Municipal 15,824 — 15,824 — Corporate bonds 40,841 — 40,841 — Fair value swap asset 3,520 — 3,520 — Fair value swap liability (3,520) — (3,520) — Fair Value Measurements at December 31, 2019 Total (Level 1) (Level 2) (Level 3) Equity securities $ 366 $ 366 $ — $ — Available for sale securities: US Agency 5,116 — 5,116 — US Agency mortgage-backed securities 81,633 — 81,633 — Municipal 15,170 — 15,170 — Corporate bonds 39,830 — 39,830 — Fair value swap asset 959 — 959 — Fair value swap liability (959) — (959) — |
Schedule of assets measured and recorded at fair value on a non-recurring basis | Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): Fair Value Measurements at March 31, 2020 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 258 $ — $ — $ 258 Fair Value Measurements at December 31, 2019 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 255 $ — $ — $ 255 Other real estate owned 37 — — 37 Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range March 31, 2020 Estimate Techniques Input (Wgtd Avg) Impaired loans $ 258 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 100% (3%) Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range December 31, 2019 Estimate Techniques Input (Wgtd Avg) Impaired loans $ 255 Appraisal of collateral(1) Appraisal adjustments (2) 0% to 100% (3%) Other real estate owned 37 Appraisal of collateral (1) Appraisal adjustments (2) Liquidation expenses 0% to 57% (38%) 21% to 134% (30%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. |
Schedule of estimated fair value and recorded carrying value | The estimated fair values based on US GAAP measurements and recorded carrying values at March 31, 2020 and December 31, 2019, for the remaining financial instruments not required to be measured or reported at fair value were as follows (in thousands): March 31, 2020 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 42,068 $ 44,236 $ — $ 41,242 $ 2,994 Loans held for sale 4,750 4,889 4,889 — — Loans, net of allowance for loan loss and unearned income 863,315 867,308 — — 867,308 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 646,074 $ 642,965 $ — $ — $ 642,965 Deposits with stated maturities 311,519 315,616 — — 315,616 All other borrowings (1) 78,694 85,321 — — 85,321 December 31, 2019 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 39,936 $ 41,082 $ — $ 38,129 $ 2,953 Loans held for sale 4,868 4,970 4,970 — — Loans, net of allowance for loan loss and unearned income 873,427 873,908 — — 873,908 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 651,469 $ 631,023 $ — $ — $ 631,023 Deposits with stated maturities 309,044 310,734 — — 310,734 All other borrowings (1) 74,134 76,323 — — 76,323 (1) All other borrowings include advances from Federal Home Loan Bank, guaranteed junior subordinated deferrable interest debentures, and subordinated debt. |
Subsequent Events Related to _2
Subsequent Events Related to the COVID-19 Pandemic (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events Related to the COVID-19 Pandemic | |
Summary of loans for which payment relief has been requested related to COVID-19 | Balance % of Outstanding (in thousands) Loans CRE/Commercial $ 201,658 31.2 % Home Equity/Consumer 5,551 5.5 Residential Mortgage 4,033 3.1 Total $ 211,242 24.1 |
Summary of deferral of principal and interest payments | Number Balance of Loans (in thousands) Type of Payment Relief Interest only payments 84 $ 96,163 Complete payment deferrals 304 115,079 Total 388 $ 211,242 |
Principles of Consolidation (De
Principles of Consolidation (Details) $ in Billions | Mar. 31, 2020USD ($)location |
Assets under Management, Carrying Amount | $ | $ 2 |
Pennsylvania | |
Number of locations | 15 |
Maryland | |
Number of locations | 1 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue Recognition | ||
Wealth management fees | $ 2,554 | $ 2,396 |
Service charges on deposit accounts | 286 | 310 |
Other | 390 | 420 |
Non-interest income (in-scope of Topic 606) | 3,230 | 3,126 |
Non-interest income (out-of-scope of Topic 606) | 602 | 479 |
Total Non-Interest Income | $ 3,832 | $ 3,605 |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Other assets | |
Wealth management fees receivable | $ 825,000 |
Revenue Associated With Financial Instruments [Member] | |
Percentage Of Entity Revenue | 79.50% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income | $ 1,409 | $ 1,878 |
Denominator: | ||
Weighted average common shares outstanding (basic) | 17,043 | 17,578 |
Effect of stock options | 56 | 86 |
Weighted average common shares outstanding (diluted) | 17,099 | 17,664 |
Earnings per common share: | ||
Basic | $ 0.08 | $ 0.11 |
Diluted | $ 0.08 | $ 0.11 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional information (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 29,500 | 12,000 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 4.22 | $ 4.22 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 3.90 | $ 4.19 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Total interest payments | $ 3,343,000 | $ 3,524,000 | |
Non-cash transfers to other real estate owned | 0 | 18,000 | |
Operating Lease, Asset | 825,000 | $ 846,000 | |
Operating Lease, Liability | 842,000 | 865,000 | |
Finance Lease, Asset | 3,074,000 | 3,078,000 | |
Finance Lease, Liability | 3,177,000 | $ 3,163,000 | |
Office equipment leased | |||
Finance Lease, Asset | 63,000 | ||
Finance Lease, Liability | 63,000 | ||
ASU 2016-02 | |||
Operating Lease, Asset | 932,000 | ||
Operating Lease, Liability | $ 932,000 | ||
Finance Lease, Asset | 3,300,000 | ||
Finance Lease, Liability | $ 3,300,000 |
Investment Securities - Cost ba
Investment Securities - Cost basis and fair values of investment securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | $ 139,375 | $ 139,577 |
Investment securities available for sale, Gross Unrealized Gains | 4,719 | 2,564 |
Investment securities available for sale, Gross Unrealized Losses | (1,378) | (392) |
Available for Sale, Fair Value, Total | 142,716 | 141,749 |
Investment securities held to maturity, Cost Basis | 42,068 | 39,936 |
Investment securities held to maturity, Gross Unrealized Gains | 2,224 | 1,250 |
Investment securities held to maturity, Gross Unrealized Losses | (56) | (104) |
Held to Maturity, Fair Value, Total | 44,236 | 41,082 |
U.S. Agency | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 3,895 | 5,084 |
Investment securities available for sale, Gross Unrealized Gains | 72 | 32 |
Available for Sale, Fair Value, Total | 3,967 | 5,116 |
Municipal | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 14,925 | 14,678 |
Investment securities available for sale, Gross Unrealized Gains | 899 | 509 |
Investment securities available for sale, Gross Unrealized Losses | 0 | (17) |
Available for Sale, Fair Value, Total | 15,824 | 15,170 |
Investment securities held to maturity, Cost Basis | 25,527 | 24,438 |
Investment securities held to maturity, Gross Unrealized Gains | 1,674 | 941 |
Investment securities held to maturity, Gross Unrealized Losses | (50) | (53) |
Held to Maturity, Fair Value, Total | 27,151 | 25,326 |
Corporate bonds [Member] | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 41,693 | 39,769 |
Investment securities available for sale, Gross Unrealized Gains | 470 | 342 |
Investment securities available for sale, Gross Unrealized Losses | (1,322) | (281) |
Available for Sale, Fair Value, Total | 40,841 | 39,830 |
U.S. Agency mortgage-backed securities | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 78,862 | 80,046 |
Investment securities available for sale, Gross Unrealized Gains | 3,278 | 1,681 |
Investment securities available for sale, Gross Unrealized Losses | (56) | (94) |
Available for Sale, Fair Value, Total | 82,084 | 81,633 |
Investment securities held to maturity, Cost Basis | 10,510 | 9,466 |
Investment securities held to maturity, Gross Unrealized Gains | 508 | 251 |
Investment securities held to maturity, Gross Unrealized Losses | 0 | (4) |
Held to Maturity, Fair Value, Total | 11,018 | 9,713 |
Corporate bonds and other securities [Member] | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities held to maturity, Cost Basis | 6,031 | 6,032 |
Investment securities held to maturity, Gross Unrealized Gains | 42 | 58 |
Investment securities held to maturity, Gross Unrealized Losses | (6) | (47) |
Held to Maturity, Fair Value, Total | $ 6,067 | $ 6,043 |
Investment Securities - Total i
Investment Securities - Total investment securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | $ 3,491 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 23,276 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 39,693 | |
Available for Sale, Cost Basis, After 10 years but within 15 years | 21,766 | |
Available for Sale, Cost Basis, Over 15 years | 51,149 | |
Available for Sale, Cost Basis, Total | 139,375 | $ 139,577 |
Available for Sale, Fair Value, Within 1 year | 3,486 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 23,068 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 40,334 | |
Available for Sale, Fair Value, After 10 years but within 15 years | 22,749 | |
Available for Sale, Fair Value, Over 15 years | 53,079 | |
Available for Sale, Fair Value, Total | 142,716 | 141,749 |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 7,530 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 20,094 | |
Held to Maturity, Cost Basis, After 10 years but within 15 years | 7,707 | |
Held to Maturity, Cost Basis, Over 15 years | 6,737 | |
Held to Maturity, Cost Basis, Total | 42,068 | 39,936 |
Held to Maturity, Fair Value, After 1 year but within 5 years | 7,732 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 21,386 | |
Held to Maturity, Fair Value, After 10 years but within 15 years | 8,116 | |
Held to Maturity, Fair Value, Over 15 years | 7,002 | |
Held to Maturity, Fair Value, Total | $ 44,236 | $ 41,082 |
Investment Securities - Informa
Investment Securities - Information concerning investments with unrealized losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | $ 15,291 | $ 17,150 |
Less than 12 months, Unrealized Losses | (806) | (126) |
12 months or longer, Fair Value | 9,600 | 21,468 |
12 months or longer, Unrealized Losses | (628) | (370) |
Total, Fair Value | 24,891 | 38,618 |
Total, Unrealized Losses | (1,434) | (496) |
U.S. Agency mortgage-backed securities | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 2,363 | 7,084 |
Less than 12 months, Unrealized Losses | (19) | (23) |
12 months or longer, Fair Value | 1,885 | 8,562 |
12 months or longer, Unrealized Losses | (37) | (75) |
Total, Fair Value | 4,248 | 15,646 |
Total, Unrealized Losses | (56) | (98) |
Municipal | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 144 | 2,269 |
Less than 12 months, Unrealized Losses | (1) | (18) |
12 months or longer, Fair Value | 757 | 1,123 |
12 months or longer, Unrealized Losses | (49) | (52) |
Total, Fair Value | 901 | 3,392 |
Total, Unrealized Losses | (50) | (70) |
Corporate bonds and other securities [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 12,784 | 7,797 |
Less than 12 months, Unrealized Losses | (786) | (85) |
12 months or longer, Fair Value | 6,958 | 11,783 |
12 months or longer, Unrealized Losses | (542) | (243) |
Total, Fair Value | 19,742 | 19,580 |
Total, Unrealized Losses | $ (1,328) | $ (328) |
Investment Securities - Additio
Investment Securities - Additional information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Investment Securities: | |||
Consolidated investment securities portfolio modified, years | 24 months 21 days | 36 months 27 days | |
Book value of securities available for sale and held to maturity | $ 117,364,000 | $ 117,076,000 | |
Available-for-sale, Securities and Held To Maturity Securities in Unrealized Loss Positions | 34 | ||
Standard & Poor's, AAA Rating [Member] | |||
INVESTMENT SECURITIES | |||
Portfolio rated | 52.10% | 53.40% | |
Securities rated below A [Member] | |||
INVESTMENT SECURITIES | |||
Portfolio rated | 9.80% | 9.10% | |
Deferred Compensation, Share-based Payments [Member] | Assets Held With Rabbi Trust [Member] | |||
Investment Securities: | |||
Equity Securities, FV-NI | $ 386,000 | $ 366,000 | |
Equity securities, realized gain | 6,000 | $ 0 | |
Equity securities, unrealized loss | $ 6,000 | $ 0 | |
Minimum | |||
Investment Securities: | |||
Consolidated investment securities portfolio modified, years | 24 months | ||
Maximum | |||
Investment Securities: | |||
Consolidated investment securities portfolio modified, years | 60 months |
Loans - loan portfolio (Details
Loans - loan portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
LOANS | ||
Loans, net of unearned income | $ 872,649 | $ 882,706 |
Commercial and Industrial [Member] | ||
LOANS | ||
Loans, net of unearned income | 166,911 | 173,922 |
Commercial loans secured by owner occupied real estate [Member] | ||
LOANS | ||
Loans, net of unearned income | 87,310 | 91,655 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
LOANS | ||
Loans, net of unearned income | 370,266 | 363,635 |
Residential Mortgage | ||
LOANS | ||
Loans, net of unearned income | 230,207 | 235,239 |
Consumer [Member] | ||
LOANS | ||
Loans, net of unearned income | $ 17,955 | $ 18,255 |
Loans - Commercial real estate
Loans - Commercial real estate loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
LOANS | ||
Loans, net of unearned income | $ 872,649 | $ 882,706 |
1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 5,175 | |
Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 53,424 | |
Office | ||
LOANS | ||
Loans, net of unearned income | 86,427 | |
Retail | ||
LOANS | ||
Loans, net of unearned income | 134,225 | |
Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 159,277 | |
Hotels | ||
LOANS | ||
Loans, net of unearned income | 46,183 | |
Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 5,918 | |
Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 3,651 | |
Mixed use | ||
LOANS | ||
Loans, net of unearned income | 67,205 | |
Other | ||
LOANS | ||
Loans, net of unearned income | 63,002 | |
Commercial and Industrial [Member] | ||
LOANS | ||
Loans, net of unearned income | 166,911 | 173,922 |
Commercial and Industrial [Member] | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 1,603 | |
Commercial and Industrial [Member] | Office | ||
LOANS | ||
Loans, net of unearned income | 37,929 | |
Commercial and Industrial [Member] | Retail | ||
LOANS | ||
Loans, net of unearned income | 4,129 | |
Commercial and Industrial [Member] | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 101,464 | |
Commercial and Industrial [Member] | Hotels | ||
LOANS | ||
Loans, net of unearned income | 419 | |
Commercial and Industrial [Member] | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 887 | |
Commercial and Industrial [Member] | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 210 | |
Commercial and Industrial [Member] | Other | ||
LOANS | ||
Loans, net of unearned income | 20,270 | |
Commercial loans secured by owner occupied real estate [Member] | ||
LOANS | ||
Loans, net of unearned income | 87,310 | 91,655 |
Commercial loans secured by owner occupied real estate [Member] | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 133 | |
Commercial loans secured by owner occupied real estate [Member] | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 359 | |
Commercial loans secured by owner occupied real estate [Member] | Office | ||
LOANS | ||
Loans, net of unearned income | 10,280 | |
Commercial loans secured by owner occupied real estate [Member] | Retail | ||
LOANS | ||
Loans, net of unearned income | 21,333 | |
Commercial loans secured by owner occupied real estate [Member] | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 17,698 | |
Commercial loans secured by owner occupied real estate [Member] | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 4,434 | |
Commercial loans secured by owner occupied real estate [Member] | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 3,384 | |
Commercial loans secured by owner occupied real estate [Member] | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 1,574 | |
Commercial loans secured by owner occupied real estate [Member] | Other | ||
LOANS | ||
Loans, net of unearned income | 28,115 | |
Commercial loans secured by non-owner occupied real estate [Member] | ||
LOANS | ||
Loans, net of unearned income | 370,266 | $ 363,635 |
Commercial loans secured by non-owner occupied real estate [Member] | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 3,439 | |
Commercial loans secured by non-owner occupied real estate [Member] | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 53,065 | |
Commercial loans secured by non-owner occupied real estate [Member] | Office | ||
LOANS | ||
Loans, net of unearned income | 38,218 | |
Commercial loans secured by non-owner occupied real estate [Member] | Retail | ||
LOANS | ||
Loans, net of unearned income | 108,763 | |
Commercial loans secured by non-owner occupied real estate [Member] | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 40,115 | |
Commercial loans secured by non-owner occupied real estate [Member] | Hotels | ||
LOANS | ||
Loans, net of unearned income | 45,764 | |
Commercial loans secured by non-owner occupied real estate [Member] | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 597 | |
Commercial loans secured by non-owner occupied real estate [Member] | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 57 | |
Commercial loans secured by non-owner occupied real estate [Member] | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 65,631 | |
Commercial loans secured by non-owner occupied real estate [Member] | Other | ||
LOANS | ||
Loans, net of unearned income | 14,617 | |
Commercial | ||
LOANS | ||
Loans, net of unearned income | $ 624,487 |
Loans - Additional information
Loans - Additional information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans | ||
Real estate-construction loans, percentage | 5.40% | 4.90% |
Loan balances net of unearned income | $ 406 | $ 384 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | $ 9,279 | $ 8,671 |
Charge-Offs | (154) | (206) |
Recoveries | 34 | 42 |
Provision (Credit) | 175 | (400) |
Balance at End of Period | 9,334 | 8,107 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | 3,951 | 3,057 |
Charge-Offs | 0 | 0 |
Recoveries | 0 | 5 |
Provision (Credit) | (91) | (448) |
Balance at End of Period | 3,860 | 2,614 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | 3,119 | 3,389 |
Charge-Offs | 0 | (63) |
Recoveries | 14 | 11 |
Provision (Credit) | 155 | 36 |
Balance at End of Period | 3,288 | 3,373 |
Residential Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | 1,159 | 1,235 |
Charge-Offs | (92) | (61) |
Recoveries | 6 | 8 |
Provision (Credit) | 68 | 31 |
Balance at End of Period | 1,141 | 1,213 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | 126 | 127 |
Charge-Offs | (62) | (82) |
Recoveries | 14 | 18 |
Provision (Credit) | 42 | 62 |
Balance at End of Period | 120 | 125 |
Allocation for General Risk [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | 924 | 863 |
Charge-Offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (Credit) | 1 | (81) |
Balance at End of Period | $ 925 | $ 782 |
Allowance for Loan Losses - L_2
Allowance for Loan Losses - Loan loss by the primary segments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans: | ||||
Individually evaluated for impairment | $ 841 | $ 824 | ||
Collectively evaluated for impairment | 871,808 | 881,882 | ||
Total loans | 872,649 | 882,706 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 87 | 92 | ||
General reserve allocation | 9,247 | 9,187 | ||
Total allowance for loan losses | 9,334 | 9,279 | $ 8,107 | $ 8,671 |
Commercial [Member] | ||||
Loans: | ||||
Individually evaluated for impairment | 833 | 816 | ||
Collectively evaluated for impairment | 253,388 | 264,761 | ||
Total loans | 254,221 | 265,577 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 79 | 84 | ||
General reserve allocation | 3,781 | 3,867 | ||
Total allowance for loan losses | 3,860 | 3,951 | 2,614 | 3,057 |
Commercial loans secured by non-owner occupied real estate [Member] | ||||
Loans: | ||||
Individually evaluated for impairment | 8 | 8 | ||
Collectively evaluated for impairment | 370,258 | 363,627 | ||
Total loans | 370,266 | 363,635 | ||
Allowance for loan losses: | ||||
Specific reserve allocation | 8 | 8 | ||
General reserve allocation | 3,280 | 3,111 | ||
Total allowance for loan losses | 3,288 | 3,119 | 3,373 | 3,389 |
Residential Mortgage | ||||
Loans: | ||||
Collectively evaluated for impairment | 230,207 | 235,239 | ||
Total loans | 230,207 | 235,239 | ||
Allowance for loan losses: | ||||
General reserve allocation | 1,141 | 1,159 | ||
Total allowance for loan losses | 1,141 | 1,159 | 1,213 | 1,235 |
Consumer [Member] | ||||
Loans: | ||||
Collectively evaluated for impairment | 17,955 | 18,255 | ||
Total loans | 17,955 | 18,255 | ||
Allowance for loan losses: | ||||
General reserve allocation | 120 | 126 | ||
Total allowance for loan losses | 120 | 126 | 125 | 127 |
Allocation for General Risk [Member] | ||||
Allowance for loan losses: | ||||
General reserve allocation | 925 | 924 | ||
Total allowance for loan losses | $ 925 | $ 924 | $ 782 | $ 863 |
Allowance for Loan Losses - Pre
Allowance for Loan Losses - Present impaired loans by portfolio segment (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 841,000 | $ 824,000 |
Related Allowance | 8,000 | 8,000 |
Unpaid Principal Balance | 863,000 | 846,000 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 833,000 | 816,000 |
Unpaid Principal Balance | 833,000 | 816,000 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 8,000 | 8,000 |
Unpaid Principal Balance | 30,000 | 30,000 |
Impaired Loans with Specific Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 841,000 | 824,000 |
Related Allowance | 87,000 | 92,000 |
Impaired Loans with Specific Allowance [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 833,000 | 816,000 |
Related Allowance | 79,000 | 84,000 |
Impaired Loans with Specific Allowance [Member] | Commercial loans secured by non-owner occupied real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 8,000 | 8,000 |
Related Allowance | 8,000 | 8,000 |
Impaired Loans With No Specific Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 0 | 0 |
Impaired Loans With No Specific Allowance [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 0 | 0 |
Impaired Loans With No Specific Allowance [Member] | Commercial loans secured by non-owner occupied real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 0 | $ 0 |
Allowance for Loan Losses - Inv
Allowance for Loan Losses - Investment in impaired loans and related interest income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Average loan balance: | ||
Average investment in impaired loans | $ 833 | $ 11 |
Interest income recognized: | ||
Interest income recognized on a cash basis on impaired loans | 12 | 0 |
Commercial [Member] | ||
Average loan balance: | ||
Average investment in impaired loans | 825 | 0 |
Interest income recognized: | ||
Interest income recognized on a cash basis on impaired loans | 12 | 0 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
Average loan balance: | ||
Average investment in impaired loans | 8 | 11 |
Interest income recognized: | ||
Interest income recognized on a cash basis on impaired loans | $ 0 | $ 0 |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Commercial and commercial real estate loan portfolios (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 872,649 | $ 882,706 |
Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 624,487 | 629,212 |
Commercial and Industrial Loan [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 166,911 | 173,922 |
Commercial and Industrial [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 166,911 | 173,922 |
Commercial loans secured by owner occupied real estate [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 87,310 | 91,655 |
Commercial loans secured by owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 87,310 | 91,655 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 370,266 | 363,635 |
Commercial loans secured by non-owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 370,266 | 363,635 |
Pass [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 607,798 | 612,116 |
Pass [Member] | Commercial and Industrial Loan [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 154,456 | 161,147 |
Pass [Member] | Commercial loans secured by owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 84,661 | 88,942 |
Pass [Member] | Commercial loans secured by non-owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 368,681 | 362,027 |
Special Mention [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 2,135 | 2,237 |
Special Mention [Member] | Commercial and Industrial Loan [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 790 | 853 |
Special Mention [Member] | Commercial loans secured by owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,345 | 1,384 |
Substandard [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 14,546 | 14,851 |
Substandard [Member] | Commercial and Industrial Loan [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 11,665 | 11,922 |
Substandard [Member] | Commercial loans secured by owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,304 | 1,329 |
Substandard [Member] | Commercial loans secured by non-owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,577 | 1,600 |
Doubtful [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 8 | 8 |
Doubtful [Member] | Commercial and Industrial Loan [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 0 | 0 |
Doubtful [Member] | Commercial loans secured by owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 0 | 0 |
Doubtful [Member] | Commercial loans secured by non-owner occupied real estate [Member] | Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 8 | $ 8 |
Allowance for Loan Losses - Res
Allowance for Loan Losses - Residential and consumer portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 872,649 | $ 882,706 |
Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 248,162 | 253,494 |
Residential Mortgage | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 230,207 | 235,239 |
Residential Mortgage | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 230,207 | 235,239 |
Consumer [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 17,955 | 18,255 |
Consumer [Member] | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 17,955 | 18,255 |
Performing [Member] | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 246,758 | 252,015 |
Performing [Member] | Residential Mortgage | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 228,803 | 233,760 |
Performing [Member] | Consumer [Member] | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 17,955 | 18,255 |
Non-Performing [Member] | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 1,404 | 1,479 |
Non-Performing [Member] | Residential Mortgage | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 1,404 | $ 1,479 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit quality of the loan portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 862,446 | $ 878,307 |
Total Past Due | 10,203 | 4,399 |
Total loans | 872,649 | 882,706 |
90 Days Past Due and Still Accruing | 0 | 0 |
30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 7,961 | 2,490 |
60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,271 | 887 |
90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 971 | 1,022 |
Commercial and Industrial [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 160,550 | 173,922 |
Total Past Due | 6,361 | 0 |
Total loans | 166,911 | 173,922 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 6,361 | 0 |
Commercial and Industrial [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial and Industrial [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial loans secured by owner occupied real estate [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 87,197 | 91,538 |
Total Past Due | 113 | 117 |
Total loans | 87,310 | 91,655 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial loans secured by owner occupied real estate [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 113 | 117 |
Commercial loans secured by owner occupied real estate [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial loans secured by owner occupied real estate [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 370,266 | 363,635 |
Total Past Due | 0 | 0 |
Total loans | 370,266 | 363,635 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial loans secured by non-owner occupied real estate [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial loans secured by non-owner occupied real estate [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial loans secured by non-owner occupied real estate [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Residential Mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 226,532 | 231,022 |
Total Past Due | 3,675 | 4,217 |
Total loans | 230,207 | 235,239 |
90 Days Past Due and Still Accruing | 0 | 0 |
Residential Mortgage | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,445 | 2,331 |
Residential Mortgage | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,259 | 864 |
Residential Mortgage | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 971 | 1,022 |
Consumer [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 17,901 | 18,190 |
Total Past Due | 54 | 65 |
Total loans | 17,955 | 18,255 |
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 42 | 42 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 12 | 23 |
Consumer [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | $ 0 | $ 0 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Loan and Lease Losses, Adjustments, Other | $ 175,000 | $ (400,000) | |
Financing Receivable, Individually Evaluated for Impairment | 841,000 | $ 824,000 | |
Debt Instrument Non Performing Assets | $ 2,200,000 | ||
Percentage Of Allowance For Total Loans | 1.06% | 1.05% | |
Non-performing assets as a percent of loans | 0.26% | 0.26% | |
Allowance for Loan and Lease Losses Write-offs, Net | $ 120,000 | $ 164,000 | |
Allowance For Loan And Lease Losses Write Off Percentage | 0.06% | 0.08% | |
Percentage Of Allowance For Non Performing Assets | 416.00% | 397.00% | |
Financing Receivable, Recorded Investment, Past Due | $ 10,203,000 | $ 4,399,000 | |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Loan and Lease Losses, Adjustments, Other | (91,000) | $ (448,000) | |
Financing Receivable, Individually Evaluated for Impairment | 833,000 | 816,000 | |
Minimum aggregate balances for commercial loan relationship under structure loan rating process | 1,000,000 | ||
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 6,361,000 | $ 0 | |
Pass [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum individual loan balance requiring quarterly review | 2,000,000 | ||
Special Mention [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum individual loan balance requiring quarterly review | 250,000 | ||
Substandard [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum individual loan balance requiring quarterly review | 250,000 | ||
Doubtful [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum individual loan balance requiring quarterly review | 100,000 | ||
Minimum | Consumer and Residential Mortgage Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 150,000 | ||
Minimum | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum percent of portfolio to be reviewed | 40.00% |
Non-Performing Assets Includi_3
Non-Performing Assets Including Troubled Debt Restructurings (TDR) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Non-Performing assets including TDR | ||
Non-accrual loans | $ 1,437 | $ 1,487 |
Other real estate owned | 0 | 37 |
TDR's not in non-accrual | 807 | 815 |
Total non-performing assets including TDR | $ 2,244 | $ 2,339 |
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned | 0.26% | 0.26% |
Commercial and industrial | ||
Non-Performing assets including TDR | ||
Non-accrual loans | $ 25 | $ 0 |
Commercial loans secured by non-owner occupied real estate [Member] | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 8 | 8 |
Residential Mortgage | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 1,404 | 1,479 |
Other real estate owned | 0 | 37 |
Commercial and Industrial [Member] | ||
Non-Performing assets including TDR | ||
TDR's not in non-accrual | $ 807 | $ 815 |
Non-Performing Assets Includi_4
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Interest income due in accordance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Interest Income | ||
Interest income due in accordance with original terms | $ 17 | $ 15 |
Interest income recorded | 0 | 0 |
Net reduction in interest income | $ 17 | $ 15 |
Non-Performing Assets Includi_5
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Additional information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | ||
ALL reserve for TDR's | $ 85,000 | $ 92,000 |
Federal Home Loan Bank Borrow_3
Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank (FHLB) borrowings and advances | ||
Open Repo Plus | $ 16,354 | $ 22,412 |
Advances 2020, Amount | 12,229 | 18,729 |
Advances 2021, Amount | 9,496 | 9,496 |
Advances 2022, Amount | 20,888 | 17,838 |
Advances 2023, Amount | 13,568 | 5,568 |
Advances 2024, Amount | 2,037 | 2,037 |
Total advances | 58,218 | 53,668 |
Total FHLB borrowings, Amount | $ 74,572 | $ 76,080 |
Open Repo Plus Maturity Overnight, Weighted Average Rate | 0.36% | 1.81% |
Advances Maturing 2020, Weighted Average Rate | 1.74% | 1.75% |
Advances Maturing 2021, Weighted Average Rate | 2.28% | 2.28% |
Advances Maturing 2022, Weighted Average Rate | 2.03% | 2.21% |
Advances Maturing 2023, Weighted Average Rate | 1.76% | 2.48% |
Advances Maturing 2024 Weighted Average Rate | 1.86% | 1.86% |
Total advances, Weighted Average Rate | 1.94% | 2.08% |
Total FHLB borrowings, Weighted Average Rate | 1.59% | 2.00% |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease Commitments | ||
Amortization of right-of-use asset | $ 67 | $ 64 |
Interest expense | 29 | 30 |
Operating lease cost | 29 | 29 |
Total lease cost | $ 125 | $ 123 |
Lease Commitments - Leases outs
Lease Commitments - Leases outstanding - (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Lease Commitments | ||
Operating Lease, Weighted-average remaining term | 11 years 8 months 12 days | 11 years 10 months 24 days |
Financing Lease, Weighted-average remaining term | 16 years 8 months 12 days | 17 years 1 month 6 days |
Operating Lease, Weighted-average discount rate | 3.46% | 3.46% |
Financing Lease, Weighted-average discount rate | 3.57% | 3.60% |
Lease Commitments - Operating a
Lease Commitments - Operating and financing leases - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lease Commitments | ||
Operating lease, Within 1 year | $ 118 | $ 118 |
Operating lease, After 1 year but within 2 years | 120 | 120 |
Operating lease, After 2 years but within 3 years | 85 | 98 |
Operating lease, After 3 years but within 4 years | 69 | 69 |
Operating lease, After 4 years but within 5 years | 69 | 69 |
Operating lease, After 5 years | 573 | 589 |
Total undiscounted cash flows | 1,034 | 1,063 |
Discount on cash flows | (192) | (198) |
Total lease liabilities | 842 | 865 |
Financing lease, Within 1 year | 302 | 296 |
Financing lease, After 1 year but within 2 years | 289 | 275 |
Financing lease, After 2 years but within 3 years | 291 | 277 |
Financing lease, After 3 years but within 4 years | 276 | 274 |
Financing lease, After 4 years but within 5 years | 251 | 236 |
Financing lease, After 5 years | 2,943 | 3,007 |
Total undiscounted cash flows | 4,352 | 4,365 |
Discount on cash flows | (1,175) | (1,202) |
Total lease liabilities | $ 3,177 | $ 3,163 |
Lease Commitments - Additional
Lease Commitments - Additional information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Short Term Equipment Under Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Description Of Accounting Treatment For Short Term Operating Lease | As of March 31, 2020 and December 31, 2019, the Company had one short-term equipment lease which it has elected to not record on the Consolidated Balance Sheets. | As of March 31, 2020 and December 31, 2019, the Company had one short-term equipment lease which it has elected to not record on the Consolidated Balance Sheets. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (16,171) | $ (14,225) |
Other comprehensive income (loss) before reclassifications | 829 | (346) |
Amounts reclassified from accumulated other comprehensive loss | 512 | 289 |
Net current period other comprehensive income (loss) | 1,341 | (57) |
Ending balance | (14,830) | (14,282) |
Net Unrealized Gains and (Losses) on Investment Securities AFS [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,715 | (1,409) |
Other comprehensive income (loss) before reclassifications | 924 | 1,393 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income (loss) | 924 | 1,393 |
Ending balance | 2,639 | (16) |
Defined Benefit Pension Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (17,886) | (12,816) |
Other comprehensive income (loss) before reclassifications | (95) | (1,739) |
Amounts reclassified from accumulated other comprehensive loss | 512 | 289 |
Net current period other comprehensive income (loss) | 417 | (1,450) |
Ending balance | $ (17,469) | $ (14,266) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification of component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Realized (gains) losses on sale of securities | ||
Net realized (gains) losses on investment securities | $ 0 | $ 0 |
Provision for income taxes | 0 | 0 |
Net of tax | 0 | 0 |
Amortization of estimated defined benefit pension plan loss | ||
Other expense | 648 | 366 |
Provision for income taxes | (136) | (77) |
Net of tax | 512 | 289 |
Total reclassifications for the period | $ 512 | $ 289 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 120,917 | $ 119,477 |
Tier 1 Common Equity (To RWA), Actual Amount | 110,766 | 109,173 |
Tier 1 Capital (To RWA), Actual Amount | 110,766 | 109,173 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 110,766 | $ 109,173 |
Total Capital (To RWA), Actual Ratio | 12.23% | 12.23% |
Tier 1 Common Equity (To RWA), Actual Ratio | 11.20% | 11.17% |
Tier 1 Capital (To RWA), Actual Ratio | 11.20% | 11.17% |
Tier 1 Capital (To Average Assets), Actual Ratio | 9.64% | 9.50% |
Total Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 8.00% | 8.00% |
Tier 1 Common Equity (To RWA), Minimum Required For Capital Adequacy Purpose | 4.50% | 4.50% |
Tier 1 Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 6.00% | 6.00% |
Tier 1 Capital (To Average Assets), Minimum Required For Capital Adequacy Purpose | 4.00% | 4.00% |
Total Capital (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 10.00% | 10.00% |
Tier 1 Common Equity (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 6.50% | 6.50% |
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Regulations | 8.00% | 8.00% |
Tier 1 Capital (To Average Assets), To Be Will Capitalized Under Prompt Corrective Action Regulations | 5.00% | 5.00% |
Parent Company [Member] | ||
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 133,286 | $ 132,544 |
Tier 1 Common Equity (To RWA), Actual Amount | 103,726 | 102,841 |
Tier 1 Capital (To RWA), Actual Amount | 115,618 | 114,729 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 115,618 | $ 114,729 |
Total Capital (To RWA), Actual Ratio | 13.41% | 13.49% |
Tier 1 Common Equity (To RWA), Actual Ratio | 10.44% | 10.47% |
Tier 1 Capital (To RWA), Actual Ratio | 11.64% | 11.68% |
Tier 1 Capital (To Average Assets), Actual Ratio | 9.94% | 9.87% |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) | Mar. 31, 2020 |
Regulatory Capital | |
Tangible Capital to Tangible Assets | 7.69% |
Derivative Hedging Instrument_2
Derivative Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative, Notional Amount | $ 0 | $ 0 |
Derivative Financial Instruments, Liabilities [Member] | Swap [Member] | ||
Derivative, Swap Type | FAIR VALUE | FAIR VALUE |
Derivative Liability, Notional Amount | $ (33,037) | $ (21,745) |
Derivative Instruments Weighted Average Interest Rate Received Paid | (3.93%) | (4.79%) |
Derivative Instruments, Repricing Frequency | MONTHLY | MONTHLY |
Increase (Decrease) in Interest Expense | $ 45 | $ (9) |
Derivative Financial Instruments, Assets [Member] | Swap [Member] | ||
Derivative, Swap Type | FAIR VALUE | FAIR VALUE |
Derivative Asset, Notional Amount | $ 33,037 | $ 21,745 |
Derivative Instruments Weighted Average Interest Rate Received Paid | 3.93% | 4.79% |
Derivative Instruments, Repricing Frequency | MONTHLY | MONTHLY |
Increase (Decrease) in Interest Expense | $ (45) | $ 9 |
Derivative Hedging Instrument_3
Derivative Hedging Instruments - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) |
Derivative Hedging Instruments | |
Derivative Notional Amount Outstanding | $ 500 |
Segment Results (Details)
Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contribution of segments to the consolidated results of operations | ||
Total revenue | $ 12,583 | $ 12,262 |
Net income (loss) | 1,409 | 1,878 |
Community banking | ||
Contribution of segments to the consolidated results of operations | ||
Total revenue | 11,448 | 11,093 |
Net income (loss) | 2,524 | 2,948 |
Wealth management | ||
Contribution of segments to the consolidated results of operations | ||
Total revenue | 2,568 | 2,417 |
Net income (loss) | 487 | 444 |
Investment/Parent | ||
Contribution of segments to the consolidated results of operations | ||
Total revenue | (1,433) | (1,248) |
Net income (loss) | $ (1,602) | $ (1,514) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments to extend credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 217.5 | $ 195.5 |
Standby letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 14.1 | $ 14.7 |
Pension Benefits - Component of
Pension Benefits - Component of net periodic benefit cost (Details) - Defined Benefit Pension Items [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Components of net periodic benefit cost | ||
Service cost | $ 441 | $ 374 |
Interest cost | 319 | 402 |
Expected return on plan assets | (817) | (762) |
Recognized net actuarial loss | 648 | 366 |
Net periodic pension cost | $ 591 | $ 380 |
Pension Benefits - Additional i
Pension Benefits - Additional information (Details) | Mar. 31, 2020 |
Pension Benefits | |
Minimum number of annual hours | 1,000 |
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock | 10.00% |
Disclosures about Fair Value _3
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of assets and liability measured and recorded on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Equity securities | $ 386 | $ 366 |
Available for sale, at fair value | 142,716 | 141,749 |
Fair value swap asset | 3,520 | 959 |
Fair value swap liability | (3,520) | (959) |
U.S. Agency | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 3,967 | 5,116 |
U.S. Agency mortgage-backed securities | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 82,084 | 81,633 |
Municipal | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 15,824 | 15,170 |
Corporate bonds [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 40,841 | 39,830 |
Level 1 [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Equity securities | 386 | 366 |
Level 2 [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Fair value swap asset | 3,520 | 959 |
Fair value swap liability | (3,520) | (959) |
Level 2 [Member] | U.S. Agency | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 3,967 | 5,116 |
Level 2 [Member] | U.S. Agency mortgage-backed securities | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 82,084 | 81,633 |
Level 2 [Member] | Municipal | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | 15,824 | 15,170 |
Level 2 [Member] | Corporate bonds [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Available for sale, at fair value | $ 40,841 | $ 39,830 |
Disclosures about Fair Value _4
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of assets measured and recorded at fair value on a non-recurring basis (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Impaired loan with carrying value | $ 266,000 | $ 263,000 |
Specific valuation allowance | 8,000 | 8,000 |
Impaired loans | 258,000 | 255,000 |
Fair Value Measurements, Nonrecurring Basis [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Impaired loans | 258,000 | 255,000 |
Other real estate owned | 37,000 | |
Fair Value Measurements, Nonrecurring Basis [Member] | Impaired loans | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Impaired loans | $ 258,000 | $ 255,000 |
Valuation Techniques | Appraisal of collateral (1) | Appraisal of collateral(1) |
Fair Value Measurements, Nonrecurring Basis [Member] | Other real estate owned | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Other real estate owned | $ 37,000 | |
Valuation Techniques | Appraisal of collateral (1) | |
Fair Value Measurements, Nonrecurring Basis [Member] | Minimum | Impaired loans | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Appraisal adjustments | 0.00% | 0.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Minimum | Other real estate owned | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Appraisal adjustments | 0.00% | |
Liquidation expenses | 21.00% | |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum | Impaired loans | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Appraisal adjustments | 100.00% | 100.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum | Other real estate owned | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Appraisal adjustments | 57.00% | |
Liquidation expenses | 134.00% | |
Fair Value Measurements, Nonrecurring Basis [Member] | Wgtd Ave | Impaired loans | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Appraisal adjustments | 3.00% | 3.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Wgtd Ave | Other real estate owned | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Appraisal adjustments | 38.00% | |
Liquidation expenses | 30.00% | |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 1 [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Impaired loans | $ 0 | $ 0 |
Other real estate owned | 0 | |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 2 [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 3 [Member] | ||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | ||
Impaired loans | $ 258,000 | 255,000 |
Other real estate owned | $ 37,000 |
Disclosures about Fair Value _5
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of estimated fair value and recorded carrying value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Carrying Value | $ 42,068 | $ 39,936 |
Loans held for sale | 4,750 | 4,868 |
Loans, net of allowance for loan loss and unearned income, Carrying Value | 863,315 | 873,427 |
Investment securities - HTM, Fair Value | 44,236 | 41,082 |
Loans held for sale, Fair Value | 4,889 | 4,970 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 867,308 | 873,908 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with no stated maturities, Carrying Value | 646,074 | 651,469 |
Deposits with stated maturities, Carrying Value | 311,519 | 309,044 |
All other borrowings, Carrying Value | 78,694 | 74,134 |
Deposits with no stated maturities, Fair Value | 642,965 | 631,023 |
Deposits with stated maturities, Fair Value | $ 315,616 | 310,734 |
Assets and liabilities considered financial instruments, percentage | 90.00% | |
All other borrowings, Fair Value | $ 85,321 | 76,323 |
Level 1 [Member] | ||
FINANCIAL ASSETS: Carrying Value | ||
Loans held for sale, Fair Value | 4,889 | 4,970 |
Level 2 [Member] | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 41,242 | 38,129 |
Level 3 [Member] | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 2,994 | 2,953 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 867,308 | 873,908 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with no stated maturities, Fair Value | 642,965 | 631,023 |
Deposits with stated maturities, Fair Value | 315,616 | 310,734 |
All other borrowings, Fair Value | $ 85,321 | $ 76,323 |
Subsequent Events Related to _3
Subsequent Events Related to the COVID-19 Pandemic (Details) - PPP loan $ in Millions | May 04, 2020USD ($)item | Mar. 27, 2020USD ($)item |
Subsequent Event [Line Items] | ||
Number of times of average monthly payroll costs | item | 2.5 | |
Loan amount | $ 10 | |
Interest rate | 1.00% | |
Loan term | 2 years | |
Period for principal and interest payments deferred | 6 months | |
Percentage of guarantee by SBA | 100.00% | |
Percentage of loan proceeds used for payroll expenses | 75.00% | |
Percentage of loan proceeds used for other qualifying expenses | 25.00% | |
Subsequent event | ||
Subsequent Event [Line Items] | ||
Number of applications received | item | 400 | |
Excess of loan application received | $ 61 | |
Fee income generated from loans | $ 1.9 |
Subsequent Events Related to _4
Subsequent Events Related to the COVID-19 Pandemic - Additional (Details) - Subsequent event $ in Thousands | May 04, 2020USD ($)loan |
Subsequent Event [Line Items] | |
Loans for which payment relief has been requested | $ 211,242 |
Percentage of Outstanding Loans | 24.10% |
Number of loans | loan | 388 |
Payment relief that have been granted | $ 211,242 |
Minimum | |
Subsequent Event [Line Items] | |
Period for principal and interest payments deferred | 3 months |
Maximum | |
Subsequent Event [Line Items] | |
Period for principal and interest payments deferred | 6 months |
Interest only payments | |
Subsequent Event [Line Items] | |
Number of loans | loan | 84 |
Payment relief that have been granted | $ 96,163 |
Complete payment deferrals | |
Subsequent Event [Line Items] | |
Number of loans | loan | 304 |
Payment relief that have been granted | $ 115,079 |
CRE | Commercial | |
Subsequent Event [Line Items] | |
Loans for which payment relief has been requested | $ 201,658 |
Percentage of Outstanding Loans | 31.20% |
Home Equity | Consumer | |
Subsequent Event [Line Items] | |
Loans for which payment relief has been requested | $ 5,551 |
Percentage of Outstanding Loans | 5.50% |
Residential Mortgage | |
Subsequent Event [Line Items] | |
Loans for which payment relief has been requested | $ 4,033 |
Percentage of Outstanding Loans | 3.10% |