Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | DNB FINANCIAL CORP /PA/ | |
Entity Central Index Key | 0000713671 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,334,431 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 46,398 | $ 17,321 |
Cash and cash equivalents | 46,398 | 17,321 |
Available-for-sale investment securities at fair value (amortized cost of $70,406 and $98,765) | 69,931 | 96,643 |
Held-to-maturity investment securities (fair value of $60,322 and $61,135) | 59,949 | 62,026 |
Total investment securities | 129,880 | 158,669 |
Loans held for sale | 501 | 419 |
Loans | 930,521 | 934,971 |
Allowance for credit losses | (6,672) | (6,675) |
Net loans | 923,849 | 928,296 |
Restricted stock | 5,734 | 5,616 |
Office property and equipment, net | 7,230 | 7,636 |
Operating lease right-of-use asset | 3,792 | |
Accrued interest receivable | 4,297 | 4,207 |
Other real estate owned & other repossessed property | 2,825 | 5,051 |
Bank owned life insurance (BOLI) | 9,635 | 9,530 |
Core deposit intangible | 302 | 343 |
Goodwill | 15,525 | 15,525 |
Net deferred taxes | 2,416 | 2,762 |
Other assets | 2,025 | 2,860 |
Total assets | 1,154,409 | 1,158,235 |
Liabilities | ||
Non-interest-bearing deposits | 178,454 | 164,746 |
Interest-bearing deposits: | ||
NOW | 214,806 | 236,071 |
Money market | 236,707 | 235,023 |
Savings | 79,489 | 77,979 |
Time | 178,530 | 162,096 |
Brokered deposits | 87,877 | 108,651 |
Total deposits | 975,863 | 984,566 |
Federal Home Loan Bank of Pittsburgh (FHLBP) advances | 31,203 | 32,935 |
Junior subordinated debentures | 9,279 | 9,279 |
Subordinated debt | 9,750 | 9,750 |
Other borrowings | 272 | 3,305 |
Total borrowings | 50,504 | 55,269 |
Accrued interest payable | 641 | 646 |
Other liabilities | 5,071 | 5,908 |
Operating lease liability | 4,174 | |
Total liabilities | 1,036,253 | 1,046,389 |
Stockholders' Equity | ||
Common stock, $1.00 par value; 20,000,000 shares authorized; 4,381,872 and 4,381,872 issued, respectively; 4,331,121 and 4,321,745 outstanding, respectively | 4,382 | 4,391 |
Treasury stock, at cost; 50,751 and 60,127 shares, respectively | (961) | (1,130) |
Surplus | 69,613 | 69,333 |
Retained earnings | 46,791 | 42,223 |
Accumulated other comprehensive loss | (1,669) | (2,971) |
Total stockholders' equity | 118,156 | 111,846 |
Total liabilities and stockholders' equity | $ 1,154,409 | $ 1,158,235 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consolidated Statements of Financial Condition [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 70,406 | $ 98,765 |
Held-to-maturity Securities, Fair Value | $ 60,322 | $ 61,135 |
Common stock par value per share | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares, issued | 4,381,872 | 4,381,872 |
Common stock, shares, outstanding | 4,331,121 | 4,321,745 |
Treasury stock, shares | 50,751 | 60,127 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Income: | ||||
Interest and fees on loans | $ 11,358 | $ 10,164 | $ 22,648 | $ 20,046 |
Interest and dividends on investment securities: Taxable | 812 | 862 | 1,623 | 1,655 |
Interest and dividends on investment securities: Exempt from federal taxes | 211 | 218 | 427 | 435 |
Interest on cash and cash equivalents | 138 | 45 | 181 | 66 |
Total interest and dividend income | 12,519 | 11,289 | 24,879 | 22,202 |
Interest Expense: | ||||
Interest on NOW, money market and savings | 1,109 | 994 | 2,160 | 1,824 |
Interest on time deposits | 916 | 333 | 1,744 | 658 |
Interest on brokered deposits | 592 | 414 | 1,203 | 613 |
Interest on FHLB advances | 145 | 239 | 370 | 540 |
Interest on repurchase agreements | 6 | 12 | ||
Interest on junior subordinated debentures | 129 | 113 | 256 | 218 |
Interest on subordinated debt | 103 | 103 | 207 | 207 |
Interest on other borrowings | 10 | 19 | 26 | 35 |
Total interest expense | 3,004 | 2,221 | 5,966 | 4,107 |
Net interest income | 9,515 | 9,068 | 18,913 | 18,095 |
Provision for credit losses | 100 | 375 | 300 | 750 |
Net interest income after provision for credit losses | 9,415 | 8,693 | 18,613 | 17,345 |
Non-interest Income: | ||||
Increase in cash surrender value of BOLI | 53 | 52 | 105 | 104 |
Gains on sale of investment securities, net | 1 | 4 | ||
Gains on sale of loans | 10 | 10 | ||
Total non-interest income | 1,344 | 1,332 | 2,618 | 2,605 |
Non-interest Expense: | ||||
Salaries and employee benefits | 3,785 | 4,261 | 7,638 | 8,033 |
Furniture and equipment | 663 | 550 | 1,204 | 1,039 |
Occupancy | 627 | 634 | 1,352 | 1,331 |
Professional and consulting | 440 | 424 | 1,017 | 827 |
Advertising and marketing | 225 | 204 | 420 | 386 |
FDIC insurance | 95 | 122 | 209 | 240 |
PA shares tax | 260 | 243 | 520 | 485 |
Telecommunications | 90 | 84 | 178 | 165 |
Loss on sale or write down of OREO, net | 37 | 140 | 150 | 140 |
Transaction costs | 519 | 519 | ||
Other expenses | 771 | 878 | 1,583 | 1,624 |
Total non-interest expense | 7,512 | 7,540 | 14,790 | 14,270 |
Income before income tax expense | 3,247 | 2,485 | 6,441 | 5,680 |
Income tax expense | 660 | 436 | 1,267 | 1,018 |
Net income | $ 2,587 | $ 2,049 | $ 5,174 | $ 4,662 |
Earnings per common share: | ||||
Basic | $ 0.60 | $ 0.48 | $ 1.20 | $ 1.09 |
Diluted | 0.60 | 0.47 | 1.19 | 1.08 |
Cash dividends per common share | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 |
Weighted average common shares outstanding: | ||||
Basic | 4,331,121 | 4,298,409 | 4,329,226 | 4,294,758 |
Diluted | 4,336,254 | 4,314,418 | 4,333,181 | 4,311,696 |
Service Charges [Member] | ||||
Non-interest Income: | ||||
Non-interest Income | $ 246 | $ 261 | $ 537 | $ 574 |
Wealth Management [Member] | ||||
Non-interest Income: | ||||
Non-interest Income | 529 | 512 | 974 | 947 |
Mortgage Banking [Member] | ||||
Non-interest Income: | ||||
Non-interest Income | 72 | 76 | 146 | 137 |
Other Fees [Member] | ||||
Non-interest Income: | ||||
Non-interest Income | $ 443 | $ 421 | $ 852 | $ 833 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Consolidated Statements of Comprehensive Income [Abstract] | |||||
Net income | $ 2,587 | $ 2,049 | $ 5,174 | $ 4,662 | |
Unrealized holding gains (losses) arising during the period | |||||
Before tax amount | 838 | (235) | 1,647 | (1,249) | |
Tax effect | (176) | 49 | (344) | 262 | |
Less reclassification for gains on sales of AFS investment securities included in net income | |||||
Before tax amount | [1] | (1) | (1) | ||
Tax effect | [2] | ||||
Less reclassification for gains on sales of AFS investment securities included in net income | (1) | (1) | |||
Other comprehensive income - securities | 661 | (186) | 1,302 | (987) | |
Total other comprehensive income (loss) | 661 | (186) | 1,302 | (987) | |
Total comprehensive income | $ 3,248 | $ 1,863 | $ 6,476 | $ 3,675 | |
[1] | Amounts are included in "Gains on sale of investment securities, net" in the consolidated statements of income. | ||||
[2] | Amounts are included in "Income tax expense" in the consolidated statements of income. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2017 | $ 4,379 | $ (1,429) | $ 69,110 | $ 32,272 | $ (2,390) | $ 101,942 |
Net income | 4,662 | 4,662 | ||||
Other comprehensive income (loss) | (987) | (987) | ||||
Restricted stock compensation expense | 8 | 196 | 204 | |||
Exercise of stock options | 2 | (2) | ||||
Shares withheld for employee taxes on stock option exercise and share award vest | (4) | (176) | (180) | |||
Cash dividends - common | (601) | (601) | ||||
Non-cash funding of 401(k) | 102 | 92 | 194 | |||
Non-cash funding of deferred comp. plan | 51 | 48 | 99 | |||
Adoption impact - ASU 2018-02 | 471 | (471) | ||||
Balance at Jun. 30, 2018 | 4,385 | (1,276) | 69,268 | 36,804 | (3,848) | 105,333 |
Balance at Mar. 31, 2018 | 4,383 | (1,345) | 69,238 | 35,056 | (3,662) | 103,670 |
Net income | 2,049 | 2,049 | ||||
Other comprehensive income (loss) | (186) | (186) | ||||
Restricted stock compensation expense | 4 | 104 | 108 | |||
Exercise of stock options | 1 | (1) | ||||
Shares withheld for employee taxes on stock option exercise and share award vest | (3) | (140) | (143) | |||
Cash dividends - common | (301) | (301) | ||||
Non-cash funding of 401(k) | 44 | 42 | 86 | |||
Non-cash funding of deferred comp. plan | 25 | 25 | 50 | |||
Balance at Jun. 30, 2018 | 4,385 | (1,276) | 69,268 | 36,804 | (3,848) | 105,333 |
Balance at Dec. 31, 2018 | 4,391 | (1,130) | 69,333 | 42,223 | (2,971) | 111,846 |
Net income | 5,174 | 5,174 | ||||
Other comprehensive income (loss) | 1,302 | 1,302 | ||||
Restricted stock compensation expense | (9) | 152 | 143 | |||
Cash dividends - common | (606) | (606) | ||||
Non-cash funding of 401(k) | 114 | 83 | 197 | |||
Non-cash funding of deferred comp. plan | 55 | 45 | 100 | |||
Balance at Jun. 30, 2019 | 4,382 | (961) | 69,613 | 46,791 | (1,669) | 118,156 |
Balance at Mar. 31, 2019 | 4,382 | (1,027) | 69,454 | 44,507 | (2,330) | 114,986 |
Net income | 2,587 | 2,587 | ||||
Other comprehensive income (loss) | 661 | 661 | ||||
Restricted stock compensation expense | 82 | 82 | ||||
Cash dividends - common | (303) | (303) | ||||
Non-cash funding of 401(k) | 42 | 48 | 90 | |||
Non-cash funding of deferred comp. plan | 24 | 29 | 53 | |||
Balance at Jun. 30, 2019 | $ 4,382 | $ (961) | $ 69,613 | $ 46,791 | $ (1,669) | $ 118,156 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||||
Restricted stock compensation expense, shares | 0 | 4,012 | 0 | 4,908 |
Exercise of stock options, shares | 1,372 | 2,338 | ||
Cash dividends- common stock per share | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 |
Non-cash funding of 401(k), shares | 2,335 | 2,428 | 6,266 | 5,658 |
Non-cash funding of deferred comp. plan, shares | 1,371 | 1,397 | 3,110 | 2,877 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 5,174 | $ 4,662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 694 | 761 |
Provision for credit losses | 300 | 750 |
Stock based compensation | 143 | 204 |
Non-cash funding of retirement plans | 297 | 293 |
Net gain on sale of securities | (4) | |
Net loss on sale or write down of OREO and other repossessed property | 150 | 140 |
Earnings from investment in BOLI | (105) | (104) |
Deferred tax expense | 167 | |
Proceeds from sales of mortgage loans | 8,113 | 8,620 |
Mortgage loans originated for sale | (8,049) | (8,108) |
Gain on sale of mortgage loans | (146) | (137) |
Proceeds from sales of loans | 188 | |
Loans originated for sale | (178) | |
Gain on sale of loans | (10) | |
Write off of property and equipment | 3 | |
Increase in accrued interest receivable | (90) | (89) |
Decrease in other assets | 1,215 | 97 |
(Decrease) increase in accrued interest payable | (5) | 7 |
(Decrease) increase in other liabilities | (837) | 241 |
Amortization of operating lease right-of-use asset | 372 | |
Accretion of operating lease liability | (369) | |
Net Cash Provided by Operating Activities | 6,856 | 7,504 |
Activity in available-for-sale securities: | ||
Sales | 13,905 | |
Maturities, repayments and calls | 45,875 | 6,953 |
Purchases | (31,546) | |
Activity in held-to-maturity securities: | ||
Maturities, repayments and calls | 2,148 | 304 |
Net (increase) decrease in restricted stock | (118) | 691 |
Net decrease (increase) in loans | 3,559 | (40,102) |
Purchases property and equipment | (192) | (122) |
Purchase of third party ownership in OREO | (165) | |
Proceeds from sale of OREO and other repossessed property | 2,829 | 33 |
Net Cash Provided By (Used In) Investing Activities | 36,295 | (32,243) |
Cash Flows From Financing Activities: | ||
Net (decrease) increase in deposits | (8,703) | 72,912 |
Repayment of FHLBP advances | (66,732) | (200,641) |
Funding of FHLBP advances | 65,000 | 184,600 |
Net decrease in repurchase agreements | (6,414) | |
Decrease in other borrowings | (3,033) | (2,402) |
Dividends paid | (606) | (601) |
Payment of employee taxes on stock option exercise and share award vest | (180) | |
Net Cash (Used in) Provided by Financing Activities | (14,074) | 47,274 |
Net Change in Cash and Cash Equivalents | 29,077 | 22,535 |
Cash and Cash Equivalents at Beginning of Period | 17,321 | 10,917 |
Cash and Cash Equivalents at End of Period | 46,398 | 33,452 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for: Interest | 5,971 | 4,100 |
Cash paid during the period for: Income taxes | 719 | 600 |
Supplemental Disclosure of Non-cash Flow Information: | ||
Transfers from loans to real estate owned and other repossessed property | $ 588 | $ 274 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | NOTE 1: BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of DNB Financial Corporation (referred to herein as the "Corporation" or "DNB") and its subsidiary, DNB First, National Association (the "Bank") have been prepared in accordance with the instructions for Form 10-Q and therefore do not include certain information or footnotes necessary for the presentation of financial condition, statement of operations and statement of cash flows required by generally accepted accounting principles. However, in the opinion of management, the consolidated financial statements reflect all adjustments (which consist of normal recurring adjustments) necessary for a fair presentation of the results for the unaudited periods. Prior amounts not affecting net income are reclassified when necessary to conform to current period classifications. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results which may be expected for the entire year. The consolidated financial statements should be read in conjunction with the Annual Report and report on Form 10-K for the year ended December 31, 2018. Subsequent Events-- Management has evaluated events and transactions occurring subsequent to June 30, 2019 for items that should potentially be recognized or disclosed in these Consolidated Financial Statements. The evaluation was conducted through the date these financial statements were issued. Merger Agreement. On June 5, 2019, S&T Bancorp, Inc. (“S&T”) and DNB entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which DNB will merge with and into S&T (the “Merger”), with S&T continuing as the surviving entity in the Merger, subject to the terms and conditions set forth therein. Immediately following the Merger, DNB’s wholly owned bank subsidiary, DNB First, National Association, will merge with and into S&T’s wholly owned bank subsidiary, S&T Bank (the “Bank Merger”), with S&T Bank continuing as the surviving entity in the Bank Merger. The Merger Agreement was unanimously approved by the Board of Directors of each of S&T and DNB. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), DNB shareholders will have the right to receive 1.22 shares of common stock, par value $2.50 per share, of S&T for each share of common stock, par value $1.00 per share, of DNB. The merger is subject to customary closing conditions enumerated in the merger agreement, including receipt of regulatory approvals and the approval of DNB’s shareholders. It is anticipated that the transaction will close during the fourth quarter of 2019. Recent Accounting Pronouncements - Accounting Developments Affecting DNB In May 2014, the FASB issued ASU No. 2014-09, ‘‘Revenue from Contracts with Customers (Topic 606).’’ The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016 and 2017, the FASB issued ASU Nos. 2016-10, 2016-12, 2016-20, and 2017-13 that provided additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. DNB adopted the new standards discussed above effective January 1, 2018 using the modified retrospective approach. A significant majority of DNB’s revenues are explicitly excluded from the scope of the new guidance including interest, dividend income, BOLI, gain/loss on sale of loans and investments on the Consolidated Statements of Income. The adoption of ASU 2014-09 did not require a cumulative adjustment to the opening balance of retained earnings as of January 1, 2018 and did not have a material impact on DNB’s Consolidated Statements of Financial Condition, Comprehensive Income, Stockholders’ Equity or Cash Flows for the year ended December 31, 2018. Non-interest income components in the scope of Topic 606 continue to be recognized when DNB’s performance obligations are complete or at the time of sale after a customer’s transaction posts in the account. Disclosures required for DNB’s revenue streams in the scope of ASU 2014-09 are included in Non-Interest Income in the following table. Non-interest Income Non-interest income includes revenue from contracts with customers in the scope of ASU 2014-09 as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Non-interest Income: Service charges: Non-sufficient funds charges $ 122 $ 142 $ 255 $ 301 Business analysis charges 46 44 92 85 Cycle charges 21 22 41 45 Lockbox fees 10 8 57 52 Stop payment fees 5 3 9 7 Wire transfer fees 22 22 44 43 Other service charges 20 20 39 41 Total service charges 246 261 537 574 Wealth management: DNB Investments & Insurance 126 150 202 238 DNB First Investment Management & Trust 403 362 772 709 Total wealth management 529 512 974 947 Other fee income: Cardholder interchange fees 286 269 539 514 Safe deposit box 24 26 47 50 Check printing 13 12 37 35 Merchant card processing 45 42 87 90 ATM surcharges for non-DNB customers 17 20 32 37 Other fee income 12 13 26 27 Total other fee income 397 382 768 753 Total Revenue from contracts with customers 1,172 1,155 2,279 2,274 Total Revenue not within the scope of ASC 606 172 177 339 331 Total non-interest income $ 1,344 $ 1,332 $ 2,618 $ 2,605 Service charges on deposit accounts are recorded monthly when DNB’s performance obligations are complete. Deposit balances are disclosed in the Consolidated Statement of Condition. For transaction-based service charges such as non-sufficient funds charges, wire transfer fees, stop payment fees, ATM fees, and other transaction-based fees, revenue is recognized at the time of sale after the transaction posts in the customer’s account. Wealth management revenue includes non-deposit products and services offered under the names “DNB Investment & Insurance” and “DNB First Investment Management & Trust”. Through a third-party marketing agreement with Cetera Investment Services, LLC (“Cetera”), DNB Investment & Insurance offers a complete line of investment and insurance products. DNB’s performance obligation as an agent is to arrange for the sale of products by Cetera. Monthly, DNB recognizes commission fees in the amounts to which it is entitled in accordance with the terms of the marketing agreement for products sold. Shortly after a sale, the product provider remits the commission payment through Cetera to the Company, and the Company recognizes the revenue. DNB records revenue net of the cost of the services. DNB First Investment Management & Trust offers a full line of investment and fiduciary services. DNB’s performance obligation is to manage investments, estates and trusts. Investment management and trust income is primarily comprised of fees earned from the management and administration of trusts, estates and investment agency portfolios. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized quarterly, based upon the quarter-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after quarter end through a direct charge to customers’ accounts. While managing estates and trusts, DNB contracts with a third-party tax preparation service. For tax preparation services, DNB’s obligation as an agent is to arrange for the performance of services by the third party. As tax services are rendered, DNB records revenue net of the cost of the services. Cardholder interchange fees consist of revenue DNB is entitled per agreements with third party debit and credit card providers. DNB’s performance obligation as an agent is to arrange for cardholder services with its customers in accordance with fees and terms offered by the third-party service providers. Based on cardholder transactions reported by third party service providers, DNB recognizes fees for the amount it is contractually entitled. DNB also contracts with third party providers for check printing, merchant card services, and ATM services. DNB’s performance obligation as an agent is to arrange for the services with its customers in accordance with fees and terms offered by the third-party service providers. Monthly, DNB recognizes fees for the amount it is contractually entitled. DNB adopted ASU 2015-16, Business Combinations (Topic 805), in 2016: Simplifying the Accounting for Measurement Period Adjustments on a prospective basis. This amendment eliminates the requirement to account for adjustments to provisional amounts recognized in a business combination retrospectively. Instead, the acquirer will recognize the adjustments to provisional amounts during the period in which the adjustments are determined, including the effect on earnings of any amounts the acquirer would have recorded in previous periods if the accounting had been completed at the acquisition date. DNB evaluated the impact of this guidance and it does not have a material impact to the consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, the guidance revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with fair value of financial instruments. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As of June 30, 2019, DNB did not hold any equity investments (excluding restricted investments in bank stocks). DNB does not expect to make significant purchases of equity investments; therefore, the adoption of this ASU is not expected to be material to DNB's consolidated financial statements. Adoption of the standard on January 1, 2018 also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. DNB has determined that upon the adoption of ASU 2016-02 is required to recognize a right-of-use asset and a corresponding liability based on the then present value of such obligation. The adoption of ASU 2016-02 resulted in the recognition of operating lease liabilities of $4.4 million and right-of-use asset of $4.0 million. The adoption of the new standard did not have a material impact on its Consolidated Statements of Income. Update 2018-11 - Leases (topic 842): Targeted Improvements provided an additional/optional transition method to adopt the new leases standard. Prior to this ASU issuance, a modified retrospective transition approach was required. The adoption of this ASU does not materially impact our Consolidated Statement of Financial Condition and Consolidated Statements of Changes in Stockholders’ Equity. Update 2018-20 - Leases (topic 842): Narrow-Scope Improvements for Lessors was released to better clarify the treatment of sales taxes and other similar taxes related to Lessor and Lessees costs and payments. The amendments in this update permit lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, those lessors will account for those costs as if they are lessee costs. Also, certain lessor costs require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties. DNB’s lessor income is immaterial; as such, this ASU does not materially impact our Consolidated Statement of Financial Condition or Consolidated Statements of Comprehensive Income. DNB adopted the use-of-hindsight practical expedient. DNB recognized rent expense associated with our leases as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Operating lease cost: Fixed rent expense $ 251 $ 284 $ 503 $ 569 Net lease cost $ 251 $ 284 $ 503 $ 569 Lease costs Amortization of lease liability $ 186 $ - $ 372 $ - Interest expense 65 - 131 - Net lease cost $ 251 $ - $ 503 $ - DNB had the following cash and non-cash activit i es associated with our leases: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 250 $ 242 $ 500 $ 484 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities $ 4,174 $ - $ 4,174 $ - In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," (ASU 2016-13), which addresses concerns regarding the perceived delay in recognition of credit losses under the existing incurred loss model. The amendment introduces a new, single model for recognizing credit losses on all financial instruments presented on cost basis. Under the new model, entities must estimate current expected credit losses by considering all available relevant information, including historical and current information, as well as reasonable and supportable forecasts of future events. The update also requires additional qualitative and quantitative information to allow users to better understand the credit risk within the portfolio and the methodologies for determining allowance. ASU 2016-13 is effective for DNB on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted. Although early adoption is permitted for fiscal years beginning after December 15, 2018, DNB does not plan to early adopt. DNB has established a CECL Implementation Team to assess the impact of this ASU on its consolidated financial position, results of operations, and cash flows. DNB has been preserving certain historical loan information from its core processing system in anticipation of adopting the standard and will be evaluating control and process framework, data, model, and resource requirements and areas where modifications will be required. DNB has selected a third party vendor to process and review various calculation methodologies and the approximate impact on DNB’s financial position, results of operations and cash flows. The team continues to assess the impact of the standard; however, DNB does not expect the adoption of this ASU to materially change its allowance for credit losses. The amount of the change in the allowance for credit losses upon adoption will be dependent upon the characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that date. A cumulative effect adjustment will be made to retained earnings for the impact of the standard at the beginning of the period the standard is adopted. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The amendments in this update provide guidance for eight specific cash flow classification issues for which current guidance is unclear or does not exist, thereby reducing diversity in practice. For public companies, the update is effective for annual periods beginning after December 15, 2017. Accordingly, effective January 1, 2018, DNB adopted the pronouncement and it did not have a material impact to DNB’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The new guidance narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs, as defined by the ASU. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, and should be applied prospectively. Early adoption is permitted. DNB will apply this guidance to applicable transactions after the adoption date. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under the amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value with its carrying amount. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The update also eliminated the requirements for zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. DNB will not early adopt this ASU for its annual goodwill impairment test, and conducted a qualitative test (step zero) as of October 1, 2018 and determined that its Goodwill has not been impaired. The adoption of this ASU is not expected to have a material impact on DNB’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, however, DNB has decided not to early adopt. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. ASU No. 2017-07 will not have a material impact on DNB Consolidated Financial Statements because the Pension plan has been frozen to new accruals since December 31, 2003, and thus, generated no service cost in any subsequent year. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ; (“ASU 2017-09”). ASU 2017-09 provides clarity by offering guidance on the scope of modification accounting for share-based payment awards and gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. DNB adopted the ASU on January 1, 2018 and the effects were immaterial. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). This ASU allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for certain income tax effects stranded in AOCI as a result of the Tax Act. Consequently, the reclassification eliminates the stranded tax effects resulting from the Tax Act and is intended to improve the usefulness of information reported to financial statement users. However, because the ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. DNB adopted this ASU on January 1, 2018. The amount of this reclassification is $471,000. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities [Abstract] | |
Investment Securities | NOTE 2: INVESTMENT SECURITIES The amortized cost and fair values of investment securities, as of the dates indicated, are summarized as follows: June 30, 2019 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,886 $ 33 $ - $ 8,919 Government Sponsored Entities (GSE) mortgage-backed securities 341 7 - 348 Corporate bonds 13,728 245 - 13,973 Collateralized mortgage obligations GSE 1,044 2 (4) 1,042 State and municipal taxable 362 5 - 367 State and municipal tax-exempt 35,588 117 (32) 35,673 Total $ 59,949 $ 409 $ (36) $ 60,322 Available For Sale US Government agency obligations $ 24,189 $ 15 $ (24) $ 24,180 GSE mortgage-backed securities 26,256 23 (306) 25,973 Collateralized mortgage obligations GSE 9,464 8 (177) 9,295 Corporate bonds 8,796 13 (7) 8,802 State and municipal tax-exempt 1,701 - (20) 1,681 Total $ 70,406 $ 59 $ (534) $ 69,931 December 31, 2018 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,749 $ 41 $ - $ 8,790 Government Sponsored Entities (GSE) mortgage-backed securities 389 - - 389 Corporate bonds 13,851 124 (47) 13,928 Collateralized mortgage obligations GSE 1,159 - (27) 1,132 State and municipal taxable 362 - (3) 359 State and municipal tax-exempt 37,516 19 (998) 36,537 Total $ 62,026 $ 184 $ (1,075) $ 61,135 Available For Sale US Government agency obligations $ 48,082 $ - $ (359) $ 47,723 GSE mortgage-backed securities 27,563 - (1,005) 26,558 Collateralized mortgage obligations GSE 10,249 - (441) 9,808 Corporate bonds 10,890 - (186) 10,704 State and municipal tax-exempt 1,981 - (131) 1,850 Total $ 98,765 $ - $ (2,122) $ 96,643 Included in unrealized losses are market losses on securities that have been in a continuous unrealized loss position for twelve months or more and those securities that have been in a continuous unrealized loss position for less than twelve months. The following table details the aggregate unrealized losses and aggregate fair value of the underlying securities whose fair values are below their amortized cost at June 30, 2019 and December 31, 2018. June 30, 2019 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Collateralized mortgage obligations GSE $ 171 $ (4) $ - $ - $ 171 $ (4) State and municipal tax-exempt 5,537 (32) - - 5,537 (32) Total $ 5,708 $ (36) $ - $ - $ 5,708 $ (36) Available For Sale US Government agency obligations $ 13,965 $ (24) $ - $ - $ 13,965 $ (24) GSE mortgage-backed securities 22,599 (306) - - 22,599 (306) Collateralized mortgage obligations GSE 6,980 (177) - - 6,980 (177) Corporate bonds 5,028 (7) - - 5,028 (7) State and municipal tax-exempt 1,681 (20) - - 1,681 (20) Total $ 50,253 $ (534) $ - $ - $ 50,253 $ (534) December 31, 2018 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Corporate bonds $ 4,157 $ (47) $ 1,887 $ (15) $ 2,270 $ (32) Collateralized mortgage obligations GSE 1,132 (27) - - 1,132 (27) State and municipal taxable 359 (3) - - 359 (3) State and municipal tax-exempt 26,466 (998) 2,045 (31) 24,421 (967) Total $ 32,114 $ (1,075) $ 3,932 $ (46) $ 28,182 $ (1,029) Available For Sale US Government agency obligations $ 37,723 $ (359) $ - $ - $ 37,723 $ (359) GSE mortgage-backed securities 26,558 (1,005) - - 26,558 (1,005) Collateralized mortgage obligations GSE 9,808 (441) - - 9,808 (441) Corporate bonds 10,704 (186) 2,035 (7) 8,669 (179) State and municipal tax-exempt 1,850 (131) - - 1,850 (131) Total $ 86,643 $ (2,122) $ 2,035 $ (7) $ 84,608 $ (2,115) As of June 30, 2019, the re were fourteen collateralized mortgage obligations GSE, eighteen GSE mortgage-backed securities, three U.S. agency obligations, nine tax-exempt municipalities, and three corporate bonds which were in an unrealized loss position. DNB does not intend to sell these securities and management of DNB does not expect to be required to sell any of these securities prior to a recovery of their cost basis. Management has reviewed all of these securities and believes that DNB will collect all principal and interest that is due on debt securities on a timely basis. Management does not believe any individual unrealized loss as of June 30, 2019 represents an other-than-temporary impairment (OTTI). DNB reviews its investment portfolio on a quarterly basis, reviewing each investment for OTTI. The OTTI analysis focuses on condition of the issuers as well as duration and severity of impairment in determining OTTI. As of June 30, 2019, the following securities were reviewed: Collateralized mortgage obligations GSE There are fourteen impaired securities classified as collateralized mortgage obligations GSE, all of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 6.34% of its carrying value. All of these securities were issued and insured by FNMA, FHLMC or GNMA. DNB receives monthly principal and interest payments on all of these securities on a timely basis and none of these agencies have ever defaulted on mortgage-backed principal or interest. DNB anticipates a recovery in the market value as the securities approach their maturity dates or if interest rates decline from June 30, 2019 levels. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2019 . GSE mortgage-backed securities There are eighteen impaired securities classified as GSE mortgage-backed securities, all of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 1.86% of its carrying value. These securities were issued and insured by FNMA, FHLMC or GNMA. DNB receives monthly principal and interest payments on these securities on a timely basis and none of these have ever defaulted on mortgage-backed principal or interest. DNB anticipates a recovery in the market value as the securities approach their maturity dates or if interest rates decline from June 30, 2019 levels. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2019 . US Government agency obligations There are three impaired securities classified as agencies, all of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 0.41% of its carrying value. All of these securities were issued and insured by FHLB, FNMA or FHLMC. DNB has received timely interest payments on all of these securities and none of these agencies have ever defaulted on their bonds. DNB anticipates a recovery in the market value as the securities approach their maturity dates. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2019 . State and municipal tax -exempt There are nine impaired securities in this category, which are comprised of intermediate to long-term municipal bonds, all of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 2.10% of its carrying value. All of the issues carry an “AA” or better underlying credit rating and/or have strong underlying fundamentals; included but not limited to annual financial reports, geographic location, population, and debt ratios. In certain cases, options for calls reduce the effective duration and in turn, future market value fluctuations. All issues are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. There have not been disruptions of any payments associated with any of these municipal securities. These bonds are investment grade and the value decline is related to the changes in interest rates. Of the nine municipal securities, four are school districts that have state school district credit enhancement programs and one of those has additional insurance. The remaining five are one uninsured school district, one insured township, and three uninsured townships, all of which have strong underlying ratings. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2019 . Corporate bonds There are three impaired bonds classified as corporate bonds, all of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 0.46% of its carrying value. The bonds are investment grade and the value decline is related to the changes in interest rates that occurred since the time of purchase and subsequent changes in spreads affecting the market prices. All of the issues carry a "BBB+" or better underlying credit support and were evaluated on the basis on their underlying fundamentals; included but not limited to annual financial reports, rating agency reports, capital strength and debt ratios. DNB anticipates a recovery in the market value as the securities approach their maturity dates or if interest rates decline from June 30, 2019 levels. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2019. The amortized cost and fair value of investment securities as of June 30, 2019, by final contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid without penalties. Held to Maturity Available for Sale (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 11,735 $ 11,770 $ 14,989 $ 14,968 Due after one year through five years 14,149 14,245 18,448 18,455 Due after five years through ten years 27,454 27,697 14,329 14,214 Due after ten years 6,611 6,610 22,640 22,294 Total investment securities $ 59,949 $ 60,322 $ 70,406 $ 69,931 The HTM securities called during the six months ended June 30, 2019 resulted in a gain on call of $3,000 . Gains and losses resulting from investment sales, redemptions or calls were as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Gross realized gains-AFS $ 10 $ - $ 10 $ - Gross realized gains-HTM - - 3 - Gross realized losses-AFS (9) - (9) - Net realized gain $ 1 $ - $ 4 $ - At June 30, 2019 and December 31, 2018, investment securities with a carrying value of approximately $69.7 million and $ 95.8 million, respectively, were pledged to secure public funds and for other purposes as required by law. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Loans [Abstract] | |
Loans | NOTE 3: LOANS The following table sets forth information concerning the composition of total loans outstanding, as of the dates indicated. (Dollars in thousands) June 30, 2019 December 31, 2018 Residential mortgage $ 98,802 $ 99,932 Commercial mortgage 521,060 535,735 Commercial: Commercial term 179,294 166,335 Commercial construction 77,060 76,302 Consumer: Home equity 49,492 51,536 Other 4,813 5,131 Total loans $ 930,521 $ 934,971 Less allowance for credit losses (6,672) (6,675) Net loans $ 923,849 $ 928,296 Information concerning non-accrual loans is shown in the following tables: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (Dollars in thousands) June 30, 2019 December 31, 2018 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 779 $ 905 $ 11 $ - $ 11 $ 23 $ - $ 23 Commercial mortgage 563 1,307 1 - 1 27 - 27 Commercial: Commercial term 2,026 2,300 22 - 22 65 - 65 Commercial construction 2,274 476 13 - 13 13 - 13 Consumer: Home equity 143 391 (1) - (1) 6 - 6 Other 138 167 3 - 3 6 - 6 Total non-accrual loans $ 5,923 $ 5,546 $ 49 $ - $ 49 $ 140 $ - $ 140 Loans 90 days past due and accruing 205 233 3 3 - 3 3 - Total non-performing loans $ 6,128 $ 5,779 $ 52 $ 3 $ 49 $ 143 $ 3 $ 140 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in thousands) June 30, 2018 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 1,344 $ 18 $ - $ 18 $ 43 $ - $ 43 Commercial mortgage 1,593 28 - 28 58 - 58 Commercial: Commercial term 2,583 46 - 46 90 - 90 Commercial construction 488 9 - 9 20 - 20 Consumer: Home equity 498 3 - 3 8 - 8 Other 215 3 - 3 11 - 11 Total non-accrual loans $ 6,721 $ 107 $ - $ 107 $ 230 $ - $ 230 Loans 90 days past due and accruing 23 1 1 - 1 1 - Total non-performing loans $ 6,744 $ 108 $ 1 $ 107 $ 231 $ 1 $ 230 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2019 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | NOTE 4: ALLOWANCE FOR CREDIT LOSSES The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a scheduled payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of June 30, 2019 and December 31, 2018. Age Analysis of Past Due Loans Receivable June 30, 2019 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage $ 972 $ 378 $ 610 $ 1,960 $ 96,842 $ 98,802 $ 142 Commercial mortgage (less acquired with credit deterioration) 47 - 625 672 519,867 520,539 63 Acquired commercial mortgage with credit deterioration - - - - 521 521 - Commercial: Commercial term 920 - 296 1,216 178,078 179,294 - Commercial construction - - - - 77,060 77,060 - Consumer: Home equity 168 120 143 431 49,061 49,492 - Other 85 2 88 175 4,638 4,813 - Total $ 2,192 $ 500 $ 1,762 $ 4,454 $ 926,067 $ 930,521 $ 205 December 31, 2018 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage $ 666 $ 1,742 $ 845 $ 3,253 $ 96,679 $ 99,932 $ 130 Commercial mortgage (less acquired with credit deterioration) - - 840 840 534,739 535,579 103 Acquired commercial mortgage with credit deterioration - - - - 156 156 - Commercial: Commercial term 20 37 957 1,014 165,321 166,335 - Commercial construction - - - - 76,302 76,302 - Consumer: Home equity 398 144 247 789 50,747 51,536 - Other 26 - 108 134 4,997 5,131 - Total $ 1,110 $ 1,923 $ 2,997 $ 6,030 $ 928,941 $ 934,971 $ 233 DNB had $353,000 of residential mortgage loans in the process of foreclosure and $97,000 in residential real estate in other real estate owned as of June 30, 2019. DNB had no residential mortgage loans in the process of foreclosure and $97,000 of residential real estate in other real estate owned as of December 31, 2018. The following tables summarize information in regards to impaired loans by loan portfolio class as of June 30, 2019 and December 31, 2018, and for the three and six months ended June 30, 2019 and 2018. Impaired Loans June 30, 2019 December 31, 2018 Recorded Unpaid Related Recorded Unpaid Related Investment Principal Allowance Investment Principal Allowance (Dollars in thousands) Balance Balance With no related allowance recorded: Residential mortgage $ 2,759 $ 3,110 $ - $ 1,462 $ 1,804 $ - Commercial mortgage 1,513 1,766 - 1,532 1,780 - Acquired commercial mortgage with credit deterioration 521 535 - 514 527 Commercial: Commercial term 1,309 1,841 - 1,343 1,845 - Commercial construction 2,274 2,321 - 476 514 - Consumer: Home equity 279 284 - 531 535 - Other 168 242 - 156 205 - Total $ 8,823 $ 10,099 $ - $ 6,014 $ 7,210 $ - With allowance recorded: Residential mortgage - - - 73 73 1 Commercial mortgage - - - 737 802 78 Commercial: Commercial term 717 744 161 957 1,015 203 Consumer: Other - - - 41 42 3 Total $ 717 $ 744 $ 161 $ 1,808 $ 1,932 $ 285 Total: Residential mortgage 2,759 3,110 - 1,535 1,877 1 Commercial mortgage 1,513 1,766 - 2,269 2,582 78 Acquired commercial mortgage with credit deterioration 521 535 - 514 527 - Commercial: Commercial term 2,026 2,585 161 2,300 2,860 203 Commercial construction 2,274 2,321 - 476 514 - Consumer: Home equity 279 284 - 531 535 - Other 168 242 - 197 247 3 Total $ 9,540 $ 10,843 $ 161 $ 7,822 $ 9,142 $ 285 Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Residential mortgage $ 2,770 $ 16 $ 2,109 $ 5 $ 2,358 $ 18 $ 2,042 $ 6 Commercial mortgage 1,845 12 2,597 12 1,986 24 2,668 24 Acquired commercial mortgage with credit deterioration 521 9 654 8 519 18 748 15 Commercial: Commercial term 1,318 - 2,024 - 1,326 - 1,931 - Commercial construction 1,137 - 493 - 758 - 500 - Consumer: Home equity 404 3 624 2 447 4 620 4 Other 172 - 207 - 180 1 177 - Total $ 8,167 $ 40 $ 8,708 $ 27 $ 7,574 $ 65 $ 8,686 $ 49 With allowance recorded: Residential mortgage - - 37 - - - 25 - Acquired residential mortgage with credit deterioration - - - - - - 2 - Commercial mortgage - - 81 - - - 60 - Commercial: Commercial term 717 - 774 - 797 - 628 - Consumer: Other - - 71 - - - 90 - Total $ 717 $ - $ 963 $ - $ 797 $ - $ 805 $ - Total: Residential mortgage 2,770 16 2,146 5 2,358 18 2,067 6 Acquired residential mortgage with credit deterioration - - - - - - 2 - Commercial mortgage 1,845 12 2,678 12 1,986 24 2,728 24 Acquired commercial mortgage with credit deterioration 521 9 654 8 519 18 748 15 Commercial: Commercial term 2,035 - 2,798 - 2,123 - 2,559 - Commercial construction 1,137 - 493 - 758 - 500 - Consumer: Home equity 404 3 624 2 447 4 620 4 Other 172 - 278 - 180 1 267 - Total $ 8,884 $ 40 $ 9,671 $ 27 $ 8,371 $ 65 $ 9,491 $ 49 The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within DNB’s internal risk rating system as of June 30, 2019 and December 31, 2018. Credit Quality Indicators June 30, 2019 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 96,078 $ 142 $ 2,582 $ - $ 98,802 Commercial mortgage 504,508 13,387 3,165 - 521,060 Commercial: Commercial term 174,507 695 4,092 - 179,294 Commercial construction 73,325 935 2,800 - 77,060 Consumer: Home equity 49,198 151 143 - 49,492 Other 4,674 - 139 - 4,813 Total $ 902,290 $ 15,310 $ 12,921 $ - $ 930,521 December 31, 2018 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 97,577 $ - $ 2,355 $ - $ 99,932 Commercial mortgage 528,692 2,367 4,676 - 535,735 Commercial: Commercial term 161,051 1,178 4,106 - 166,335 Commercial construction 72,077 3,603 622 - 76,302 Consumer: Home equity 50,988 143 405 - 51,536 Other 4,924 - 207 - 5,131 Total $ 915,309 $ 7,291 $ 12,371 $ - $ 934,971 Troubled Debt Restructurings Loans whose terms are modified are classified as troubled debt restructurings (“TDR”) if DNB grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. During the six month period ended June 30, 2019, DNB classified two residential mortgage loans totaling $1.5 million and four commercial term loans totaling $421,000 as TDR. One residential mortgage loan’s rate was changed but the term was not extended, and the other residential mortgage loan and the four commercial term loans had their terms extended. During the six month period ended June 30, 2018 , DNB classified one residential mortgage loan totaling $73,000 as TDR. The loan’s rate was changed but the term was not extended. Loans classified as troubled debt restructurings are designated as impaired. The recorded investments in troubled debt restructured loans at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 2,155 $ 2,308 $ 2,110 Commercial mortgage 992 992 950 Commercial term 421 421 421 Consumer: Home equity 148 148 136 Other 40 42 30 Total $ 3,756 $ 3,911 $ 3,647 December 31, 2018 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 676 $ 805 $ 630 Commercial mortgage 992 992 962 Consumer: Home equity 148 148 140 Other 40 42 30 Total $ 1,856 $ 1,987 $ 1,762 At June 30, 2019, DNB had fifteen TDRs with recorded investment totaling $3,647,000 , ten of which are accruing loans in compliance with the terms of the modifications and f ive of which are non-accrual loans. As a result of collateral evaluations, specific reserves and charge-offs have been taken where appropriate. DNB recognized partial charge-offs totaling $ 151,000 on two residential loans prior to their restructuring and $2,000 on one consumer installment loan after its restructuring. As of June 30, 2019, there were no defaulted TDRs as all TDRs were current with respect to their associated forbearance agreements. There were no defaults on TDRs during the six months ended June 30, 2019. At December 31, 2018, DNB had nine TDRs with recorded investment totaling $1,762,000 , all of which were accruing loans in compliance with the terms of the modifications. As a result of collateral evaluations, specific reserves and charge-offs have been taken where appropriate. As of December 31, 2018, DNB recognized partial charge-offs totaling $151,000 on two residential loans prior to their restructuring and $2,000 on one consumer installment loan after its restructuring. As of December 31, 2018, there were no defaulted TDRs as all TDRs were current with respect to their associated forbearance agreements. There were no defaults on TDRs within twelve months of restructure during 2018. DNB classified one residential mortgage loan totaling $73,000 as TDR during the year ended December 31, 2018. The following tables set forth the composition of DNB’s allowance for credit losses as of June 30, 2019 and December 31, 2018, the activity for the three and six months ended June 30, 2019 and 2018 and as of and for the year ended December 31, 2018. Allowance for Credit Losses and Recorded Investment in Loans Receivables Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2019 $ 156 $ 3,493 $ 1,189 $ 1,080 $ 183 $ 43 $ 575 $ 6,719 Charge-offs - (23) (22) - (128) - - (173) Recoveries - 7 19 - - - - 26 Provisions (23) 102 (42) (48) 154 (4) (39) 100 Ending balance - June 30, 2019 $ 133 $ 3,579 $ 1,144 $ 1,032 $ 209 $ 39 $ 536 $ 6,672 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2019 $ 161 $ 3,647 $ 1,062 $ 1,032 $ 190 $ 46 $ 537 $ 6,675 Charge-offs - (105) (91) - (128) (17) - (341) Recoveries 4 7 27 - - - - 38 Provisions (32) 30 146 - 147 10 (1) 300 Ending balance - June 30, 2019 $ 133 $ 3,579 $ 1,144 $ 1,032 $ 209 $ 39 $ 536 $ 6,672 Ending balance: individually evaluated for impairment $ - $ - $ 161 $ - $ - $ - $ - $ 161 Ending balance: collectively evaluated for impairment $ 133 $ 3,579 $ 983 $ 1,032 $ 209 $ 39 $ 536 $ 6,511 Loans receivables: Ending balance $ 98,802 $ 521,060 $ 179,294 $ 77,060 $ 49,492 $ 4,813 $ 930,521 Ending balance: individually evaluated for impairment $ 2,759 $ 1,513 $ 2,026 $ 2,274 $ 279 $ 168 $ 9,019 Ending balance: acquired with credit deterioration $ - $ 521 $ - $ - $ - $ - $ 521 Ending balance: collectively evaluated for impairment $ 96,043 $ 519,026 $ 177,268 $ 74,786 $ 49,213 $ 4,645 $ 920,981 Reserve for unfunded loan commitments included in other liabilities $ - $ 2 $ 189 $ 209 $ 20 $ - $ 420 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2018 $ 226 $ 2,987 $ 904 $ 1,219 $ 176 $ 55 $ 578 $ 6,145 Charge-offs (103) (171) (47) - - (37) - (358) Recoveries 25 - - - - 1 - 26 Provisions 59 260 32 136 20 30 (162) 375 Ending balance - June 30, 2018 $ 207 $ 3,076 $ 889 $ 1,355 $ 196 $ 49 $ 416 $ 6,188 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2018 $ 221 $ 2,856 $ 845 $ 1,128 $ 183 $ 63 $ 547 $ 5,843 Charge-offs (137) (184) (64) - - (49) - (434) Recoveries 26 - 2 - - 1 - 29 Provisions 97 404 106 227 13 34 (131) 750 Ending balance - June 30, 2018 $ 207 $ 3,076 $ 889 $ 1,355 $ 196 $ 49 $ 416 $ 6,188 Reserve for unfunded loan commitments included in other liabilities $ - $ 3 $ 183 $ 201 $ 21 $ - $ 408 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Ending balance - December 31, 2018 $ 161 $ 3,647 $ 1,062 $ 1,032 $ 190 $ 46 $ 537 $ 6,675 Ending balance: individually evaluated for impairment $ 1 $ 78 $ 203 $ - $ - $ 3 $ - $ 285 Ending balance: collectively evaluated for impairment $ 160 $ 3,569 $ 859 $ 1,032 $ 190 $ 43 $ 537 $ 6,390 Loans receivables: Ending balance $ 99,932 $ 535,735 $ 166,335 $ 76,302 $ 51,536 $ 5,131 $ 934,971 Ending balance: individually evaluated for impairment $ 1,535 $ 2,269 $ 2,300 $ 476 $ 531 $ 197 $ 7,308 Ending balance: acquired with credit deterioration $ - $ 514 $ - $ - $ - $ - $ 514 Ending balance: collectively evaluated for impairment $ 98,397 $ 532,952 $ 164,035 $ 75,826 $ 51,005 $ 4,934 $ 927,149 Reserve for unfunded loan commitments included in other liabilities $ - $ 4 $ 167 $ 206 $ 21 $ - $ 398 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 5: EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed based on the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the treasury stock method and reflects the potential dilution that could occur from the exercise of stock options, and warrants and the amortized portion of unvested stock awards. Stock options and unvested stock awards for which the exercise or the grant price exceeds the average market price over the period have an anti-dilutive effect on EPS and, accordingly, are excluded from the calculation. Treasury shares are not deemed outstanding for calculations. There were no outstanding stock warrants, no anti-dilutive stock options, and no anti-dilutive stock awards outstanding at June 30, 2019 and June 30, 2018. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 2,587 4,331 $ 0.60 $ 5,174 4,329 $ 1.20 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 5 - - 4 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 2,587 4,336 $ 0.60 $ 5,174 4,333 $ 1.19 Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 2,049 4,298 $ 0.48 $ 4,662 4,295 $ 1.09 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 16 (0.01) - 17 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 2,049 4,314 $ 0.47 $ 4,662 4,312 $ 1.08 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 6: ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss included in stockholders' equity are as follows: Accumulated Other Comprehensive Loss Before-Tax Tax Net-of-Tax (Dollars in thousands) Amount Effect Amount June 30, 2019 Net unrealized loss on AFS securities $ (475) $ 100 $ (375) Unrealized actuarial losses-pension (1,637) 343 (1,294) $ (2,112) $ 443 $ (1,669) December 31, 2018 Net unrealized loss on AFS securities $ (2,122) $ 445 $ (1,677) Unrealized actuarial losses-pension (1,637) 343 (1,294) $ (3,759) $ 788 $ (2,971) |
Subordinated Debentures And Not
Subordinated Debentures And Notes | 6 Months Ended |
Jun. 30, 2019 | |
Subordinated Debentures And Notes [Abstract] | |
Subordinated Debentures And Notes | NOTE 7: SUBORDINATED DEBENTURES AND NOTES DNB has two issuances of junior subordinated debentures (the “debentures”) as follows. The majority of the proceeds of each issuance were invested in DNB’s subsidiary, DNB First, National Association, to increase the Bank’s capital levels. The junior subordinated debentures issued in each case qualify as a component of capital for regulatory purposes. DNB Capital Trust I and II are special purpose Delaware business trusts, which are not consolidated. DNB Capital Trust I DNB’s first issuance of junior subordinated debentures was on July 20, 2001 . These debentures are floating rate and were issued to DNB Capital Trust I, a Delaware business trust in which DNB owns all of the common equity. DNB Capital Trust I issued $ 5.0 million of floating rate ( 6 month Libor plus 3.75 %, with a cap of 12 %) capital preferred securities to a qualified institutional buyer. The proceeds of these securities were used by the Trust, along with DNB’s capital contribution, to purchase $ 5.2 million principal amount of DNB’s floating rate junior subordinated debentures. The preferred securities have been redeemable since July 25, 2006 and must be redeemed upon maturity of the debentures on July 25, 2031 . DNB Capital Trust II DNB’s second issuance of junior subordinated debentures was on March 30, 2005 . These are floating rate and were issued to DNB Capital Trust II, a Delaware business trust in which DNB owns all of the common equity. DNB Capital Trust II issued $ 4.0 million of floating rate (the rate was fixed at 6.56 % for the first 5 years and is now adjusting at a rate of 3 -month LIBOR plus 1.77 %) capital preferred securities. The proceeds of these securities were used by the Trust, along with DNB’s capital contribution, to purchase $ 4.1 million principal amount of DNB’s floating rate junior subordinated debentures. The preferred securities have been redeemable since May 23, 2010 . The preferred securities must be redeemed upon maturity of the debentures on May 23, 2035 . Subordinated Note On March 5, 2015, DNB Financial Corporation entered into a Subordinated Note Purchase Agreement (the “Agreement”) with an accredited investor under which DNB issued a $9.75 million subordinated note (the “Note”) to the investor. The Note has a maturity date of March 6, 2025 , and bears interest at a fixed rate of 4.25% per annum for the first 5 years and then will float at the Wall Street Journal Prime rate plus 1.00% , provided that the interest rate applicable to the outstanding principal balance will at no time be less than 3.0% and more than 5.75% per annum. DNB may, at its option, beginning with the first interest payment date after March 6, 2019, and on any interest payment date thereafter, redeem the Note, in whole or in part, at par plus accrued and unpaid interest to the date of redemption. The Note is not subject to repayment at the option of the noteholder. The Note is unsecured and ranks junior in right of payment to DNB’s senior indebtedness and to DNB’s obligations to its general creditors and qualifies as Tier 2 capital for regulatory purposes. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 8: STOCK-BASED COMPENSATION Stock Option Plan DNB has a Stock Option Plan for employees and directors. Under the plan, options (both qualified and non-qualified) to purchase a maximum of 793,368 (as adjusted for subsequent stock dividends) shares of DNB’s common stock could be issued to employees and directors. Under the plan, option exercise prices must equal the fair market value of the shares on the date of option grant and the option exercise period may not exceed ten years. Vesting of options under the plan is determined by the Plan Committee. There were 354,090 shares available for grant at June 30, 2019. All options are immediately exercisable. During the six months ended June 30, 2019 and 2018, DNB had no expenses related to the plan. Under the Stock Option Plan, no shares were exercised during the six months ended June 30, 2019. Under the Stock Option Plan, 5,300 shares were exercised during the six months ended June 30, 2018. The shares awarded from the non-qualified cashless exercises resulted in an increase in shares outstanding of 2,338 shares. There was a cash equivalent of 2,962 shares used to pay all applicable taxes on the transactions. DNB had no stock option activity during the six months ended June 30, 2019 and had no stock options outstanding at June 30, 2019 or December 31, 2018. Stock option activity is indicated below. Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2018 16,450 $ 10.31 Issued - - Exercised 5,300 10.31 Forfeited - - Expired - - Outstanding June 30, 2018 11,150 $ 10.31 Other Stock-Based Compensation DNB maintains an Incentive Equity and Deferred Compensation Plan (the " Plan"). The Plan provides that up to 493,101 (as adjusted for subsequent stock dividends) shares of common stock may be granted, at the discretion of the Board, to individuals of the Corporation. Shares already granted are issuable on the earlier of three or four years (cliff vesting period) after the date of the grant or a change in control of DNB if the recipients are then employed by DNB (“Vest Date”). Upon issuance of the shares , resale of the shares is restricted for an additional one year, during which the shares may not be sold, pledged or otherwise disposed of. Prior to the Vest Date and in the event the recipient terminates association with DNB for reasons other than death, disability or change in control, the recipient forfeits all rights to the shares that would otherwise be issued under the grant. Share awards granted by the Plan were recorded at the date of award based on the market value of shares. Awards are being amortized to expense over a three or four year cliff-vesting period. DNB records compensation expense equal to the value of the shares being amortized. For the three and six month periods ended June 30 , 2019, $82,000 and $143,000 was amortized to expense. For the three and six month periods ended June 30, 2018, $108,000 and $204,000 was amortized to expense. As of June 30, 2019, there was approximately $ 568,000 in additional compensation that will be recognized over the weighted average life of 1.60 years. At June 30, 2019, 482,501 shares were reserved for future grants under the Plan. There were 8,500 restricted shares that vested during the six months ended June 30, 2018. The shares awarded from the cashless exercises resulted in an increase in shares outstanding of 4,908 shares. There was a cash equivalent of 3,492 shares used to pay all applicable taxes on the transactions. There were no such transaction s during the six months ended June 30, 2019. Stock grant activity is indicated below: Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2019 18,590 $ 30.90 Granted 10,600 39.36 Forfeited - - Vested - - Non-vested stock awards—June 30, 2019 29,190 $ 33.98 Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2018 31,130 $ 26.53 Granted 10,750 33.98 Forfeited 4,345 28.92 Vested 8,500 26.69 Non-vested stock awards—June 30, 2018 29,035 $ 28.88 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 9: INCOME TAXES As of June 30, 2019, DNB had no material unrecognized tax benefits or accrued interest and penalties. It is DNB’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Federal and state tax years 2016 through 2018 were open for examination as of June 30, 2019. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value [Abstract] | |
Fair Value | NOTE 10: FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy based on the nature of data inputs for fair value determinations, under which DNB is required to value each asset within its scope using assumptions that market participations would utilize to value that asset. When DNB uses its own assumptions, it is required to disclose additional information about the assumptions used and the effect of the measurement on earnings or the net change in assets for the period. The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1—Quoted prices in active markets for identical securities. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Instruments whose significant value drivers are unobservable. A description of the valuation methodologies used for assets measured at fair value is set forth below: DNB’s available-for-sale investment securities, which generally include U.S. government agencies and mortgage backed securities, collateralized mortgage obligations, corporate bonds and equity securities are reported at fair value. These securities are valued by an independent third party (“preparer”). The preparer’s evaluations are based on market data. They utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their evaluated pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. U.S. Government agencies are evaluated and priced using multi ‑dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other securities are evaluated using a broker-quote based application, including quotes from issuers. Impaired loans are those loans that the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. OREO assets are adjusted to fair value less estimated selling costs upon transfer of the loans to OREO establishing a new cost basis. Subsequently, OREO assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When recorded at fair value, these assets are included as Level 3 fair values. The following tables present assets measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 : June 30, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 24,180 $ - $ 24,180 GSE mortgage-backed securities - 25,973 - 25,973 Collateralized mortgage obligations GSE - 9,295 - 9,295 Corporate bonds - 8,802 - 8,802 State and municipal tax-exempt - 1,681 - 1,681 Total $ - $ 69,931 $ - $ 69,931 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 691 $ 691 OREO and other repossessed property - - 1,430 1,430 Total $ - $ - $ 2,121 $ 2,121 December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 47,723 $ - $ 47,723 GSE mortgage-backed securities - 26,558 - 26,558 Collateralized mortgage obligations GSE - 9,808 - 9,808 Corporate bonds - 10,704 - 10,704 State and municipal tax-exempt - 1,850 - 1,850 Total $ - $ 96,643 $ - $ 96,643 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,523 $ 1,523 OREO and other repossessed property - - 1,247 1,247 Total $ - $ - $ 2,770 $ 2,770 The following table presents additional information about assets measured at fair value on a nonrecurring basis and for which DNB has utilized Level 3 inputs to determine fair value: June 30, 2019 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Commercial term $ 556 Appraisal of collateral (1) Disposal costs (2) 0% to -8% (-4%) Impaired loans - Consumer other 135 Appraisal of collateral (1) Disposal costs (2) -7% to -8% (-8%) Impaired loan total $ 691 Other real estate owned $ 1,430 Disposal costs (2) -8% to -8% (-8%) (1) (2) December 31, 2018 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Residential mortgage $ 72 Appraisal of collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial mortgage 659 Appraisal of collateral (1) Disposal costs (2) -14% to -14% (-14%) Impaired loans - Commercial term 754 Appraisal of collateral (1) Disposal costs (2) 0% to -16% (-11%) Impaired loans - Consumer other 38 Appraisal of collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,523 Other real estate owned $ 1,247 Disposal costs (2) -8% to -8% (-8%) (1) Fair value is generally determined through independent appraisals or sales contracts of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals are adjusted by management for qualitative factors and disposal costs. Impaired loans. Impaired loans, which are measured for impairment using the fair value of the collateral for collateral depe ndent loans, had a carrying amount of $9.5 million at June 30, 2019. Of this, $ 717,000 had specific valuation allowances of $161,000 , leaving a fair value of $556,000 as of June 30, 2019. In addition, DNB had $152,000 in impaired loans that were partially charged down by $17,000 , leaving $135,000 at fair value as of June 30, 2019. The total fair value of impaired loans at June 30, 2019 was $691,000 . Impaired loans had a carrying amount of $7.8 million at December 31, 2018. Of this, $ 1.8 million had specific valuation allowances of $285,000 , leaving a fair value of $1.5 million at December 31, 2018. DNB did not have any impaired loans that were partially charge d down that didn’t already have a specific reserve during the year ended December 31, 2018. The total fair value of impaired loans at December 31, 2018 was $1.5 million. Other Real Estate Owned & other repossessed property. Other real estate owned (“OREO”) consists of properties acquired as a result of, or in-lieu-of, foreclosure. Properties or other assets are classified as OREO and other repossessed property are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense. DNB had $2.8 million of such assets at June 30, 2019, $ 2.7 million of which was OREO and $106,000 was in other repossessed property. DNB had $5.1 million of such assets at December 31, 2018, which consisted of $ 4.9 million in OREO and $ 142,000 in other repossessed property. DNB wrote down the carrying values of certain assets totaling $1.5 million by $105,000 to $1.4 million during the six month period ended June 30, 2019. DNB wrote down the carrying values of certain assets totaling $1.6 million by $355,000 to $1.2 million during the year ended December 31, 2018 . DNB's policy is to recognize transfer between levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between Level 1 and 2 for the six months ended June 30, 2019. Below is management’s estimate of the fair value of all financial instruments, whether carried at cost or fair value on the Company’s consolidated statement of financial condition. The carrying amounts and fair values of financial instruments at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 46,398 $ 46,398 $ 46,398 $ - $ - AFS investment securities 69,931 69,931 - 69,931 - HTM investment securities 59,949 60,322 - 58,322 2,000 Restricted stock 5,734 5,734 - 5,734 - Loans held-for-sale 501 515 - - 515 Loans, net of allowance, including impaired 923,849 921,497 - - 921,497 Accrued interest receivable 4,297 4,297 - 4,297 - Financial liabilities Deposits: Non-interest-bearing 178,454 178,454 - 178,454 - NOW, Money market, and Savings 531,002 531,002 - 531,002 - Time 178,530 178,808 - 178,808 - Brokered 87,877 87,369 - 87,369 - FHLBP advances 31,203 31,112 - 31,112 - Junior subordinated debentures and other borrowings 9,279 9,990 - 9,990 - Subordinated debt 9,750 9,271 - 9,271 - Accrued interest payable 641 641 - 641 - Off-balance sheet instruments - - - - - December 31, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 17,321 $ 17,321 $ 17,321 $ - $ - AFS investment securities 96,643 96,643 - 96,643 - HTM investment securities 62,026 61,135 - 59,135 2,000 Restricted stock 5,616 5,616 - 5,616 - Loans held-for-sale 419 429 - - 429 Loans, net of allowance, including impaired 928,296 914,822 - - 914,822 Accrued interest receivable 4,207 4,207 - 4,207 - Financial liabilities Deposits: Non-interest-bearing 164,746 164,746 - 164,746 - NOW, Money market, and Savings 549,073 549,073 - 549,073 - Time 162,096 160,944 - 160,944 - Brokered 108,651 97,250 - 97,250 - FHLBP advances 32,935 32,347 - 32,347 - Junior subordinated debentures and other borrowings 9,279 10,285 - 10,285 - Subordinated debt 9,750 9,505 - 9,505 - Accrued interest payable 646 646 - 646 - Off-balance sheet instruments - - - - - The specific estimation methods and assumptions used can have a substantial impact on the resulting fair values of financial instruments. Following is a brief summary of the significant assumptions, methods, and estimates used in estimating fair value. Limitations Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time DNB’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of DNB’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Principles of Consolidation | The accompanying unaudited consolidated financial statements of DNB Financial Corporation (referred to herein as the "Corporation" or "DNB") and its subsidiary, DNB First, National Association (the "Bank") have been prepared in accordance with the instructions for Form 10-Q and therefore do not include certain information or footnotes necessary for the presentation of financial condition, statement of operations and statement of cash flows required by generally accepted accounting principles. However, in the opinion of management, the consolidated financial statements reflect all adjustments (which consist of normal recurring adjustments) necessary for a fair presentation of the results for the unaudited periods. Prior amounts not affecting net income are reclassified when necessary to conform to current period classifications. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results which may be expected for the entire year. The consolidated financial statements should be read in conjunction with the Annual Report and report on Form 10-K for the year ended December 31, 2018. |
Subsequent Events | Subsequent Events-- Management has evaluated events and transactions occurring subsequent to June 30, 2019 for items that should potentially be recognized or disclosed in these Consolidated Financial Statements. The evaluation was conducted through the date these financial statements were issued. Merger Agreement. On June 5, 2019, S&T Bancorp, Inc. (“S&T”) and DNB entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which DNB will merge with and into S&T (the “Merger”), with S&T continuing as the surviving entity in the Merger, subject to the terms and conditions set forth therein. Immediately following the Merger, DNB’s wholly owned bank subsidiary, DNB First, National Association, will merge with and into S&T’s wholly owned bank subsidiary, S&T Bank (the “Bank Merger”), with S&T Bank continuing as the surviving entity in the Bank Merger. The Merger Agreement was unanimously approved by the Board of Directors of each of S&T and DNB. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), DNB shareholders will have the right to receive 1.22 shares of common stock, par value $2.50 per share, of S&T for each share of common stock, par value $1.00 per share, of DNB. The merger is subject to customary closing conditions enumerated in the merger agreement, including receipt of regulatory approvals and the approval of DNB’s shareholders. It is anticipated that the transaction will close during the fourth quarter of 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - Accounting Developments Affecting DNB In May 2014, the FASB issued ASU No. 2014-09, ‘‘Revenue from Contracts with Customers (Topic 606).’’ The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016 and 2017, the FASB issued ASU Nos. 2016-10, 2016-12, 2016-20, and 2017-13 that provided additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. DNB adopted the new standards discussed above effective January 1, 2018 using the modified retrospective approach. A significant majority of DNB’s revenues are explicitly excluded from the scope of the new guidance including interest, dividend income, BOLI, gain/loss on sale of loans and investments on the Consolidated Statements of Income. The adoption of ASU 2014-09 did not require a cumulative adjustment to the opening balance of retained earnings as of January 1, 2018 and did not have a material impact on DNB’s Consolidated Statements of Financial Condition, Comprehensive Income, Stockholders’ Equity or Cash Flows for the year ended December 31, 2018. Non-interest income components in the scope of Topic 606 continue to be recognized when DNB’s performance obligations are complete or at the time of sale after a customer’s transaction posts in the account. Disclosures required for DNB’s revenue streams in the scope of ASU 2014-09 are included in Non-Interest Income in the following table. Non-interest Income Non-interest income includes revenue from contracts with customers in the scope of ASU 2014-09 as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Non-interest Income: Service charges: Non-sufficient funds charges $ 122 $ 142 $ 255 $ 301 Business analysis charges 46 44 92 85 Cycle charges 21 22 41 45 Lockbox fees 10 8 57 52 Stop payment fees 5 3 9 7 Wire transfer fees 22 22 44 43 Other service charges 20 20 39 41 Total service charges 246 261 537 574 Wealth management: DNB Investments & Insurance 126 150 202 238 DNB First Investment Management & Trust 403 362 772 709 Total wealth management 529 512 974 947 Other fee income: Cardholder interchange fees 286 269 539 514 Safe deposit box 24 26 47 50 Check printing 13 12 37 35 Merchant card processing 45 42 87 90 ATM surcharges for non-DNB customers 17 20 32 37 Other fee income 12 13 26 27 Total other fee income 397 382 768 753 Total Revenue from contracts with customers 1,172 1,155 2,279 2,274 Total Revenue not within the scope of ASC 606 172 177 339 331 Total non-interest income $ 1,344 $ 1,332 $ 2,618 $ 2,605 Service charges on deposit accounts are recorded monthly when DNB’s performance obligations are complete. Deposit balances are disclosed in the Consolidated Statement of Condition. For transaction-based service charges such as non-sufficient funds charges, wire transfer fees, stop payment fees, ATM fees, and other transaction-based fees, revenue is recognized at the time of sale after the transaction posts in the customer’s account. Wealth management revenue includes non-deposit products and services offered under the names “DNB Investment & Insurance” and “DNB First Investment Management & Trust”. Through a third-party marketing agreement with Cetera Investment Services, LLC (“Cetera”), DNB Investment & Insurance offers a complete line of investment and insurance products. DNB’s performance obligation as an agent is to arrange for the sale of products by Cetera. Monthly, DNB recognizes commission fees in the amounts to which it is entitled in accordance with the terms of the marketing agreement for products sold. Shortly after a sale, the product provider remits the commission payment through Cetera to the Company, and the Company recognizes the revenue. DNB records revenue net of the cost of the services. DNB First Investment Management & Trust offers a full line of investment and fiduciary services. DNB’s performance obligation is to manage investments, estates and trusts. Investment management and trust income is primarily comprised of fees earned from the management and administration of trusts, estates and investment agency portfolios. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized quarterly, based upon the quarter-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after quarter end through a direct charge to customers’ accounts. While managing estates and trusts, DNB contracts with a third-party tax preparation service. For tax preparation services, DNB’s obligation as an agent is to arrange for the performance of services by the third party. As tax services are rendered, DNB records revenue net of the cost of the services. Cardholder interchange fees consist of revenue DNB is entitled per agreements with third party debit and credit card providers. DNB’s performance obligation as an agent is to arrange for cardholder services with its customers in accordance with fees and terms offered by the third-party service providers. Based on cardholder transactions reported by third party service providers, DNB recognizes fees for the amount it is contractually entitled. DNB also contracts with third party providers for check printing, merchant card services, and ATM services. DNB’s performance obligation as an agent is to arrange for the services with its customers in accordance with fees and terms offered by the third-party service providers. Monthly, DNB recognizes fees for the amount it is contractually entitled. DNB adopted ASU 2015-16, Business Combinations (Topic 805), in 2016: Simplifying the Accounting for Measurement Period Adjustments on a prospective basis. This amendment eliminates the requirement to account for adjustments to provisional amounts recognized in a business combination retrospectively. Instead, the acquirer will recognize the adjustments to provisional amounts during the period in which the adjustments are determined, including the effect on earnings of any amounts the acquirer would have recorded in previous periods if the accounting had been completed at the acquisition date. DNB evaluated the impact of this guidance and it does not have a material impact to the consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, the guidance revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with fair value of financial instruments. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As of June 30, 2019, DNB did not hold any equity investments (excluding restricted investments in bank stocks). DNB does not expect to make significant purchases of equity investments; therefore, the adoption of this ASU is not expected to be material to DNB's consolidated financial statements. Adoption of the standard on January 1, 2018 also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. DNB has determined that upon the adoption of ASU 2016-02 is required to recognize a right-of-use asset and a corresponding liability based on the then present value of such obligation. The adoption of ASU 2016-02 resulted in the recognition of operating lease liabilities of $4.4 million and right-of-use asset of $4.0 million. The adoption of the new standard did not have a material impact on its Consolidated Statements of Income. Update 2018-11 - Leases (topic 842): Targeted Improvements provided an additional/optional transition method to adopt the new leases standard. Prior to this ASU issuance, a modified retrospective transition approach was required. The adoption of this ASU does not materially impact our Consolidated Statement of Financial Condition and Consolidated Statements of Changes in Stockholders’ Equity. Update 2018-20 - Leases (topic 842): Narrow-Scope Improvements for Lessors was released to better clarify the treatment of sales taxes and other similar taxes related to Lessor and Lessees costs and payments. The amendments in this update permit lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, those lessors will account for those costs as if they are lessee costs. Also, certain lessor costs require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties. DNB’s lessor income is immaterial; as such, this ASU does not materially impact our Consolidated Statement of Financial Condition or Consolidated Statements of Comprehensive Income. DNB adopted the use-of-hindsight practical expedient. DNB recognized rent expense associated with our leases as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Operating lease cost: Fixed rent expense $ 251 $ 284 $ 503 $ 569 Net lease cost $ 251 $ 284 $ 503 $ 569 Lease costs Amortization of lease liability $ 186 $ - $ 372 $ - Interest expense 65 - 131 - Net lease cost $ 251 $ - $ 503 $ - DNB had the following cash and non-cash activit i es associated with our leases: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 250 $ 242 $ 500 $ 484 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities $ 4,174 $ - $ 4,174 $ - In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," (ASU 2016-13), which addresses concerns regarding the perceived delay in recognition of credit losses under the existing incurred loss model. The amendment introduces a new, single model for recognizing credit losses on all financial instruments presented on cost basis. Under the new model, entities must estimate current expected credit losses by considering all available relevant information, including historical and current information, as well as reasonable and supportable forecasts of future events. The update also requires additional qualitative and quantitative information to allow users to better understand the credit risk within the portfolio and the methodologies for determining allowance. ASU 2016-13 is effective for DNB on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted. Although early adoption is permitted for fiscal years beginning after December 15, 2018, DNB does not plan to early adopt. DNB has established a CECL Implementation Team to assess the impact of this ASU on its consolidated financial position, results of operations, and cash flows. DNB has been preserving certain historical loan information from its core processing system in anticipation of adopting the standard and will be evaluating control and process framework, data, model, and resource requirements and areas where modifications will be required. DNB has selected a third party vendor to process and review various calculation methodologies and the approximate impact on DNB’s financial position, results of operations and cash flows. The team continues to assess the impact of the standard; however, DNB does not expect the adoption of this ASU to materially change its allowance for credit losses. The amount of the change in the allowance for credit losses upon adoption will be dependent upon the characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that date. A cumulative effect adjustment will be made to retained earnings for the impact of the standard at the beginning of the period the standard is adopted. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The amendments in this update provide guidance for eight specific cash flow classification issues for which current guidance is unclear or does not exist, thereby reducing diversity in practice. For public companies, the update is effective for annual periods beginning after December 15, 2017. Accordingly, effective January 1, 2018, DNB adopted the pronouncement and it did not have a material impact to DNB’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The new guidance narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs, as defined by the ASU. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, and should be applied prospectively. Early adoption is permitted. DNB will apply this guidance to applicable transactions after the adoption date. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under the amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value with its carrying amount. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The update also eliminated the requirements for zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. DNB will not early adopt this ASU for its annual goodwill impairment test, and conducted a qualitative test (step zero) as of October 1, 2018 and determined that its Goodwill has not been impaired. The adoption of this ASU is not expected to have a material impact on DNB’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, however, DNB has decided not to early adopt. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. ASU No. 2017-07 will not have a material impact on DNB Consolidated Financial Statements because the Pension plan has been frozen to new accruals since December 31, 2003, and thus, generated no service cost in any subsequent year. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ; (“ASU 2017-09”). ASU 2017-09 provides clarity by offering guidance on the scope of modification accounting for share-based payment awards and gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. DNB adopted the ASU on January 1, 2018 and the effects were immaterial. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). This ASU allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for certain income tax effects stranded in AOCI as a result of the Tax Act. Consequently, the reclassification eliminates the stranded tax effects resulting from the Tax Act and is intended to improve the usefulness of information reported to financial statement users. However, because the ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. DNB adopted this ASU on January 1, 2018. The amount of this reclassification is $471,000. |
Fair Value (Policy)
Fair Value (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value [Abstract] | |
Fair Value | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy based on the nature of data inputs for fair value determinations, under which DNB is required to value each asset within its scope using assumptions that market participations would utilize to value that asset. When DNB uses its own assumptions, it is required to disclose additional information about the assumptions used and the effect of the measurement on earnings or the net change in assets for the period. The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1—Quoted prices in active markets for identical securities. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Instruments whose significant value drivers are unobservable. A description of the valuation methodologies used for assets measured at fair value is set forth below: DNB’s available-for-sale investment securities, which generally include U.S. government agencies and mortgage backed securities, collateralized mortgage obligations, corporate bonds and equity securities are reported at fair value. These securities are valued by an independent third party (“preparer”). The preparer’s evaluations are based on market data. They utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their evaluated pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. U.S. Government agencies are evaluated and priced using multi ‑dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other securities are evaluated using a broker-quote based application, including quotes from issuers. Impaired loans are those loans that the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. OREO assets are adjusted to fair value less estimated selling costs upon transfer of the loans to OREO establishing a new cost basis. Subsequently, OREO assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When recorded at fair value, these assets are included as Level 3 fair values. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Non-Interest Income Including Revenue From Contracts With Customers In Scope Of ASU 2014-09 | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Non-interest Income: Service charges: Non-sufficient funds charges $ 122 $ 142 $ 255 $ 301 Business analysis charges 46 44 92 85 Cycle charges 21 22 41 45 Lockbox fees 10 8 57 52 Stop payment fees 5 3 9 7 Wire transfer fees 22 22 44 43 Other service charges 20 20 39 41 Total service charges 246 261 537 574 Wealth management: DNB Investments & Insurance 126 150 202 238 DNB First Investment Management & Trust 403 362 772 709 Total wealth management 529 512 974 947 Other fee income: Cardholder interchange fees 286 269 539 514 Safe deposit box 24 26 47 50 Check printing 13 12 37 35 Merchant card processing 45 42 87 90 ATM surcharges for non-DNB customers 17 20 32 37 Other fee income 12 13 26 27 Total other fee income 397 382 768 753 Total Revenue from contracts with customers 1,172 1,155 2,279 2,274 Total Revenue not within the scope of ASC 606 172 177 339 331 Total non-interest income $ 1,344 $ 1,332 $ 2,618 $ 2,605 |
Recognized Rent Expense | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Operating lease cost: Fixed rent expense $ 251 $ 284 $ 503 $ 569 Net lease cost $ 251 $ 284 $ 503 $ 569 Lease costs Amortization of lease liability $ 186 $ - $ 372 $ - Interest expense 65 - 131 - Net lease cost $ 251 $ - $ 503 $ - |
Supplemental Cash Flow Information | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 250 $ 242 $ 500 $ 484 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities $ 4,174 $ - $ 4,174 $ - |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities [Abstract] | |
Amortized Cost and Estimated Fair Values of Investment Securities | June 30, 2019 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,886 $ 33 $ - $ 8,919 Government Sponsored Entities (GSE) mortgage-backed securities 341 7 - 348 Corporate bonds 13,728 245 - 13,973 Collateralized mortgage obligations GSE 1,044 2 (4) 1,042 State and municipal taxable 362 5 - 367 State and municipal tax-exempt 35,588 117 (32) 35,673 Total $ 59,949 $ 409 $ (36) $ 60,322 Available For Sale US Government agency obligations $ 24,189 $ 15 $ (24) $ 24,180 GSE mortgage-backed securities 26,256 23 (306) 25,973 Collateralized mortgage obligations GSE 9,464 8 (177) 9,295 Corporate bonds 8,796 13 (7) 8,802 State and municipal tax-exempt 1,701 - (20) 1,681 Total $ 70,406 $ 59 $ (534) $ 69,931 December 31, 2018 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,749 $ 41 $ - $ 8,790 Government Sponsored Entities (GSE) mortgage-backed securities 389 - - 389 Corporate bonds 13,851 124 (47) 13,928 Collateralized mortgage obligations GSE 1,159 - (27) 1,132 State and municipal taxable 362 - (3) 359 State and municipal tax-exempt 37,516 19 (998) 36,537 Total $ 62,026 $ 184 $ (1,075) $ 61,135 Available For Sale US Government agency obligations $ 48,082 $ - $ (359) $ 47,723 GSE mortgage-backed securities 27,563 - (1,005) 26,558 Collateralized mortgage obligations GSE 10,249 - (441) 9,808 Corporate bonds 10,890 - (186) 10,704 State and municipal tax-exempt 1,981 - (131) 1,850 Total $ 98,765 $ - $ (2,122) $ 96,643 |
Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities | June 30, 2019 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Collateralized mortgage obligations GSE $ 171 $ (4) $ - $ - $ 171 $ (4) State and municipal tax-exempt 5,537 (32) - - 5,537 (32) Total $ 5,708 $ (36) $ - $ - $ 5,708 $ (36) Available For Sale US Government agency obligations $ 13,965 $ (24) $ - $ - $ 13,965 $ (24) GSE mortgage-backed securities 22,599 (306) - - 22,599 (306) Collateralized mortgage obligations GSE 6,980 (177) - - 6,980 (177) Corporate bonds 5,028 (7) - - 5,028 (7) State and municipal tax-exempt 1,681 (20) - - 1,681 (20) Total $ 50,253 $ (534) $ - $ - $ 50,253 $ (534) December 31, 2018 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Corporate bonds $ 4,157 $ (47) $ 1,887 $ (15) $ 2,270 $ (32) Collateralized mortgage obligations GSE 1,132 (27) - - 1,132 (27) State and municipal taxable 359 (3) - - 359 (3) State and municipal tax-exempt 26,466 (998) 2,045 (31) 24,421 (967) Total $ 32,114 $ (1,075) $ 3,932 $ (46) $ 28,182 $ (1,029) Available For Sale US Government agency obligations $ 37,723 $ (359) $ - $ - $ 37,723 $ (359) GSE mortgage-backed securities 26,558 (1,005) - - 26,558 (1,005) Collateralized mortgage obligations GSE 9,808 (441) - - 9,808 (441) Corporate bonds 10,704 (186) 2,035 (7) 8,669 (179) State and municipal tax-exempt 1,850 (131) - - 1,850 (131) Total $ 86,643 $ (2,122) $ 2,035 $ (7) $ 84,608 $ (2,115) |
Investments Classified by Contractual Maturity Date | Held to Maturity Available for Sale (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 11,735 $ 11,770 $ 14,989 $ 14,968 Due after one year through five years 14,149 14,245 18,448 18,455 Due after five years through ten years 27,454 27,697 14,329 14,214 Due after ten years 6,611 6,610 22,640 22,294 Total investment securities $ 59,949 $ 60,322 $ 70,406 $ 69,931 |
Gains and Losses Resulting from Investment Sales, Redemptions or Calls | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Gross realized gains-AFS $ 10 $ - $ 10 $ - Gross realized gains-HTM - - 3 - Gross realized losses-AFS (9) - (9) - Net realized gain $ 1 $ - $ 4 $ - |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans [Abstract] | |
Composition of Total Loans Outstanding | (Dollars in thousands) June 30, 2019 December 31, 2018 Residential mortgage $ 98,802 $ 99,932 Commercial mortgage 521,060 535,735 Commercial: Commercial term 179,294 166,335 Commercial construction 77,060 76,302 Consumer: Home equity 49,492 51,536 Other 4,813 5,131 Total loans $ 930,521 $ 934,971 Less allowance for credit losses (6,672) (6,675) Net loans $ 923,849 $ 928,296 |
Information on Non-Accrual Loans | Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (Dollars in thousands) June 30, 2019 December 31, 2018 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 779 $ 905 $ 11 $ - $ 11 $ 23 $ - $ 23 Commercial mortgage 563 1,307 1 - 1 27 - 27 Commercial: Commercial term 2,026 2,300 22 - 22 65 - 65 Commercial construction 2,274 476 13 - 13 13 - 13 Consumer: Home equity 143 391 (1) - (1) 6 - 6 Other 138 167 3 - 3 6 - 6 Total non-accrual loans $ 5,923 $ 5,546 $ 49 $ - $ 49 $ 140 $ - $ 140 Loans 90 days past due and accruing 205 233 3 3 - 3 3 - Total non-performing loans $ 6,128 $ 5,779 $ 52 $ 3 $ 49 $ 143 $ 3 $ 140 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in thousands) June 30, 2018 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 1,344 $ 18 $ - $ 18 $ 43 $ - $ 43 Commercial mortgage 1,593 28 - 28 58 - 58 Commercial: Commercial term 2,583 46 - 46 90 - 90 Commercial construction 488 9 - 9 20 - 20 Consumer: Home equity 498 3 - 3 8 - 8 Other 215 3 - 3 11 - 11 Total non-accrual loans $ 6,721 $ 107 $ - $ 107 $ 230 $ - $ 230 Loans 90 days past due and accruing 23 1 1 - 1 1 - Total non-performing loans $ 6,744 $ 108 $ 1 $ 107 $ 231 $ 1 $ 230 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Allowance for Credit Losses [Abstract] | |
Age Analysis of Past Due Loans Receivables | June 30, 2019 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage $ 972 $ 378 $ 610 $ 1,960 $ 96,842 $ 98,802 $ 142 Commercial mortgage (less acquired with credit deterioration) 47 - 625 672 519,867 520,539 63 Acquired commercial mortgage with credit deterioration - - - - 521 521 - Commercial: Commercial term 920 - 296 1,216 178,078 179,294 - Commercial construction - - - - 77,060 77,060 - Consumer: Home equity 168 120 143 431 49,061 49,492 - Other 85 2 88 175 4,638 4,813 - Total $ 2,192 $ 500 $ 1,762 $ 4,454 $ 926,067 $ 930,521 $ 205 December 31, 2018 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage $ 666 $ 1,742 $ 845 $ 3,253 $ 96,679 $ 99,932 $ 130 Commercial mortgage (less acquired with credit deterioration) - - 840 840 534,739 535,579 103 Acquired commercial mortgage with credit deterioration - - - - 156 156 - Commercial: Commercial term 20 37 957 1,014 165,321 166,335 - Commercial construction - - - - 76,302 76,302 - Consumer: Home equity 398 144 247 789 50,747 51,536 - Other 26 - 108 134 4,997 5,131 - Total $ 1,110 $ 1,923 $ 2,997 $ 6,030 $ 928,941 $ 934,971 $ 233 |
Impaired Loans by Loan Portfolio | June 30, 2019 December 31, 2018 Recorded Unpaid Related Recorded Unpaid Related Investment Principal Allowance Investment Principal Allowance (Dollars in thousands) Balance Balance With no related allowance recorded: Residential mortgage $ 2,759 $ 3,110 $ - $ 1,462 $ 1,804 $ - Commercial mortgage 1,513 1,766 - 1,532 1,780 - Acquired commercial mortgage with credit deterioration 521 535 - 514 527 Commercial: Commercial term 1,309 1,841 - 1,343 1,845 - Commercial construction 2,274 2,321 - 476 514 - Consumer: Home equity 279 284 - 531 535 - Other 168 242 - 156 205 - Total $ 8,823 $ 10,099 $ - $ 6,014 $ 7,210 $ - With allowance recorded: Residential mortgage - - - 73 73 1 Commercial mortgage - - - 737 802 78 Commercial: Commercial term 717 744 161 957 1,015 203 Consumer: Other - - - 41 42 3 Total $ 717 $ 744 $ 161 $ 1,808 $ 1,932 $ 285 Total: Residential mortgage 2,759 3,110 - 1,535 1,877 1 Commercial mortgage 1,513 1,766 - 2,269 2,582 78 Acquired commercial mortgage with credit deterioration 521 535 - 514 527 - Commercial: Commercial term 2,026 2,585 161 2,300 2,860 203 Commercial construction 2,274 2,321 - 476 514 - Consumer: Home equity 279 284 - 531 535 - Other 168 242 - 197 247 3 Total $ 9,540 $ 10,843 $ 161 $ 7,822 $ 9,142 $ 285 Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Residential mortgage $ 2,770 $ 16 $ 2,109 $ 5 $ 2,358 $ 18 $ 2,042 $ 6 Commercial mortgage 1,845 12 2,597 12 1,986 24 2,668 24 Acquired commercial mortgage with credit deterioration 521 9 654 8 519 18 748 15 Commercial: Commercial term 1,318 - 2,024 - 1,326 - 1,931 - Commercial construction 1,137 - 493 - 758 - 500 - Consumer: Home equity 404 3 624 2 447 4 620 4 Other 172 - 207 - 180 1 177 - Total $ 8,167 $ 40 $ 8,708 $ 27 $ 7,574 $ 65 $ 8,686 $ 49 With allowance recorded: Residential mortgage - - 37 - - - 25 - Acquired residential mortgage with credit deterioration - - - - - - 2 - Commercial mortgage - - 81 - - - 60 - Commercial: Commercial term 717 - 774 - 797 - 628 - Consumer: Other - - 71 - - - 90 - Total $ 717 $ - $ 963 $ - $ 797 $ - $ 805 $ - Total: Residential mortgage 2,770 16 2,146 5 2,358 18 2,067 6 Acquired residential mortgage with credit deterioration - - - - - - 2 - Commercial mortgage 1,845 12 2,678 12 1,986 24 2,728 24 Acquired commercial mortgage with credit deterioration 521 9 654 8 519 18 748 15 Commercial: Commercial term 2,035 - 2,798 - 2,123 - 2,559 - Commercial construction 1,137 - 493 - 758 - 500 - Consumer: Home equity 404 3 624 2 447 4 620 4 Other 172 - 278 - 180 1 267 - Total $ 8,884 $ 40 $ 9,671 $ 27 $ 8,371 $ 65 $ 9,491 $ 49 |
Credit Quality Indicators | June 30, 2019 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 96,078 $ 142 $ 2,582 $ - $ 98,802 Commercial mortgage 504,508 13,387 3,165 - 521,060 Commercial: Commercial term 174,507 695 4,092 - 179,294 Commercial construction 73,325 935 2,800 - 77,060 Consumer: Home equity 49,198 151 143 - 49,492 Other 4,674 - 139 - 4,813 Total $ 902,290 $ 15,310 $ 12,921 $ - $ 930,521 December 31, 2018 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 97,577 $ - $ 2,355 $ - $ 99,932 Commercial mortgage 528,692 2,367 4,676 - 535,735 Commercial: Commercial term 161,051 1,178 4,106 - 166,335 Commercial construction 72,077 3,603 622 - 76,302 Consumer: Home equity 50,988 143 405 - 51,536 Other 4,924 - 207 - 5,131 Total $ 915,309 $ 7,291 $ 12,371 $ - $ 934,971 |
Recorded Investments in Troubled Debt Restructured Loans | June 30, 2019 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 2,155 $ 2,308 $ 2,110 Commercial mortgage 992 992 950 Commercial term 421 421 421 Consumer: Home equity 148 148 136 Other 40 42 30 Total $ 3,756 $ 3,911 $ 3,647 December 31, 2018 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 676 $ 805 $ 630 Commercial mortgage 992 992 962 Consumer: Home equity 148 148 140 Other 40 42 30 Total $ 1,856 $ 1,987 $ 1,762 |
Allowance for Credit Losses and Recorded Investments In Loans Receivables | Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2019 $ 156 $ 3,493 $ 1,189 $ 1,080 $ 183 $ 43 $ 575 $ 6,719 Charge-offs - (23) (22) - (128) - - (173) Recoveries - 7 19 - - - - 26 Provisions (23) 102 (42) (48) 154 (4) (39) 100 Ending balance - June 30, 2019 $ 133 $ 3,579 $ 1,144 $ 1,032 $ 209 $ 39 $ 536 $ 6,672 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2019 $ 161 $ 3,647 $ 1,062 $ 1,032 $ 190 $ 46 $ 537 $ 6,675 Charge-offs - (105) (91) - (128) (17) - (341) Recoveries 4 7 27 - - - - 38 Provisions (32) 30 146 - 147 10 (1) 300 Ending balance - June 30, 2019 $ 133 $ 3,579 $ 1,144 $ 1,032 $ 209 $ 39 $ 536 $ 6,672 Ending balance: individually evaluated for impairment $ - $ - $ 161 $ - $ - $ - $ - $ 161 Ending balance: collectively evaluated for impairment $ 133 $ 3,579 $ 983 $ 1,032 $ 209 $ 39 $ 536 $ 6,511 Loans receivables: Ending balance $ 98,802 $ 521,060 $ 179,294 $ 77,060 $ 49,492 $ 4,813 $ 930,521 Ending balance: individually evaluated for impairment $ 2,759 $ 1,513 $ 2,026 $ 2,274 $ 279 $ 168 $ 9,019 Ending balance: acquired with credit deterioration $ - $ 521 $ - $ - $ - $ - $ 521 Ending balance: collectively evaluated for impairment $ 96,043 $ 519,026 $ 177,268 $ 74,786 $ 49,213 $ 4,645 $ 920,981 Reserve for unfunded loan commitments included in other liabilities $ - $ 2 $ 189 $ 209 $ 20 $ - $ 420 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2018 $ 226 $ 2,987 $ 904 $ 1,219 $ 176 $ 55 $ 578 $ 6,145 Charge-offs (103) (171) (47) - - (37) - (358) Recoveries 25 - - - - 1 - 26 Provisions 59 260 32 136 20 30 (162) 375 Ending balance - June 30, 2018 $ 207 $ 3,076 $ 889 $ 1,355 $ 196 $ 49 $ 416 $ 6,188 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2018 $ 221 $ 2,856 $ 845 $ 1,128 $ 183 $ 63 $ 547 $ 5,843 Charge-offs (137) (184) (64) - - (49) - (434) Recoveries 26 - 2 - - 1 - 29 Provisions 97 404 106 227 13 34 (131) 750 Ending balance - June 30, 2018 $ 207 $ 3,076 $ 889 $ 1,355 $ 196 $ 49 $ 416 $ 6,188 Reserve for unfunded loan commitments included in other liabilities $ - $ 3 $ 183 $ 201 $ 21 $ - $ 408 Residential Commercial Commercial Commercial Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Home Equity Other Unallocated Total Allowance for credit losses: Ending balance - December 31, 2018 $ 161 $ 3,647 $ 1,062 $ 1,032 $ 190 $ 46 $ 537 $ 6,675 Ending balance: individually evaluated for impairment $ 1 $ 78 $ 203 $ - $ - $ 3 $ - $ 285 Ending balance: collectively evaluated for impairment $ 160 $ 3,569 $ 859 $ 1,032 $ 190 $ 43 $ 537 $ 6,390 Loans receivables: Ending balance $ 99,932 $ 535,735 $ 166,335 $ 76,302 $ 51,536 $ 5,131 $ 934,971 Ending balance: individually evaluated for impairment $ 1,535 $ 2,269 $ 2,300 $ 476 $ 531 $ 197 $ 7,308 Ending balance: acquired with credit deterioration $ - $ 514 $ - $ - $ - $ - $ 514 Ending balance: collectively evaluated for impairment $ 98,397 $ 532,952 $ 164,035 $ 75,826 $ 51,005 $ 4,934 $ 927,149 Reserve for unfunded loan commitments included in other liabilities $ - $ 4 $ 167 $ 206 $ 21 $ - $ 398 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 2,587 4,331 $ 0.60 $ 5,174 4,329 $ 1.20 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 5 - - 4 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 2,587 4,336 $ 0.60 $ 5,174 4,333 $ 1.19 Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 2,049 4,298 $ 0.48 $ 4,662 4,295 $ 1.09 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 16 (0.01) - 17 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 2,049 4,314 $ 0.47 $ 4,662 4,312 $ 1.08 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Before-Tax Tax Net-of-Tax (Dollars in thousands) Amount Effect Amount June 30, 2019 Net unrealized loss on AFS securities $ (475) $ 100 $ (375) Unrealized actuarial losses-pension (1,637) 343 (1,294) $ (2,112) $ 443 $ (1,669) December 31, 2018 Net unrealized loss on AFS securities $ (2,122) $ 445 $ (1,677) Unrealized actuarial losses-pension (1,637) 343 (1,294) $ (3,759) $ 788 $ (2,971) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock Option Activity | Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2018 16,450 $ 10.31 Issued - - Exercised 5,300 10.31 Forfeited - - Expired - - Outstanding June 30, 2018 11,150 $ 10.31 |
Stock Grant Activity | Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2019 18,590 $ 30.90 Granted 10,600 39.36 Forfeited - - Vested - - Non-vested stock awards—June 30, 2019 29,190 $ 33.98 Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2018 31,130 $ 26.53 Granted 10,750 33.98 Forfeited 4,345 28.92 Vested 8,500 26.69 Non-vested stock awards—June 30, 2018 29,035 $ 28.88 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | June 30, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 24,180 $ - $ 24,180 GSE mortgage-backed securities - 25,973 - 25,973 Collateralized mortgage obligations GSE - 9,295 - 9,295 Corporate bonds - 8,802 - 8,802 State and municipal tax-exempt - 1,681 - 1,681 Total $ - $ 69,931 $ - $ 69,931 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 691 $ 691 OREO and other repossessed property - - 1,430 1,430 Total $ - $ - $ 2,121 $ 2,121 December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 47,723 $ - $ 47,723 GSE mortgage-backed securities - 26,558 - 26,558 Collateralized mortgage obligations GSE - 9,808 - 9,808 Corporate bonds - 10,704 - 10,704 State and municipal tax-exempt - 1,850 - 1,850 Total $ - $ 96,643 $ - $ 96,643 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,523 $ 1,523 OREO and other repossessed property - - 1,247 1,247 Total $ - $ - $ 2,770 $ 2,770 |
Quantitative Information About Level 3 Fair Value Measurements | June 30, 2019 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Commercial term $ 556 Appraisal of collateral (1) Disposal costs (2) 0% to -8% (-4%) Impaired loans - Consumer other 135 Appraisal of collateral (1) Disposal costs (2) -7% to -8% (-8%) Impaired loan total $ 691 Other real estate owned $ 1,430 Disposal costs (2) -8% to -8% (-8%) (1) (2) December 31, 2018 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Residential mortgage $ 72 Appraisal of collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial mortgage 659 Appraisal of collateral (1) Disposal costs (2) -14% to -14% (-14%) Impaired loans - Commercial term 754 Appraisal of collateral (1) Disposal costs (2) 0% to -16% (-11%) Impaired loans - Consumer other 38 Appraisal of collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,523 Other real estate owned $ 1,247 Disposal costs (2) -8% to -8% (-8%) (1) Fair value is generally determined through independent appraisals or sales contracts of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Appraisals are adjusted by management for qualitative factors and disposal costs. |
Carrying Amounts and Fair Values of Financial Instruments | June 30, 2019 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 46,398 $ 46,398 $ 46,398 $ - $ - AFS investment securities 69,931 69,931 - 69,931 - HTM investment securities 59,949 60,322 - 58,322 2,000 Restricted stock 5,734 5,734 - 5,734 - Loans held-for-sale 501 515 - - 515 Loans, net of allowance, including impaired 923,849 921,497 - - 921,497 Accrued interest receivable 4,297 4,297 - 4,297 - Financial liabilities Deposits: Non-interest-bearing 178,454 178,454 - 178,454 - NOW, Money market, and Savings 531,002 531,002 - 531,002 - Time 178,530 178,808 - 178,808 - Brokered 87,877 87,369 - 87,369 - FHLBP advances 31,203 31,112 - 31,112 - Junior subordinated debentures and other borrowings 9,279 9,990 - 9,990 - Subordinated debt 9,750 9,271 - 9,271 - Accrued interest payable 641 641 - 641 - Off-balance sheet instruments - - - - - December 31, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 17,321 $ 17,321 $ 17,321 $ - $ - AFS investment securities 96,643 96,643 - 96,643 - HTM investment securities 62,026 61,135 - 59,135 2,000 Restricted stock 5,616 5,616 - 5,616 - Loans held-for-sale 419 429 - - 429 Loans, net of allowance, including impaired 928,296 914,822 - - 914,822 Accrued interest receivable 4,207 4,207 - 4,207 - Financial liabilities Deposits: Non-interest-bearing 164,746 164,746 - 164,746 - NOW, Money market, and Savings 549,073 549,073 - 549,073 - Time 162,096 160,944 - 160,944 - Brokered 108,651 97,250 - 97,250 - FHLBP advances 32,935 32,347 - 32,347 - Junior subordinated debentures and other borrowings 9,279 10,285 - 10,285 - Subordinated debt 9,750 9,505 - 9,505 - Accrued interest payable 646 646 - 646 - Off-balance sheet instruments - - - - - |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 05, 2019 | Dec. 31, 2018 | |
Common stock par value per share | $ 1 | $ 1 | |
Right-of-use asset | $ 3,792 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating lease liabilities | $ 4,400 | ||
Right-of-use asset | $ 4,000 | ||
Accounting Standards Update 2018-02 [Member] | |||
Reclassification amount from accumulated other comprehensive income related to Tax Cuts and jobs Act | $ 471 | ||
DNB [Member] | |||
Common stock par value per share | $ 1 | ||
S&T Bank [Member] | |||
Business acquisition share price | 1.22 | ||
Common stock par value per share | $ 2.50 |
Basis of Presentation (Non-Inte
Basis of Presentation (Non-Interest Income Including Revenue From Contracts With Customers In Scope Of ASU 2014-09) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total non-interest income | $ 1,344 | $ 1,332 | $ 2,618 | $ 2,605 |
Total Revenue Not Within the Scope of ASC 606 [Member] | ||||
Revenue from contracts with customers | 172 | 177 | 339 | 331 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | ||||
Revenue from contracts with customers | 1,172 | 1,155 | 2,279 | 2,274 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges [Member] | ||||
Revenue from contracts with customers | 246 | 261 | 537 | 574 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Non-Sufficient Funds Charges [Member] | ||||
Revenue from contracts with customers | 122 | 142 | 255 | 301 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Business Analysis Charges [Member] | ||||
Revenue from contracts with customers | 46 | 44 | 92 | 85 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Cycle Charges [Member | ||||
Revenue from contracts with customers | 21 | 22 | 41 | 45 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Lockbox Fees [Member] | ||||
Revenue from contracts with customers | 10 | 8 | 57 | 52 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Stop Payment Fees [Member] | ||||
Revenue from contracts with customers | 5 | 3 | 9 | 7 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Wire Transfer Fees [Member] | ||||
Revenue from contracts with customers | 22 | 22 | 44 | 43 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Other Service Charges [Member] | ||||
Revenue from contracts with customers | 20 | 20 | 39 | 41 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Wealth Management [Member] | ||||
Revenue from contracts with customers | 529 | 512 | 974 | 947 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Wealth Management DNB Investments & Insurance [Member] | ||||
Revenue from contracts with customers | 126 | 150 | 202 | 238 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Wealth Management DNB First Investment Management & Trust [Member] | ||||
Revenue from contracts with customers | 403 | 362 | 772 | 709 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income [Member] | ||||
Revenue from contracts with customers | 397 | 382 | 768 | 753 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Cardholder Interchange Fees [Member] | ||||
Revenue from contracts with customers | 286 | 269 | 539 | 514 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Safe Deposit Box [Member] | ||||
Revenue from contracts with customers | 24 | 26 | 47 | 50 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Check Printing [Member] | ||||
Revenue from contracts with customers | 13 | 12 | 37 | 35 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Merchant Card Processing [Member] | ||||
Revenue from contracts with customers | 45 | 42 | 87 | 90 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income ATM Surcharges For Non-DNB Customers [Member] | ||||
Revenue from contracts with customers | 17 | 20 | 32 | 37 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Other Fee [Member] | ||||
Revenue from contracts with customers | $ 12 | $ 13 | $ 26 | $ 27 |
Basis of Presentation (Recogniz
Basis of Presentation (Recognized Rent Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basis of Presentation [Abstract] | ||||
Fixed rent expense | $ 251 | $ 284 | $ 503 | $ 569 |
Amortization of lease liability | 186 | 372 | ||
Interest expense | 65 | 131 | ||
Net lease cost | $ 251 | $ 503 |
Basis of Presentation (Suppleme
Basis of Presentation (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basis of Presentation [Abstract] | ||||
Operating cash flows from operating leases | $ 250 | $ 242 | $ 500 | $ 484 |
New operating lease liabilities | $ 4,174 | $ 4,174 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Securities [Line Items] | ||
Available-for-sale securities pledged as collateral | $ | $ 69,700 | $ 95,800 |
Gross realized gains-HTM | $ | $ 3 | |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 14 | |
Number of securities, impaired for more than 12 months | 14 | |
Unrealized loss of security from book value | 6.34% | |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 18 | |
Unrealized loss of security from book value | 1.86% | |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 3 | |
Unrealized loss of security from book value | 0.41% | |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 9 | |
Number of impaired municipal securities, townships uninsured | 3 | |
Unrealized loss of security from book value | 2.10% | |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 3 | |
Unrealized loss of security from book value | 0.46% |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | $ 59,949 | $ 62,026 |
Held-to-maturity Securities, Unrealized Gains | 409 | 184 |
Held-to-maturity Securities, Unrealized Losses | (36) | (1,075) |
Held-to-maturity Securities, Estimated Fair Value | 60,322 | 61,135 |
Available-for-sale Securities, Amortized Cost | 70,406 | 98,765 |
Available-for-sale Securities, Unrealized Gains | 59 | |
Available-for-sale Securities, Unrealized Losses | (534) | (2,122) |
Available-for-sale, Estimated Fair Value | 69,931 | 96,643 |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 8,886 | 8,749 |
Held-to-maturity Securities, Unrealized Gains | 33 | 41 |
Held-to-maturity Securities, Estimated Fair Value | 8,919 | 8,790 |
Available-for-sale Securities, Amortized Cost | 24,189 | 48,082 |
Available-for-sale Securities, Unrealized Gains | 15 | |
Available-for-sale Securities, Unrealized Losses | (24) | (359) |
Available-for-sale, Estimated Fair Value | 24,180 | 47,723 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 341 | 389 |
Held-to-maturity Securities, Unrealized Gains | 7 | |
Held-to-maturity Securities, Estimated Fair Value | 348 | 389 |
Available-for-sale Securities, Amortized Cost | 26,256 | 27,563 |
Available-for-sale Securities, Unrealized Gains | 23 | |
Available-for-sale Securities, Unrealized Losses | (306) | (1,005) |
Available-for-sale, Estimated Fair Value | 25,973 | 26,558 |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 13,728 | 13,851 |
Held-to-maturity Securities, Unrealized Gains | 245 | 124 |
Held-to-maturity Securities, Unrealized Losses | (47) | |
Held-to-maturity Securities, Estimated Fair Value | 13,973 | 13,928 |
Available-for-sale Securities, Amortized Cost | 8,796 | 10,890 |
Available-for-sale Securities, Unrealized Gains | 13 | |
Available-for-sale Securities, Unrealized Losses | (7) | (186) |
Available-for-sale, Estimated Fair Value | 8,802 | 10,704 |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 1,044 | 1,159 |
Held-to-maturity Securities, Unrealized Gains | 2 | |
Held-to-maturity Securities, Unrealized Losses | (4) | (27) |
Held-to-maturity Securities, Estimated Fair Value | 1,042 | 1,132 |
Available-for-sale Securities, Amortized Cost | 9,464 | 10,249 |
Available-for-sale Securities, Unrealized Gains | 8 | |
Available-for-sale Securities, Unrealized Losses | (177) | (441) |
Available-for-sale, Estimated Fair Value | 9,295 | 9,808 |
State and Municipal Taxable [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 362 | 362 |
Held-to-maturity Securities, Unrealized Gains | 5 | |
Held-to-maturity Securities, Unrealized Losses | (3) | |
Held-to-maturity Securities, Estimated Fair Value | 367 | 359 |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 35,588 | 37,516 |
Held-to-maturity Securities, Unrealized Gains | 117 | 19 |
Held-to-maturity Securities, Unrealized Losses | (32) | (998) |
Held-to-maturity Securities, Estimated Fair Value | 35,673 | 36,537 |
Available-for-sale Securities, Amortized Cost | 1,701 | 1,981 |
Available-for-sale Securities, Unrealized Losses | (20) | (131) |
Available-for-sale, Estimated Fair Value | $ 1,681 | $ 1,850 |
Investment Securities (Aggregat
Investment Securities (Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 5,708 | $ 32,114 |
Held-to-maturity Securities, Unrealized Losses | (36) | (1,075) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 3,932 | |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (46) | |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 5,708 | 28,182 |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (36) | (1,029) |
Available-for-sale Securities, Fair Value | 50,253 | 86,643 |
Available-for-sale Securities, Unrealized Loss | (534) | (2,122) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 2,035 | |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (7) | |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 50,253 | 84,608 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (534) | (2,115) |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value | 13,965 | 37,723 |
Available-for-sale Securities, Unrealized Loss | (24) | (359) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 13,965 | 37,723 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (24) | (359) |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value | 22,599 | 26,558 |
Available-for-sale Securities, Unrealized Loss | (306) | (1,005) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 22,599 | 26,558 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (306) | (1,005) |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value | 171 | 1,132 |
Held-to-maturity Securities, Unrealized Losses | (4) | (27) |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 171 | 1,132 |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (4) | (27) |
Available-for-sale Securities, Fair Value | 6,980 | 9,808 |
Available-for-sale Securities, Unrealized Loss | (177) | (441) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 6,980 | 9,808 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (177) | (441) |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value | 4,157 | |
Held-to-maturity Securities, Unrealized Losses | (47) | |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 1,887 | |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (15) | |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 2,270 | |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (32) | |
Available-for-sale Securities, Fair Value | 5,028 | 10,704 |
Available-for-sale Securities, Unrealized Loss | (7) | (186) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 2,035 | |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (7) | |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 5,028 | 8,669 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (7) | (179) |
State and Municipal Taxable [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value | 359 | |
Held-to-maturity Securities, Unrealized Losses | (3) | |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 359 | |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (3) | |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value | 5,537 | 26,466 |
Held-to-maturity Securities, Unrealized Losses | (32) | (998) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 2,045 | |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (31) | |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 5,537 | 24,421 |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (32) | (967) |
Available-for-sale Securities, Fair Value | 1,681 | 1,850 |
Available-for-sale Securities, Unrealized Loss | (20) | (131) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 1,681 | 1,850 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | $ (20) | $ (131) |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment Securities [Abstract] | ||
Held to Maturity, Due in one year or less, Amortized Cost | $ 11,735 | |
Held to Maturity, Due after one year through five years, Amortized Cost | 14,149 | |
Held to Maturity, Due after five years through ten years, Amortized Cost | 27,454 | |
Held to Maturity, Due after ten years, Amortized Cost | 6,611 | |
Held-to-maturity Securities, Amortized Cost | 59,949 | $ 62,026 |
Held to Maturity, Due in one year or less, Estimated Fair Value | 11,770 | |
Held to Maturity, Due after one year through five years, Estimated Fair Value | 14,245 | |
Held to Maturity, Due after five years through ten years, Estimated Fair Value | 27,697 | |
Held to Maturity, Due after ten years, Estimated Fair Value | 6,610 | |
Held-to-maturity, Total investment securities, Estimated Fair Value | 60,322 | 61,135 |
Available for Sale, Due in one year or less, Amortized Cost | 14,989 | |
Available for Sale, Due after one year through five years, Amortized Cost | 18,448 | |
Available for Sale, Due after five years through ten years, Amortized Cost | 14,329 | |
Available for Sale, Due after ten years, Amortized Cost | 22,640 | |
Available-for-sale Securities, Amortized Cost | 70,406 | 98,765 |
Available for Sale, Due in one year or less, Estimated Fair Value | 14,968 | |
Available for Sale, Due after one year through five years, Estimated Fair Value | 18,455 | |
Available for Sale, Due after five years through ten years, Estimated Fair Value | 14,214 | |
Available for Sale, Due after ten years, Estimated Fair Value | 22,294 | |
Available for Sale, Total investment securities, Estimated Fair Value | $ 69,931 | $ 96,643 |
Investment Securities (Gains an
Investment Securities (Gains and Losses Resulting from Investment Sales, Redemptions or Calls) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Investment Securities [Abstract] | ||
Gross realized gains-AFS | $ 10 | $ 10 |
Gross realized gains-HTM | 3 | |
Gross realized losses-AFS | (9) | (9) |
Net realized gain | $ 1 | $ 4 |
Loans (Composition of Total Loa
Loans (Composition of Total Loans Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 930,521 | $ 934,971 | ||||
Less allowance for credit losses | (6,672) | $ (6,719) | (6,675) | $ (6,188) | $ (6,145) | $ (5,843) |
Net loans | 923,849 | 928,296 | ||||
Residential Mortgage [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 98,802 | 99,932 | ||||
Less allowance for credit losses | (133) | (156) | (161) | (207) | (226) | (221) |
Commercial Mortgage [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 521,060 | 535,735 | ||||
Less allowance for credit losses | (3,579) | (3,493) | (3,647) | (3,076) | (2,987) | (2,856) |
Commercial Term [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 179,294 | 166,335 | ||||
Less allowance for credit losses | (1,144) | (1,189) | (1,062) | (889) | (904) | (845) |
Commercial Construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 77,060 | 76,302 | ||||
Less allowance for credit losses | (1,032) | (1,080) | (1,032) | (1,355) | (1,219) | (1,128) |
Consumer: Home Equity [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 49,492 | 51,536 | ||||
Less allowance for credit losses | (209) | (183) | (190) | (196) | (176) | (183) |
Consumer: Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 4,813 | 5,131 | ||||
Less allowance for credit losses | $ (39) | $ (43) | $ (46) | $ (49) | $ (55) | $ (63) |
Loans (Information on Non-Accru
Loans (Information on Non-Accrual Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | $ 5,923 | $ 6,721 | $ 5,923 | $ 6,721 | $ 5,546 |
Loans 90 day past due and accruing | 205 | 23 | 205 | 23 | 233 |
Total non-performing loans | 6,128 | 6,744 | 6,128 | 6,744 | 5,779 |
Interest income that would have been recorded under original terms, non-accrual loans | 49 | 107 | 140 | 230 | |
Interest income that would have been recorded under original terms, 90 days past due and accruing | 3 | 1 | 3 | 1 | |
Interest income that would have been recorded under original terms | 52 | 108 | 143 | 231 | |
Interest income recorded during the period, 90 days past due and accruing | 3 | 1 | 3 | 1 | |
Interest income recorded during the period | 3 | 1 | 3 | 1 | |
Net impact on interest income, non-accrual loans | 49 | 107 | 140 | 230 | |
Net impact on interest income | 49 | 107 | 140 | 230 | |
Residential Mortgage [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 779 | 1,344 | 779 | 1,344 | 905 |
Loans 90 day past due and accruing | 142 | 142 | |||
Interest income that would have been recorded under original terms, non-accrual loans | 11 | 18 | 23 | 43 | |
Net impact on interest income, non-accrual loans | 11 | 18 | 23 | 43 | |
Commercial Mortgage [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 563 | 1,593 | 563 | 1,593 | 1,307 |
Interest income that would have been recorded under original terms, non-accrual loans | 1 | 28 | 27 | 58 | |
Net impact on interest income, non-accrual loans | 1 | 28 | 27 | 58 | |
Commercial Term [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 2,026 | 2,583 | 2,026 | 2,583 | 2,300 |
Interest income that would have been recorded under original terms, non-accrual loans | 22 | 46 | 65 | 90 | |
Net impact on interest income, non-accrual loans | 22 | 46 | 65 | 90 | |
Commercial Construction [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 2,274 | 488 | 2,274 | 488 | 476 |
Interest income that would have been recorded under original terms, non-accrual loans | 13 | 9 | 13 | 20 | |
Net impact on interest income, non-accrual loans | 13 | 9 | 13 | 20 | |
Consumer: Home Equity [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 143 | 498 | 143 | 498 | 391 |
Interest income that would have been recorded under original terms, non-accrual loans | (1) | 3 | 6 | 8 | |
Net impact on interest income, non-accrual loans | (1) | 3 | 6 | 8 | |
Consumer: Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 138 | 215 | 138 | 215 | $ 167 |
Interest income that would have been recorded under original terms, non-accrual loans | 3 | 3 | 6 | 11 | |
Net impact on interest income, non-accrual loans | $ 3 | $ 3 | $ 6 | $ 11 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 15 | 9 | |||
TDR recorded investment | $ 3,647,000 | $ 3,647,000 | $ 1,762,000 | ||
Partial charge-off of loan amount | 173,000 | $ 358,000 | $ 341,000 | $ 434,000 | |
Number of defaulted TDRs | loan | 0 | 0 | |||
Loan defaults on TDRs | $ 0 | $ 0 | |||
Accruing Loans [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 9 | ||||
Accruing Impaired Home Equity Loan [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 10 | ||||
Nonaccrual Impaired Loans [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 5 | ||||
Residential Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Real estate loans in process of foreclosure | 353,000 | $ 353,000 | |||
Number of TDR loans | loan | 2 | ||||
TDR recorded investment | 2,110,000 | 2,110,000 | $ 630,000 | ||
Partial charge-off of loan amount | 103,000 | $ 137,000 | $ 151,000 | ||
Consumer Installment Loan [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 1 | 1 | |||
Partial charge-off of loan amount | $ 2,000 | $ 2,000 | |||
Other Real Estate Owned [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Real estate loans in process of foreclosure | 0 | $ 0 | $ 97,000 | ||
Commercial Term Loan [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 4 | ||||
TDR recorded investment | 421,000 | $ 421,000 | |||
Commercial Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 1 | 1 | |||
TDR recorded investment | 950,000 | 73,000 | 950,000 | $ 73,000 | $ 962,000 |
Partial charge-off of loan amount | 23,000 | $ 171,000 | $ 105,000 | $ 184,000 | |
Two Residential Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 2 | ||||
TDR recorded investment | $ 1,500,000 | $ 1,500,000 | |||
Partial charge-off of loan amount | $ 151,000 | ||||
One Residential Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
TDR recorded investment | $ 73,000 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Age Analysis Of Past Due Loans Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | $ 4,454 | $ 6,030 | |
Current | 926,067 | 928,941 | |
Total Loans Receivables | 930,521 | 934,971 | |
Loans Receivable >90 Days and Accruing | 205 | 233 | $ 23 |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 2,192 | 1,110 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 500 | 1,923 | |
Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,762 | 2,997 | |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,960 | ||
Current | 96,842 | ||
Total Loans Receivables | 98,802 | 99,932 | |
Loans Receivable >90 Days and Accruing | 142 | ||
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 972 | ||
Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 378 | ||
Residential Mortgage [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 610 | ||
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 3,253 | ||
Current | 96,679 | ||
Total Loans Receivables | 99,932 | ||
Loans Receivable >90 Days and Accruing | 130 | ||
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 666 | ||
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,742 | ||
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 845 | ||
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 672 | 840 | |
Current | 519,867 | 534,739 | |
Total Loans Receivables | 520,539 | 535,579 | |
Loans Receivable >90 Days and Accruing | 63 | 103 | |
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 47 | ||
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 625 | 840 | |
Acquired Commercial Mortgage With Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 521 | 156 | |
Total Loans Receivables | 521 | 156 | |
Commercial Term [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,216 | 1,014 | |
Current | 178,078 | 165,321 | |
Total Loans Receivables | 179,294 | 166,335 | |
Commercial Term [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 920 | 20 | |
Commercial Term [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 37 | ||
Commercial Term [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 296 | 957 | |
Commercial Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 77,060 | 76,302 | |
Total Loans Receivables | 77,060 | 76,302 | |
Consumer: Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 431 | 789 | |
Current | 49,061 | 50,747 | |
Total Loans Receivables | 49,492 | 51,536 | |
Consumer: Home Equity [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 168 | 398 | |
Consumer: Home Equity [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 120 | 144 | |
Consumer: Home Equity [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 143 | 247 | |
Consumer: Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 175 | 134 | |
Current | 4,638 | 4,997 | |
Total Loans Receivables | 4,813 | 5,131 | |
Consumer: Other [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 85 | 26 | |
Consumer: Other [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 2 | ||
Consumer: Other [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | $ 88 | $ 108 |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impaired Loans By Loan Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | $ 8,823 | $ 8,823 | $ 6,014 | ||
Unpaid Principal Balance, With no related allowance recorded | 10,099 | 10,099 | 7,210 | ||
Average Recorded Investment, With no related allowance recorded | 8,167 | $ 8,708 | 7,574 | $ 8,686 | |
Interest Income Recognized, With no related allowance recorded | 40 | 27 | 65 | 49 | |
Recorded Investment, with allowance recorded | 717 | 717 | 1,808 | ||
Unpaid Principal Balance, With allowance recorded | 744 | 744 | 1,932 | ||
Average Recorded Investment, With allowance recorded | 717 | 963 | 797 | 805 | |
Recorded Investment, Total | 9,540 | 9,540 | 7,822 | ||
Unpaid Principal Balance, Total | 10,843 | 10,843 | 9,142 | ||
Related Allowance, Total | 161 | 161 | 285 | ||
Average Recorded Investment, Total | 8,884 | 9,671 | 8,371 | 9,491 | |
Interest Income Recognized, Total | 40 | 27 | 65 | 49 | |
Residential Mortgage [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 2,759 | 2,759 | 1,462 | ||
Unpaid Principal Balance, With no related allowance recorded | 3,110 | 3,110 | 1,804 | ||
Average Recorded Investment, With no related allowance recorded | 2,770 | 2,109 | 2,358 | 2,042 | |
Interest Income Recognized, With no related allowance recorded | 16 | 5 | 18 | 6 | |
Recorded Investment, with allowance recorded | 73 | ||||
Unpaid Principal Balance, With allowance recorded | 73 | ||||
Average Recorded Investment, With allowance recorded | 37 | 25 | |||
Recorded Investment, Total | 2,759 | 2,759 | 1,535 | ||
Unpaid Principal Balance, Total | 3,110 | 3,110 | 1,877 | ||
Related Allowance, Total | 1 | ||||
Average Recorded Investment, Total | 2,770 | 2,146 | 2,358 | 2,067 | |
Interest Income Recognized, Total | 16 | 5 | 18 | 6 | |
Acquired Residential Mortgage With Credit Deterioration [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment, With allowance recorded | 2 | ||||
Average Recorded Investment, Total | 2 | ||||
Commercial Mortgage [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,513 | 1,513 | 1,532 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,766 | 1,766 | 1,780 | ||
Average Recorded Investment, With no related allowance recorded | 1,845 | 2,597 | 1,986 | 2,668 | |
Interest Income Recognized, With no related allowance recorded | 12 | 12 | 24 | 24 | |
Recorded Investment, with allowance recorded | 737 | ||||
Unpaid Principal Balance, With allowance recorded | 802 | ||||
Average Recorded Investment, With allowance recorded | 81 | 60 | |||
Recorded Investment, Total | 1,513 | 1,513 | 2,269 | ||
Unpaid Principal Balance, Total | 1,766 | 1,766 | 2,582 | ||
Related Allowance, Total | 78 | ||||
Average Recorded Investment, Total | 1,845 | 2,678 | 1,986 | 2,728 | |
Interest Income Recognized, Total | 12 | 12 | 24 | 24 | |
Acquired Commercial Mortgage With Credit Deterioration [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 521 | 521 | 514 | ||
Unpaid Principal Balance, With no related allowance recorded | 535 | 535 | 527 | ||
Average Recorded Investment, With no related allowance recorded | 521 | 654 | 519 | 748 | |
Interest Income Recognized, With no related allowance recorded | 9 | 8 | 18 | 15 | |
Recorded Investment, Total | 521 | 521 | 514 | ||
Unpaid Principal Balance, Total | 535 | 535 | 527 | ||
Average Recorded Investment, Total | 521 | 654 | 519 | 748 | |
Interest Income Recognized, Total | 9 | 8 | 18 | 15 | |
Commercial Term [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,309 | 1,309 | 1,343 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,841 | 1,841 | 1,845 | ||
Average Recorded Investment, With no related allowance recorded | 1,318 | 2,024 | 1,326 | 1,931 | |
Recorded Investment, with allowance recorded | 717 | 717 | 957 | ||
Unpaid Principal Balance, With allowance recorded | 744 | 744 | 1,015 | ||
Average Recorded Investment, With allowance recorded | 717 | 774 | 797 | 628 | |
Recorded Investment, Total | 2,026 | 2,026 | 2,300 | ||
Unpaid Principal Balance, Total | 2,585 | 2,585 | 2,860 | ||
Related Allowance, Total | 161 | 161 | 203 | ||
Average Recorded Investment, Total | 2,035 | 2,798 | 2,123 | 2,559 | |
Commercial Construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 2,274 | 2,274 | 476 | ||
Unpaid Principal Balance, With no related allowance recorded | 2,321 | 2,321 | 514 | ||
Average Recorded Investment, With no related allowance recorded | 1,137 | 493 | 758 | 500 | |
Recorded Investment, Total | 2,274 | 2,274 | 476 | ||
Unpaid Principal Balance, Total | 2,321 | 2,321 | 514 | ||
Average Recorded Investment, Total | 1,137 | 493 | 758 | 500 | |
Consumer: Home Equity [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 279 | 279 | 531 | ||
Unpaid Principal Balance, With no related allowance recorded | 284 | 284 | 535 | ||
Average Recorded Investment, With no related allowance recorded | 404 | 624 | 447 | 620 | |
Interest Income Recognized, With no related allowance recorded | 3 | 2 | 4 | 4 | |
Recorded Investment, Total | 279 | 279 | 531 | ||
Unpaid Principal Balance, Total | 284 | 284 | 535 | ||
Average Recorded Investment, Total | 404 | 624 | 447 | 620 | |
Interest Income Recognized, Total | 3 | 2 | 4 | 4 | |
Consumer: Other [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 168 | 168 | 156 | ||
Unpaid Principal Balance, With no related allowance recorded | 242 | 242 | 205 | ||
Average Recorded Investment, With no related allowance recorded | 172 | 207 | 180 | 177 | |
Interest Income Recognized, With no related allowance recorded | 1 | ||||
Recorded Investment, with allowance recorded | 41 | ||||
Unpaid Principal Balance, With allowance recorded | 42 | ||||
Average Recorded Investment, With allowance recorded | 71 | 90 | |||
Recorded Investment, Total | 168 | 168 | 197 | ||
Unpaid Principal Balance, Total | 242 | 242 | 247 | ||
Related Allowance, Total | $ 3 | ||||
Average Recorded Investment, Total | $ 172 | $ 278 | 180 | $ 267 | |
Interest Income Recognized, Total | $ 1 |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investments in Troubled Debt Restructured Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Pre-modification outstanding recorded investment | $ 3,756 | $ 1,856 | |
Post-modification outstanding recorded investment | 3,911 | 1,987 | |
Recorded Investment | 3,647 | 1,762 | |
Residential Mortgage [Member] | |||
Pre-modification outstanding recorded investment | 2,155 | 676 | |
Post-modification outstanding recorded investment | 2,308 | 805 | |
Recorded Investment | 2,110 | 630 | |
Commercial Mortgage [Member] | |||
Pre-modification outstanding recorded investment | 992 | 992 | |
Post-modification outstanding recorded investment | 992 | 992 | |
Recorded Investment | 950 | 962 | $ 73 |
Consumer: Home Equity [Member] | |||
Pre-modification outstanding recorded investment | 148 | 148 | |
Post-modification outstanding recorded investment | 148 | 148 | |
Recorded Investment | 136 | 140 | |
Consumer: Other [Member] | |||
Pre-modification outstanding recorded investment | 40 | 40 | |
Post-modification outstanding recorded investment | 42 | 42 | |
Recorded Investment | $ 30 | $ 30 |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 930,521 | $ 934,971 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 902,290 | 915,309 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 15,310 | 7,291 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 12,921 | 12,371 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 98,802 | 99,932 |
Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 96,078 | 97,577 |
Residential Mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 142 | |
Residential Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,582 | 2,355 |
Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 521,060 | 535,735 |
Commercial Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 504,508 | 528,692 |
Commercial Mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 13,387 | 2,367 |
Commercial Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,165 | 4,676 |
Commercial Term [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 179,294 | 166,335 |
Commercial Term [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 174,507 | 161,051 |
Commercial Term [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 695 | 1,178 |
Commercial Term [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 4,092 | 4,106 |
Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 77,060 | 76,302 |
Commercial Construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 73,325 | 72,077 |
Commercial Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 935 | 3,603 |
Commercial Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,800 | 622 |
Consumer: Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 49,492 | 51,536 |
Consumer: Home Equity [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 49,198 | 50,988 |
Consumer: Home Equity [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 151 | 143 |
Consumer: Home Equity [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 143 | 405 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 4,813 | 5,131 |
Consumer: Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 4,674 | 4,924 |
Consumer: Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 139 | $ 207 |
Allowance for Credit Losses (Al
Allowance for Credit Losses (Allowance For Credit Losses And Recorded Investments In Loans Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 6,719 | $ 6,145 | $ 6,675 | $ 5,843 | $ 5,843 |
Charge-offs | (173) | (358) | (341) | (434) | |
Recoveries | 26 | 26 | 38 | 29 | |
Provisions | 100 | 375 | 300 | 750 | |
Ending balance | 6,672 | 6,188 | 6,672 | 6,188 | 6,675 |
Ending balance: individually evaluated for impairment | 161 | 161 | 285 | ||
Ending balance: collectively evaluated for impairment | 6,511 | 6,511 | 6,390 | ||
Ending balance: Loans receivables | 930,521 | 930,521 | 934,971 | ||
Ending Balance: individually evaluated for impairment | 9,019 | 9,019 | 7,308 | ||
Ending Balance: collectively evaluated for impairment | 920,981 | 920,981 | 927,149 | ||
Reserve for unfunded loan commitments included in other liabilities | 420 | 408 | 398 | ||
Loans Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance: Loans receivables | 521 | 521 | 514 | ||
Residential Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 156 | 226 | 161 | 221 | 221 |
Charge-offs | (103) | (137) | (151) | ||
Recoveries | 25 | 4 | 26 | ||
Provisions | (23) | 59 | (32) | 97 | |
Ending balance | 133 | 207 | 133 | 207 | 161 |
Ending balance: individually evaluated for impairment | 1 | ||||
Ending balance: collectively evaluated for impairment | 133 | 133 | 160 | ||
Ending balance: Loans receivables | 98,802 | 98,802 | 99,932 | ||
Ending Balance: individually evaluated for impairment | 2,759 | 2,759 | 1,535 | ||
Ending Balance: collectively evaluated for impairment | 96,043 | 96,043 | 98,397 | ||
Commercial Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 3,493 | 2,987 | 3,647 | 2,856 | 2,856 |
Charge-offs | (23) | (171) | (105) | (184) | |
Recoveries | 7 | 7 | |||
Provisions | 102 | 260 | 30 | 404 | |
Ending balance | 3,579 | 3,076 | 3,579 | 3,076 | 3,647 |
Ending balance: individually evaluated for impairment | 78 | ||||
Ending balance: collectively evaluated for impairment | 3,579 | 3,579 | 3,569 | ||
Ending balance: Loans receivables | 521,060 | 521,060 | 535,735 | ||
Ending Balance: individually evaluated for impairment | 1,513 | 1,513 | 2,269 | ||
Ending Balance: collectively evaluated for impairment | 519,026 | 519,026 | 532,952 | ||
Reserve for unfunded loan commitments included in other liabilities | 2 | 3 | 4 | ||
Commercial Mortgage [Member] | Loans Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance: Loans receivables | 521 | 521 | 514 | ||
Commercial Term [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 1,189 | 904 | 1,062 | 845 | 845 |
Charge-offs | (22) | (47) | (91) | (64) | |
Recoveries | 19 | 27 | 2 | ||
Provisions | (42) | 32 | 146 | 106 | |
Ending balance | 1,144 | 889 | 1,144 | 889 | 1,062 |
Ending balance: individually evaluated for impairment | 161 | 161 | 203 | ||
Ending balance: collectively evaluated for impairment | 983 | 983 | 859 | ||
Ending balance: Loans receivables | 179,294 | 179,294 | 166,335 | ||
Ending Balance: individually evaluated for impairment | 2,026 | 2,026 | 2,300 | ||
Ending Balance: collectively evaluated for impairment | 177,268 | 177,268 | 164,035 | ||
Reserve for unfunded loan commitments included in other liabilities | 189 | 183 | 167 | ||
Commercial Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 1,080 | 1,219 | 1,032 | 1,128 | 1,128 |
Charge-offs | |||||
Provisions | (48) | 136 | 227 | ||
Ending balance | 1,032 | 1,355 | 1,032 | 1,355 | 1,032 |
Ending balance: collectively evaluated for impairment | 1,032 | 1,032 | 1,032 | ||
Ending balance: Loans receivables | 77,060 | 77,060 | 76,302 | ||
Ending Balance: individually evaluated for impairment | 2,274 | 2,274 | 476 | ||
Ending Balance: collectively evaluated for impairment | 74,786 | 74,786 | 75,826 | ||
Reserve for unfunded loan commitments included in other liabilities | 209 | 201 | 206 | ||
Consumer: Home Equity [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 183 | 176 | 190 | 183 | 183 |
Charge-offs | (128) | (128) | |||
Provisions | 154 | 20 | 147 | 13 | |
Ending balance | 209 | 196 | 209 | 196 | 190 |
Ending balance: collectively evaluated for impairment | 209 | 209 | 190 | ||
Ending balance: Loans receivables | 49,492 | 49,492 | 51,536 | ||
Ending Balance: individually evaluated for impairment | 279 | 279 | 531 | ||
Ending Balance: collectively evaluated for impairment | 49,213 | 49,213 | 51,005 | ||
Reserve for unfunded loan commitments included in other liabilities | 20 | 21 | 21 | ||
Consumer: Other [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 43 | 55 | 46 | 63 | 63 |
Charge-offs | (37) | (17) | (49) | ||
Recoveries | 1 | 1 | |||
Provisions | (4) | 30 | 10 | 34 | |
Ending balance | 39 | 49 | 39 | 49 | 46 |
Ending balance: individually evaluated for impairment | 3 | ||||
Ending balance: collectively evaluated for impairment | 39 | 39 | 43 | ||
Ending balance: Loans receivables | 4,813 | 4,813 | 5,131 | ||
Ending Balance: individually evaluated for impairment | 168 | 168 | 197 | ||
Ending Balance: collectively evaluated for impairment | 4,645 | 4,645 | 4,934 | ||
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 575 | 578 | 537 | 547 | 547 |
Charge-offs | |||||
Provisions | (39) | (162) | (1) | (131) | |
Ending balance | 536 | $ 416 | 536 | $ 416 | 537 |
Ending balance: collectively evaluated for impairment | $ 536 | $ 536 | $ 537 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders, Income | $ 2,587 | $ 2,049 | $ 5,174 | $ 4,662 |
Income available to common stockholders after assumed conversions, Income | $ 2,587 | $ 2,049 | $ 5,174 | $ 4,662 |
Net income available to common stockholders, Shares | 4,331,121 | 4,298,409 | 4,329,226 | 4,294,758 |
Effect of potential dilutive common stock equivalents– stock options and restricted shares, Shares | 5,000 | 16,000 | 4,000 | 17,000 |
Income available to common stockholders after assumed conversions, Shares | 4,336,254 | 4,314,418 | 4,333,181 | 4,311,696 |
Net income available to common stockholders, Amount | $ 0.60 | $ 0.48 | $ 1.20 | $ 1.09 |
Effect of potential dilutive common stock equivalents– stock options and restricted shares, Amount | (0.01) | (0.01) | (0.01) | |
Income available to common stockholders after assumed conversions, Amount | $ 0.60 | $ 0.47 | $ 1.19 | $ 1.08 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Net unrealized loss on AFS securities, Before-Tax Amount | $ (475) | $ (2,122) |
Net unrealized loss on AFS securities, Tax Effect | 100 | 445 |
Net unrealized loss on AFS securities, Net-of-Tax Amount | (375) | (1,677) |
Unrealized actuarial losses-pension, Before-Tax Amount | (1,637) | (1,637) |
Unrealized actuarial losses-pension, Tax Effect | 343 | 343 |
Unrealized actuarial losses-pension, Net-of-Tax Amount | (1,294) | (1,294) |
Total of all items above, Before-Tax Amount | (2,112) | (3,759) |
Total of all items above, Tax Effect | 443 | 788 |
Accumulated other comprehensive loss, net of tax | $ (1,669) | $ (2,971) |
Subordinated Debentures And N_2
Subordinated Debentures And Notes (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)item | Mar. 05, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Number of issuances of junior subordinated debentures | item | 2 | |
Subordinated Note [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate period, in years | 5 years | |
Debt instrument, face amount | $ 9,750,000 | |
Debt maturity date | Mar. 6, 2025 | |
Subordinated Note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 5.75% | |
Subordinated Note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.00% | |
Fixed Rate, First 5 Years [Member] | Subordinated Note [Member] | ||
Debt Instrument [Line Items] | ||
Subordinate notes bearing fixed interest rate | 4.25% | |
Prime Rate [Member] | Subordinated Note [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
DNB Capital Trust I [Member] | ||
Debt Instrument [Line Items] | ||
Issuance date | Jul. 20, 2001 | |
Floating rate capital preferred securities | $ 5,000,000 | |
LIBOR rate, borrowing period, in months | 6 months | |
Basis spread on variable rate | 3.75% | |
Fixed interest rate | 12.00% | |
Principal amount, floating rate junior subordinated debentures | $ 5,200,000 | |
Maturity date range, start | Jul. 25, 2006 | |
Maturity date range, end | Jul. 25, 2031 | |
DNB Capital Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Issuance date | Mar. 30, 2005 | |
Floating rate capital preferred securities | $ 4,000,000 | |
LIBOR rate, borrowing period, in months | 3 months | |
Basis spread on variable rate | 1.77% | |
Subordinate notes bearing fixed interest rate | 6.56% | |
Interest rate period, in years | 5 years | |
Principal amount, floating rate junior subordinated debentures | $ 4,100,000 | |
Maturity date range, start | May 23, 2010 | |
Maturity date range, end | May 23, 2035 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued | 10,600 | 10,750 | |||
Exercise of stock options, shares | 5,300 | ||||
Stock options outstanding | 11,150 | 11,150 | 16,450 | ||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options outstanding | 0 | 0 | 0 | ||
Incentive Equity And Deferred Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of issuable shares of common stock | 493,101 | 493,101 | |||
Share issuance, restricted sale period | 1 year | ||||
Shares available for future grants | 482,501 | 482,501 | |||
Stock based compensation | $ 82 | $ 108 | $ 143 | $ 204 | |
Share based compensation cost not yet recognized | $ 568 | $ 568 | |||
Share based compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||||
Incentive Equity And Deferred Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued | 8,500 | ||||
Increase in shares outstanding | 4,908 | ||||
Cash equivalent shares used to pay taxes | 3,492 | ||||
Employees And Directors Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of issuable shares of common stock | 793,368 | 793,368 | |||
Shares available for future grants | 354,090 | 354,090 | |||
Stock based compensation | $ 0 | $ 0 | |||
Exercise of stock options, shares | 0 | 5,300 | |||
Increase in shares outstanding | 2,338 | ||||
Cash equivalent shares used to pay taxes | 2,962 | ||||
Maximum [Member] | Incentive Equity And Deferred Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award issuable period after date of grant | 4 years | ||||
Cliff-vesting period | 4 years | ||||
Maximum [Member] | Employees And Directors Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum option exercise period | 10 years | ||||
Minimum [Member] | Incentive Equity And Deferred Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award issuable period after date of grant | 3 years | ||||
Cliff-vesting period | 3 years |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Balance | shares | 16,450 |
Exercised | shares | 5,300 |
Balance | shares | 11,150 |
Beginning balance, Weighted Average Exercise Price | $ / shares | $ 10.31 |
Exercised, Weighted Average Exercise Price | $ / shares | 10.31 |
Ending balance, Weighted Average Exercise Price | $ / shares | $ 10.31 |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Grant Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation [Abstract] | ||
Non-vested stock awards | 18,590 | 31,130 |
Granted | 10,600 | 10,750 |
Forfeited | 4,345 | |
Vested | 8,500 | |
Non-vested stock awards | 29,190 | 29,035 |
Non-vested stock awards, Weighted Average Stock Price | $ 30.90 | $ 26.53 |
Granted, Weighted Average Stock Price | 39.36 | 33.98 |
Forfeited, Weighted Average Stock Price | 28.92 | |
Vested, Weighted Average Stock Price | 26.69 | |
Non-vested stock awards, Weighted Average Stock Price | $ 33.98 | $ 28.88 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Income Tax Contingency [Line Items] | |
Unrecognized tax positions | |
Minimum [Member] | Federal And State [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year for examinations | 2016 |
Maximum [Member] | Federal And State [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year for examinations | 2018 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total recorded investment | $ 9,540 | $ 7,822 |
Recorded Investment, with allowance recorded | 717 | 1,808 |
Fair value of additional impaired financing receivable recorded investment | 161 | 285 |
Impaired Financing Receivable, Related Allowance | 161 | 285 |
Additional impaired financing receivable | 152 | |
Partially charged down loans | 17 | |
Total fair value of impaired loans | 691 | 1,500 |
Other real estate owned & other repossessed property | 2,825 | 5,051 |
OREO | 2,700 | 4,900 |
Other repossessed property | 106 | 142 |
Transfers from level 1 to level 2 | 0 | |
Transfers from level 2 to level 1 | 0 | |
Estimated Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of additional impaired financing receivable recorded investment | 135 | |
Impaired Financing Receivable, Related Allowance | 556 | 1,500 |
Other Real Estate Owned [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
OREO | 1,500 | 1,600 |
Other Real Estate, Valuation Adjustments | 105 | 355 |
Other Real Estate Owned [Member] | Estimated Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
OREO | $ 1,400 | $ 1,200 |
Fair Value (Assets Measured at
Fair Value (Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | $ 69,931 | $ 96,643 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Recurring, Total | 69,931 | 96,643 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 691 | 1,523 |
OREO and other repossessed property | 1,430 | 1,247 |
Assets, Fair Value Disclosure, Recurring, Total | 2,121 | 2,770 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 69,931 | 96,643 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Recurring, Total | 69,931 | 96,643 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 691 | 1,523 |
OREO and other repossessed property | 1,430 | 1,247 |
Assets, Fair Value Disclosure, Recurring, Total | 2,121 | 2,770 |
US Government Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 24,180 | 47,723 |
US Government Agency Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 24,180 | 47,723 |
US Government Agency Obligations [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 24,180 | 47,723 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 25,973 | 26,558 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 25,973 | 26,558 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 25,973 | 26,558 |
Collateralized Mortgage Obligations GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 9,295 | 9,808 |
Collateralized Mortgage Obligations GSE [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 9,295 | 9,808 |
Collateralized Mortgage Obligations GSE [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 9,295 | 9,808 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 8,802 | 10,704 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 8,802 | 10,704 |
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 8,802 | 10,704 |
State and Municipal Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 1,681 | 1,850 |
State and Municipal Tax-Exempt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 1,681 | 1,850 |
State and Municipal Tax-Exempt [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | $ 1,681 | $ 1,850 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 691 | $ 1,523 |
Other real estate owned, fair value | 1,430 | 1,247 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 691 | 1,523 |
Other real estate owned, fair value | 1,430 | 1,247 |
Level 3 [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 72 | |
Level 3 [Member] | Commercial Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 659 | |
Level 3 [Member] | Commercial Term [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 556 | 754 |
Level 3 [Member] | Consumer: Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 135 | $ 38 |
Level 3 [Member] | Minimum [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Disposal costs | (8.00%) | (8.00%) |
Level 3 [Member] | Minimum [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (8.00%) | |
Level 3 [Member] | Minimum [Member] | Commercial Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (14.00%) | |
Level 3 [Member] | Minimum [Member] | Commercial Term [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | 0.00% | 0.00% |
Level 3 [Member] | Minimum [Member] | Consumer: Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (7.00%) | (8.00%) |
Level 3 [Member] | Maximum [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Disposal costs | (8.00%) | (8.00%) |
Level 3 [Member] | Maximum [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (8.00%) | |
Level 3 [Member] | Maximum [Member] | Commercial Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (14.00%) | |
Level 3 [Member] | Maximum [Member] | Commercial Term [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (8.00%) | (16.00%) |
Level 3 [Member] | Maximum [Member] | Consumer: Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (8.00%) | (8.00%) |
Level 3 [Member] | Weighted Average [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Disposal costs | (8.00%) | (8.00%) |
Level 3 [Member] | Weighted Average [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (8.00%) | |
Level 3 [Member] | Weighted Average [Member] | Commercial Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (14.00%) | |
Level 3 [Member] | Weighted Average [Member] | Commercial Term [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (4.00%) | (11.00%) |
Level 3 [Member] | Weighted Average [Member] | Consumer: Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal adjustments | (8.00%) | (8.00%) |
Fair Value (Carrying Amounts an
Fair Value (Carrying Amounts and Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
AFS investment securities | $ 69,931 | $ 96,643 |
HTM investment securities | 59,949 | 62,026 |
Loans held-for-sale | 501 | 419 |
Time | 178,530 | 162,096 |
Brokered | 87,877 | 108,651 |
Subordinated debt | 9,750 | 9,750 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 46,398 | 17,321 |
AFS investment securities | 69,931 | 96,643 |
HTM investment securities | 59,949 | 62,026 |
Restricted stock | 5,734 | 5,616 |
Loans held-for-sale | 501 | 419 |
Loans, net of allowance, including impaired | 923,849 | 928,296 |
Accrued interest receivable | 4,297 | 4,207 |
Non-interest-bearing deposits | 178,454 | 164,746 |
NOW, Money market, and Savings | 531,002 | 549,073 |
Time | 178,530 | 162,096 |
Brokered | 87,877 | 108,651 |
FHLBP advances | 31,203 | 32,935 |
Junior subordinated debentures and other borrowings | 9,279 | 9,279 |
Subordinated debt | 9,750 | 9,750 |
Accrued interest payable | 641 | 646 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 46,398 | 17,321 |
AFS investment securities | 69,931 | 96,643 |
HTM investment securities | 60,322 | 61,135 |
Restricted stock | 5,734 | 5,616 |
Loans held-for-sale | 515 | 429 |
Loans, net of allowance, including impaired | 921,497 | 914,822 |
Accrued interest receivable | 4,297 | 4,207 |
Non-interest-bearing deposits | 178,454 | 164,746 |
NOW, Money market, and Savings | 531,002 | 549,073 |
Time | 178,808 | 160,944 |
Brokered | 87,369 | 97,250 |
FHLBP advances | 31,112 | 32,347 |
Junior subordinated debentures and other borrowings | 9,990 | 10,285 |
Subordinated debt | 9,271 | 9,505 |
Accrued interest payable | 641 | 646 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 46,398 | 17,321 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
AFS investment securities | 69,931 | 96,643 |
HTM investment securities | 58,322 | 59,135 |
Restricted stock | 5,734 | 5,616 |
Accrued interest receivable | 4,297 | 4,207 |
Non-interest-bearing deposits | 178,454 | 164,746 |
NOW, Money market, and Savings | 531,002 | 549,073 |
Time | 178,808 | 160,944 |
Brokered | 87,369 | 97,250 |
FHLBP advances | 31,112 | 32,347 |
Junior subordinated debentures and other borrowings | 9,990 | 10,285 |
Subordinated debt | 9,271 | 9,505 |
Accrued interest payable | 641 | 646 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
HTM investment securities | 2,000 | 2,000 |
Loans held-for-sale | 515 | 429 |
Loans, net of allowance, including impaired | $ 921,497 | $ 914,822 |