Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Entity Registrant Name | ACNB CORP | ||
Entity Central Index Key | 715,579 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 6,064,138 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 147,984,103 | ||
Entity Voluntary Filers | No |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 13,796 | $ 13,468 |
Interest bearing deposits with banks | 5,135 | 5,289 |
Total Cash and Cash Equivalents | 18,931 | 18,757 |
Securities available for sale | 142,990 | 125,693 |
Securities held to maturity, fair value $55,425; $71,363 | 55,568 | 71,542 |
Loans held for sale | 1,770 | 1,835 |
Loans, net of allowance for loan losses $14,194; $14,747 | 893,716 | 838,213 |
Premises and equipment | 18,153 | 18,044 |
Restricted investment in bank stocks | 4,349 | 4,414 |
Investment in bank-owned life insurance | 40,742 | 39,642 |
Investments in low-income housing partnerships | 2,899 | 3,345 |
Goodwill | 6,308 | 6,308 |
Intangible assets | 688 | 1,033 |
Foreclosed assets held for resale | 256 | 580 |
Other assets | 19,950 | 18,519 |
Total Assets | 1,206,320 | 1,147,925 |
LIABILITIES | ||
Deposits: Non-interest bearing | 180,593 | 166,224 |
Deposits: Interest bearing | 787,028 | 746,756 |
Total Deposits | 967,621 | 912,980 |
Short-term borrowings | 34,590 | 35,202 |
Long-term borrowings | 74,250 | 76,500 |
Other liabilities | 9,798 | 8,528 |
Total Liabilities | 1,086,259 | 1,033,210 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding | 0 | 0 |
Common stock, $2.50 par value; 20,000,000 shares authorized; 6,126,738 and 6,102,324 shares issued; 6,064,138 and 6,039,724 shares outstanding | 15,317 | 15,256 |
Treasury stock, at cost (62,600 shares) | (728) | (728) |
Additional paid-in capital | 10,941 | 10,387 |
Retained earnings | 100,555 | 94,526 |
Accumulated other comprehensive loss | (6,024) | (4,726) |
Total Stockholders’ Equity | 120,061 | 114,715 |
Total Liabilities and Stockholders’ Equity | $ 1,206,320 | $ 1,147,925 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 55,425 | $ 71,363 |
Loans, net allowance for loan losses | $ 14,194 | $ 14,747 |
Preferred stock, par value | $ 2.50 | $ 2.50 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 6,126,738 | 6,102,324 |
Common stock, shares outstanding | 6,064,138 | 6,039,724 |
Treasury stock, shares | 62,600 | 62,600 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST INCOME | |||
Loans, including fees | $ 36,339 | $ 35,090 | $ 32,573 |
Securities: | |||
Taxable | 3,179 | 3,127 | 3,647 |
Tax-exempt | 651 | 859 | 1,042 |
Dividends | 212 | 301 | 194 |
Other | 119 | 87 | 70 |
Total Interest Income | 40,500 | 39,464 | 37,526 |
INTEREST EXPENSE | |||
Deposits | 2,369 | 2,120 | 1,810 |
Short-term borrowings | 51 | 47 | 63 |
Long-term borrowings | 1,514 | 1,691 | 1,773 |
Total Interest Expense | 3,934 | 3,858 | 3,646 |
Net Interest Income | 36,566 | 35,606 | 33,880 |
PROVISION FOR LOAN LOSSES | 0 | 0 | 150 |
Net Interest Income after Provision for Loan Losses | 36,566 | 35,606 | 33,730 |
OTHER INCOME | |||
Service charges on deposit accounts | 2,369 | 2,308 | 2,118 |
Income from fiduciary activities | 1,684 | 1,589 | 1,418 |
Earnings on investment in bank-owned life insurance | 1,100 | 1,100 | 1,099 |
Gains on sales or calls of securities | 26 | 261 | 62 |
Gain on sales of premises and equipment | 449 | 0 | 0 |
Service charges on ATM and debit card transactions | 1,499 | 1,456 | 1,550 |
Commissions from insurance sales | 4,822 | 4,634 | 4,839 |
Other | 1,259 | 1,058 | 818 |
Total Other Income | 13,208 | 12,406 | 11,904 |
OTHER EXPENSES | |||
Salaries and employee benefits | 22,200 | 20,932 | 19,516 |
Net occupancy | 2,066 | 2,170 | 2,050 |
Equipment | 3,046 | 3,007 | 2,768 |
Other tax | 785 | 779 | 737 |
Professional services | 852 | 844 | 936 |
Supplies and postage | 646 | 639 | 602 |
Marketing and corporate relations | 574 | 452 | 587 |
FDIC and regulatory | 611 | 665 | 748 |
Proposed merger expenses | 472 | 0 | 0 |
Intangible assets amortization | 345 | 336 | 649 |
Foreclosed real estate expenses | 55 | 119 | 346 |
Other operating | 3,485 | 3,291 | 3,325 |
Total Other Expenses | 35,137 | 33,234 | 32,264 |
Income Before Income Taxes | 14,637 | 14,778 | 13,370 |
PROVISION FOR INCOME TAXES | 3,768 | 3,761 | 3,080 |
Net Income | $ 10,869 | $ 11,017 | $ 10,290 |
PER SHARE DATA | |||
Basic earnings | $ 1.80 | $ 1.83 | $ 1.71 |
Cash dividends declared | $ 0.80 | $ 0.80 | $ 0.77 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 10,869 | $ 11,017 | $ 10,290 | |
OTHER COMPREHENSIVE LOSS | ||||
SECURITIES: Unrealized (losses) gains arising during the period, net of income taxes of $(728), $(635), and $22, respectively | (1,413) | (1,234) | 42 | |
SECURITIES: Reclassification adjustment for net gains included in net income, net of income taxes of $(9), $(89), and $(21), respectively | [1],[2] | (17) | (172) | (41) |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, net of income taxes of $232, $172, and $(20), respectively | [2],[3] | 451 | 333 | 41 |
PENSION: Unrecognized net loss, net of income taxes of $(299), $(479), and $(1,478), respectively | [2] | (319) | (930) | (2,871) |
TOTAL OTHER COMPREHENSIVE LOSS | (1,298) | (2,003) | (2,829) | |
TOTAL COMPREHENSIVE INCOME | $ 9,571 | $ 9,014 | $ 7,461 | |
[1] | Gross amounts are included in net gains on sales or calls of securities on the Consolidated Statements of Income in total other income. | |||
[2] | Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. | |||
[3] | Gross amounts are included in the computation of net periodic benefit cost and are included in salaries and employee benefits on the Consolidated Statements of Income in total other expenses. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
SECURITIES: Unrealized gains (losses) arising during the period, income taxes | $ (728) | $ (635) | $ 22 |
SECURITIES: Reclassification adjustment for net gains included in net income, income taxes | (9) | (89) | (21) |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, income taxes | 232 | 172 | (20) |
PENSION: Unrecognized net (loss) gain, income taxes | $ (299) | $ (479) | $ (1,478) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2013 | $ 106,802 | $ 15,135 | $ (728) | $ 9,628 | $ 82,661 | $ 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,290 | 10,290 | ||||
Other comprehensive loss, net of taxes | (2,829) | (2,829) | ||||
Common stock shares issued | 381 | 61 | 320 | |||
Cash dividends declared | (4,622) | (4,622) | ||||
Ending Balance at Dec. 31, 2014 | 110,022 | 15,196 | (728) | 9,948 | 88,329 | (2,723) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,017 | 11,017 | ||||
Other comprehensive loss, net of taxes | (2,003) | (2,003) | ||||
Common stock shares issued | 499 | 60 | 439 | |||
Cash dividends declared | (4,820) | (4,820) | ||||
Ending Balance at Dec. 31, 2015 | 114,715 | 15,256 | (728) | 10,387 | 94,526 | (4,726) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,869 | 10,869 | ||||
Other comprehensive loss, net of taxes | (1,298) | (1,298) | ||||
Common stock shares issued | 437 | 42 | 395 | |||
Restricted stock grants | 119 | 19 | 100 | |||
Restricted stock compensation expense | 59 | 59 | ||||
Cash dividends declared | (4,840) | (4,840) | ||||
Ending Balance at Dec. 31, 2016 | $ 120,061 | $ 15,317 | $ (728) | $ 10,941 | $ 100,555 | $ (6,024) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock issued, Shares | 16,979 | 24,074 | 24,339 |
Restricted stock grants, shares | 7,435 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 10,869 | $ 11,017 | $ 10,290 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sales of loans originated for sale | (661) | (491) | (213) |
Gain on sales of foreclosed assets held for resale, including writedowns | (105) | (67) | (36) |
Gain on sale of premises and equipment | (449) | 0 | 0 |
Earnings on investment in bank-owned life insurance | (1,100) | (1,100) | (1,099) |
Gain on sales or calls of securities | (26) | (261) | (62) |
Restricted stock compensation expense | 59 | 0 | 0 |
Depreciation and amortization | 1,800 | 1,755 | 2,063 |
Provision for loan losses | 0 | 0 | 150 |
Net amortization of investment securities premiums | 554 | 668 | 812 |
(Increase) decrease in accrued interest receivable | (142) | (66) | 77 |
Increase in accrued interest payable | 22 | 42 | 92 |
Mortgage loans originated for sale | (41,195) | (32,865) | (15,824) |
Proceeds from sales of loans originated for sale | 41,921 | 33,144 | 14,910 |
Deferred tax expense | 171 | 392 | 875 |
(Increase) decrease in other assets | (210) | 2,904 | 1,733 |
Increase (decrease) in other liabilities | 613 | (693) | (2,953) |
Net Cash Provided by Operating Activities | 12,121 | 14,379 | 10,815 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from maturities of investment securities held to maturity | 15,769 | 9,456 | 20,555 |
Proceeds from maturities of investment securities available for sale | 30,426 | 23,426 | 28,883 |
Proceeds from sales of investment securities available for sale | 230 | 3,170 | 5,075 |
Purchase of investment securities available for sale | (50,443) | (36,434) | (22,252) |
Purchase of investment securities held to maturity | 0 | (8,044) | 0 |
Redemption (purchase) of restricted investment in bank stocks | 65 | (198) | 2,645 |
Net increase in loans | (56,122) | (55,332) | (72,828) |
Proceeds from sale of low-income housing partnerships | 0 | 0 | 229 |
Purchase of bank-owned life insurance | 0 | (600) | (4,606) |
Purchase of book of business | 0 | (173) | 0 |
Capital expenditures | (2,344) | (1,738) | (3,148) |
Proceeds from sale of premises and equipment | 1,929 | 0 | 0 |
Proceeds from sale of foreclosed real estate | 1,048 | 2,323 | 1,316 |
Net Cash Used in Investing Activities | (59,442) | (64,144) | (44,131) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase in demand deposits | 14,369 | 21,237 | 16,976 |
Net increase in time certificates of deposits and interest bearing deposits | 40,272 | 46,867 | 27,257 |
Net decrease in short-term borrowings | (612) | (10,497) | (3,353) |
Proceeds from long-term borrowings | 16,000 | 18,000 | 27,500 |
Repayments on long-term borrowings | (18,250) | (22,437) | (29,266) |
Dividends paid | (4,840) | (4,820) | (4,622) |
Common stock issued | 556 | 499 | 381 |
Net Cash Provided by Financing Activities | 47,495 | 48,849 | 34,873 |
Net Increase (Decrease) in Cash and Cash Equivalents | 174 | (916) | 1,557 |
CASH AND CASH EQUIVALENTS — BEGINNING | 18,757 | 19,673 | 18,116 |
CASH AND CASH EQUIVALENTS — ENDING | 18,931 | 18,757 | 19,673 |
Interest paid | 3,912 | 3,816 | 3,554 |
Income taxes paid | 4,350 | 1,975 | 2,260 |
Loans transferred to foreclosed assets held for resale and other foreclosed transactions | $ 619 | $ 1,219 | $ 1,135 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations ACNB Corporation (the Corporation or ACNB), headquartered in Gettysburg, Pennsylvania, provides banking, insurance, and financial services to businesses and consumers through its wholly-owned subsidiaries, ACNB Bank (Bank) and Russell Insurance Group, Inc. (RIG). The Bank engages in full-service commercial and consumer banking and trust services through its twenty-two retail banking locations in Adams, Cumberland, Franklin, and York Counties, Pennsylvania. There is also a loan production office situated in York County, Pennsylvania. RIG is a full-service insurance agency based in Westminster, Maryland with a second location in Germantown, Maryland. The agency offers a broad range of property and casualty, life, and health insurance to both commercial and individual clients. The Corporation’s primary source of revenue is interest income on loans and investment securities and fee income on its products and services. Expenses consist of interest expense on deposits and borrowed funds, provisions for loan losses, and other operating expenses. Basis of Financial Statements The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Assets held by the Corporation’s Trust Department in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Corporation. Assets held by the Trust Department amounted to $195,000,000 and $178,000,000 at December 31, 2016 and 2015 , respectively. Income from fiduciary activities is included in other income. The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2016 , for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. Use of Estimates Financial statements prepared in accordance with GAAP require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the consolidated financial statements, and revenues and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of other than temporary impairment on securities, and the potential impairment of goodwill. Significant Group Concentrations of Credit Risk Most of the Corporation’s activities are with customers located within southcentral Pennsylvania and northern Maryland. Note C discusses the types of securities in which the Corporation invests. Note D discusses the types of lending in which the Corporation engages. Included in commercial real estate loans are loans made to lessors of non-residential dwellings that total $162,321,000 , or 17.9% , of total loans at December 31, 2016 . These borrowers are geographically disbursed throughout ACNB’s marketplace and are leasing commercial properties to a varied group of tenants including medical offices, retail space and recreational facilities. Because of the varied nature of the tenants in aggregate, management believes that these loans do not present any greater risk than commercial loans in general. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within 90 days. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released to another financial institution through a correspondent relationship. The correspondent financial institution absorbs all of the risk related to rate lock commitments. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loans The Corporation grants commercial, residential, and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout southcentral Pennsylvania and northern Maryland. The ability of the Corporation’s debtors to honor their contracts is dependent upon the real estate values and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The loans receivable portfolio is segmented into commercial, residential mortgage, home equity lines of credit, and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, and commercial real estate construction. The accrual of interest on residential mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer loans (consisting of home equity lines of credit and consumer loan classes) are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses (the “allowance”) is established as losses are estimated to occur through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated statement of condition. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity, and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: • lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices; • national, regional and local economic and business conditions, as well as the condition of various market segments, including the impact on the value of underlying collateral for collateral dependent loans; • the nature and volume of the portfolio and terms of loans; • the experience, ability and depth of lending management and staff; • the volume and severity of past due, classified and nonaccrual loans, as well as other loan modifications; and, • the existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. It covers risks that are inherently difficult to quantify including, but not limited to, collateral risk, information risk, and historical charge-off risk. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and/or interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A specific allocation within the allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the Corporation’s impaired loans are measured based on the estimated fair value of the loan’s collateral or the discounted cash flows method. It is the policy of the Corporation to order an updated valuation on all real estate secured loans when the loan becomes 90 days past due and there has not been an updated valuation completed within the previous 12 months. In addition, the Corporation orders third-party valuations on all impaired real estate collateralized loans within 30 days of the loan being classified as impaired. Until the valuations are completed, the Corporation utilizes the most recent independent third-party real estate valuation to estimate the need for a specific allocation to be assigned to the loan. These existing valuations are discounted downward to account for such things as the age of the existing collateral valuation, change in the condition of the real estate, change in local market and economic conditions, and other specific factors involving the collateral. Once the updated valuation is completed, the collateral value is updated accordingly. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging reports, equipment appraisals, or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The Corporation actively monitors the values of collateral as well as the age of the valuation of impaired loans. Management believes that the Corporation’s market area is not as volatile as other areas throughout the United States, therefore valuations are ordered at least every 18 months, or more frequently if management believes that there is an indication that the fair value has declined. For impaired loans secured by collateral other than real estate, the Corporation considers the net book value of the collateral, as recorded in the most recent financial statements of the borrower, and determines fair value based on estimates made by management. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructure. Loans whose terms are modified are classified as troubled debt restructured loans if the Corporation grants such borrowers concessions that it would not otherwise consider 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, a below market interest rate given the risk associated with the loan, or an extension of a loan’s stated maturity date. Nonaccrual troubled debt restructurings may be restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period of time and, based on a well-documented credit evaluation of the borrower’s financial condition, there is reasonable assurance of repayment. Loans classified as troubled debt restructurings are generally designated as impaired. The allowance calculation methodology includes further segregation of loan classes into credit quality rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are generally evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses and may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio and economic conditions, management believes the current level of the allowance for loan losses is adequate. Commercial and Industrial Lending — The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory, and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and may be renewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum values have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, etc. In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Corporation’s analysis. Commercial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial Real Estate Lending — The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial loan portfolio is secured primarily by commercial retail space, office buildings, and hotels. Generally, commercial real estate loans have terms that do not exceed 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property, and are typically secured by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Corporation are performed by independent appraisers. Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral. Commercial Real Estate Construction Lending — The Corporation engages in commercial real estate construction lending in its primary market area and surrounding areas. The Corporation’s commercial real estate construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Corporation’s commercial real estate construction loans are generally secured with the subject property. Terms of construction loans depend on the specifics of the project, such as estimated absorption rates, estimated time to complete, etc. In underwriting commercial real estate construction loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, etc. Appraisals on properties securing commercial real estate construction loans originated by the Corporation are performed by independent appraisers. Commercial real estate construction loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the uncertainties surrounding total construction costs. Residential Mortgage Lending — One-to-four family residential mortgage loan originations, including home equity closed-end loans, are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. The Corporation offers fixed-rate and adjustable-rate mortgage loans with terms up to a maximum of 30 years for both permanent structures and those under construction. The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The majority of the Corporation’s residential mortgage loans originate with a loan-to-value of 80% or less. Loans in excess of 80% are required to have private mortgage insurance. In underwriting one-to-four family residential real estate loans, the Corporation evaluates both the borrower’s financial ability to repay the loan as agreed and the value of the property securing the loan. Properties securing real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Corporation has not engaged in subprime residential mortgage originations. Residential mortgage loans present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Home Equity Lines of Credit Lending — The Corporation originates home equity lines of credit primarily within the Corporation’s market area or with customers primarily from the market area. Home equity lines of credit are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. Home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of 90% and a maximum term of 20 years. In underwriting home equity lines of credit, the Corporation evaluates both the value of the property securing the loan and the borrower’s financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Home equity lines of credit generally present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. Consumer Lending — The Corporation offers a variety of secured and unsecured consumer loans, including those for vehicles and mobile homes and loans secured by savings deposits. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. Consumer loan terms vary according to the type and value of collateral and the creditworthiness of the borrower. In underwriting consumer loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Consumer loans may entail greater credit risk than residential mortgage loans or home equity lines of credit, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Premises and Equipment Land is carried at cost. Buildings, furniture, fixtures, equipment and leasehold improvements are carried at cost, less accumulated depreciation. Depreciation is computed principally by the straight-line method over the assets’ estimated useful lives. Normally, a buildings useful life is 40 years, except for building remodels and additions, which are depreciated over 15 years. Bank equipment, including furniture and fixtures, is normally depreciated over 5 - 15 years depending upon the nature of the purchase. Maintenance and normal repairs are charged to expense when incurred while major additions and improvements are capitalized. Gains and losses on disposals are reflected in current operations. Amortization of leasehold improvements is computed by straight line over the shorter of the assets’ useful life or the related lease term. Restricted Investment in Bank Stocks Restricted investment in bank stocks, which represents required investments in the common stock of correspondent banks, is carried at cost as of December 31, 2016 and 2015 , and consists of common stock in the Atlantic Central Bankers Bank and Federal Home Loan Bank (FHLB). Management evaluates the restricted investment in bank stocks for impairment in accordance with Accounting Standard Codification (ASC) Topic 942, Financial Services—Depository and Lending. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted, (2) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank, (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the correspondent bank, and (4) the liquidity position of the correspondent bank. Management believes no impairment charge was necessary related to the restricted investment in bank stocks during 2016 , 2015 or 2014 . However, security impairment analysis is completed quarterly, and the determination that no impairment has occurred during those years is no assurance that impairment may not occur in future periods. Bank-Owned Life Insurance The Corporation’s banking subsidiary maintains nonqualified compensation plans for selected senior officers. To fund the benefits under these plans, the Bank is the owner of single premium life insurance policies on participants in the nonqualified retirement plans. Investment in bank-owned life insurance policies was used to finance the nonqualified compensation plans and provide tax-exempt income to the Corporation. ASC Topic 715, Compensation—Retirement Benefits , requires a liability to be recorded during the service period when a split-dollar life insurance agreement continues after participants’ employment or retirement. The required accrued liability is based on either the post-employment benefit cost for continuing life insurance or based on the future death benefit depending on the contractual terms of the underlying agreement. The Corporation’s liability is based on the post-employment benefit cost for continuing life insurance. The Corporation incurred approximately $96,000 , $46,000 , and $29,000 of expense in 2016 , 2015 , and 2014 , respectively, related to these benefits. Investments in Low-Income Housing Partnerships The Corporation’s investments in low-income housing partnerships are accounted for using the “equity method” prescribed by ASC Topic 323, Investments — Equity Method . In accordance with ASC Topic 740, Income Taxes , tax credits are recognized as they become available. Any residual loss is amortized as the tax credits are received. Goodwill and Intangible Assets The Corporation accounts for its acquisitions using the acquisition accounting method required by ASC Topic 805, Business Combinations. Acquisition accounting requires the total purchase price to be allocated to the estimated fair values of assets and liabilities acquired, including certain intangible assets that must be recognized. Generally, this results in a residual amount in excess of the net fair values, which is recorded as goodwill. ASC Topic 350, Intangibles—Goodwill and Other, requires that goodwill is not amortized to expense, but rather that it be assessed for impairment at least annually. If certain events occur which might indicate goodwill has been impaired, the goodwill is tested for impairment when such events occur. Impairment write-downs are charged to results of operations in the period in which the impairment is determined. The Corporation did not identify any impairment on its outstanding goodwill from its most recent testing, which was performed as of October 1, 2016 . Other acquired intangible assets with finite lives, such as customer lists, are required to be amortized over the estimated lives. These intangibles are generally amortized using the straight line method over estimated useful lives of ten years. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs 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 adjusted to the fair value, less c |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | RESTRICTIONS ON CASH AND DUE FROM BANKS In return for services obtained through correspondent banks, the Corporation is required to maintain non-interest bearing cash balances in those correspondent banks. At December 31, 2016 and 2015 , compensating balances approximated $1,203,000 and $933,000 , respectively. During 2016 and 2015 , average compensating balances approximated $1,337,000 and $1,512,000 , respectively. All compensating balances are met by vault cash. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Amortized cost and fair value at December 31, 2016 and 2015 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE December 31, 2016 U.S. Government and agencies $ 81,065 $ 43 $ 1,529 $ 79,579 Mortgage-backed securities, residential 31,272 782 81 31,973 State and municipal 24,514 240 94 24,660 Corporate bonds 5,000 62 — 5,062 CRA mutual fund 1,044 — 9 1,035 Stock in other banks 498 183 — 681 $ 143,393 $ 1,310 $ 1,713 $ 142,990 December 31, 2015 U.S. Government and agencies $ 46,218 $ 124 $ 313 $ 46,029 Mortgage-backed securities, residential 41,528 1,336 25 42,839 State and municipal 27,437 642 1 28,078 Corporate bonds 7,000 20 65 6,955 CRA mutual fund 1,044 9 — 1,053 Stock in other banks 702 49 12 739 $ 123,929 $ 2,180 $ 416 $ 125,693 SECURITIES HELD TO MATURITY December 31, 2016 U.S. Government and agencies $ 23,017 $ 26 $ 54 $ 22,989 Mortgage-backed securities, residential 32,551 210 325 32,436 $ 55,568 $ 236 $ 379 $ 55,425 December 31, 2015 U.S. Government and agencies $ 31,044 $ 27 $ 176 $ 30,895 Mortgage-backed securities, residential 40,498 232 262 40,468 $ 71,542 $ 259 $ 438 $ 71,363 The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2016 and 2015 : Less than 12 Months 12 Months or More Total In thousands Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses SECURITIES AVAILABLE FOR SALE December 31, 2016 U.S. Government and agencies $ 71,454 $ 1,529 $ — $ — $ 71,454 $ 1,529 Mortgage-backed securities, residential 8,966 81 — — 8,966 81 State and municipal 4,933 94 — — 4,933 94 CRA Mutual Fund 1,035 9 — — 1,035 9 $ 86,388 $ 1,713 $ — $ — $ 86,388 $ 1,713 December 31, 2015 U.S. Government and agencies $ 31,992 $ 313 $ — $ — $ 31,992 $ 313 Mortgage-backed securities, residential 4,855 25 — — 4,855 25 State and municipal 909 1 — — 909 1 Corporate bonds 4,935 65 — — 4,935 65 Stock in other banks 191 12 — — 191 12 $ 42,882 $ 416 $ — $ — $ 42,882 $ 416 SECURITIES HELD TO MATURITY December 31, 2016 U.S. Government and agencies $ 12,946 $ 54 $ — $ — $ 12,946 $ 54 Mortgage-backed securities, residential 12,956 325 — — 12,956 325 $ 25,902 $ 379 $ — $ — $ 25,902 $ 379 December 31, 2015 U.S. Government and agencies $ 18,959 $ 83 $ 6,907 $ 93 $ 25,866 $ 176 Mortgage-backed security, residential 3,109 13 15,420 249 18,529 262 $ 22,068 $ 96 $ 22,327 $ 342 $ 44,395 $ 438 All mortgage-backed security investments are government sponsored enterprise (GSE) pass-through instruments issued by the Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA) or Federal Home Loan Mortgage Corporation (FHLMC), which guarantee the timely payment of principal on these investments. At December 31, 2016 , thirty-nine available for sale U.S. Government and agency securities had unrealized losses that individually did not exceed 5% of amortized cost. These securities have not been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At December 31, 2016 , eight available for sale residential mortgage-backed securities had an unrealized loss that did not exceed 2% of amortized cost. These securities have not been in a continuous loss position for 12 months or more. This unrealized loss relates principally to changes in interest rates subsequent to the acquisition of the security. At December 31, 2016 , seventeen available for sale state and municipal securities had unrealized losses that individually did not exceed 9% of amortized cost. These securities have not been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At December 31, 2016 , the CRA Mutual Fund had an unrealized loss that individually did not exceed 1% of amortized cost. This security has not been in a continuous loss position for 12 months or more. This unrealized loss relates principally to changes in interest rates subsequent to the acquisition of the specific security. At December 31, 2016 , seven held to maturity U.S. Government and agency securities had unrealized losses that individually did not exceed 1% of amortized cost. These securities have not been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At December 31, 2016 , thirteen held to maturity residential mortgage-backed securities had unrealized losses that individually did not exceed 4% of amortized cost. These securities have not been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. In analyzing the issuer’s financial condition, management considers industry analysts’ reports, financial performance, and projected target prices of investment analysts within a one-year time frame. Based on the above information, management has determined that none of these investments are other-than-temporarily impaired. The fair values of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the security’s relationship to other benchmark quoted prices. The Corporation uses independent service providers to provide matrix pricing. Management routinely sells securities from its available for sale portfolio in an effort to manage and allocate the portfolio. At December 31, 2016 , management had not identified any securities with an unrealized loss that it intends to sell or will be required to sell. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Amortized cost and fair value at December 31, 2016 , by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Available for Sale Held to Maturity In thousands Amortized Cost Fair Value Amortized Cost Fair Value 1 year or less $ 4,352 $ 4,383 $ 4,017 $ 4,020 Over 1 year through 5 years 84,974 83,928 19,000 18,969 Over 5 years through 10 years 21,055 20,808 — — Over 10 years 198 182 — — Mortgage-backed securities, residential 31,272 31,973 32,551 32,436 CRA mutual fund 1,044 1,035 — — Stock in other banks 498 681 — — $ 143,393 $ 142,990 $ 55,568 $ 55,425 The Corporation realized gross gains of $26,000 during 2016 , $262,000 during 2015 , and $72,000 during 2014 and gross losses of $0 during 2016 , $1,000 during 2015 , and $10,000 during 2014 on sales of securities available for sale. At December 31, 2016 and 2015 , securities with a carrying value of $134,763,000 and $117,646,000 , respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
LOANS | LOANS The Corporation grants commercial, residential, and consumer loans to customers primarily within southcentral Pennsylvania and northern Maryland and the surrounding area. A large portion of the loan portfolio is secured by real estate. Although the Bank has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. 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 the Corporation’s internal risk rating system as of December 31, 2016 and 2015 : In thousands Pass Special Mention Substandard Doubtful Total December 31, 2016 Commercial and industrial $ 134,088 $ 2,355 $ 3,901 $ — $ 140,344 Commercial real estate 291,762 17,376 9,842 — 318,980 Commercial real estate construction 13,606 1,202 463 — 15,271 Residential mortgage 344,048 3,617 874 — 348,539 Home equity lines of credit 69,190 756 126 — 70,072 Consumer 14,704 — — — 14,704 Total $ 867,398 $ 25,306 $ 15,206 $ — $ 907,910 December 31, 2015 Commercial and industrial $ 112,037 $ 3,744 $ 1,911 $ — $ 117,692 Commercial real estate 252,071 23,421 14,407 — 289,899 Commercial real estate construction 11,087 1,968 374 — 13,429 Residential mortgage 350,537 5,548 1,143 — 357,228 Home equity lines of credit 58,856 1,138 130 — 60,124 Consumer 14,588 — — — 14,588 Total $ 799,176 $ 35,819 $ 17,965 $ — $ 852,960 The following table summarizes information relative to impaired loans by loan portfolio class as of December 31, 2016 and 2015 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance December 31, 2016 Commercial and industrial $ 948 $ 948 $ 599 $ 1,178 $ 1,178 Commercial real estate — — — 8,764 8,965 Commercial real estate construction — — — 300 300 Residential mortgage 376 376 333 379 379 Total $ 1,324 $ 1,324 $ 932 $ 10,621 $ 10,822 December 31, 2015 Commercial and industrial $ — $ — $ — $ 1,471 $ 1,471 Commercial real estate — — — 8,185 8,396 Commercial real estate construction — — — 374 648 Residential mortgage — — — 461 461 Total $ — $ — $ — $ 10,491 $ 10,976 The following table summarizes information in regards to average of impaired loans and related interest income by loan portfolio class: Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income December 31, 2016 Commercial and industrial $ 190 $ — $ 1,356 $ 3 Commercial real estate — — 8,377 371 Commercial real estate construction — — 330 — Residential mortgage 224 — 424 17 Total $ 414 $ — $ 10,487 $ 391 December 31, 2015 Commercial and industrial $ — $ — $ 1,591 $ 129 Commercial real estate — — 9,057 449 Commercial real estate construction — — 276 — Residential mortgage 278 — 463 18 Total $ 278 $ — $ 11,387 $ 596 December 31, 2014 Commercial and industrial $ — $ — $ 1,351 $ 2 Commercial real estate 144 — 10,380 459 Commercial real estate construction — — 604 — Residential mortgage 1,027 9 576 16 Total $ 1,171 $ 9 $ 12,911 $ 477 No additional funds are committed to be advanced in connection with impaired loans. If interest on all nonaccrual loans had been accrued at original contract rates, interest income would have increased by $369,000 in 2016 , $456,000 in 2015 , and $570,000 in 2014 . The following table presents nonaccrual loans by loan portfolio class as of December 31, 2016 and 2015 : In thousands 2016 2015 Commercial and industrial $ 2,126 $ 1,471 Commercial real estate 1,593 1,676 Commercial real estate construction 300 374 Residential mortgage 483 178 Total $ 4,502 $ 3,699 The following table summarizes information relative to troubled debt restructurings by loan portfolio class at December 31, 2016 and 2015 : In thousands Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Recorded Investment at period end December 31, 2016 Nonaccruing troubled debt restructurings: Commercial real estate $ 648 $ 648 $ 377 Total nonaccruing troubled debt restructurings 648 648 377 Accruing troubled debt restructurings: Commercial real estate 7,944 8,002 7,171 Residential mortgage 336 336 272 Total accruing troubled debt restructurings 8,280 8,338 7,443 Total Troubled Debt Restructurings $ 8,928 $ 8,986 $ 7,820 December 31, 2015 Nonaccruing troubled debt restructurings: Commercial real estate $ 1,021 $ 1,021 $ 460 Commercial real estate construction 1,548 1,541 74 Total nonaccruing troubled debt restructurings 2,569 2,562 534 Accruing troubled debt restructurings: Commercial real estate 7,118 7,170 6,509 Residential mortgage 336 336 283 Total accruing troubled debt restructurings 7,454 7,506 6,792 Total Troubled Debt Restructurings $ 10,023 $ 10,068 $ 7,326 All of the Corporation’s troubled debt restructured loans are also impaired loans, of which some have resulted in a specific allocation and, subsequently, a charge-off as appropriate. There were no defaulted troubled debt restructured loans as of December 31, 2016 and 2015 . There were no charge-offs or specific allocation on any of the troubled debt restructured loans for the years ended December 31, 2016 and 2015 . One troubled debt restructured loan paid off during 2016 in the amount of $74,000 . One troubled debt restructured loan paid off during 2015 in the amount of $70,000 . All other troubled debt restructured loans were current with respect to their associated forbearance agreement, except for one loan which has had periodic late payments. As of December 31, 2016 , only two of the loans classified as troubled debt restructured loans have active forbearance agreements. Of those, one forbearance agreement was negotiated during 2013 and the other forbearance agreement was negotiated during 2016. All other forbearance agreements have expired or the loans have paid off. The following table summarizes loans whose terms have been modified resulting in troubled debt restructurings during the years ended December 31, 2016 and 2015 : Dollars in thousands Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Recorded Investment at Period End 2016 Troubled debt restructurings 1 $ 826 $ 832 $ 832 2015 Troubled debt restructurings — $ — $ — $ — Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at December 31, 2016 and 2015 , totaled $471,000 and $583,000 , respectively. 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 recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2016 and 2015 : In thousands 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Receivable Loans Receivable >90 Days and Accruing December 31, 2016 Commercial and industrial $ 26 $ 1 $ 1,178 $ 1,205 $ 139,139 $ 140,344 $ — Commercial real estate 325 674 — 999 317,981 318,980 — Commercial real estate construction — — 300 300 14,971 15,271 — Residential mortgage 2,866 657 1,413 4,936 343,603 348,539 937 Home equity lines of credit 310 56 408 774 69,298 70,072 408 Consumer 31 47 — 78 14,626 14,704 — Total $ 3,558 $ 1,435 $ 3,299 $ 8,292 $ 899,618 $ 907,910 $ 1,345 December 31, 2015 Commercial and industrial $ 16 $ 61 $ 1,471 $ 1,548 $ 116,144 $ 117,692 $ — Commercial real estate 77 1,047 743 1,867 288,032 289,899 — Commercial real estate construction — — 374 374 13,055 13,429 — Residential mortgage 1,686 248 2,082 4,016 353,212 357,228 1,904 Home equity lines of credit 186 — 228 414 59,710 60,124 228 Consumer 26 26 — 52 14,536 14,588 — Total $ 1,991 $ 1,382 $ 4,898 $ 8,271 $ 844,689 $ 852,960 $ 2,132 The following table summarizes the allowance for loan losses and recorded investment in loans: In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total December 31, 2016 Allowance for loan losses Beginning balance- January 1, 2016 $ 2,508 $ 5,216 $ 112 $ 3,349 $ 619 $ 1,083 $ 1,860 $ 14,747 Charge-offs (318 ) — (135 ) (189 ) (74 ) (50 ) — (766 ) Recoveries 45 — 132 25 — 11 — 213 Provisions 820 (248 ) 38 293 103 (121 ) (885 ) — Ending balance- December 31, 2016 $ 3,055 $ 4,968 $ 147 $ 3,478 $ 648 $ 923 $ 975 $ 14,194 Ending balance: individually evaluated for impairment $ 599 $ — $ — $ 333 $ — $ — $ — $ 932 Ending balance: collectively evaluated for impairment $ 2,456 $ 4,968 $ 147 $ 3,145 $ 648 $ 923 $ 975 $ 13,262 Loans receivables Ending balance $ 140,344 $ 318,980 $ 15,271 $ 348,539 $ 70,072 $ 14,704 $ — $ 907,910 Ending balance: individually evaluated for impairment $ 2,126 $ 8,764 $ 300 $ 755 $ — $ — $ — $ 11,945 Ending balance: collectively evaluated for impairment $ 138,218 $ 310,216 $ 14,971 $ 347,784 $ 70,072 $ 14,704 $ — $ 895,965 December 31, 2015 Allowance for loan losses Beginning balance- January 1, 2015 $ 2,048 $ 5,872 $ 194 $ 3,845 $ 557 $ 1,050 $ 1,606 $ 15,172 Charge-offs (150 ) — (39 ) (622 ) (15 ) (111 ) — (937 ) Recoveries 369 — — 136 — 7 — 512 Provisions 241 (656 ) (43 ) (10 ) 77 137 254 — Ending balance- December 31, 2015 $ 2,508 $ 5,216 $ 112 $ 3,349 $ 619 $ 1,083 $ 1,860 $ 14,747 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 2,508 $ 5,216 $ 112 $ 3,349 $ 619 $ 1,083 $ 1,860 $ 14,747 Loans receivables Ending balance $ 117,692 $ 289,899 $ 13,429 $ 357,228 $ 60,124 $ 14,588 $ — $ 852,960 Ending balance: individually evaluated for impairment $ 1,471 $ 8,185 $ 374 $ 461 $ — $ — $ — $ 10,491 Ending balance: collectively evaluated for impairment $ 116,221 $ 281,714 $ 13,055 $ 356,767 $ 60,124 $ 14,588 $ — $ 842,469 In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total December 31, 2014 Allowance for loan losses Beginning balance- January 1, 2014 $ 1,915 $ 5,819 $ 247 $ 4,013 $ 537 $ 947 $ 2,613 $ 16,091 Charge-offs (132 ) (121 ) — (705 ) (169 ) (64 ) — (1,191 ) Recoveries 15 — — 97 — 10 — 122 Provisions 250 174 (53 ) 440 189 157 (1,007 ) 150 Ending balance- December 31, 2014 $ 2,048 $ 5,872 $ 194 $ 3,845 $ 557 $ 1,050 $ 1,606 $ 15,172 Ending balance: individually evaluated for impairment $ — $ — $ — $ 302 $ — $ — $ — $ 302 Ending balance: collectively evaluated for impairment $ 2,048 $ 5,872 $ 194 $ 3,543 $ 557 $ 1,050 $ 1,606 $ 14,870 Loans receivables Ending balance $ 74,855 $ 281,582 $ 12,210 $ 359,375 $ 55,973 $ 15,277 $ — $ 799,272 Ending balance: individually evaluated for impairment $ 1,729 $ 9,999 $ 368 $ 1,520 $ — $ — $ — $ 13,616 Ending balance: collectively evaluated for impairment $ 73,126 $ 271,583 $ 11,842 $ 357,855 $ 55,973 $ 15,277 $ — $ 785,656 The Bank has granted loans to certain of its executive officers, directors and their related interests. These loans were made on substantially the same basis, including interest rates and collateral as those prevailing for comparable transactions with other borrowers at the same time. The aggregate amount of these loans was $4,578,000 and $5,632,000 at December 31, 2016 and 2015 , respectively. During 2016 , $ 50,000 new loans or advances were extended and repayments totaled $1,104,000 . None of these loans were past due, in nonaccrual status, or restructured at December 31, 2016 . |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment at December 31 were as follows: In thousands 2016 2015 Land $ 2,624 $ 2,677 Buildings and improvements 19,917 19,886 Furniture and equipment 13,273 13,482 Construction in process 82 629 35,896 36,674 Accumulated depreciation (17,743 ) (18,630 ) $ 18,153 $ 18,044 Depreciation expense was $1,455,000 , $1,419,000 and $1,414,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
INVESTMENTS IN LOW-INCOME HOUSI
INVESTMENTS IN LOW-INCOME HOUSING PARTNERSHIPS | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate Partnership Investment Subsidiaries, Net Income (Loss) before Tax [Abstract] | |
INVESTMENTS IN LOW-INCOME HOUSING PARTNERSHIPS | INVESTMENTS IN LOW-INCOME HOUSING PARTNERSHIPS ACNB Corporation is a limited partner in three partnerships, whose purpose is to develop, manage and operate residential low-income properties. At December 31, 2016 and 2015 , the carrying value of these investments was approximately $2,899,000 and $3,345,000 , respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Interest-bearing Deposit Liabilities [Abstract] | |
DEPOSITS | DEPOSITS Deposits were comprised of the following as of December 31: In thousands 2016 2015 Non-interest bearing demand $ 180,593 $ 166,224 Interest bearing demand 130,453 135,826 Savings 414,682 364,086 Time certificates of deposit of $250,000 or less 209,805 215,539 Time certificates of deposit greater than $250,000 32,088 31,305 $ 967,621 $ 912,980 Scheduled maturities of time certificates of deposit at December 31, 2016 , were as follows: Years Ending In thousands 2017 $ 146,632 2018 42,471 2019 48,347 2020 2,800 2021 1,643 $ 241,893 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS Certain branch offices and equipment are leased under agreements which expire at varying dates through 2036. Most leases contain renewal provisions at the Corporation’s option. The total rental expense for all operating leases was $492,000 , $456,000 and $498,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The following is a schedule by year of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31: Years Ending In thousands 2017 $ 495 2018 406 2019 361 2020 309 2021 276 Later years 1,386 $ 3,233 ACNB leases space at several of its owned offices to other unrelated organizations. Total rental income for these properties was $8,000 , $27,000 and $132,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Short-term borrowings and weighted-average interest rates at December 31 are as follows: 2016 2015 Dollars in thousands Amount Rate Amount Rate FHLB overnight advance $ — — % $ — — % Securities sold under repurchase agreements 34,590 0.12 35,202 0.12 $ 34,590 0.12 % $ 35,202 0.12 % Under an agreement with the FHLB, the Bank has short-term borrowing capacity included within its maximum borrowing capacity. All FHLB advances are collateralized by a security agreement covering qualifying loans and unpledged U.S. Treasury, agency and mortgage-backed securities. In addition, all FHLB advances are secured by the FHLB capital stock owned by the Bank having a par value of $3,901,400 at December 31, 2016 . The Corporation also has lines of credit that total $20,000,000 with correspondent banks for overnight federal funds borrowings. There were no advances on these lines at December 31, 2016 and 2015 . The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Corporation’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Corporation does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Corporation could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Corporation in a segregated custodial account under a tri-party agreement. The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of December 31, 2016 and 2015 : Gross Amounts Not Offset in the Statements of Condition Dollars in thousands Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Financial Instruments Cash Collateral Pledged Net Amount December 31, 2016 Repurchase agreements Commercial customers and government entities (a) $ 34,590 $ — $ 34,590 $ (34,590 ) $ — $ — December 31, 2015 Repurchase agreements Commercial customers and government entities (a) $ 35,202 $ — $ 35,202 $ (35,202 ) $ — $ — (a) As of December 31, 2016 and 2015 , the fair value of securities pledged in connection with repurchase agreements was $41,406,000 and $41,132,000 , respectively. A summary of long-term debt as of December 31 is as follows: 2016 2015 Dollars in thousands Amount Rate Amount Rate FHLB fixed-rate advances maturing: 2016 $ — — % $ 18,250 1.98 % 2017 14,250 2.30 % 14,250 2.30 % 2018 25,500 1.87 % 24,500 1.90 % 2019 19,500 1.75 % 14,500 1.86 % 2020 12,000 1.84 % 5,000 1.96 % 2021 3,000 1.58 % — — % $ 74,250 1.91 % $ 76,500 2.05 % The FHLB advances are collateralized by the assets defined in security agreement and FHLB capital stock described previously. The Corporation can borrow a maximum of $506,688,500 from the FHLB, of which $422,438,500 was available at December 31, 2016 . |
REGULATORY RESTRICTIONS ON DIVI
REGULATORY RESTRICTIONS ON DIVIDENDS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
REGULATORY RESTRICTIONS ON DIVIDENDS | REGULATORY RESTRICTIONS ON DIVIDENDS Dividend payments by the Bank to the Corporation are subject to the Pennsylvania Banking Code, the Federal Deposit Insurance Act, and the regulations of the FDIC, including final rules to implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. Under the Banking Code, no dividends may be paid except from “accumulated net earnings” (generally, retained earnings). The Federal Reserve Board and the FDIC have formal and informal policies which provide that insured banks and bank holding companies should generally pay dividends only out of current operating earnings, with some exceptions. As of December 31, 2016 , $16,189,000 of undistributed earnings of the Bank, included in consolidated retained earnings, was available for distribution to the Corporation as dividends without prior regulatory approval. Additionally, dividends paid by the Bank to the Corporation would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense for the years ended December 31, 2016 , 2015 and 2014 , are as follows: In thousands 2016 2015 2014 Federal: Current $ 3,530 $ 3,316 $ 2,152 Deferred 171 392 875 3,701 3,708 3,027 State: Current 67 53 53 $ 3,768 $ 3,761 $ 3,080 Reconciliations of the statutory federal income tax to the income tax expense reported in the consolidated statements of income for the years ended December 31, 2016 , 2015 and 2014 , are as follows: Percentage of Income before Income Taxes 2016 2015 2014 Federal income tax at statutory rate 34.0 % 34.0 % 34.0 % State income taxes, net of federal benefit 0.3 % 0.2 % 0.3 % Tax-exempt income (4.8 )% (4.4 )% (3.5 )% Earnings on investment in bank-owned life insurance (2.6 )% (2.5 )% (2.8 )% Rehabilitation and low-income housing credits (2.0 )% (2.0 )% (5.1 )% Other 0.8 % 0.2 % 0.1 % 25.7 % 25.5 % 23.0 % The provision for federal income taxes includes $9,000 , $89,000 and $21,000 of income taxes related to net gains on sales of securities in 2016 , 2015 and 2014 , respectively. Rehabilitation and low-income housing income tax credits were $287,000 , $299,000 , and $678,000 during 2016 , 2015 and 2014 , respectively. Projected credits are $287,000 in 2017 and 2018, and $1,163,000 thereafter. Components of deferred tax assets and liabilities at December 31 were as follows: In thousands 2016 2015 Deferred tax assets: Allowance for loan losses $ 4,968 $ 5,014 Available for sale securities 143 — Accrued deferred compensation 1,166 1,008 Pension 3,101 3,034 Deferred loan fees — 4 Other-than-temporary impairment 70 178 Nonaccrual interest 226 168 Deferred director fees 686 576 Other 982 644 11,342 10,626 Deferred tax liabilities: Deferred loan fees 79 — Available for sale securities — 600 Prepaid pension benefit cost 6,632 6,505 Prepaid expenses 123 166 Accumulated depreciation 372 331 Goodwill/intangibles 1,006 873 8,212 8,475 Net Deferred Tax Asset $ 3,130 $ 2,151 The Corporation did not have any uncertain tax positions at December 31, 2016 and 2015 . The Corporation’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Income. Years that remain open for potential review by the Internal Revenue Service are 2013 through 2016. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with fair value measurement and disclosure guidance. This guidance further clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. Fair value measurement and disclosure guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at December 31, 2016 and 2015 , are as follows: Fair Value Measurements at December 31, 2016 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 79,579 $ — $ 79,579 $ — Mortgage-backed securities, residential 31,973 — 31,973 — State and municipal 24,660 — 24,660 — Corporate bonds 5,062 — 5,062 — CRA mutual fund 1,035 1,035 — — Stock in other banks 681 681 — — Total securities available for sale Recurring $ 142,990 $ 1,716 $ 141,274 $ — Impaired loans Non-recurring $ 4,406 $ — $ — $ 4,406 Foreclosed assets held for resale Non-recurring $ — $ — $ — $ — Fair Value Measurements at December 31, 2015 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 46,029 $ — $ 46,029 $ — Mortgage-backed securities, residential 42,839 — 42,839 — State and municipal 28,078 — 28,078 — Corporate bonds 6,955 — 6,955 — CRA mutual fund 1,053 1,053 — — Stock in other banks 739 739 — — Total securities available for sale Recurring $ 125,693 $ 1,792 $ 123,901 $ — Impaired loans Non-recurring $ 4,451 $ — $ — $ 4,451 Foreclosed assets held for resale Non-recurring $ — $ — $ — $ — The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Dollars in thousands Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average December 31, 2016 Impaired loans $ 4,406 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (39 )% Foreclosed assets held for resale $ — Appraisal of collateral (1) (3) Appraisal adjustments (2) (10) - (50)% — % December 31, 2015 Impaired loans $ 4,451 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (16 )% Foreclosed assets held for resale $ — Appraisal of collateral (1) (3) Appraisal adjustments (2) (10) - (50)% — % (1) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of certain Corporation assets and liabilities at December 31, 2016 and 2015 : Cash and Cash Equivalents (Carried at Cost) The carrying amounts reported in the consolidated statement of condition for cash and short-term instruments approximate those assets’ fair value. U.S. currency is Level 1 and cash equivalents are Level 2. Securities The fair values of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific security but rather by relying on the security’s relationship to other benchmark quoted prices. The Corporation uses an independent service provider to provide matrix pricing, and uses the valuation of another provider to compare for reasonableness. Loans Held for Sale (Carried at Lower of Cost or Fair Value) The fair values of mortgage loans held for sale are determined based on amounts to be received at settlement by establishing the respective buyer requirement or market interest rates. Loans (Carried at Cost) The fair values of non-impaired loans are estimated using discounted cash flow analyses, as well as using market rates at the balance sheet date that reflect the credit and interest rate risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments, and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired Loans (Generally Carried at Fair Value) Loans for which the Corporation has measured impairment are 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. The fair value consists of the loan balances less the valuation allowance and/or charge-offs. Foreclosed Assets Held for Resale The fair value of real estate acquired through foreclosure is based on independent third-party appraisals of the properties. These assets are included as Level 3 fair values, based upon appraisals that consider the sales prices of similar properties in the proximate vicinity. It is the policy of the Corporation to have the initial market value of a foreclosed asset held for resale determined by an independent third-party valuation. If the Corporation already has a valid appraisal on file for the property and that appraisal has been completed within the previous 12 months, another appraisal shall not be required when the Corporation acquires ownership of that real estate. Further, the Corporation shall update the market value of each foreclosed asset with an independent third-party valuation at least every 18 months, or more frequently if management believes that there is an indication that the fair value has declined. These valuations may be adjusted downward to account for specialized use of the property, change in the condition of the real estate, change in local market and economic conditions, and other specific factors involving the collateral. Restricted Investment in Bank Stock (Carried at Cost) The carrying amount of required and restricted investment in correspondent bank stock approximates fair value, and considers the limited marketability of such securities. Accrued Interest Receivable and Payable (Carried at Cost) The carrying amounts of accrued interest receivable and accrued interest payable approximate their fair value. Deposits (Carried at Cost) The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (e.g., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings (Carried at Cost) The carrying amounts of short-term borrowings approximate their fair values. Long-Term Borrowings (Carried at Cost) The fair values of Federal Home Loan Bank (FHLB) advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms, and remaining maturity. The prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Off-Balance Sheet Credit-Related Instruments The fair values for the Corporation’s off-balance sheet financial instruments (specifically, lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2016 and 2015 : December 31, 2016 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 13,796 $ 13,796 $ 6,921 $ 6,875 $ — Interest-bearing deposits in banks 5,135 5,135 5,135 — — Investment securities available for sale 142,990 142,990 1,716 141,274 — Investment securities held to maturity 55,568 55,425 — 55,425 — Loans held for sale 1,770 1,770 — 1,770 — Loans, less allowance for loan losses 893,176 888,169 — — 888,169 Accrued interest receivable 3,158 3,158 — 3,158 — Restricted investment in bank stocks 4,349 4,349 — 4,349 — Financial liabilities: Deposits 967,621 967,236 — 967,236 — Short-term borrowings 34,590 34,590 — 34,590 — Long-term borrowings 74,250 75,029 — 75,029 — Accrued interest payable 837 837 — 837 — Off-balance sheet financial instruments — — — — — December 31, 2015 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 13,468 $ 13,468 $ 6,746 $ 6,722 $ — Interest-bearing deposits in banks 5,289 5,289 5,289 — — Investment securities available for sale 125,693 125,693 1,792 123,901 — Investment securities held to maturity 71,542 71,363 — 71,363 — Loans held for sale 1,835 1,835 — 1,835 — Loans, less allowance for loan losses 838,213 842,169 — — 842,169 Accrued interest receivable 3,016 3,016 — 3,016 — Restricted investment in bank stocks 4,414 4,414 — 4,414 — Financial liabilities: Deposits 912,980 913,188 — 913,188 — Short-term borrowings 35,202 35,202 — 35,202 — Long-term borrowings 76,500 77,545 — 77,545 — Accrued interest payable 815 815 — 815 — Off-balance sheet financial instruments — — — — — |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS The Corporation’s banking subsidiary has a non-contributory, defined benefit pension plan. Retirement benefits are a function of both years of service and compensation. The funding policy is to contribute annually the amount that is sufficient to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act. A measurement date of December 31 has been used for the fiscal years ended December 31, 2016 and 2015 . In thousands 2016 2015 Change in benefit obligation: Benefit obligation at beginning of year $ 26,670 $ 27,165 Service cost 795 881 Interest cost 1,136 1,040 Change in assumptions 1,059 (1,438 ) Benefits paid (1,035 ) (978 ) Benefit obligation at end of year 28,625 26,670 Change in plan assets: Fair value of plan assets at beginning of year 36,880 38,163 Actual return on plan assets 2,870 (305 ) Employer contribution — — Benefits paid (1,035 ) (978 ) Fair value of plan assets at end of year 38,715 36,880 Funded Status, included in other assets $ 10,090 $ 10,210 Amounts recognized in accumulated other comprehensive loss: Total net actuarial loss $ 8,859 $ 8,923 Prior service cost — 1 Total included in accumulated other comprehensive loss (pretax) $ 8,859 $ 8,924 The estimated costs that will be amortized from accumulated other comprehensive loss into net periodic pension cost during the next fiscal year are as follows: In thousands Net loss $ 677 Prior service cost — $ 677 The accumulated benefit obligation totaled $27,508,000 and $25,783,000 at December 31, 2016 and 2015 , respectively. For the year ended December 31, 2016 and 2015 the mortality assumptions were derived using the mortality rates from RP-2006 (underlying baseline table from SOA RP-2014 study based on experience data for private pension plans of 2006, the central year of experience data 2004-2008). The components of net periodic benefit costs (income) related to the non-contributory, defined benefit pension plan for the years ended December 31 are as follows: In thousands 2016 2015 2014 Components of net periodic benefit cost (income): Service cost $ 795 $ 881 $ 689 Interest cost 1,136 1,040 1,035 Expected return on plan assets (2,429 ) (2,542 ) (2,311 ) Recognized net actuarial loss 682 481 21 Amortization of prior service cost 1 24 40 Net Periodic Benefit Cost (Income) 185 (116 ) (526 ) Net loss 618 1,409 4,349 Amortization of net loss (682 ) (481 ) (21 ) Amortization of prior service cost (1 ) (24 ) (40 ) Total recognized in other comprehensive (income) loss $ (65 ) $ 904 $ 4,288 Total recognized in net periodic benefit cost and other comprehensive loss $ 120 $ 788 $ 3,762 For the years ended December 31, 2016 , 2015 and 2014 , the assumptions used to determine the benefit obligation are as follows: 2016 2015 2014 Discount rate 4.05 % 4.35 % 3.90 % Rate of compensation increase 3.50 % 3.50 % 3.75 % For the years ended December 31, 2016 , 2015 and 2014 , the assumptions used to determine the net periodic benefit cost (income) are as follows: 2016 2015 2014 Discount rate 4.35 % 3.90 % 4.75 % Expected long-term rate of return on plan assets 6.75 % 6.75 % 6.75 % Rate of compensation increase 3.50 % 3.75 % 3.75 % The Corporation’s pension plan weighted-average assets’ allocations at December 31, 2016 and 2015 , are as follows: 2016 2015 Equity securities 48 % 48 % Debt securities 46 % 47 % Short-term fixed income — % — % Real estate 6 % 5 % 100 % 100 % The Corporation’s overall investment strategy is to achieve a mix of investments to meet the long-term rate of return assumption and near-term pension obligations with a diversification of assets types, fund strategies and fund managers. The mix of investments is adjusted periodically by retaining an advisory firm to recommend appropriate allocations after reviewing the Corporation’s risk tolerance on contribution levels, funded status and plan expense, and any applicable regulatory requirements. The weighted-average assets’ allocation in the above table represents the Corporation’s conclusion on the appropriate mix of investments. The specific investment vehicles are institutional separate accounts from a variety of fund managers which are regularly reviewed by the Corporation for acceptable performance. Equity securities included Corporation common stock in amounts of $2,175,000 , or 6% of total plan assets, and $1,437,000 , or 4% of total plan assets, at December 31, 2016 and 2015 , respectively. Fair value measurements at December 31, 2016 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 18,687 $ 2,175 $ 16,512 $ — Debt securities 17,888 — 17,888 — Real estate 2,140 — 2,140 — Fair value measurements at December 31, 2015 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 17,618 $ 1,437 $ 16,181 $ — Debt securities 17,463 — 17,463 — Real estate 1,799 — 1,799 — It has not yet been determined the amount that the Bank may contribute to the Plan in 2017 . The Corporation reduced the future benefit accruals for the defined benefit pension plan effective January 1, 2010, in order to manage total benefit expense. The new formula is the earned benefit as of December 31, 2009, plus 0.75% of a participant’s average monthly pay multiplied by years of benefit service earned on and after January 1, 2010, but not more than 25 years. The benefit formula percentage and maximum years of benefit service were both reduced. Effective April 1, 2012, no inactive or former participant in the Plan is eligible to again participate in the plan, and no employee hired after March 31, 2012, is eligible to participate in the Plan. As of the last annual census, ACNB Bank had a combined 358 active, vested terminated, and retired persons in the Plan. Based on current data and assumptions, the following benefit payments, which reflect expected future service, as appropriate, are: Years Ending In thousands 2017 $ 1,220 2018 1,300 2019 1,400 2020 1,430 2021 1,630 2022 - 2026 8,910 The Corporation’s banking subsidiary maintains a 401(k) plan for the benefit of eligible employees. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The Bank makes matching contributions up to 100% of the first 4% of an employee’s compensation contributed to the plan. Matching contributions vest immediately to the employee. Bank contributions to and expenses for the plan were $541,000 , $547,000 and $526,000 for 2016 , 2015 and 2014 , respectively. RIG has a similar but separate 401(k) plan with the match of 6% for non-highly compensated employees and 3% match for highly compensated employees. RIG’s contributions to and expenses for the plan were $83,000 , $74,000 and $63,000 for 2016 , 2015 and 2014 , respectively. The Corporation’s banking subsidiary maintains nonqualified compensation plans for selected senior officers. The estimated present value of future benefits is accrued over the period from the effective date of the agreements until the expected retirement dates of the individuals. The balance accrued for these plans included in other liabilities as of December 31, 2016 and 2015 , totaled $2,550,000 and $2,257,000 , respectively. The annual expense included in salaries and benefits expense totaled $383,000 , $360,000 and $339,000 during the years ended December 31, 2016 , 2015 and 2014 , respectively. To fund the benefits under these plans, the Bank is the owner of single premium life insurance policies on participants in the nonqualified retirement plans. At December 31, 2016 and 2015 , the cash surrender value of these policies was $4,942,000 and $4,833,000 , respectively. |
STOCKHOLDERS' EQUITY AND REGULA
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | STOCKHOLDERS’ EQUITY AND REGULATORY MATTERS In January 2011, the Corporation offered stockholders the opportunity to participate in the ACNB Corporation Dividend Reinvestment and Stock Purchase Plan. The plan provides registered holders of ACNB Corporation common stock with a convenient way to purchase additional shares of common stock by permitting participants in the plan to automatically reinvest cash dividends on all or a portion of the shares owned and to make quarterly voluntary cash payments under the terms of the plan. Participation in the plan is voluntary, and there are eligibility requirements to participate in the plan. During 2016, 16,979 shares were issued under this plan with proceeds in the amount of $437,000 . During 2015, 18,401 shares were issued under this plan with proceeds in the amount of $499,000 . During 2014, 24,339 shares were issued under this plan with proceeds in the amount of $381,000 . Proceeds are used for general corporate purposes. On May 5, 2009, stockholders approved and ratified the ACNB Corporation 2009 Restricted Stock Plan, which awards shall not exceed, in the aggregate, 200,000 shares of common stock. The plan is available to employees and directors of the Bank to advance the best interests of ACNB Corporation and its shareholders. The plan provides those persons who have responsibility for its growth with additional incentive by allowing them to acquire an ownership in ACNB Corporation and thereby encouraging them to contribute to the success of the Corporation. As of December 31, 2016 and 2015 , 7,435 shares and 5,673 shares, respectively, were issued under this plan. No shares were issued under this plan through December 31, 2014. The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth below) of total and Tier 1 capital to average assets. The federal banking agencies issued final rules to implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. The phase-in period for community banking organizations began January 1, 2015, while larger institutions (generally those with assets of $250 billion or more) began compliance effective January 1, 2014. The final rules call for the following capital requirements: • a minimum ratio of common Tier 1 capital to risk-weighted assets of 4.5%; • a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%; • a minimum ratio of total capital to risk-weighted assets of 8.0%; and, • a minimum leverage ratio of 4.0%. In addition, the final rules establish a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets applicable to all banking organizations. If a banking organization fails to hold capital above the minimum capital ratios and the capital conservation buffer, it will be subject to certain restrictions on capital distributions and discretionary bonus payments. The 2.5% at 0.625% per year phase-in period for the capital conservation and countercyclical capital buffers for all banking organizations began on January 1, 2016. Management believes, as of December 31, 2016 , that the Corporation and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2016 , the most recent notification from the federal banking regulators categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. There are no subsequent conditions or events that management believes have changed the Bank’s category. The actual and required capital amounts and ratios were as follows: Actual For Capital Adequacy Purposes To be Well Capitalized under Prompt Corrective Action Provisions Dollars in thousands Amount Ratio Amount (1) Ratio (1) Amount Ratio CORPORATION As of December 31, 2016 Tier 1 leverage ratio (to average assets) $ 121,650 10.06 % $ ≥48,382 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 121,650 14.71 ≥37,205 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 121,650 14.71 ≥49,606 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 132,033 15.97 ≥66,142 ≥8.0 N/A N/A As of December 31, 2015 Tier 1 leverage ratio (to average assets) $ 115,005 10.08 % $ ≥45,646 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 115,005 15.00 ≥34,503 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 115,005 15.00 ≥46,004 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 124,675 16.26 ≥61,339 ≥8.0 N/A N/A BANK As of December 31, 2016 Tier 1 leverage ratio (to average assets) $ 106,540 8.82 % $ ≥48,316 ≥4.0% $ ≥60,395 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 106,540 12.96 ≥36,995 ≥4.5 ≥53,438 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 106,540 12.96 ≥49,327 ≥6.0 ≥65,770 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 116,865 14.22 ≥65,770 ≥8.0 ≥82,212 ≥10.0 As of December 31, 2015 Tier 1 leverage ratio (to average assets) $ 100,698 8.84 % $ ≥45,550 ≥4.0% $ ≥56,938 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 100,698 13.22 ≥34,270 ≥4.5 ≥49,501 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 100,698 13.22 ≥45,693 ≥6.0 ≥60,924 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 110,287 14.48 ≥60,924 ≥8.0 ≥76,155 ≥10.0 (1) Amounts and ratios do not include capital conversation buffer. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit (typically mortgages and commercial loans) and, to a lesser extent, standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the consolidated balance sheet. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The Corporation does not anticipate any material losses from these commitments. Commitments to extend credit, including commitments to grant loans and unfunded commitments under lines of credit, are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extensions of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property and equipment and income-producing commercial properties. On loans secured by real estate, the Corporation generally requires loan to value ratios of no greater than 80% . Standby letters of credit are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and similar transactions. The terms of the letters of credit vary and may have renewal features. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Corporation generally holds collateral and/or personal guarantees supporting those commitments for which collateral is deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral and the enforcement of guarantees would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of December 31, 2016 and 2015 , for guarantees under standby letters of credit issued is not material. In June 2013, ACNB Corporation executed a guaranty for a note related to a $500,000 commercial line of credit from a local bank, with normal terms and conditions for such a line, for Russell Insurance Group, Inc., the borrower and a wholly-owned subsidiary of ACNB Corporation. The commercial line of credit is for general working capital needs should they arise by the borrower. No liability is recorded for the guarantor’s obligation as the guarantor would have full recourse from all assets of its wholly-owned subsidiary. No draws were taken on this commercial line of credit since its inception. The Corporation has not been required to perform on any financial guarantees, and has not incurred any losses on its commitments, during the past three years. A summary of the Corporation’s commitments at December 31 were as follows: In thousands 2016 2015 Commitments to extend credit $ 258,631 $ 199,932 Standby letters of credit 6,134 4,986 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Corporation is subject to claims and lawsuits which arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Corporation in connection with any such claims and lawsuits, it is the opinion of management that the disposition or ultimate determination of any such claims and lawsuits will not have a material adverse effect on the consolidated financial position, consolidated results of operations or liquidity of the Corporation. |
ACNB CORPORATION (PARENT COMPAN
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION STATEMENTS OF CONDITION December 31, In thousands 2016 2015 ASSETS Cash $ 8,563 $ 4,448 Investment in banking subsidiary 100,395 95,948 Investment in other subsidiaries 8,768 8,928 Investments in low-income housing partnerships 1,016 1,336 Securities and other assets 1,232 1,340 Receivable from banking subsidiary 130 2,769 Total Assets $ 120,104 $ 114,769 LIABILITIES AND STOCKHOLDERS’ EQUITY Other liabilities $ 43 $ 54 Stockholders’ equity 120,061 114,715 Total Liabilities and Stockholders’ Equity $ 120,104 $ 114,769 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, In thousands 2016 2015 2014 Dividends from banking subsidiary $ 4,840 $ 4,820 $ 4,801 Gain on sale of securities 26 — — Other income 35 190 310 4,901 5,010 5,111 Expenses 854 431 697 4,047 4,579 4,414 Income tax benefit 490 381 810 4,537 4,960 5,224 Equity in undistributed earnings of subsidiaries 6,332 6,057 5,066 Net Income $ 10,869 $ 11,017 $ 10,290 Comprehensive Income $ 9,571 $ 9,014 $ 7,461 STATEMENTS OF CASH FLOWS Years Ended December 31, In thousands 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 10,869 $ 11,017 $ 10,290 Equity in undistributed earnings of subsidiaries (6,332 ) (6,057 ) (5,066 ) Decrease (Increase) in receivable from banking subsidiary 2,639 (131 ) (810 ) Gain on sale of securities (26 ) — — Other 540 86 799 Net Cash Provided by Operating Activities 7,690 4,915 5,213 CASH FLOWS FROM INVESTING ACTIVITIES Return of investment from subsidiary 650 750 250 Net Cash Provided by Investing Activities 650 750 250 CASH FLOWS USED IN FINANCING ACTIVITIES Repayments on long-term debt — (1,437 ) (266 ) Proceeds from issuance of common stock 615 499 381 Dividends paid (4,840 ) (4,820 ) (4,622 ) Net Cash Used in Financing Activities (4,225 ) (5,758 ) (4,507 ) Net Increase (Decrease) in Cash and Cash Equivalents 4,115 (93 ) 956 CASH AND CASH EQUIVALENTS — BEGINNING 4,448 4,541 3,585 CASH AND CASH EQUIVALENTS — ENDING $ 8,563 $ 4,448 $ 4,541 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On January 5, 2005 , ACNB Corporation completed the acquisition of Russell Insurance Group, Inc. (RIG) and RIG began to operate as a separate subsidiary of ACNB Corporation. In accordance with the terms of the acquisition, there was contingent consideration associated with this transaction of up to $3,000,000 , payable in 2008 subject to performance criteria for the three -year period subsequent to the acquisition. Due to performance at a higher level than the performance criteria, the liability for this consideration was recorded at December 31, 2006, with a related increase in goodwill. Payment was made in the second quarter of 2008 after it was ascertained that the performance criteria had been met for the full three -year period; after which, the total aggregate purchase price was $8,663,000 . In 2007, RIG acquired two additional books of business with an aggregate purchase price of $637,000 . In 2008, RIG acquired an additional book of business with an aggregate purchase price of $1,165,000 , all of which was classified as an intangible asset. Also, on December 31, 2008, RIG acquired Marks Insurance & Associates, Inc. with an aggregate purchase price of $1,853,000 , of which $1,300,000 was recorded as an intangible asset and $553,000 was recorded as goodwill. The contingent consideration for both 2008 purchases was calculated based on 2011 results of operation. The contingent amount of $338,000 was recorded in December 2011 and is included in goodwill and the other liabilities section of the statement of condition, and was paid on January 13, 2012. The intangible assets (excluding goodwill) are being amortized over ten years on a straight line basis. In 2010, RIG acquired an additional book of business with an aggregate purchase price of $31,000 , of which all was classified as an intangible asset. In 2013, RIG acquired an additional book of business with an aggregate purchase price of $77,000 , of which all was classified as an intangible asset. In 2015, RIG acquired an additional book of business with an aggregate purchase price of $145,925 , of which all was classified as an intangible asset. Also in 2015, RIG made the final purchase payment of $ 27,395 on the book of business purchased in 2013, resulting in an aggregate purchase price of $104,395 . The carrying value and accumulated amortization of the intangible assets (customer lists) as of December 31, 2016 and 2015 , are as follows: 2016 2015 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets $ 6,667 $ 5,979 $ 6,667 $ 5,634 Amortization of the intangible assets for the five years subsequent to December 31, 2016 , is expected to be as follows: Years Ending In thousands 2017 $ 323 2018 238 2019 28 2020 23 2021 23 Thereafter 53 |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT AND RELATED INFORMATION | SEGMENT AND RELATED INFORMATION The Corporation has two reporting segments, the Bank and RIG. RIG is managed separately from the banking segment, which includes the Bank and related financial services that the Corporation offers through its banking subsidiary. RIG offers a broad range of property and casualty, life and health insurance to both commercial and individual clients. Segment information for 2016 , 2015 and 2014 is as follows: In thousands Banking Insurance Total 2016 Net interest income and other income from external customers $ 45,313 $ 4,461 $ 49,774 Income before income taxes 13,828 809 14,637 Total assets 1,195,857 10,463 1,206,320 Capital expenditures 2,333 11 2,344 2015 Net interest income and other income from external customers $ 43,522 $ 4,490 $ 48,012 Income before income taxes 14,137 641 14,778 Total assets 1,138,106 9,819 1,147,925 Capital expenditures 1,712 26 1,738 2014 Net interest income and other income from external customers $ 41,183 $ 4,601 $ 45,784 Income before income taxes 12,729 641 13,370 Total assets 1,078,546 11,262 1,089,808 Capital expenditures 2,141 1,007 3,148 |
NEW WINDSOR PURCHASE
NEW WINDSOR PURCHASE | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
NEW WINDSOR PURCHASE | NEW WINDSOR PURCHASE On November 22, 2016, ACNB announced the execution of the Agreement and Plan of Reorganization effective November 21, 2016, whereby New Windsor Bancorp, Inc. (“New Windsor”) will be merged with and into an ACNB acquisition subsidiary and, as soon as possible thereafter, New Windsor State Bank, New Windsor’s wholly-owned subsidiary bank, will merge with and into ACNB Bank. Two directors from New Windsor will join the boards of ACNB and ACNB Bank, respectively, and ACNB Bank will operate in the Maryland market as “NWSB Bank, a division of ACNB Bank”. Based on the financial results as of December 31, 2016, the combined company would have pro forma total assets of $1.51 billion , total deposits of $1.25 billion , and loans of $1.15 billion . At their election, New Windsor shareholders will receive 1.10 shares of ACNB common stock or $30.00 cash for each share of New Windsor common stock that they own as of the closing date. The transaction is subject to an election and allocation procedure that will result in 85% of the consideration being paid as ACNB common stock and 15% of the consideration being paid in cash. The 15% paid in cash will be paid on the basis of $30.00 per share. Based on the market close on November 21, 2016, the transaction is valued at $33,294,000 or $33.11 per share. Merger related expenses of $472,000 were incurred in 2016 for the proposed purchase of New Windsor Bancorp, Inc. that is projected to close in either the late second quarter or early third quarter of 2017. The proposed purchase is subject to customary closing conditions, including regulatory and New Windsor stockholder approvals. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS | QUARTERLY RESULTS OF OPERATIONS Selected quarterly information for the years ended December 31, 2016 and 2015 , is as follows: Dollars in thousands, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Interest income $ 9,964 $ 10,010 $ 10,181 $ 10,345 Interest expense 957 980 996 1,001 Net interest income 9,007 9,030 9,185 9,344 Provision for loan losses — — — — Net interest income after provision for loan losses 9,007 9,030 9,185 9,344 Net gains on sales of securities — — — 26 Gain on sales of premises and equipment — 449 — — Other income 2,872 3,362 3,301 3,198 Proposed merger expenses — — — 472 Other expenses and provision for income taxes 9,332 9,859 9,718 9,524 Net income $ 2,547 $ 2,982 $ 2,768 $ 2,572 Basic earnings per share $ 0.42 $ 0.49 $ 0.46 $ 0.43 Dividends per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 2015 Interest income $ 9,811 $ 10,045 $ 9,717 $ 9,891 Interest expense 970 989 959 940 Net interest income 8,841 9,056 8,758 8,951 Provision for loan losses — — — — Net interest income after provision for loan losses 8,841 9,056 8,758 8,951 Net gains on sales of securities — 101 158 2 Other income 2,793 3,138 3,132 3,082 Other expenses and provision for income taxes 9,091 9,485 9,236 9,183 Net income $ 2,543 $ 2,810 $ 2,812 $ 2,852 Basic earnings per share $ 0.42 $ 0.47 $ 0.47 $ 0.47 Dividends per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations ACNB Corporation (the Corporation or ACNB), headquartered in Gettysburg, Pennsylvania, provides banking, insurance, and financial services to businesses and consumers through its wholly-owned subsidiaries, ACNB Bank (Bank) and Russell Insurance Group, Inc. (RIG). The Bank engages in full-service commercial and consumer banking and trust services through its twenty-two retail banking locations in Adams, Cumberland, Franklin, and York Counties, Pennsylvania. There is also a loan production office situated in York County, Pennsylvania. RIG is a full-service insurance agency based in Westminster, Maryland with a second location in Germantown, Maryland. The agency offers a broad range of property and casualty, life, and health insurance to both commercial and individual clients. The Corporation’s primary source of revenue is interest income on loans and investment securities and fee income on its products and services. Expenses consist of interest expense on deposits and borrowed funds, provisions for loan losses, and other operating expenses. |
Basis of Financial Statements | Basis of Financial Statements The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Assets held by the Corporation’s Trust Department in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Corporation. Assets held by the Trust Department amounted to $195,000,000 and $178,000,000 at December 31, 2016 and 2015 , respectively. Income from fiduciary activities is included in other income. The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2016 , for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
Use of Estimates | Use of Estimates Financial statements prepared in accordance with GAAP require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the consolidated financial statements, and revenues and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of other than temporary impairment on securities, and the potential impairment of goodwill. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Corporation’s activities are with customers located within southcentral Pennsylvania and northern Maryland. Note C discusses the types of securities in which the Corporation invests. Note D discusses the types of lending in which the Corporation engages. Included in commercial real estate loans are loans made to lessors of non-residential dwellings that total $162,321,000 , or 17.9% , of total loans at December 31, 2016 . These borrowers are geographically disbursed throughout ACNB’s marketplace and are leasing commercial properties to a varied group of tenants including medical offices, retail space and recreational facilities. Because of the varied nature of the tenants in aggregate, management believes that these loans do not present any greater risk than commercial loans in general. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within 90 days. |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released to another financial institution through a correspondent relationship. The correspondent financial institution absorbs all of the risk related to rate lock commitments. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
Loans | Loans The Corporation grants commercial, residential, and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout southcentral Pennsylvania and northern Maryland. The ability of the Corporation’s debtors to honor their contracts is dependent upon the real estate values and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The loans receivable portfolio is segmented into commercial, residential mortgage, home equity lines of credit, and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, and commercial real estate construction. The accrual of interest on residential mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer loans (consisting of home equity lines of credit and consumer loan classes) are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses (the “allowance”) is established as losses are estimated to occur through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated statement of condition. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity, and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: • lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices; • national, regional and local economic and business conditions, as well as the condition of various market segments, including the impact on the value of underlying collateral for collateral dependent loans; • the nature and volume of the portfolio and terms of loans; • the experience, ability and depth of lending management and staff; • the volume and severity of past due, classified and nonaccrual loans, as well as other loan modifications; and, • the existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. It covers risks that are inherently difficult to quantify including, but not limited to, collateral risk, information risk, and historical charge-off risk. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and/or interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A specific allocation within the allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the Corporation’s impaired loans are measured based on the estimated fair value of the loan’s collateral or the discounted cash flows method. It is the policy of the Corporation to order an updated valuation on all real estate secured loans when the loan becomes 90 days past due and there has not been an updated valuation completed within the previous 12 months. In addition, the Corporation orders third-party valuations on all impaired real estate collateralized loans within 30 days of the loan being classified as impaired. Until the valuations are completed, the Corporation utilizes the most recent independent third-party real estate valuation to estimate the need for a specific allocation to be assigned to the loan. These existing valuations are discounted downward to account for such things as the age of the existing collateral valuation, change in the condition of the real estate, change in local market and economic conditions, and other specific factors involving the collateral. Once the updated valuation is completed, the collateral value is updated accordingly. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging reports, equipment appraisals, or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The Corporation actively monitors the values of collateral as well as the age of the valuation of impaired loans. Management believes that the Corporation’s market area is not as volatile as other areas throughout the United States, therefore valuations are ordered at least every 18 months, or more frequently if management believes that there is an indication that the fair value has declined. For impaired loans secured by collateral other than real estate, the Corporation considers the net book value of the collateral, as recorded in the most recent financial statements of the borrower, and determines fair value based on estimates made by management. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructure. Loans whose terms are modified are classified as troubled debt restructured loans if the Corporation grants such borrowers concessions that it would not otherwise consider 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, a below market interest rate given the risk associated with the loan, or an extension of a loan’s stated maturity date. Nonaccrual troubled debt restructurings may be restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period of time and, based on a well-documented credit evaluation of the borrower’s financial condition, there is reasonable assurance of repayment. Loans classified as troubled debt restructurings are generally designated as impaired. The allowance calculation methodology includes further segregation of loan classes into credit quality rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are generally evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses and may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio and economic conditions, management believes the current level of the allowance for loan losses is adequate. Commercial and Industrial Lending — The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory, and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and may be renewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum values have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, etc. In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Corporation’s analysis. Commercial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial Real Estate Lending — The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial loan portfolio is secured primarily by commercial retail space, office buildings, and hotels. Generally, commercial real estate loans have terms that do not exceed 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property, and are typically secured by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Corporation are performed by independent appraisers. Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral. Commercial Real Estate Construction Lending — The Corporation engages in commercial real estate construction lending in its primary market area and surrounding areas. The Corporation’s commercial real estate construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Corporation’s commercial real estate construction loans are generally secured with the subject property. Terms of construction loans depend on the specifics of the project, such as estimated absorption rates, estimated time to complete, etc. In underwriting commercial real estate construction loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, etc. Appraisals on properties securing commercial real estate construction loans originated by the Corporation are performed by independent appraisers. Commercial real estate construction loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the uncertainties surrounding total construction costs. Residential Mortgage Lending — One-to-four family residential mortgage loan originations, including home equity closed-end loans, are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. The Corporation offers fixed-rate and adjustable-rate mortgage loans with terms up to a maximum of 30 years for both permanent structures and those under construction. The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The majority of the Corporation’s residential mortgage loans originate with a loan-to-value of 80% or less. Loans in excess of 80% are required to have private mortgage insurance. In underwriting one-to-four family residential real estate loans, the Corporation evaluates both the borrower’s financial ability to repay the loan as agreed and the value of the property securing the loan. Properties securing real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Corporation has not engaged in subprime residential mortgage originations. Residential mortgage loans present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Home Equity Lines of Credit Lending — The Corporation originates home equity lines of credit primarily within the Corporation’s market area or with customers primarily from the market area. Home equity lines of credit are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. Home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of 90% and a maximum term of 20 years. In underwriting home equity lines of credit, the Corporation evaluates both the value of the property securing the loan and the borrower’s financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Home equity lines of credit generally present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. Consumer Lending — The Corporation offers a variety of secured and unsecured consumer loans, including those for vehicles and mobile homes and loans secured by savings deposits. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. Consumer loan terms vary according to the type and value of collateral and the creditworthiness of the borrower. In underwriting consumer loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Consumer loans may entail greater credit risk than residential mortgage loans or home equity lines of credit, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, furniture, fixtures, equipment and leasehold improvements are carried at cost, less accumulated depreciation. Depreciation is computed principally by the straight-line method over the assets’ estimated useful lives. Normally, a buildings useful life is 40 years, except for building remodels and additions, which are depreciated over 15 years. Bank equipment, including furniture and fixtures, is normally depreciated over 5 - 15 years depending upon the nature of the purchase. Maintenance and normal repairs are charged to expense when incurred while major additions and improvements are capitalized. Gains and losses on disposals are reflected in current operations. Amortization of leasehold improvements is computed by straight line over the shorter of the assets’ useful life or the related lease term. |
Restricted Investment in Bank Stocks | Restricted Investment in Bank Stocks Restricted investment in bank stocks, which represents required investments in the common stock of correspondent banks, is carried at cost as of December 31, 2016 and 2015 , and consists of common stock in the Atlantic Central Bankers Bank and Federal Home Loan Bank (FHLB). Management evaluates the restricted investment in bank stocks for impairment in accordance with Accounting Standard Codification (ASC) Topic 942, Financial Services—Depository and Lending. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted, (2) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank, (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the correspondent bank, and (4) the liquidity position of the correspondent bank. Management believes no impairment charge was necessary related to the restricted investment in bank stocks during 2016 , 2015 or 2014 . However, security impairment analysis is completed quarterly, and the determination that no impairment has occurred during those years is no assurance that impairment may not occur in future periods. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Corporation’s banking subsidiary maintains nonqualified compensation plans for selected senior officers. To fund the benefits under these plans, the Bank is the owner of single premium life insurance policies on participants in the nonqualified retirement plans. Investment in bank-owned life insurance policies was used to finance the nonqualified compensation plans and provide tax-exempt income to the Corporation. ASC Topic 715, Compensation—Retirement Benefits , requires a liability to be recorded during the service period when a split-dollar life insurance agreement continues after participants’ employment or retirement. The required accrued liability is based on either the post-employment benefit cost for continuing life insurance or based on the future death benefit depending on the contractual terms of the underlying agreement. The Corporation’s liability is based on the post-employment benefit cost for continuing life insurance. The Corporation incurred approximately $96,000 , $46,000 , and $29,000 of expense in 2016 , 2015 , and 2014 , respectively, related to these benefits |
Investments in Low-Income Housing Partnerships | Investments in Low-Income Housing Partnerships The Corporation’s investments in low-income housing partnerships are accounted for using the “equity method” prescribed by ASC Topic 323, Investments — Equity Method . In accordance with ASC Topic 740, Income Taxes , tax credits are recognized as they become available. Any residual loss is amortized as the tax credits are received. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Corporation accounts for its acquisitions using the acquisition accounting method required by ASC Topic 805, Business Combinations. Acquisition accounting requires the total purchase price to be allocated to the estimated fair values of assets and liabilities acquired, including certain intangible assets that must be recognized. Generally, this results in a residual amount in excess of the net fair values, which is recorded as goodwill. ASC Topic 350, Intangibles—Goodwill and Other, requires that goodwill is not amortized to expense, but rather that it be assessed for impairment at least annually. If certain events occur which might indicate goodwill has been impaired, the goodwill is tested for impairment when such events occur. Impairment write-downs are charged to results of operations in the period in which the impairment is determined. The Corporation did not identify any impairment on its outstanding goodwill from its most recent testing, which was performed as of October 1, 2016 . Other acquired intangible assets with finite lives, such as customer lists, are required to be amortized over the estimated lives. These intangibles are generally amortized using the straight line method over estimated useful lives of ten years. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs 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 adjusted to the fair value, less costs to sell as necessary. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. |
Income Taxes | Income Taxes The Corporation accounts for income taxes in accordance with income tax accounting guidance ASC Topic 740, Income Taxes . Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Corporation determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Corporation accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Corporation recognizes interest and penalties on income taxes, if any, as a component of income tax expense. |
Retirement Plan | Retirement Plan The compensation cost of an employee’s pension benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes. |
Stock-based Compensation | Stock-based Compensation ACNB Corporation has a Restricted Stock plan available to selected officers and employees of the Bank, to advance the best interest of ACNB Corporation and its shareholders. The plan provides those persons who have responsibility for its growth with additional incentive by allowing them to acquire an ownership in ACNB Corporation and thereby encouraging them to contribute to the success of the Corporation. Plan expense is recognized over the vesting period of the stock issued under the plan. During 2016, 7,435 shares were issued under this plan, which resulted in $59,000 of compensation expense. Of the 7,435 shares issued under the plan, 2,478 shares are fully vested and 4,957 will vest over the next two years. |
Net Income per Share | Net Income per Share The Corporation has a simple capital structure. Basic earnings per share of common stock is computed based on 6,051,579 , 6,026,224 and 6,002,240 weighted average shares of common stock outstanding for 2016 , 2015 and 2014 , respectively. All outstanding unvested restricted stock awards that contain rights to nonforfeitable dividends are considered participating for this calculation. |
Advertising Costs | Advertising Costs Costs of advertising, which are included in marketing expenses, are expensed when incurred. |
Off-Balance Sheet Credit-Related Financial Instruments | Off-Balance Sheet Credit-Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under commercial lines of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of the accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized (Losses) Gains on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — DECEMBER 31, 2016 $ (266 ) $ (5,758 ) $ (6,024 ) BALANCE — DECEMBER 31, 2015 $ 1,164 $ (5,890 ) $ (4,726 ) |
Segment Reporting | Segment Reporting The Bank acts as an independent community financial services provider, which offers traditional banking and related financial services to individual, business, and government customers. Through its branch and automated teller machine networks, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings, and demand deposits; the making of commercial, consumer, and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail and mortgage banking operations of the Bank. As such, discrete financial information for commercial, retail and mortgage banking operations is not available and segment reporting would not be meaningful. Please refer to Note S — “Segment and Related Information” for a discussion of insurance operations. |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2014-09, 2015-14, 2016-08, 2016-12 and 2016-20 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this Update were originally effective for public entities for annual periods beginning after December 15, 2016, including interim periods therein. Three basic transition methods are available — full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) . ASU 2015-14 defers the effective date of the new revenue recognition standard by one year. As such, it now takes effect for public entities in fiscal years beginning after December 15, 2017. All other entities have an additional year. However, early adoption is permitted for any entity that chooses to adopt the new standard as of the original effective date. Public business entities will adopt the standard for annual reporting periods beginning after December 15, 2017, including interim periods within that year. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . ASU 2016-08 updates the new revenue standard by clarifying the principal versus agent implementation guidance, but does not change the core principle of the new standard. The updates to the principal versus agent guidance: • require an entity to determine whether it is a principal or an agent for each distinct good or service (or a distinct bundle of goods or services) to be provided to the customer; • illustrate how an entity that is a principal might apply the control principle to goods, services, or rights to services, when another party is involved in providing goods or services to a customer; • clarify that the purpose of certain specific control indicators is to support or assist in the assessment of whether an entity controls a good or service before it is transferred to the customer, provide more specific guidance on how the indicators should be considered, and clarify that their relevance will vary depending on the facts and circumstances; and • revise existing examples and add two new ones to more clearly depict how the guidance should be applied. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments do not alter the core principle of the new revenue standard, but make certain targeted changes to clarify the following: • Assessing collectibility - The amendments add a “substantially all” threshold to the collectibility criterion, and also clarify that the objective of the collectibility assessment is to determine whether the contract is valid and represents a substantive transaction based on whether a customer has the ability and intent to pay for the goods or services that will be transferred to the customer, as opposed to all of the goods or services promised in the contract. The ASU also clarifies how an entity may recognize as revenue consideration received in circumstances where a contract does not meet the criteria required at inception to apply the recognition guidance within the revenue standard. • Presenting sales taxes and other similar taxes collected from customers - The amendments provide an accounting policy election whereby an entity may exclude from the measurement of transaction price all taxes assessed by a taxing authority related to the specific transaction and which are collected from the customer. Such amounts would be presented “net” under this option. • Noncash consideration - The amendments clarify that the fair value of noncash consideration is measured at contract inception, and specify how to account for subsequent changes in the fair value of noncash consideration. • Contract modifications at transition - The amendments provide a new practical expedient whereby an entity electing either the full or modified retrospective method of transition is permitted to reflect the aggregate effect of all prior period modifications (using hindsight) when identifying satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to satisfied and unsatisfied obligations. • Completed contracts at transition - The amendments include certain practical expedients in transition related to completed contracts. The amendments also clarify the definition of a completed contract. • Disclosing the accounting change in the period of adoption - ASU 2016-12 provides an exception to the requirement in Topic 250 to disclose the effect on the current period of retrospectively adopting a new accounting standard. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends the new revenue standard. The amendments do not alter the core principle of the standard, but clarify certain narrow aspects of the standard including contract cost accounting, disclosures, illustrative examples, and other matters. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements of Topic 606. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. ASU 2016-01 In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following among others: (i) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and, (iv) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Corporation has evaluated the provision of ASU 2016-01 to determine the potential impact of the new standard and has determined that it is not expected to have an impact on its consolidated financial condition or results of operations. ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases . From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU 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 for a lessee. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. 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. A modified retrospective transition approach is required for lessors for sales-type, direct financing, 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. While the Corporation is currently evaluating the timing and impact of adopting ASU 2016-02, the ultimate impact of adopting ASU 2016-02 will depend on the Corporation’s lease portfolio as of the adoption date. ASU 2016-09 In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an “APIC pool.” The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with existing U.S. GAAP) or account for forfeitures when they occur. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Corporation has evaluated the provision of ASU 2016-09 to determine the potential impact of the new standard and has determined that it is not expected to have an impact on its consolidated financial condition or results of operations. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. The new standard is effective for fiscal year beginning after December 15, 2018, including interim periods within the fiscal year. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule Of Components Of The Accumulated Other Comprehensive Loss, Net Of Taxes | The components of the accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized (Losses) Gains on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — DECEMBER 31, 2016 $ (266 ) $ (5,758 ) $ (6,024 ) BALANCE — DECEMBER 31, 2015 $ 1,164 $ (5,890 ) $ (4,726 ) |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | Amortized cost and fair value at December 31, 2016 and 2015 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE December 31, 2016 U.S. Government and agencies $ 81,065 $ 43 $ 1,529 $ 79,579 Mortgage-backed securities, residential 31,272 782 81 31,973 State and municipal 24,514 240 94 24,660 Corporate bonds 5,000 62 — 5,062 CRA mutual fund 1,044 — 9 1,035 Stock in other banks 498 183 — 681 $ 143,393 $ 1,310 $ 1,713 $ 142,990 December 31, 2015 U.S. Government and agencies $ 46,218 $ 124 $ 313 $ 46,029 Mortgage-backed securities, residential 41,528 1,336 25 42,839 State and municipal 27,437 642 1 28,078 Corporate bonds 7,000 20 65 6,955 CRA mutual fund 1,044 9 — 1,053 Stock in other banks 702 49 12 739 $ 123,929 $ 2,180 $ 416 $ 125,693 SECURITIES HELD TO MATURITY December 31, 2016 U.S. Government and agencies $ 23,017 $ 26 $ 54 $ 22,989 Mortgage-backed securities, residential 32,551 210 325 32,436 $ 55,568 $ 236 $ 379 $ 55,425 December 31, 2015 U.S. Government and agencies $ 31,044 $ 27 $ 176 $ 30,895 Mortgage-backed securities, residential 40,498 232 262 40,468 $ 71,542 $ 259 $ 438 $ 71,363 |
Schedule of Unrealized Loss on Investments | The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2016 and 2015 : Less than 12 Months 12 Months or More Total In thousands Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses SECURITIES AVAILABLE FOR SALE December 31, 2016 U.S. Government and agencies $ 71,454 $ 1,529 $ — $ — $ 71,454 $ 1,529 Mortgage-backed securities, residential 8,966 81 — — 8,966 81 State and municipal 4,933 94 — — 4,933 94 CRA Mutual Fund 1,035 9 — — 1,035 9 $ 86,388 $ 1,713 $ — $ — $ 86,388 $ 1,713 December 31, 2015 U.S. Government and agencies $ 31,992 $ 313 $ — $ — $ 31,992 $ 313 Mortgage-backed securities, residential 4,855 25 — — 4,855 25 State and municipal 909 1 — — 909 1 Corporate bonds 4,935 65 — — 4,935 65 Stock in other banks 191 12 — — 191 12 $ 42,882 $ 416 $ — $ — $ 42,882 $ 416 SECURITIES HELD TO MATURITY December 31, 2016 U.S. Government and agencies $ 12,946 $ 54 $ — $ — $ 12,946 $ 54 Mortgage-backed securities, residential 12,956 325 — — 12,956 325 $ 25,902 $ 379 $ — $ — $ 25,902 $ 379 December 31, 2015 U.S. Government and agencies $ 18,959 $ 83 $ 6,907 $ 93 $ 25,866 $ 176 Mortgage-backed security, residential 3,109 13 15,420 249 18,529 262 $ 22,068 $ 96 $ 22,327 $ 342 $ 44,395 $ 438 |
Investments Classified by Contractual Maturity Date | Amortized cost and fair value at December 31, 2016 , by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Available for Sale Held to Maturity In thousands Amortized Cost Fair Value Amortized Cost Fair Value 1 year or less $ 4,352 $ 4,383 $ 4,017 $ 4,020 Over 1 year through 5 years 84,974 83,928 19,000 18,969 Over 5 years through 10 years 21,055 20,808 — — Over 10 years 198 182 — — Mortgage-backed securities, residential 31,272 31,973 32,551 32,436 CRA mutual fund 1,044 1,035 — — Stock in other banks 498 681 — — $ 143,393 $ 142,990 $ 55,568 $ 55,425 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating | 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 the Corporation’s internal risk rating system as of December 31, 2016 and 2015 : In thousands Pass Special Mention Substandard Doubtful Total December 31, 2016 Commercial and industrial $ 134,088 $ 2,355 $ 3,901 $ — $ 140,344 Commercial real estate 291,762 17,376 9,842 — 318,980 Commercial real estate construction 13,606 1,202 463 — 15,271 Residential mortgage 344,048 3,617 874 — 348,539 Home equity lines of credit 69,190 756 126 — 70,072 Consumer 14,704 — — — 14,704 Total $ 867,398 $ 25,306 $ 15,206 $ — $ 907,910 December 31, 2015 Commercial and industrial $ 112,037 $ 3,744 $ 1,911 $ — $ 117,692 Commercial real estate 252,071 23,421 14,407 — 289,899 Commercial real estate construction 11,087 1,968 374 — 13,429 Residential mortgage 350,537 5,548 1,143 — 357,228 Home equity lines of credit 58,856 1,138 130 — 60,124 Consumer 14,588 — — — 14,588 Total $ 799,176 $ 35,819 $ 17,965 $ — $ 852,960 |
Impaired Loans By Loan Portfolio Class | The following table summarizes information relative to impaired loans by loan portfolio class as of December 31, 2016 and 2015 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance December 31, 2016 Commercial and industrial $ 948 $ 948 $ 599 $ 1,178 $ 1,178 Commercial real estate — — — 8,764 8,965 Commercial real estate construction — — — 300 300 Residential mortgage 376 376 333 379 379 Total $ 1,324 $ 1,324 $ 932 $ 10,621 $ 10,822 December 31, 2015 Commercial and industrial $ — $ — $ — $ 1,471 $ 1,471 Commercial real estate — — — 8,185 8,396 Commercial real estate construction — — — 374 648 Residential mortgage — — — 461 461 Total $ — $ — $ — $ 10,491 $ 10,976 |
Average Of Impaired Loans And Related Interest Income By Loan Portfolio Class | The following table summarizes information in regards to average of impaired loans and related interest income by loan portfolio class: Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income December 31, 2016 Commercial and industrial $ 190 $ — $ 1,356 $ 3 Commercial real estate — — 8,377 371 Commercial real estate construction — — 330 — Residential mortgage 224 — 424 17 Total $ 414 $ — $ 10,487 $ 391 December 31, 2015 Commercial and industrial $ — $ — $ 1,591 $ 129 Commercial real estate — — 9,057 449 Commercial real estate construction — — 276 — Residential mortgage 278 — 463 18 Total $ 278 $ — $ 11,387 $ 596 December 31, 2014 Commercial and industrial $ — $ — $ 1,351 $ 2 Commercial real estate 144 — 10,380 459 Commercial real estate construction — — 604 — Residential mortgage 1,027 9 576 16 Total $ 1,171 $ 9 $ 12,911 $ 477 |
Nonaccrual Loans By Classes Of The Loan Portfolio | The following table presents nonaccrual loans by loan portfolio class as of December 31, 2016 and 2015 : In thousands 2016 2015 Commercial and industrial $ 2,126 $ 1,471 Commercial real estate 1,593 1,676 Commercial real estate construction 300 374 Residential mortgage 483 178 Total $ 4,502 $ 3,699 |
Troubled Debt Restructurings | The following table summarizes information relative to troubled debt restructurings by loan portfolio class at December 31, 2016 and 2015 : In thousands Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Recorded Investment at period end December 31, 2016 Nonaccruing troubled debt restructurings: Commercial real estate $ 648 $ 648 $ 377 Total nonaccruing troubled debt restructurings 648 648 377 Accruing troubled debt restructurings: Commercial real estate 7,944 8,002 7,171 Residential mortgage 336 336 272 Total accruing troubled debt restructurings 8,280 8,338 7,443 Total Troubled Debt Restructurings $ 8,928 $ 8,986 $ 7,820 December 31, 2015 Nonaccruing troubled debt restructurings: Commercial real estate $ 1,021 $ 1,021 $ 460 Commercial real estate construction 1,548 1,541 74 Total nonaccruing troubled debt restructurings 2,569 2,562 534 Accruing troubled debt restructurings: Commercial real estate 7,118 7,170 6,509 Residential mortgage 336 336 283 Total accruing troubled debt restructurings 7,454 7,506 6,792 Total Troubled Debt Restructurings $ 10,023 $ 10,068 $ 7,326 The following table summarizes loans whose terms have been modified resulting in troubled debt restructurings during the years ended December 31, 2016 and 2015 : Dollars in thousands Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Recorded Investment at Period End 2016 Troubled debt restructurings 1 $ 826 $ 832 $ 832 2015 Troubled debt restructurings — $ — $ — $ — |
Loan Portfolio Summarized By The Past Due Status | The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2016 and 2015 : In thousands 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Receivable Loans Receivable >90 Days and Accruing December 31, 2016 Commercial and industrial $ 26 $ 1 $ 1,178 $ 1,205 $ 139,139 $ 140,344 $ — Commercial real estate 325 674 — 999 317,981 318,980 — Commercial real estate construction — — 300 300 14,971 15,271 — Residential mortgage 2,866 657 1,413 4,936 343,603 348,539 937 Home equity lines of credit 310 56 408 774 69,298 70,072 408 Consumer 31 47 — 78 14,626 14,704 — Total $ 3,558 $ 1,435 $ 3,299 $ 8,292 $ 899,618 $ 907,910 $ 1,345 December 31, 2015 Commercial and industrial $ 16 $ 61 $ 1,471 $ 1,548 $ 116,144 $ 117,692 $ — Commercial real estate 77 1,047 743 1,867 288,032 289,899 — Commercial real estate construction — — 374 374 13,055 13,429 — Residential mortgage 1,686 248 2,082 4,016 353,212 357,228 1,904 Home equity lines of credit 186 — 228 414 59,710 60,124 228 Consumer 26 26 — 52 14,536 14,588 — Total $ 1,991 $ 1,382 $ 4,898 $ 8,271 $ 844,689 $ 852,960 $ 2,132 |
Allowance For Loan Losses And Recorded Investment In Financing Receivables | The following table summarizes the allowance for loan losses and recorded investment in loans: In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total December 31, 2016 Allowance for loan losses Beginning balance- January 1, 2016 $ 2,508 $ 5,216 $ 112 $ 3,349 $ 619 $ 1,083 $ 1,860 $ 14,747 Charge-offs (318 ) — (135 ) (189 ) (74 ) (50 ) — (766 ) Recoveries 45 — 132 25 — 11 — 213 Provisions 820 (248 ) 38 293 103 (121 ) (885 ) — Ending balance- December 31, 2016 $ 3,055 $ 4,968 $ 147 $ 3,478 $ 648 $ 923 $ 975 $ 14,194 Ending balance: individually evaluated for impairment $ 599 $ — $ — $ 333 $ — $ — $ — $ 932 Ending balance: collectively evaluated for impairment $ 2,456 $ 4,968 $ 147 $ 3,145 $ 648 $ 923 $ 975 $ 13,262 Loans receivables Ending balance $ 140,344 $ 318,980 $ 15,271 $ 348,539 $ 70,072 $ 14,704 $ — $ 907,910 Ending balance: individually evaluated for impairment $ 2,126 $ 8,764 $ 300 $ 755 $ — $ — $ — $ 11,945 Ending balance: collectively evaluated for impairment $ 138,218 $ 310,216 $ 14,971 $ 347,784 $ 70,072 $ 14,704 $ — $ 895,965 December 31, 2015 Allowance for loan losses Beginning balance- January 1, 2015 $ 2,048 $ 5,872 $ 194 $ 3,845 $ 557 $ 1,050 $ 1,606 $ 15,172 Charge-offs (150 ) — (39 ) (622 ) (15 ) (111 ) — (937 ) Recoveries 369 — — 136 — 7 — 512 Provisions 241 (656 ) (43 ) (10 ) 77 137 254 — Ending balance- December 31, 2015 $ 2,508 $ 5,216 $ 112 $ 3,349 $ 619 $ 1,083 $ 1,860 $ 14,747 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 2,508 $ 5,216 $ 112 $ 3,349 $ 619 $ 1,083 $ 1,860 $ 14,747 Loans receivables Ending balance $ 117,692 $ 289,899 $ 13,429 $ 357,228 $ 60,124 $ 14,588 $ — $ 852,960 Ending balance: individually evaluated for impairment $ 1,471 $ 8,185 $ 374 $ 461 $ — $ — $ — $ 10,491 Ending balance: collectively evaluated for impairment $ 116,221 $ 281,714 $ 13,055 $ 356,767 $ 60,124 $ 14,588 $ — $ 842,469 In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total December 31, 2014 Allowance for loan losses Beginning balance- January 1, 2014 $ 1,915 $ 5,819 $ 247 $ 4,013 $ 537 $ 947 $ 2,613 $ 16,091 Charge-offs (132 ) (121 ) — (705 ) (169 ) (64 ) — (1,191 ) Recoveries 15 — — 97 — 10 — 122 Provisions 250 174 (53 ) 440 189 157 (1,007 ) 150 Ending balance- December 31, 2014 $ 2,048 $ 5,872 $ 194 $ 3,845 $ 557 $ 1,050 $ 1,606 $ 15,172 Ending balance: individually evaluated for impairment $ — $ — $ — $ 302 $ — $ — $ — $ 302 Ending balance: collectively evaluated for impairment $ 2,048 $ 5,872 $ 194 $ 3,543 $ 557 $ 1,050 $ 1,606 $ 14,870 Loans receivables Ending balance $ 74,855 $ 281,582 $ 12,210 $ 359,375 $ 55,973 $ 15,277 $ — $ 799,272 Ending balance: individually evaluated for impairment $ 1,729 $ 9,999 $ 368 $ 1,520 $ — $ — $ — $ 13,616 Ending balance: collectively evaluated for impairment $ 73,126 $ 271,583 $ 11,842 $ 357,855 $ 55,973 $ 15,277 $ — $ 785,656 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Premises and equipment at December 31 were as follows: In thousands 2016 2015 Land $ 2,624 $ 2,677 Buildings and improvements 19,917 19,886 Furniture and equipment 13,273 13,482 Construction in process 82 629 35,896 36,674 Accumulated depreciation (17,743 ) (18,630 ) $ 18,153 $ 18,044 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Interest-bearing Deposit Liabilities [Abstract] | |
Schedule Of Deposits | Deposits were comprised of the following as of December 31: In thousands 2016 2015 Non-interest bearing demand $ 180,593 $ 166,224 Interest bearing demand 130,453 135,826 Savings 414,682 364,086 Time certificates of deposit of $250,000 or less 209,805 215,539 Time certificates of deposit greater than $250,000 32,088 31,305 $ 967,621 $ 912,980 |
Schedule Of Maturities Of Time Certificates Of Deposits | Scheduled maturities of time certificates of deposit at December 31, 2016 , were as follows: Years Ending In thousands 2017 $ 146,632 2018 42,471 2019 48,347 2020 2,800 2021 1,643 $ 241,893 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Rental Payments | The following is a schedule by year of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31: Years Ending In thousands 2017 $ 495 2018 406 2019 361 2020 309 2021 276 Later years 1,386 $ 3,233 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short-term borrowings and weighted-average interest rates at December 31 are as follows: 2016 2015 Dollars in thousands Amount Rate Amount Rate FHLB overnight advance $ — — % $ — — % Securities sold under repurchase agreements 34,590 0.12 35,202 0.12 $ 34,590 0.12 % $ 35,202 0.12 % |
Offsetting Liabilities | The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of December 31, 2016 and 2015 : Gross Amounts Not Offset in the Statements of Condition Dollars in thousands Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Financial Instruments Cash Collateral Pledged Net Amount December 31, 2016 Repurchase agreements Commercial customers and government entities (a) $ 34,590 $ — $ 34,590 $ (34,590 ) $ — $ — December 31, 2015 Repurchase agreements Commercial customers and government entities (a) $ 35,202 $ — $ 35,202 $ (35,202 ) $ — $ — (a) As of December 31, 2016 and 2015 , the fair value of securities pledged in connection with repurchase agreements was $41,406,000 and $41,132,000 , respectively. |
Schedule of Maturities of Long-term Debt | A summary of long-term debt as of December 31 is as follows: 2016 2015 Dollars in thousands Amount Rate Amount Rate FHLB fixed-rate advances maturing: 2016 $ — — % $ 18,250 1.98 % 2017 14,250 2.30 % 14,250 2.30 % 2018 25,500 1.87 % 24,500 1.90 % 2019 19,500 1.75 % 14,500 1.86 % 2020 12,000 1.84 % 5,000 1.96 % 2021 3,000 1.58 % — — % $ 74,250 1.91 % $ 76,500 2.05 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years ended December 31, 2016 , 2015 and 2014 , are as follows: In thousands 2016 2015 2014 Federal: Current $ 3,530 $ 3,316 $ 2,152 Deferred 171 392 875 3,701 3,708 3,027 State: Current 67 53 53 $ 3,768 $ 3,761 $ 3,080 |
Schedule of Reconciliations of the Statutory Federal Income Tax | Reconciliations of the statutory federal income tax to the income tax expense reported in the consolidated statements of income for the years ended December 31, 2016 , 2015 and 2014 , are as follows: Percentage of Income before Income Taxes 2016 2015 2014 Federal income tax at statutory rate 34.0 % 34.0 % 34.0 % State income taxes, net of federal benefit 0.3 % 0.2 % 0.3 % Tax-exempt income (4.8 )% (4.4 )% (3.5 )% Earnings on investment in bank-owned life insurance (2.6 )% (2.5 )% (2.8 )% Rehabilitation and low-income housing credits (2.0 )% (2.0 )% (5.1 )% Other 0.8 % 0.2 % 0.1 % 25.7 % 25.5 % 23.0 % |
Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities at December 31 were as follows: In thousands 2016 2015 Deferred tax assets: Allowance for loan losses $ 4,968 $ 5,014 Available for sale securities 143 — Accrued deferred compensation 1,166 1,008 Pension 3,101 3,034 Deferred loan fees — 4 Other-than-temporary impairment 70 178 Nonaccrual interest 226 168 Deferred director fees 686 576 Other 982 644 11,342 10,626 Deferred tax liabilities: Deferred loan fees 79 — Available for sale securities — 600 Prepaid pension benefit cost 6,632 6,505 Prepaid expenses 123 166 Accumulated depreciation 372 331 Goodwill/intangibles 1,006 873 8,212 8,475 Net Deferred Tax Asset $ 3,130 $ 2,151 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at December 31, 2016 and 2015 , are as follows: Fair Value Measurements at December 31, 2016 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 79,579 $ — $ 79,579 $ — Mortgage-backed securities, residential 31,973 — 31,973 — State and municipal 24,660 — 24,660 — Corporate bonds 5,062 — 5,062 — CRA mutual fund 1,035 1,035 — — Stock in other banks 681 681 — — Total securities available for sale Recurring $ 142,990 $ 1,716 $ 141,274 $ — Impaired loans Non-recurring $ 4,406 $ — $ — $ 4,406 Foreclosed assets held for resale Non-recurring $ — $ — $ — $ — Fair Value Measurements at December 31, 2015 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 46,029 $ — $ 46,029 $ — Mortgage-backed securities, residential 42,839 — 42,839 — State and municipal 28,078 — 28,078 — Corporate bonds 6,955 — 6,955 — CRA mutual fund 1,053 1,053 — — Stock in other banks 739 739 — — Total securities available for sale Recurring $ 125,693 $ 1,792 $ 123,901 $ — Impaired loans Non-recurring $ 4,451 $ — $ — $ 4,451 Foreclosed assets held for resale Non-recurring $ — $ — $ — $ — |
Fair Value Inputs, Assets, Quantitative Information | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Dollars in thousands Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average December 31, 2016 Impaired loans $ 4,406 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (39 )% Foreclosed assets held for resale $ — Appraisal of collateral (1) (3) Appraisal adjustments (2) (10) - (50)% — % December 31, 2015 Impaired loans $ 4,451 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (16 )% Foreclosed assets held for resale $ — Appraisal of collateral (1) (3) Appraisal adjustments (2) (10) - (50)% — % (1) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value, by Balance Sheet Grouping | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2016 and 2015 : December 31, 2016 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 13,796 $ 13,796 $ 6,921 $ 6,875 $ — Interest-bearing deposits in banks 5,135 5,135 5,135 — — Investment securities available for sale 142,990 142,990 1,716 141,274 — Investment securities held to maturity 55,568 55,425 — 55,425 — Loans held for sale 1,770 1,770 — 1,770 — Loans, less allowance for loan losses 893,176 888,169 — — 888,169 Accrued interest receivable 3,158 3,158 — 3,158 — Restricted investment in bank stocks 4,349 4,349 — 4,349 — Financial liabilities: Deposits 967,621 967,236 — 967,236 — Short-term borrowings 34,590 34,590 — 34,590 — Long-term borrowings 74,250 75,029 — 75,029 — Accrued interest payable 837 837 — 837 — Off-balance sheet financial instruments — — — — — December 31, 2015 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 13,468 $ 13,468 $ 6,746 $ 6,722 $ — Interest-bearing deposits in banks 5,289 5,289 5,289 — — Investment securities available for sale 125,693 125,693 1,792 123,901 — Investment securities held to maturity 71,542 71,363 — 71,363 — Loans held for sale 1,835 1,835 — 1,835 — Loans, less allowance for loan losses 838,213 842,169 — — 842,169 Accrued interest receivable 3,016 3,016 — 3,016 — Restricted investment in bank stocks 4,414 4,414 — 4,414 — Financial liabilities: Deposits 912,980 913,188 — 913,188 — Short-term borrowings 35,202 35,202 — 35,202 — Long-term borrowings 76,500 77,545 — 77,545 — Accrued interest payable 815 815 — 815 — Off-balance sheet financial instruments — — — — — |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Schedule of Benefit Plan Funded Status | A measurement date of December 31 has been used for the fiscal years ended December 31, 2016 and 2015 . In thousands 2016 2015 Change in benefit obligation: Benefit obligation at beginning of year $ 26,670 $ 27,165 Service cost 795 881 Interest cost 1,136 1,040 Change in assumptions 1,059 (1,438 ) Benefits paid (1,035 ) (978 ) Benefit obligation at end of year 28,625 26,670 Change in plan assets: Fair value of plan assets at beginning of year 36,880 38,163 Actual return on plan assets 2,870 (305 ) Employer contribution — — Benefits paid (1,035 ) (978 ) Fair value of plan assets at end of year 38,715 36,880 Funded Status, included in other assets $ 10,090 $ 10,210 Amounts recognized in accumulated other comprehensive loss: Total net actuarial loss $ 8,859 $ 8,923 Prior service cost — 1 Total included in accumulated other comprehensive loss (pretax) $ 8,859 $ 8,924 |
Estimated Costs To Be Amortized From AOCI Into Net Periodic Pension Cost During The Next Fiscal Year | The estimated costs that will be amortized from accumulated other comprehensive loss into net periodic pension cost during the next fiscal year are as follows: In thousands Net loss $ 677 Prior service cost — $ 677 |
Components Of Net Periodic Benefit Costs (Income) | The components of net periodic benefit costs (income) related to the non-contributory, defined benefit pension plan for the years ended December 31 are as follows: In thousands 2016 2015 2014 Components of net periodic benefit cost (income): Service cost $ 795 $ 881 $ 689 Interest cost 1,136 1,040 1,035 Expected return on plan assets (2,429 ) (2,542 ) (2,311 ) Recognized net actuarial loss 682 481 21 Amortization of prior service cost 1 24 40 Net Periodic Benefit Cost (Income) 185 (116 ) (526 ) Net loss 618 1,409 4,349 Amortization of net loss (682 ) (481 ) (21 ) Amortization of prior service cost (1 ) (24 ) (40 ) Total recognized in other comprehensive (income) loss $ (65 ) $ 904 $ 4,288 Total recognized in net periodic benefit cost and other comprehensive loss $ 120 $ 788 $ 3,762 |
Assumptions Used To Determine The Benefit Obligation and Net Periodic Benefit Cost (Income) | For the years ended December 31, 2016 , 2015 and 2014 , the assumptions used to determine the benefit obligation are as follows: 2016 2015 2014 Discount rate 4.05 % 4.35 % 3.90 % Rate of compensation increase 3.50 % 3.50 % 3.75 % For the years ended December 31, 2016 , 2015 and 2014 , the assumptions used to determine the net periodic benefit cost (income) are as follows: 2016 2015 2014 Discount rate 4.35 % 3.90 % 4.75 % Expected long-term rate of return on plan assets 6.75 % 6.75 % 6.75 % Rate of compensation increase 3.50 % 3.75 % 3.75 % |
Pension Plan Weighted-Average Assets' Allocations | The Corporation’s pension plan weighted-average assets’ allocations at December 31, 2016 and 2015 , are as follows: 2016 2015 Equity securities 48 % 48 % Debt securities 46 % 47 % Short-term fixed income — % — % Real estate 6 % 5 % 100 % 100 % |
Fair Value Measurements | Fair value measurements at December 31, 2016 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 18,687 $ 2,175 $ 16,512 $ — Debt securities 17,888 — 17,888 — Real estate 2,140 — 2,140 — Fair value measurements at December 31, 2015 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 17,618 $ 1,437 $ 16,181 $ — Debt securities 17,463 — 17,463 — Real estate 1,799 — 1,799 — |
Future Benefit Payments | Based on current data and assumptions, the following benefit payments, which reflect expected future service, as appropriate, are: Years Ending In thousands 2017 $ 1,220 2018 1,300 2019 1,400 2020 1,430 2021 1,630 2022 - 2026 8,910 |
STOCKHOLDERS' EQUITY AND REGU42
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
The Actual and Required Capital Amounts and Ratios | The actual and required capital amounts and ratios were as follows: Actual For Capital Adequacy Purposes To be Well Capitalized under Prompt Corrective Action Provisions Dollars in thousands Amount Ratio Amount (1) Ratio (1) Amount Ratio CORPORATION As of December 31, 2016 Tier 1 leverage ratio (to average assets) $ 121,650 10.06 % $ ≥48,382 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 121,650 14.71 ≥37,205 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 121,650 14.71 ≥49,606 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 132,033 15.97 ≥66,142 ≥8.0 N/A N/A As of December 31, 2015 Tier 1 leverage ratio (to average assets) $ 115,005 10.08 % $ ≥45,646 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 115,005 15.00 ≥34,503 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 115,005 15.00 ≥46,004 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 124,675 16.26 ≥61,339 ≥8.0 N/A N/A BANK As of December 31, 2016 Tier 1 leverage ratio (to average assets) $ 106,540 8.82 % $ ≥48,316 ≥4.0% $ ≥60,395 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 106,540 12.96 ≥36,995 ≥4.5 ≥53,438 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 106,540 12.96 ≥49,327 ≥6.0 ≥65,770 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 116,865 14.22 ≥65,770 ≥8.0 ≥82,212 ≥10.0 As of December 31, 2015 Tier 1 leverage ratio (to average assets) $ 100,698 8.84 % $ ≥45,550 ≥4.0% $ ≥56,938 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 100,698 13.22 ≥34,270 ≥4.5 ≥49,501 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 100,698 13.22 ≥45,693 ≥6.0 ≥60,924 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 110,287 14.48 ≥60,924 ≥8.0 ≥76,155 ≥10.0 (1) Amounts and ratios do not include capital conversation buffer. |
FINANCIAL INSTRUMENTS WITH OF43
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | A summary of the Corporation’s commitments at December 31 were as follows: In thousands 2016 2015 Commitments to extend credit $ 258,631 $ 199,932 Standby letters of credit 6,134 4,986 |
ACNB CORPORATION (PARENT COMP44
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Statements of Condition | December 31, In thousands 2016 2015 ASSETS Cash $ 8,563 $ 4,448 Investment in banking subsidiary 100,395 95,948 Investment in other subsidiaries 8,768 8,928 Investments in low-income housing partnerships 1,016 1,336 Securities and other assets 1,232 1,340 Receivable from banking subsidiary 130 2,769 Total Assets $ 120,104 $ 114,769 LIABILITIES AND STOCKHOLDERS’ EQUITY Other liabilities $ 43 $ 54 Stockholders’ equity 120,061 114,715 Total Liabilities and Stockholders’ Equity $ 120,104 $ 114,769 |
Statements of Income | Years Ended December 31, In thousands 2016 2015 2014 Dividends from banking subsidiary $ 4,840 $ 4,820 $ 4,801 Gain on sale of securities 26 — — Other income 35 190 310 4,901 5,010 5,111 Expenses 854 431 697 4,047 4,579 4,414 Income tax benefit 490 381 810 4,537 4,960 5,224 Equity in undistributed earnings of subsidiaries 6,332 6,057 5,066 Net Income $ 10,869 $ 11,017 $ 10,290 Comprehensive Income $ 9,571 $ 9,014 $ 7,461 |
Statements of Cash Flows | Years Ended December 31, In thousands 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 10,869 $ 11,017 $ 10,290 Equity in undistributed earnings of subsidiaries (6,332 ) (6,057 ) (5,066 ) Decrease (Increase) in receivable from banking subsidiary 2,639 (131 ) (810 ) Gain on sale of securities (26 ) — — Other 540 86 799 Net Cash Provided by Operating Activities 7,690 4,915 5,213 CASH FLOWS FROM INVESTING ACTIVITIES Return of investment from subsidiary 650 750 250 Net Cash Provided by Investing Activities 650 750 250 CASH FLOWS USED IN FINANCING ACTIVITIES Repayments on long-term debt — (1,437 ) (266 ) Proceeds from issuance of common stock 615 499 381 Dividends paid (4,840 ) (4,820 ) (4,622 ) Net Cash Used in Financing Activities (4,225 ) (5,758 ) (4,507 ) Net Increase (Decrease) in Cash and Cash Equivalents 4,115 (93 ) 956 CASH AND CASH EQUIVALENTS — BEGINNING 4,448 4,541 3,585 CASH AND CASH EQUIVALENTS — ENDING $ 8,563 $ 4,448 $ 4,541 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Carrying Value And Accumulated Amortization Of The Intangible Assets (Customer Lists) | The carrying value and accumulated amortization of the intangible assets (customer lists) as of December 31, 2016 and 2015 , are as follows: 2016 2015 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets $ 6,667 $ 5,979 $ 6,667 $ 5,634 |
Expected Amortization Expense | Amortization of the intangible assets for the five years subsequent to December 31, 2016 , is expected to be as follows: Years Ending In thousands 2017 $ 323 2018 238 2019 28 2020 23 2021 23 Thereafter 53 |
SEGMENT AND RELATED INFORMATI46
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information for 2016 , 2015 and 2014 is as follows: In thousands Banking Insurance Total 2016 Net interest income and other income from external customers $ 45,313 $ 4,461 $ 49,774 Income before income taxes 13,828 809 14,637 Total assets 1,195,857 10,463 1,206,320 Capital expenditures 2,333 11 2,344 2015 Net interest income and other income from external customers $ 43,522 $ 4,490 $ 48,012 Income before income taxes 14,137 641 14,778 Total assets 1,138,106 9,819 1,147,925 Capital expenditures 1,712 26 1,738 2014 Net interest income and other income from external customers $ 41,183 $ 4,601 $ 45,784 Income before income taxes 12,729 641 13,370 Total assets 1,078,546 11,262 1,089,808 Capital expenditures 2,141 1,007 3,148 |
QUARTERLY RESULTS OF OPERATIO47
QUARTERLY RESULTS OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations [Abstract] | |
Selected Quarterly Information | Selected quarterly information for the years ended December 31, 2016 and 2015 , is as follows: Dollars in thousands, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Interest income $ 9,964 $ 10,010 $ 10,181 $ 10,345 Interest expense 957 980 996 1,001 Net interest income 9,007 9,030 9,185 9,344 Provision for loan losses — — — — Net interest income after provision for loan losses 9,007 9,030 9,185 9,344 Net gains on sales of securities — — — 26 Gain on sales of premises and equipment — 449 — — Other income 2,872 3,362 3,301 3,198 Proposed merger expenses — — — 472 Other expenses and provision for income taxes 9,332 9,859 9,718 9,524 Net income $ 2,547 $ 2,982 $ 2,768 $ 2,572 Basic earnings per share $ 0.42 $ 0.49 $ 0.46 $ 0.43 Dividends per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 2015 Interest income $ 9,811 $ 10,045 $ 9,717 $ 9,891 Interest expense 970 989 959 940 Net interest income 8,841 9,056 8,758 8,951 Provision for loan losses — — — — Net interest income after provision for loan losses 8,841 9,056 8,758 8,951 Net gains on sales of securities — 101 158 2 Other income 2,793 3,138 3,132 3,082 Other expenses and provision for income taxes 9,091 9,485 9,236 9,183 Net income $ 2,543 $ 2,810 $ 2,812 $ 2,852 Basic earnings per share $ 0.42 $ 0.47 $ 0.47 $ 0.47 Dividends per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Line Items] | |||
Number of Full-service Bank Offices | 22 | ||
Assets Held-in-trust | $ 195,000,000 | $ 178,000,000 | |
Total Loans Receivable | $ 907,910,000 | 852,960,000 | $ 799,272,000 |
Number of minimum months for corporation to order updated valuation | 18 months | ||
Other Postretirement Benefit Expense | $ 96,000 | $ 46,000 | $ 29,000 |
Intangible asset amortization life | 10 years | ||
Weighted Average Number of Shares Outstanding, Basic | 6,051,579 | 6,026,224 | 6,002,240 |
Restricted Stock | |||
Summary of Significant Accounting Policies [Line Items] | |||
Shares issued under plan (in shares) | 7,435 | 5,673 | |
Compensation expense | $ 59,000 | ||
Shares vested (in shares) | 2,478 | ||
Shares expected to vest over next two years (in shares) | 4,957 | ||
Weighted average remaining contractual term | 2 years | ||
Credit Concentration Risk | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total Loans Receivable | $ 162,321,000 | ||
Concentration Risk, Percentage | 17.90% | ||
Residential Mortgage and Commercial Loans | |||
Summary of Significant Accounting Policies [Line Items] | |||
Threshold period past due to discontinue accrual interest on financing receivable | 90 days | ||
Consumer | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total Loans Receivable | $ 14,704,000 | $ 14,588,000 | $ 15,277,000 |
Threshold period past due for charge off of financing receivable | 120 days | ||
Commercial real estate | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total Loans Receivable | $ 318,980,000 | $ 289,899,000 | $ 281,582,000 |
Threshold period past due for Corporation to order updated valuation on financing receivable | 90 days | ||
Number of previous months with no updated valuation completed for Corporation to update validation | 12 months | ||
Number of maximum days of loan being classified as impaired for Corporation to order third party valuation | 30 days | ||
Commercial real estate | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio | 80.00% | ||
Residential Mortgage | |||
Summary of Significant Accounting Policies [Line Items] | |||
Loan-to-value ratio | 80.00% | ||
Residential Mortgage | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Financing receivable term | 30 years | ||
Home Equity Line of Credit | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio | 90.00% | ||
Buildings | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful life | 40 years | ||
Building Remodels and Additions | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful life | 15 years | ||
Bank Equipment | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful life | 5 years | ||
Bank Equipment | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Components Of The Accumulated Other Comprehensive Income, Net Of Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Loss [Line Items] | ||||
Components of accumulated other comprehensive loss | $ 120,061 | $ 114,715 | $ 110,022 | $ 106,802 |
Unrealized (Losses) Gains on Securities | ||||
Accumulated Other Comprehensive Loss [Line Items] | ||||
Components of accumulated other comprehensive loss | (266) | 1,164 | ||
Pension Liability | ||||
Accumulated Other Comprehensive Loss [Line Items] | ||||
Components of accumulated other comprehensive loss | (5,758) | (5,890) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Loss [Line Items] | ||||
Components of accumulated other comprehensive loss | $ (6,024) | $ (4,726) | $ (2,723) | $ 106 |
RESTRICTIONS ON CASH AND DUE 50
RESTRICTIONS ON CASH AND DUE FROM BANKS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Investments [Abstract] | ||
Compensating Balance, Amount | $ 1,203 | $ 933 |
Average Compensating Balance Amount | $ 1,337 | $ 1,512 |
SECURITIES (Unrealized Gain (Lo
SECURITIES (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | $ 143,393 | $ 123,929 |
Securities Available-for-sale, Gross Unrealized Gains | 1,310 | 2,180 |
Securities Available-for-sale, Gross Unrealized Losses | 1,713 | 416 |
Securities available for sale | 142,990 | 125,693 |
Securities Held-to-maturity, Amortized Cost | 55,568 | 71,542 |
Held-to-maturity Securities, Gross Unrealized Gains | 236 | 259 |
Securities Held-to-maturity, Gross Unrealized Losses | 379 | 438 |
Securities held to maturity, fair value | 55,425 | 71,363 |
U.S. Government and agencies | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | 81,065 | 46,218 |
Securities Available-for-sale, Gross Unrealized Gains | 43 | 124 |
Securities Available-for-sale, Gross Unrealized Losses | 1,529 | 313 |
Securities available for sale | 79,579 | 46,029 |
Securities Held-to-maturity, Amortized Cost | 23,017 | 31,044 |
Held-to-maturity Securities, Gross Unrealized Gains | 26 | 27 |
Securities Held-to-maturity, Gross Unrealized Losses | 54 | 176 |
Securities held to maturity, fair value | 22,989 | 30,895 |
Residential Mortgage Backed Securities | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | 31,272 | 41,528 |
Securities Available-for-sale, Gross Unrealized Gains | 782 | 1,336 |
Securities Available-for-sale, Gross Unrealized Losses | 81 | 25 |
Securities available for sale | 31,973 | 42,839 |
Securities Held-to-maturity, Amortized Cost | 32,551 | 40,498 |
Held-to-maturity Securities, Gross Unrealized Gains | 210 | 232 |
Securities Held-to-maturity, Gross Unrealized Losses | 325 | 262 |
Securities held to maturity, fair value | 32,436 | 40,468 |
State and municipal | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | 24,514 | 27,437 |
Securities Available-for-sale, Gross Unrealized Gains | 240 | 642 |
Securities Available-for-sale, Gross Unrealized Losses | 94 | 1 |
Securities available for sale | 24,660 | 28,078 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | 5,000 | 7,000 |
Securities Available-for-sale, Gross Unrealized Gains | 62 | 20 |
Securities Available-for-sale, Gross Unrealized Losses | 0 | 65 |
Securities available for sale | 5,062 | 6,955 |
CRA mutual fund | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | 1,044 | 1,044 |
Securities Available-for-sale, Gross Unrealized Gains | 0 | 9 |
Securities Available-for-sale, Gross Unrealized Losses | 9 | 0 |
Securities available for sale | 1,035 | 1,053 |
Stock In Other Banks | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Amortized Cost | 498 | 702 |
Securities Available-for-sale, Gross Unrealized Gains | 183 | 49 |
Securities Available-for-sale, Gross Unrealized Losses | 0 | 12 |
Securities available for sale | $ 681 | $ 739 |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Loss on Investments) (Details) $ in Thousands | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) |
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | $ 86,388 | $ 42,882 |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 1,713 | 416 |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | 0 |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | 0 |
Securities Available-for-sale, Total: Fair Value | 86,388 | 42,882 |
Securities Available-for-sale, Total Unrealized Loss | 1,713 | 416 |
Securities Held-to-maturity, Less than 12 Months: Fair Value | 25,902 | 22,068 |
Securities Held-to-maturity, Less than 12 Months: Unrealized Losses | 379 | 96 |
Securities Held-to-maturity, 12 Months or More, Fair Value | 0 | 22,327 |
Securities Held-to-maturity, 12 Months or More, Unrealized Losses | 0 | 342 |
Securities Held-to-maturity, Total: Fair Value | 25,902 | 44,395 |
Securities Held-to-maturity, Total Unrealized Losses | 379 | 438 |
U.S. Government and agencies | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | 71,454 | 31,992 |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 1,529 | 313 |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | 0 |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | 0 |
Securities Available-for-sale, Total: Fair Value | 71,454 | 31,992 |
Securities Available-for-sale, Total Unrealized Loss | 1,529 | 313 |
Securities Held-to-maturity, Less than 12 Months: Fair Value | 12,946 | 18,959 |
Securities Held-to-maturity, Less than 12 Months: Unrealized Losses | 54 | 83 |
Securities Held-to-maturity, 12 Months or More, Fair Value | 0 | 6,907 |
Securities Held-to-maturity, 12 Months or More, Unrealized Losses | 0 | 93 |
Securities Held-to-maturity, Total: Fair Value | 12,946 | 25,866 |
Securities Held-to-maturity, Total Unrealized Losses | $ 54 | 176 |
Available-for-sale securities in unrealized loss positions for less than 12 months | Security | 39 | |
Available-for-sale securities in unrealized loss positions, percentage of amortized cost | 5.00% | |
Held-to-maturity securities in unrealized loss postiions | Security | 7 | |
Held-to-maturity securities in unrealized loss positions, percentage of amortized cost | 1.00% | |
Residential Mortgage Backed Securities | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | $ 8,966 | 4,855 |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 81 | 25 |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | 0 |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | 0 |
Securities Available-for-sale, Total: Fair Value | 8,966 | 4,855 |
Securities Available-for-sale, Total Unrealized Loss | 81 | 25 |
Securities Held-to-maturity, Less than 12 Months: Fair Value | 12,956 | 3,109 |
Securities Held-to-maturity, Less than 12 Months: Unrealized Losses | 325 | 13 |
Securities Held-to-maturity, 12 Months or More, Fair Value | 0 | 15,420 |
Securities Held-to-maturity, 12 Months or More, Unrealized Losses | 0 | 249 |
Securities Held-to-maturity, Total: Fair Value | 12,956 | 18,529 |
Securities Held-to-maturity, Total Unrealized Losses | $ 325 | 262 |
Available-for-sale securities in unrealized loss positions for less than 12 months | Security | 8 | |
Available-for-sale securities in unrealized loss positions, percentage of amortized cost | 2.00% | |
Held-to-maturity securities in unrealized loss postiions | Security | 13 | |
Held-to-maturity securities in unrealized loss positions, percentage of amortized cost | 4.00% | |
State and municipal | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | $ 4,933 | 909 |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 94 | 1 |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | 0 |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | 0 |
Securities Available-for-sale, Total: Fair Value | 4,933 | 909 |
Securities Available-for-sale, Total Unrealized Loss | $ 94 | 1 |
Available-for-sale securities in unrealized loss positions for less than 12 months | Security | 17 | |
Available-for-sale securities in unrealized loss positions, percentage of amortized cost | 9.00% | |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | 4,935 | |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 65 | |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | |
Securities Available-for-sale, Total: Fair Value | 4,935 | |
Securities Available-for-sale, Total Unrealized Loss | $ 0 | 65 |
CRA mutual fund | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | 1,035 | |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 9 | |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | |
Securities Available-for-sale, Total: Fair Value | 1,035 | |
Securities Available-for-sale, Total Unrealized Loss | $ 9 | 0 |
Available-for-sale securities in unrealized loss positions, percentage of amortized cost | 1.00% | |
Stock In Other Banks | ||
Schedule of Investments [Line Items] | ||
Securities Available-for-sale, Less than 12 Months: Fair Value | 191 | |
Securities Available-for-sale, Less than 12 Months: Unrealized Losses | 12 | |
Securities Available-for-sale, 12 Months or More: Fair Value | 0 | |
Securities Available-for-sale, 12 Months or More: Unrealized Losses | 0 | |
Securities Available-for-sale, Total: Fair Value | 191 | |
Securities Available-for-sale, Total Unrealized Loss | $ 0 | $ 12 |
SECURITIES (Investments Classif
SECURITIES (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, 1 year or less | $ 4,352 | |
Available for sale Securities, Fair Value, 1 year or less | 4,383 | |
Available for sale Securities, Amortized Cost, Over 1 year through 5 years | 84,974 | |
Available for sale Securities, Fair Value, Over 1 year through 5 years | 83,928 | |
Available for sale Securities, Amortized Cost, Over 5 years through 10 years | 21,055 | |
Available for sale Securities, Fair Value, Over 5 years through 10 years | 20,808 | |
Available for sale Securities, Amortized Cost, Over 10 years | 198 | |
Available for sale Securities, Fair Value, Over 10 years | 182 | |
Available-for-sale Securities, Amortized Cost Basis | 143,393 | $ 123,929 |
Securities Available-for-sale, Fair Value | 142,990 | 125,693 |
Held-to-maturity Securities, Amortized Cost, 1 year or less | 4,017 | |
Held-to-maturity Securities, Fair Value, 1 year or less | 4,020 | |
Held-to-maturity Securities, Amortized Cost, Over 1 year through 5 years | 19,000 | |
Held-to-maturity Securities, Fair Value, Over 1 year through 5 years | 18,969 | |
Held-to-maturity Securities, Amortized Cost, Over 5 years through 10 years | 0 | |
Held-to-maturity Securities, Fair Value, Over 5 years through 10 years | 0 | |
Held-to-maturity Securities, Amortized Cost, Over 10 years | 0 | |
Held-to-maturity Securities, Fair Value, Over 10 years | 0 | |
Held-to-maturity Securities | 55,568 | 71,542 |
Securities held to maturity, fair value | $ 55,425 | 71,363 |
Available For Sale Securities Debt Maturities Within One Year Amortized Cost and Fair Value Period | 1 year | |
Available For Sale Securities and Held-to-Maturity Securities Debt Maturities After Ten Years Amortized Cost Period | 10 years | |
Minimum | ||
Schedule of Investments [Line Items] | ||
Available For Sale Securities and Held-to-Maturity Securities Debt Maturities After One Through Five Years Amortized Cost Period | 1 year | |
Available For Sale Securities and Held-to-Maturity Securities Debt Maturities After Five Through Ten Years Amortized Cost Period | 5 years | |
Maximum | ||
Schedule of Investments [Line Items] | ||
Available For Sale Securities and Held-to-Maturity Securities Debt Maturities After One Through Five Years Amortized Cost Period | 5 years | |
Available For Sale Securities and Held-to-Maturity Securities Debt Maturities After Five Through Ten Years Amortized Cost Period | 10 years | |
Residential Mortgage Backed Securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | $ 31,272 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 31,973 | |
Available-for-sale Securities, Amortized Cost Basis | 31,272 | 41,528 |
Securities Available-for-sale, Fair Value | 31,973 | 42,839 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 32,551 | |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 32,436 | |
Held-to-maturity Securities | 32,551 | 40,498 |
Securities held to maturity, fair value | 32,436 | 40,468 |
CRA mutual fund | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 1,044 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 1,035 | |
Available-for-sale Securities, Amortized Cost Basis | 1,044 | 1,044 |
Securities Available-for-sale, Fair Value | 1,035 | 1,053 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 0 | |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 0 | |
Stock In Other Banks | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 498 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 681 | |
Available-for-sale Securities, Amortized Cost Basis | 498 | 702 |
Securities Available-for-sale, Fair Value | 681 | $ 739 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 0 | |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | $ 0 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale Securities, Gross Realized Gains | $ 26,000 | $ 262,000 | $ 72,000 |
Available-for-sale Securities, Gross Realized Losses, Excluding Other than Temporary Impairments | 0 | 1,000 | $ 10,000 |
Available-for-sale Securities Pledged as Collateral | $ 134,763,000 | $ 117,646,000 |
LOANS (Classes Of The Loan Port
LOANS (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | $ 907,910 | $ 852,960 | $ 799,272 |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 140,344 | 117,692 | 74,855 |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 318,980 | 289,899 | 281,582 |
Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 15,271 | 13,429 | 12,210 |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 348,539 | 357,228 | 359,375 |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 70,072 | 60,124 | 55,973 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 14,704 | 14,588 | $ 15,277 |
Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 867,398 | 799,176 | |
Pass | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 134,088 | 112,037 | |
Pass | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 291,762 | 252,071 | |
Pass | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 13,606 | 11,087 | |
Pass | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 344,048 | 350,537 | |
Pass | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 69,190 | 58,856 | |
Pass | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 14,704 | 14,588 | |
Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 25,306 | 35,819 | |
Special Mention | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 2,355 | 3,744 | |
Special Mention | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 17,376 | 23,421 | |
Special Mention | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 1,202 | 1,968 | |
Special Mention | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 3,617 | 5,548 | |
Special Mention | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 756 | 1,138 | |
Special Mention | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 15,206 | 17,965 | |
Substandard | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 3,901 | 1,911 | |
Substandard | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 9,842 | 14,407 | |
Substandard | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 463 | 374 | |
Substandard | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 874 | 1,143 | |
Substandard | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 126 | 130 | |
Substandard | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Doubtful | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | $ 0 | $ 0 |
LOANS (Impaired Loans By Loan P
LOANS (Impaired Loans By Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | $ 1,324 | $ 0 |
Impaired Loans with Allowance, Unpaid Principal Balance | 1,324 | 0 |
Impaired Loans with Allowance, Related Allowance | 932 | 0 |
Impaired Loans with No Allowance, Recorded Investment | 10,621 | 10,491 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 10,822 | 10,976 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 948 | 0 |
Impaired Loans with Allowance, Unpaid Principal Balance | 948 | 0 |
Impaired Loans with Allowance, Related Allowance | 599 | 0 |
Impaired Loans with No Allowance, Recorded Investment | 1,178 | 1,471 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 1,178 | 1,471 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 0 | 0 |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Allowance, Recorded Investment | 8,764 | 8,185 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 8,965 | 8,396 |
Commercial real estate construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 0 | 0 |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Allowance, Recorded Investment | 300 | 374 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 300 | 648 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 376 | 0 |
Impaired Loans with Allowance, Unpaid Principal Balance | 376 | 0 |
Impaired Loans with Allowance, Related Allowance | 333 | 0 |
Impaired Loans with No Allowance, Recorded Investment | 379 | 461 |
Impaired Loans with No Allowance, Unpaid Principal Balance | $ 379 | $ 461 |
LOANS (Average Of Impaired Loan
LOANS (Average Of Impaired Loans And Related Interest Income By Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance, Average Recorded Investment | $ 414 | $ 278 | $ 1,171 |
Impaired Loans with Allowance, Interest Income | 0 | 0 | 9 |
Impaired Loans with No Allowance, Average Recorded Investment | 10,487 | 11,387 | 12,911 |
Impaired Loans with No Allowance, Interest Income | 391 | 596 | 477 |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance, Average Recorded Investment | 190 | 0 | 0 |
Impaired Loans with Allowance, Interest Income | 0 | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 1,356 | 1,591 | 1,351 |
Impaired Loans with No Allowance, Interest Income | 3 | 129 | 2 |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance, Average Recorded Investment | 0 | 0 | 144 |
Impaired Loans with Allowance, Interest Income | 0 | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 8,377 | 9,057 | 10,380 |
Impaired Loans with No Allowance, Interest Income | 371 | 449 | 459 |
Commercial real estate construction | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance, Average Recorded Investment | 0 | 0 | 0 |
Impaired Loans with Allowance, Interest Income | 0 | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 330 | 276 | 604 |
Impaired Loans with No Allowance, Interest Income | 0 | 0 | 0 |
Residential mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance, Average Recorded Investment | 224 | 278 | 1,027 |
Impaired Loans with Allowance, Interest Income | 0 | 0 | 9 |
Impaired Loans with No Allowance, Average Recorded Investment | 424 | 463 | 576 |
Impaired Loans with No Allowance, Interest Income | $ 17 | $ 18 | $ 16 |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Interest lost on nonaccrual loans | $ 369 | $ 456 | $ 570 |
Aggregate amount of loans with related parties | 4,578 | $ 5,632 | |
New loans or advances extended to related parties | 50 | ||
Repayments on loans or advances to related parties | $ 1,104 |
LOANS (Nonaccrual Loans By Clas
LOANS (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 4,502 | $ 3,699 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,126 | 1,471 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,593 | 1,676 |
Commercial real estate construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 300 | 374 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 483 | $ 178 |
LOANS (Troubled Debt Restructur
LOANS (Troubled Debt Restructurings Modified On Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | $ 8,928 | $ 10,023 |
Post-Modification Outstanding Recorded Investment | 8,986 | 10,068 |
Recorded Investment at period end | 7,820 | 7,326 |
Nonaccrual | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 648 | 2,569 |
Post-Modification Outstanding Recorded Investment | 648 | 2,562 |
Recorded Investment at period end | 377 | 534 |
Nonaccrual | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 648 | 1,021 |
Post-Modification Outstanding Recorded Investment | 648 | 1,021 |
Recorded Investment at period end | 377 | 460 |
Nonaccrual | Commercial real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 1,548 | |
Post-Modification Outstanding Recorded Investment | 1,541 | |
Recorded Investment at period end | 74 | |
Accrual | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 8,280 | 7,454 |
Post-Modification Outstanding Recorded Investment | 8,338 | 7,506 |
Recorded Investment at period end | 7,443 | 6,792 |
Accrual | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 7,944 | 7,118 |
Post-Modification Outstanding Recorded Investment | 8,002 | 7,170 |
Recorded Investment at period end | 7,171 | 6,509 |
Accrual | Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 336 | 336 |
Post-Modification Outstanding Recorded Investment | 336 | 336 |
Recorded Investment at period end | $ 272 | $ 283 |
LOANS (Troubled Debt Restruct61
LOANS (Troubled Debt Restructurings) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | Dec. 31, 2013Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of troubled debt restructured loan paid off | 1 | 1 | |
Number of loans which has periodic payments | 1 | ||
Number of loans classified as troubled debt restructured loans with active forbearance agreements | 2 | ||
Number of forbearance agreements negotiated | 1 | ||
Mortgage loans in process of foreclosure | $ | $ 471,000 | $ 583,000 | |
Entity Loan Modification Program | |||
Financing Receivable, Modifications [Line Items] | |||
Proceeds from paid off troubled debt restructured loans | $ | $ 74,000 | $ 70,000 |
LOANS (Summary of Modified Loan
LOANS (Summary of Modified Loans Resulting in Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Number of Contracts | Contract | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 826 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 832 | $ 0 |
LOANS (Loan Portfolio Summarize
LOANS (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 8,292 | $ 8,271 | |
Current | 899,618 | 844,689 | |
Total Loans Receivable | 907,910 | 852,960 | $ 799,272 |
Loans Receivable Greater than 90 Days and Accruing | 1,345 | 2,132 | |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,558 | 1,991 | |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,435 | 1,382 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,299 | 4,898 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,205 | 1,548 | |
Current | 139,139 | 116,144 | |
Total Loans Receivable | 140,344 | 117,692 | 74,855 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 | |
Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 26 | 16 | |
Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | 61 | |
Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,178 | 1,471 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 999 | 1,867 | |
Current | 317,981 | 288,032 | |
Total Loans Receivable | 318,980 | 289,899 | 281,582 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 | |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 325 | 77 | |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 674 | 1,047 | |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 743 | |
Commercial real estate construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 300 | 374 | |
Current | 14,971 | 13,055 | |
Total Loans Receivable | 15,271 | 13,429 | 12,210 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 | |
Commercial real estate construction | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial real estate construction | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial real estate construction | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 300 | 374 | |
Residential mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,936 | 4,016 | |
Current | 343,603 | 353,212 | |
Total Loans Receivable | 348,539 | 357,228 | 359,375 |
Loans Receivable Greater than 90 Days and Accruing | 937 | 1,904 | |
Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,866 | 1,686 | |
Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 657 | 248 | |
Residential mortgage | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,413 | 2,082 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 774 | 414 | |
Current | 69,298 | 59,710 | |
Total Loans Receivable | 70,072 | 60,124 | 55,973 |
Loans Receivable Greater than 90 Days and Accruing | 408 | 228 | |
Home equity lines of credit | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 310 | 186 | |
Home equity lines of credit | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 56 | 0 | |
Home equity lines of credit | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 408 | 228 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 78 | 52 | |
Current | 14,626 | 14,536 | |
Total Loans Receivable | 14,704 | 14,588 | $ 15,277 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 | |
Consumer | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 31 | 26 | |
Consumer | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 47 | 26 | |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
LOANS (Allowance For Loan Losse
LOANS (Allowance For Loan Losses And Recorded Investment In Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | $ 14,747 | $ 15,172 | $ 14,747 | $ 15,172 | $ 16,091 | ||||||
Charge-offs | (766) | (937) | (1,191) | ||||||||
Recoveries | 213 | 512 | 122 | ||||||||
Provisions | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | 150 |
Allowance for Loan Losses, Ending Balance | 14,194 | 14,747 | 14,194 | 14,747 | 15,172 | ||||||
Ending balance: individually evaluated for impairment | 932 | 0 | 932 | 0 | 302 | ||||||
Ending balance: collectively evaluated for impairment | 13,262 | 14,747 | 13,262 | 14,747 | 14,870 | ||||||
Loans receivables, Ending Balance | 907,910 | 852,960 | 907,910 | 852,960 | 799,272 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 11,945 | 10,491 | 11,945 | 10,491 | 13,616 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 895,965 | 842,469 | 895,965 | 842,469 | 785,656 | ||||||
Commercial and industrial | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | 2,508 | 2,048 | 2,508 | 2,048 | 1,915 | ||||||
Charge-offs | (318) | (150) | (132) | ||||||||
Recoveries | 45 | 369 | 15 | ||||||||
Provisions | 820 | 241 | 250 | ||||||||
Allowance for Loan Losses, Ending Balance | 3,055 | 2,508 | 3,055 | 2,508 | 2,048 | ||||||
Ending balance: individually evaluated for impairment | 599 | 0 | 599 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 2,456 | 2,508 | 2,456 | 2,508 | 2,048 | ||||||
Loans receivables, Ending Balance | 140,344 | 117,692 | 140,344 | 117,692 | 74,855 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 2,126 | 1,471 | 2,126 | 1,471 | 1,729 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 138,218 | 116,221 | 138,218 | 116,221 | 73,126 | ||||||
Commercial real estate | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | 5,216 | 5,872 | 5,216 | 5,872 | 5,819 | ||||||
Charge-offs | 0 | 0 | (121) | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions | (248) | (656) | 174 | ||||||||
Allowance for Loan Losses, Ending Balance | 4,968 | 5,216 | 4,968 | 5,216 | 5,872 | ||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 4,968 | 5,216 | 4,968 | 5,216 | 5,872 | ||||||
Loans receivables, Ending Balance | 318,980 | 289,899 | 318,980 | 289,899 | 281,582 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 8,764 | 8,185 | 8,764 | 8,185 | 9,999 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 310,216 | 281,714 | 310,216 | 281,714 | 271,583 | ||||||
Commercial real estate construction | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | 112 | 194 | 112 | 194 | 247 | ||||||
Charge-offs | (135) | (39) | 0 | ||||||||
Recoveries | 132 | 0 | 0 | ||||||||
Provisions | 38 | (43) | (53) | ||||||||
Allowance for Loan Losses, Ending Balance | 147 | 112 | 147 | 112 | 194 | ||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 147 | 112 | 147 | 112 | 194 | ||||||
Loans receivables, Ending Balance | 15,271 | 13,429 | 15,271 | 13,429 | 12,210 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 300 | 374 | 300 | 374 | 368 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 14,971 | 13,055 | 14,971 | 13,055 | 11,842 | ||||||
Residential mortgage | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | 3,349 | 3,845 | 3,349 | 3,845 | 4,013 | ||||||
Charge-offs | (189) | (622) | (705) | ||||||||
Recoveries | 25 | 136 | 97 | ||||||||
Provisions | 293 | (10) | 440 | ||||||||
Allowance for Loan Losses, Ending Balance | 3,478 | 3,349 | 3,478 | 3,349 | 3,845 | ||||||
Ending balance: individually evaluated for impairment | 333 | 0 | 333 | 0 | 302 | ||||||
Ending balance: collectively evaluated for impairment | 3,145 | 3,349 | 3,145 | 3,349 | 3,543 | ||||||
Loans receivables, Ending Balance | 348,539 | 357,228 | 348,539 | 357,228 | 359,375 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 755 | 461 | 755 | 461 | 1,520 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 347,784 | 356,767 | 347,784 | 356,767 | 357,855 | ||||||
Home equity lines of credit | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | 619 | 557 | 619 | 557 | 537 | ||||||
Charge-offs | (74) | (15) | (169) | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions | 103 | 77 | 189 | ||||||||
Allowance for Loan Losses, Ending Balance | 648 | 619 | 648 | 619 | 557 | ||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 648 | 619 | 648 | 619 | 557 | ||||||
Loans receivables, Ending Balance | 70,072 | 60,124 | 70,072 | 60,124 | 55,973 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 70,072 | 60,124 | 70,072 | 60,124 | 55,973 | ||||||
Consumer | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | 1,083 | 1,050 | 1,083 | 1,050 | 947 | ||||||
Charge-offs | (50) | (111) | (64) | ||||||||
Recoveries | 11 | 7 | 10 | ||||||||
Provisions | (121) | 137 | 157 | ||||||||
Allowance for Loan Losses, Ending Balance | 923 | 1,083 | 923 | 1,083 | 1,050 | ||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 923 | 1,083 | 923 | 1,083 | 1,050 | ||||||
Loans receivables, Ending Balance | 14,704 | 14,588 | 14,704 | 14,588 | 15,277 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | 14,704 | 14,588 | 14,704 | 14,588 | 15,277 | ||||||
Unallocated | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for Loan Losses, Beginning Balance | $ 1,860 | $ 1,606 | 1,860 | 1,606 | 2,613 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provisions | (885) | 254 | (1,007) | ||||||||
Allowance for Loan Losses, Ending Balance | 975 | 1,860 | 975 | 1,860 | 1,606 | ||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 975 | 1,860 | 975 | 1,860 | 1,606 | ||||||
Loans receivables, Ending Balance | 0 | 0 | 0 | 0 | 0 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Loans receivables: Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
PREMISES AND EQUIPMENT (Table)
PREMISES AND EQUIPMENT (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 35,896 | $ 36,674 |
Accumulated depreciation | (17,743) | (18,630) |
Premises and equipment, net | 18,153 | 18,044 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,624 | 2,677 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 19,917 | 19,886 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,273 | 13,482 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 82 | $ 629 |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,455 | $ 1,419 | $ 1,414 |
INVESTMENTS IN LOW-INCOME HOU67
INVESTMENTS IN LOW-INCOME HOUSING PARTNERSHIPS (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Partnership | Dec. 31, 2015USD ($) | |
Real Estate Partnership Investment Subsidiaries, Net Income (Loss) before Tax [Abstract] | ||
Number of limited partnerships in low-income properties | Partnership | 3 | |
Investments in low-income housing partnerships | $ | $ 2,899 | $ 3,345 |
DEPOSITS (Schedule Of Deposits)
DEPOSITS (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Interest-bearing Deposit Liabilities [Abstract] | ||
Non-interest bearing demand | $ 180,593 | $ 166,224 |
Interest bearing demand | 130,453 | 135,826 |
Savings | 414,682 | 364,086 |
Time certificates of deposit of $250,000 or less | 209,805 | 215,539 |
Time certificates of deposit greater than $250,000 | 32,088 | 31,305 |
Total Deposits | 967,621 | $ 912,980 |
Time certificate of deposits, threshold amount | $ 250,000 |
DEPOSITS (Schedule Of Maturitie
DEPOSITS (Schedule Of Maturities Of Time Certificates Of Deposits) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Interest-bearing Deposit Liabilities [Abstract] | |
2,017 | $ 146,632 |
2,018 | 42,471 |
2,019 | 48,347 |
2,020 | 2,800 |
2,021 | 1,643 |
Time Deposits | $ 241,893 |
LEASE COMMITMENTS (Narrative) (
LEASE COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Rental expense | $ 492 | $ 456 | $ 498 |
Description of lessee leasing arrangement, operating leases | ACNB leases space at several of its owned offices to other unrelated organizations. | ||
Total rental income | $ 8 | $ 27 | $ 132 |
LEASE COMMITMENTS (Table) (Deta
LEASE COMMITMENTS (Table) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 495 |
2,018 | 406 |
2,019 | 361 |
2,020 | 309 |
2,021 | 276 |
Later years | 1,386 |
Total future minimum rental payments | $ 3,233 |
BORROWINGS (Schedule of Short-t
BORROWINGS (Schedule of Short-term Debt) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Amount | $ 34,590,000 | $ 35,202,000 |
Rate | 0.12% | 0.12% |
Federal Home Loan Bank Stock | $ 3,901,400 | |
Line of Credit Facility, Current Borrowing Capacity | 20,000,000 | |
FHLB overnight advance | ||
Short-term Debt [Line Items] | ||
Amount | $ 0 | $ 0 |
Rate | 0.00% | 0.00% |
Securities Sold under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Amount | $ 34,590,000 | $ 35,202,000 |
Rate | 0.12% | 0.12% |
BORROWINGS (Offsetting Liabilit
BORROWINGS (Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Fair value of securities pledged in connection with repurchase agreements | $ 41,406 | $ 41,132 |
Commercial Customers and Government Entities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 34,590 | 35,202 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 34,590 | 35,202 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | (34,590) | (35,202) |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 0 | $ 0 |
BORROWINGS (Schedule of Maturit
BORROWINGS (Schedule of Maturities of Long-term Debt) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
FHLB fixed-rate advances maturing in 2016, Amount | $ 0 | $ 18,250,000 |
FHLB fixed-rate advances maturing in 2016, Rate | 0.00% | 1.98% |
FHLB fixed-rate advances maturing in 2017, Amount | $ 14,250,000 | $ 14,250,000 |
FHLB fixed-rate advances maturing in 2017, Rate | 2.30% | 2.30% |
FHLB fixed-rate advances maturing in 2018, Amount | $ 25,500,000 | $ 24,500,000 |
FHLB fixed-rate advances maturing in 2018, Rate | 1.87% | 1.90% |
FHLB fixed-rate advances maturing in 2019, Amount | $ 19,500,000 | $ 14,500,000 |
FHLB fixed-rate advances maturing in 2019, Rate | 1.75% | 1.86% |
FHLB fixed-rate advances maturing in 2020, Amount | $ 12,000,000 | $ 5,000,000 |
FHLB fixed-rate advances maturing in 2020, Rate | 1.84% | 1.96% |
FHLB fixed-rate advances maturing in 2021, Amount | $ 3,000,000 | $ 0 |
FHLB fixed-rate advances maturing in 2021, Rate | 1.58% | 0.00% |
FHLB fixed-rate advances, Amount | $ 74,250,000 | $ 76,500,000 |
FHLB fixed-rate advances, Rate | 1.91% | 2.05% |
Maximum borrowings from FHLB | $ 506,688,500 | |
Available borrowings from FHLB | $ 422,438,500 |
REGULATORY RESTRICTIONS ON DI75
REGULATORY RESTRICTIONS ON DIVIDENDS (Narrative) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Undistributed earnings of the Bank available for distribution as dividends without prior regulatory approval | $ 16,189 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal: | |||
Current | $ 3,530 | $ 3,316 | $ 2,152 |
Deferred | 171 | 392 | 875 |
Federal Income Tax Expense (Benefit), Total | 3,701 | 3,708 | 3,027 |
State: | |||
Current | 67 | 53 | 53 |
Current Income Tax Expense (Benefit), Total | $ 3,768 | $ 3,761 | $ 3,080 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliations of the Statutory Federal Income Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit | 0.30% | 0.20% | 0.30% |
Tax-exempt income | (4.80%) | (4.40%) | (3.50%) |
Earnings on investment in bank-owned life insurance | (2.60%) | (2.50%) | (2.80%) |
Rehabilitation and low-income housing credits | (2.00%) | (2.00%) | (5.10%) |
Other | 0.80% | 0.20% | 0.10% |
Effective Income Tax Rate, Total | 25.70% | 25.50% | 23.00% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income Taxes Related To Net Gains On Sales Of Securities | $ 9 | $ 89 | $ 21 |
Rehabilitation and Low-Income Housing Income Tax Credits | 287 | $ 299 | $ 678 |
Projected Tax Credit, 2017 | 287 | ||
Projected Tax Credit, 2018 | 287 | ||
Projected Tax Credit, Thereafter | $ 1,163 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets, Net [Abstract] | ||
Allowance for loan losses | $ 4,968 | $ 5,014 |
Available for sale securities | 143 | 0 |
Accrued deferred compensation | 1,166 | 1,008 |
Pension | 3,101 | 3,034 |
Deferred loan fees | 0 | 4 |
Other-than-temporary impairment | 70 | 178 |
Nonaccrual interest | 226 | 168 |
Deferred director fees | 686 | 576 |
Other | 982 | 644 |
Deferred tax assets: Total | 11,342 | 10,626 |
Deferred Tax Liabilities, Net [Abstract] | ||
Deferred loan fees | 79 | 0 |
Available for sale securities | 0 | 600 |
Prepaid pension benefit cost | 6,632 | 6,505 |
Prepaid expenses | 123 | 166 |
Accumulated depreciation | 372 | 331 |
Goodwill/intangibles | 1,006 | 873 |
Deferred tax liabilities: Total | 8,212 | 8,475 |
Net Deferred Tax Asset | $ 3,130 | $ 2,151 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Measurements, Recurring and Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | $ 142,990 | $ 125,693 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 142,990 | 125,693 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 1,716 | 1,792 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 141,274 | 123,901 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
U.S. Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 79,579 | 46,029 |
Residential Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 31,973 | 42,839 |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 24,660 | 28,078 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 5,062 | 6,955 |
CRA mutual fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 1,035 | 1,053 |
Stock In Other Banks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 681 | 739 |
Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 142,990 | 125,693 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 1,716 | 1,792 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 141,274 | 123,901 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 79,579 | 46,029 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 79,579 | 46,029 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 31,973 | 42,839 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 31,973 | 42,839 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | State and municipal | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 24,660 | 28,078 |
Fair Value, Measurements, Recurring | State and municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | State and municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 24,660 | 28,078 |
Fair Value, Measurements, Recurring | State and municipal | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate bonds | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 5,062 | 6,955 |
Fair Value, Measurements, Recurring | Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 5,062 | 6,955 |
Fair Value, Measurements, Recurring | Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | CRA mutual fund | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 1,035 | 1,053 |
Fair Value, Measurements, Recurring | CRA mutual fund | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 1,035 | 1,053 |
Fair Value, Measurements, Recurring | CRA mutual fund | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | CRA mutual fund | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Stock In Other Banks | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 681 | 739 |
Fair Value, Measurements, Recurring | Stock In Other Banks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 681 | 739 |
Fair Value, Measurements, Recurring | Stock In Other Banks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Stock In Other Banks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available-for-sale, Fair Value | 0 | 0 |
Impaired Loan | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,406 | 4,451 |
Impaired Loan | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Impaired Loan | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Impaired Loan | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,406 | 4,451 |
Foreclosed Assets Held For Resale | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Foreclosed Assets Held For Resale | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Foreclosed Assets Held For Resale | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Foreclosed Assets Held For Resale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Fair81
FAIR VALUE MEASUREMENTS (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Loan | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | (39.00%) | (16.00%) |
Impaired Loan | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | (10.00%) | (10.00%) |
Impaired Loan | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | (50.00%) | (50.00%) |
Foreclosed Assets Held For Resale | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | (0.00%) | (0.00%) |
Foreclosed Assets Held For Resale | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | (10.00%) | (10.00%) |
Foreclosed Assets Held For Resale | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | (50.00%) | (50.00%) |
Fair Value Estimate | Impaired Loan | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,406 | $ 4,451 |
Fair Value Estimate | Foreclosed Assets Held For Resale | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Fair82
FAIR VALUE MEASUREMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Assets [Abstract] | ||
Interest-bearing deposits in banks | $ 5,135 | $ 5,289 |
Investment securities available for sale | 142,990 | 125,693 |
Investment securities held to maturity | 55,425 | 71,363 |
Restricted investment in bank stocks | 4,349 | 4,414 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 13,796 | 13,468 |
Interest-bearing deposits in banks | 5,135 | 5,289 |
Investment securities available for sale | 142,990 | 125,693 |
Investment securities held to maturity | 55,568 | 71,542 |
Loans held for sale | 1,770 | 1,835 |
Loans, less allowance for loan losses | 893,176 | 838,213 |
Accrued interest receivable | 3,158 | 3,016 |
Restricted investment in bank stocks | 4,349 | 4,414 |
Financial Liabilities [Abstract] | ||
Deposits | 967,621 | 912,980 |
Short-term borrowings | 34,590 | 35,202 |
Long-term borrowings | 74,250 | 76,500 |
Accrued interest payable | 837 | 815 |
Off-balance sheet financial instruments | 0 | 0 |
Fair Value | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 13,796 | 13,468 |
Interest-bearing deposits in banks | 5,135 | 5,289 |
Investment securities available for sale | 142,990 | 125,693 |
Investment securities held to maturity | 55,425 | 71,363 |
Loans held for sale | 1,770 | 1,835 |
Loans, less allowance for loan losses | 888,169 | 842,169 |
Accrued interest receivable | 3,158 | 3,016 |
Restricted investment in bank stocks | 4,349 | 4,414 |
Financial Liabilities [Abstract] | ||
Deposits | 967,236 | 913,188 |
Short-term borrowings | 34,590 | 35,202 |
Long-term borrowings | 75,029 | 77,545 |
Accrued interest payable | 837 | 815 |
Off-balance sheet financial instruments | 0 | 0 |
Level 1 | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 6,921 | 6,746 |
Interest-bearing deposits in banks | 5,135 | 5,289 |
Investment securities available for sale | 1,716 | 1,792 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, less allowance for loan losses | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet financial instruments | 0 | 0 |
Level 2 | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 6,875 | 6,722 |
Interest-bearing deposits in banks | 0 | 0 |
Investment securities available for sale | 141,274 | 123,901 |
Investment securities held to maturity | 55,425 | 71,363 |
Loans held for sale | 1,770 | 1,835 |
Loans, less allowance for loan losses | 0 | 0 |
Accrued interest receivable | 3,158 | 3,016 |
Restricted investment in bank stocks | 4,349 | 4,414 |
Financial Liabilities [Abstract] | ||
Deposits | 967,236 | 913,188 |
Short-term borrowings | 34,590 | 35,202 |
Long-term borrowings | 75,029 | 77,545 |
Accrued interest payable | 837 | 815 |
Off-balance sheet financial instruments | 0 | 0 |
Level 3 | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in banks | 0 | 0 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, less allowance for loan losses | 888,169 | 842,169 |
Accrued interest receivable | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet financial instruments | $ 0 | $ 0 |
RETIREMENT PLANS (Schedule of B
RETIREMENT PLANS (Schedule of Benefit Plan Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 26,670 | $ 27,165 | |
Service cost | 795 | 881 | $ 689 |
Interest cost | 1,136 | 1,040 | 1,035 |
Change in assumptions | 1,059 | (1,438) | |
Benefits paid | (1,035) | (978) | |
Benefit obligation at end of year | 28,625 | 26,670 | 27,165 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 36,880 | 38,163 | |
Actual return on plan assets | 2,870 | (305) | |
Employer contribution | 0 | 0 | |
Benefits paid | (1,035) | (978) | |
Fair value of plan assets at end of year | 38,715 | 36,880 | $ 38,163 |
Funded Status, included in other assets | 10,090 | 10,210 | |
Amounts recognized in accumulated other comprehensive income: Total net actuarial loss | 8,859 | 8,923 | |
Amounts recognized in accumulated other comprehensive income: Prior service cost | 0 | 1 | |
Total included in accumulated other comprehensive loss (pretax) | $ 8,859 | $ 8,924 |
RETIREMENT PLANS (Estimated Cos
RETIREMENT PLANS (Estimated Costs To Be Amortized From AOCI Into Net Periodic Pension Cost) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Postemployment Benefits [Abstract] | |
Net loss | $ 677 |
Prior service cost | 0 |
Total costs to be amortized from AOCI into Net Periodic Pension Cost | $ 677 |
RETIREMENT PLANS (Narrative) (D
RETIREMENT PLANS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)person | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated Benefit Obligation | $ 27,508 | $ 25,783 | |
Corporation Common Stock Included in Equity Securities | $ 2,175 | $ 1,437 | |
Corporation Common Stock Included in Equity Securities, Percentage of Total Plan Assets | 6.00% | 4.00% | |
Percentage of participants average monthly pay used to calculate benefit accruals | 0.75% | ||
Maximum years of benefit used to calculate benefit accruals | 25 years | ||
Number of active, vested terminated, and retired persons in the Plan | person | 358 | ||
Employee contribution percentage, maximum | 100.00% | ||
Balance accrued included in other liabilities | $ 2,550 | $ 2,257 | |
Annual expense included in salaries and benefits expense | 383 | 360 | $ 339 |
Cash surrender value | $ 4,942 | 4,833 | |
Banking Subsidiary | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Match Percentage of Income | 4.00% | ||
Employer Contributions to and Expenses for the Plan | $ 541 | 547 | 526 |
Insurance Subsidiary | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Contributions to and Expenses for the Plan | $ 83 | $ 74 | $ 63 |
Non highly compensated employees | Insurance Subsidiary | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Match Percentage of Income | 6.00% | ||
Highly Compensated Employees | Insurance Subsidiary | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Match Percentage of Income | 3.00% |
RETIREMENT PLANS (Components Of
RETIREMENT PLANS (Components Of Net Periodic Benefit Costs (Income)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Postemployment Benefits [Abstract] | |||
Service cost | $ 795 | $ 881 | $ 689 |
Interest cost | 1,136 | 1,040 | 1,035 |
Expected return on plan assets | (2,429) | (2,542) | (2,311) |
Recognized net actuarial loss | 682 | 481 | 21 |
Amortization of prior service cost | 1 | 24 | 40 |
Net Periodic Benefit Cost (Income) | 185 | (116) | (526) |
Net loss | 618 | 1,409 | 4,349 |
Amortization of net loss | (682) | (481) | (21) |
Amortization of prior service cost | (1) | (24) | (40) |
Total recognized in other comprehensive (income) loss | (65) | 904 | 4,288 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ 120 | $ 788 | $ 3,762 |
RETIREMENT PLANS (Assumptions U
RETIREMENT PLANS (Assumptions Used To Determine The Benefit Obligation and Net Periodic Benefit) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Postemployment Benefits [Abstract] | |||
Assumptions Used Calculating Benefit Obligation: Discount rate | 4.05% | 4.35% | 3.90% |
Assumptions Used Calculating Benefit Obligation: Rate of compensation increase | 3.50% | 3.50% | 3.75% |
Assumptions Used Calculating Net Periodic Benefit Cost: Discount rate | 4.35% | 3.90% | 4.75% |
Assumptions Used Calculating Net Periodic Benefit Cost: Expected long-term rate of return on plan assets | 6.75% | 6.75% | 6.75% |
Assumptions Used Calculating Net Periodic Benefit Cost: Rate of compensation increase | 3.50% | 3.75% | 3.75% |
RETIREMENT PLANS (Pension Plan
RETIREMENT PLANS (Pension Plan Weighted-Average Assets' Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-Average Asset Allocation | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-Average Asset Allocation | 48.00% | 48.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-Average Asset Allocation | 46.00% | 47.00% |
Short-term fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-Average Asset Allocation | 0.00% | 0.00% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-Average Asset Allocation | 6.00% | 5.00% |
RETIREMENT PLANS (Fair Value Me
RETIREMENT PLANS (Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 38,715 | $ 36,880 | $ 38,163 |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,687 | 17,618 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,888 | 17,463 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,140 | 1,799 | |
Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,175 | 1,437 | |
Level 1 | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16,512 | 16,181 | |
Level 2 | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,888 | 17,463 | |
Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,140 | 1,799 | |
Level 3 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
RETIREMENT PLANS (Future Benefi
RETIREMENT PLANS (Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Postemployment Benefits [Abstract] | |
2,017 | $ 1,220 |
2,018 | 1,300 |
2,019 | 1,400 |
2,020 | 1,430 |
2,021 | 1,630 |
2022-2026 | $ 8,910 |
STOCKHOLDERS' EQUITY AND REGU91
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 05, 2009 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Shares issued, Dividend Reinvestment and Stock Repurchase Plan (in shares) | 16,979 | 18,401 | 24,339 | |
Proceeds from issuance of common stock, Dividend Reinvestment and Stock Purchase Plan | $ 437 | $ 499 | $ 381 | |
Restricted Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Shares issued under plan (in shares) | 7,435 | 5,673 | ||
Maximum | Restricted Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Awards authorized (in shares) | 200,000 |
STOCKHOLDERS' EQUITY AND REGU92
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (The Actual and Required Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Corporation | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual, Tier 1 leverage ratio (to average assets), Amount | $ 121,650 | $ 115,005 |
Actual, Tier 1 leverage ratio (to average assets), Ratio | 10.06% | 10.08% |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Amount | $ 48,382 | $ 45,646 |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Ratio | 4.00% | 4.00% |
Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount | $ 121,650 | $ 115,005 |
Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio | 14.71% | 15.00% |
Common Tier One, risk based capital required for capital adequacy, Amount | $ 37,205 | $ 34,503 |
Common Tier One risk based capital required for capital adequacy to risk weighted assets, Ratio | 4.50% | 4.50% |
Actual, Tier 1 risk-based capital ratio (to risk- weighted assets), Amount | $ 121,650 | $ 115,005 |
Actual, Tier 1 risk-based capital ratio (to risk- weighted assets), Ratio | 14.71% | 15.00% |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk- weighted assets), Amount | $ 49,606 | $ 46,004 |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk- weighted assets), Ratio | 6.00% | 6.00% |
Actual, Total risk-based capital ratio (to risk- weighted assets), Amount | $ 132,033 | $ 124,675 |
Actual, Total risk-based capital ratio (to risk- weighted assets), Ratio | 15.97% | 16.26% |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk- weighted assets), Amount | $ 66,142 | $ 61,339 |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk- weighted assets), Ratio | 8.00% | 8.00% |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual, Tier 1 leverage ratio (to average assets), Amount | $ 106,540 | $ 100,698 |
Actual, Tier 1 leverage ratio (to average assets), Ratio | 8.82% | 8.84% |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Amount | $ 48,316 | $ 45,550 |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Ratio | 4.00% | 4.00% |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 leverage ratio (to average assets), Amount | $ 60,395 | $ 56,938 |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 leverage ratio (to average assets), Ratio | 5.00% | 5.00% |
Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount | $ 106,540 | $ 100,698 |
Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio | 12.96% | 13.22% |
Common Tier One, risk based capital required for capital adequacy, Amount | $ 36,995 | $ 34,270 |
Common Tier One risk based capital required for capital adequacy to risk weighted assets, Ratio | 4.50% | 4.50% |
Common Tier One, risk based capital required to be well capitalized, Amount | $ 53,438 | $ 49,501 |
Common Tier One, risk based capital required to be well capitalized to risk weighted assets, Ratio | 6.50% | 6.50% |
Actual, Tier 1 risk-based capital ratio (to risk- weighted assets), Amount | $ 106,540 | $ 100,698 |
Actual, Tier 1 risk-based capital ratio (to risk- weighted assets), Ratio | 12.96% | 13.22% |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk- weighted assets), Amount | $ 49,327 | $ 45,693 |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk- weighted assets), Ratio | 6.00% | 6.00% |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 risk-based capital ratio (to risk- weighted assets), Amount | $ 65,770 | $ 60,924 |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 risk-based capital ratio (to risk- weighted assets), Ratio | 8.00% | 8.00% |
Actual, Total risk-based capital ratio (to risk- weighted assets), Amount | $ 116,865 | $ 110,287 |
Actual, Total risk-based capital ratio (to risk- weighted assets), Ratio | 14.22% | 14.48% |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk- weighted assets), Amount | $ 65,770 | $ 60,924 |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk- weighted assets), Ratio | 8.00% | 8.00% |
To be Well Capitalized under Prompt Corrective Action Provisions, Total risk-based capital ratio (to risk- weighted assets), Amount | $ 82,212 | $ 76,155 |
To be Well Capitalized under Prompt Corrective Action Provisions, Total risk-based capital ratio (to risk- weighted assets), Ratio | 10.00% | 10.00% |
FINANCIAL INSTRUMENTS WITH OF93
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2013 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Loan to value ratio requirement (no greater than 80%) | 80.00% | ||
Commercial line of credit borrowing capacity | $ 500,000 | ||
Commitments to Extend Credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet financial instruments | $ 258,631,000 | $ 199,932,000 | |
Standby Letters of Credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet financial instruments | $ 6,134,000 | $ 4,986,000 |
ACNB CORPORATION (PARENT COMP94
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Statements of Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | |||
Cash | $ 13,796 | $ 13,468 | |
Investments in low-income housing partnerships | 2,899 | 3,345 | |
Securities and other assets | 19,950 | 18,519 | |
Total assets | 1,206,320 | 1,147,925 | $ 1,089,808 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Long-term debt | 74,250 | 76,500 | |
Other liabilities | 9,798 | 8,528 | |
Stockholders’ equity | 120,061 | 114,715 | |
Total Liabilities and Stockholders’ Equity | 1,206,320 | 1,147,925 | |
Parent Company | |||
ASSETS | |||
Cash | 8,563 | 4,448 | |
Investments in low-income housing partnerships | 1,016 | 1,336 | |
Securities and other assets | 1,232 | 1,340 | |
Receivable from banking subsidiary | 130 | 2,769 | |
Total assets | 120,104 | 114,769 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Other liabilities | 43 | 54 | |
Stockholders’ equity | 120,061 | 114,715 | |
Total Liabilities and Stockholders’ Equity | 120,104 | 114,769 | |
Banking Subsidiary | Parent Company | |||
ASSETS | |||
Investment | 100,395 | 95,948 | |
Other Subsidiary | Parent Company | |||
ASSETS | |||
Investment | $ 8,768 | $ 8,928 |
ACNB CORPORATION (PARENT COMP95
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Gain on sale of securities | $ 26 | $ 0 | $ 0 | $ 0 | $ 2 | $ 158 | $ 101 | $ 0 | $ 26 | $ 261 | $ 62 |
Other income | 13,208 | 12,406 | 11,904 | ||||||||
Income tax benefit | (3,768) | (3,761) | (3,080) | ||||||||
Net Income | $ 2,572 | $ 2,768 | $ 2,982 | $ 2,547 | $ 2,852 | $ 2,812 | $ 2,810 | $ 2,543 | 10,869 | 11,017 | 10,290 |
Comprehensive Income | 9,571 | 9,014 | 7,461 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from banking subsidiary | 4,840 | 4,820 | 4,801 | ||||||||
Gain on sale of securities | 26 | 0 | 0 | ||||||||
Other income | 35 | 190 | 310 | ||||||||
Total Revenues | 4,901 | 5,010 | 5,111 | ||||||||
Expenses | 854 | 431 | 697 | ||||||||
Net income before taxes and equity in undistributed earnings of subsidiaries | 4,047 | 4,579 | 4,414 | ||||||||
Income tax benefit | 490 | 381 | 810 | ||||||||
Net income before equity in undistributed earnings of subsidiaries | 4,537 | 4,960 | 5,224 | ||||||||
Equity in undistributed earnings of subsidiaries | 6,332 | 6,057 | 5,066 | ||||||||
Net Income | 10,869 | 11,017 | 10,290 | ||||||||
Comprehensive Income | $ 9,571 | $ 9,014 | $ 7,461 |
ACNB CORPORATION (PARENT COMP96
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
NET INCOME | $ 2,572 | $ 2,768 | $ 2,982 | $ 2,547 | $ 2,852 | $ 2,812 | $ 2,810 | $ 2,543 | $ 10,869 | $ 11,017 | $ 10,290 |
Gain on sale of securities | (26) | $ 0 | $ 0 | 0 | (2) | $ (158) | $ (101) | 0 | (26) | (261) | (62) |
Net Cash Provided by Operating Activities | 12,121 | 14,379 | 10,815 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Proceeds from sale of low-income housing partnerships | 0 | 0 | 229 | ||||||||
Net Cash Used in Investing Activities | (59,442) | (64,144) | (44,131) | ||||||||
CASH FLOWS USED IN FINANCING ACTIVITIES | |||||||||||
Repayments on long-term borrowings | (18,250) | (22,437) | (29,266) | ||||||||
Proceeds from issuance of common stock | 556 | 499 | 381 | ||||||||
Dividends paid | (4,840) | (4,820) | (4,622) | ||||||||
Net Cash Provided by Financing Activities | 47,495 | 48,849 | 34,873 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 174 | (916) | 1,557 | ||||||||
CASH AND CASH EQUIVALENTS — BEGINNING | 18,757 | 19,673 | 18,757 | 19,673 | 18,116 | ||||||
CASH AND CASH EQUIVALENTS — ENDING | 18,931 | 18,757 | 18,931 | 18,757 | 19,673 | ||||||
Parent Company | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
NET INCOME | 10,869 | 11,017 | 10,290 | ||||||||
Equity in undistributed earnings of subsidiaries | (6,332) | (6,057) | (5,066) | ||||||||
Decrease (Increase) in receivable from banking subsidiary | 2,639 | (131) | (810) | ||||||||
Gain on sale of securities | (26) | 0 | 0 | ||||||||
Other | 540 | 86 | 799 | ||||||||
Net Cash Provided by Operating Activities | 7,690 | 4,915 | 5,213 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Return of investment from subsidiary | 650 | 750 | 250 | ||||||||
Net Cash Used in Investing Activities | 650 | 750 | 250 | ||||||||
CASH FLOWS USED IN FINANCING ACTIVITIES | |||||||||||
Repayments on long-term borrowings | 0 | (1,437) | (266) | ||||||||
Proceeds from issuance of common stock | 615 | 499 | 381 | ||||||||
Dividends paid | (4,840) | (4,820) | (4,622) | ||||||||
Net Cash Provided by Financing Activities | (4,225) | (5,758) | (4,507) | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 4,115 | (93) | 956 | ||||||||
CASH AND CASH EQUIVALENTS — BEGINNING | $ 4,448 | $ 4,541 | 4,448 | 4,541 | 3,585 | ||||||
CASH AND CASH EQUIVALENTS — ENDING | $ 8,563 | $ 4,448 | $ 8,563 | $ 4,448 | $ 4,541 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) | Dec. 31, 2008USD ($) | Jan. 05, 2005USD ($) | Jan. 05, 2005USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($)Book_of_Business | Dec. 31, 2011USD ($) |
Business Acquisition [Line Items] | ||||||||||
Acquisition Date | Jan. 5, 2005 | |||||||||
Contingent Consideration Payable | $ 3,000,000 | $ 3,000,000 | $ 338,000 | |||||||
Intangible asset amortization life | 10 years | |||||||||
Length of period subsequent to acquisition subject to performance criteria to determine contingent consideration | 3 years | |||||||||
Aggregate Purchase Price | $ 8,663,000 | |||||||||
Purchase Price Classified as Goodwill | $ 6,308,000 | $ 6,308,000 | ||||||||
2007 Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate Purchase Price | $ 637,000 | |||||||||
Number of books of business acquired | Book_of_Business | 2 | |||||||||
2008 Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate Purchase Price | $ 1,165,000 | |||||||||
Marks Insurance & Associates, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible asset amortization life | 10 years | |||||||||
Aggregate Purchase Price | $ 1,853,000 | |||||||||
Purchase Price Classified as Intangible Assets | 1,300,000 | 1,300,000 | ||||||||
Purchase Price Classified as Goodwill | $ 553,000 | $ 553,000 | ||||||||
2010 Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate Purchase Price | $ 31,000 | |||||||||
2013 Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate Purchase Price | 104,395 | $ 77,000 | ||||||||
Final purchase payment | 27,395 | |||||||||
2015 Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate Purchase Price | $ 145,925 |
ACQUISITIONS (Carrying Value An
ACQUISITIONS (Carrying Value And Accumulated Amortization Of The Intangible Assets) (Details) - Customer Lists - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,667 | $ 6,667 |
Accumulated Amortization | $ 5,979 | $ 5,634 |
ACQUISITIONS (Expected Amortiza
ACQUISITIONS (Expected Amortization Expense) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Business Combinations [Abstract] | |
2,017 | $ 323 |
2,018 | 238 |
2,019 | 28 |
2,020 | 23 |
2,021 | 23 |
Thereafter | $ 53 |
SEGMENT AND RELATED INFORMAT100
SEGMENT AND RELATED INFORMATION (Segment Information) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 | ||
Net interest income and other income from external customers | $ 49,774 | $ 48,012 | $ 45,784 |
Income before income taxes | 14,637 | 14,778 | 13,370 |
Total assets | 1,206,320 | 1,147,925 | 1,089,808 |
Capital expenditures | 2,344 | 1,738 | 3,148 |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income and other income from external customers | 45,313 | 43,522 | 41,183 |
Income before income taxes | 13,828 | 14,137 | 12,729 |
Total assets | 1,195,857 | 1,138,106 | 1,078,546 |
Capital expenditures | 2,333 | 1,712 | 2,141 |
Insurance | |||
Segment Reporting Information [Line Items] | |||
Net interest income and other income from external customers | 4,461 | 4,490 | 4,601 |
Income before income taxes | 809 | 641 | 641 |
Total assets | 10,463 | 9,819 | 11,262 |
Capital expenditures | $ 11 | $ 26 | $ 1,007 |
NEW WINDSOR PURCHASE (Narrative
NEW WINDSOR PURCHASE (Narrative) (Details) | Nov. 22, 2016director$ / sharesshares | Jan. 05, 2005USD ($) | Sep. 30, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Value of transaction | $ 8,663,000 | |||
New Windsor | ||||
Business Acquisition [Line Items] | ||||
Number of directors joining board | director | 2 | |||
Pro forma total assets | $ 1,510,000,000 | |||
Pro forma total deposits | 1,250,000,000 | |||
Pro forma loans | 1,150,000,000 | |||
Cash each shareholder may receive per share (in dollars per share) | $ / shares | $ 30 | |||
Percent of consideration paid as cash | 15.00% | |||
Merger related expenses | $ 472,000 | |||
New Windsor | Scenario, Forecast | ||||
Business Acquisition [Line Items] | ||||
Value of transaction | $ 33,294,000 | |||
Value of transaction (in dollars per share) | $ / shares | $ 33.11 | |||
New Windsor | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Number of shares each shareholder may receive (in shares) | shares | 1.10 | |||
Percent of consideration paid as common stock | 85.00% |
QUARTERLY RESULTS OF OPERATI102
QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Results of Operations [Abstract] | |||||||||||
Interest income | $ 10,345 | $ 10,181 | $ 10,010 | $ 9,964 | $ 9,891 | $ 9,717 | $ 10,045 | $ 9,811 | $ 40,500 | $ 39,464 | $ 37,526 |
Interest expense | 1,001 | 996 | 980 | 957 | 940 | 959 | 989 | 970 | 3,934 | 3,858 | 3,646 |
Net interest income | 9,344 | 9,185 | 9,030 | 9,007 | 8,951 | 8,758 | 9,056 | 8,841 | 36,566 | 35,606 | 33,880 |
Provision for loan losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 150 |
Net interest income after provision for loan losses | 9,344 | 9,185 | 9,030 | 9,007 | 8,951 | 8,758 | 9,056 | 8,841 | 36,566 | 35,606 | 33,730 |
Net gains on sales of securities | 26 | 0 | 0 | 0 | 2 | 158 | 101 | 0 | 26 | 261 | 62 |
Gain on sales of premises and equipment | 0 | 0 | 449 | 0 | 449 | 0 | 0 | ||||
Other income | 3,198 | 3,301 | 3,362 | 2,872 | 3,082 | 3,132 | 3,138 | 2,793 | |||
Proposed merger expenses | 472 | 0 | 0 | 0 | 472 | 0 | 0 | ||||
Other expenses and provision for income taxes | 9,524 | 9,718 | 9,859 | 9,332 | 9,183 | 9,236 | 9,485 | 9,091 | |||
NET INCOME | $ 2,572 | $ 2,768 | $ 2,982 | $ 2,547 | $ 2,852 | $ 2,812 | $ 2,810 | $ 2,543 | $ 10,869 | $ 11,017 | $ 10,290 |
Basic earnings per share | $ 0.43 | $ 0.46 | $ 0.49 | $ 0.42 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.42 | $ 1.80 | $ 1.83 | $ 1.71 |
Dividends per share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 | $ 0.77 |