Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Registrant Name | ACNB CORP | ||
Entity Central Index Key | 715,579 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Shell Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 7,046,020 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 232,057,049 | ||
Entity Voluntary Filers | No |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 20,105,000 | $ 19,304,000 |
Interest bearing deposits with banks | 20,800,000 | 15,137,000 |
Total Cash and Cash Equivalents | 40,905,000 | 34,441,000 |
Equity securities with readily determinable fair values | 1,839,000 | 1,784,000 |
Debt securities available for sale | 161,730,000 | 157,267,000 |
Securities held to maturity, fair value $26,911; $44,549 | 27,266,000 | 44,829,000 |
Loans held for sale | 408,000 | 1,736,000 |
Loans, net of allowance for loan losses $13,964; $13,976 | 1,288,501,000 | 1,230,194,000 |
Premises and equipment | 26,409,000 | 26,774,000 |
Restricted investment in bank stocks | 4,336,000 | 4,773,000 |
Investment in bank-owned life insurance | 48,003,000 | 44,935,000 |
Investments in low-income housing partnerships | 1,871,000 | 2,446,000 |
Goodwill | 19,580,000 | 19,580,000 |
Intangible assets | 4,407,000 | 2,569,000 |
Foreclosed assets held for resale | 155,000 | 436,000 |
Other assets | 22,314,000 | 23,668,000 |
Total Assets | 1,647,724,000 | 1,595,432,000 |
LIABILITIES | ||
Deposits: Non-interest bearing | 302,394,000 | 279,413,000 |
Deposits: Interest bearing | 1,045,698,000 | 1,019,079,000 |
Total Deposits | 1,348,092,000 | 1,298,492,000 |
Short-term borrowings | 34,648,000 | 36,908,000 |
Long-term borrowings | 83,516,000 | 94,600,000 |
Other liabilities | 13,331,000 | 11,466,000 |
Total Liabilities | 1,479,587,000 | 1,441,466,000 |
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; 7,108,620 and 7,086,258 shares issued; 7,046,020 and 7,023,658 shares outstanding | 17,772,000 | 17,716,000 |
Treasury stock, at cost (62,600 shares) | (728,000) | (728,000) |
Additional paid-in capital | 38,448,000 | 37,777,000 |
Retained earnings | 121,862,000 | 106,293,000 |
Accumulated other comprehensive loss | (9,217,000) | (7,092,000) |
Total Stockholders’ Equity | 168,137,000 | 153,966,000 |
Total Liabilities and Stockholders’ Equity | $ 1,647,724,000 | $ 1,595,432,000 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 26,911 | $ 44,549 |
Loans, net allowance for loan losses | $ 13,964 | $ 13,976 |
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 | 7,108,620 | 7,086,258 |
Common stock, shares outstanding | 7,046,020 | 7,023,658 |
Treasury stock, shares | 62,600 | 62,600 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST AND DIVIDEND INCOME | ||
Loans, including fees | $ 59,593,000 | $ 47,522,000 |
Securities: | ||
Taxable | 3,735,000 | 3,389,000 |
Tax-exempt | 219,000 | 428,000 |
Dividends | 299,000 | 252,000 |
Other | 648,000 | 194,000 |
Total Interest Income | 64,494,000 | 51,785,000 |
INTEREST EXPENSE | ||
Deposits | 5,253,000 | 3,547,000 |
Short-term borrowings | 59,000 | 83,000 |
Long-term borrowings | 2,087,000 | 1,803,000 |
Total Interest Expense | 7,399,000 | 5,433,000 |
Net Interest Income | 57,095,000 | 46,352,000 |
PROVISION FOR LOAN LOSSES | 1,620,000 | 0 |
Net Interest Income after Provision for Loan Losses | 55,475,000 | 46,352,000 |
OTHER INCOME | ||
Earnings on investment in bank-owned life insurance | 1,068,000 | 1,075,000 |
Gain on life insurance proceeds | 52,000 | 0 |
Net gains on sales or calls of securities | 85,000 | 0 |
Net losses on equity securities | (296,000) | 0 |
Commissions from insurance sales | 5,550,000 | 5,024,000 |
Other | 1,400,000 | 1,336,000 |
Total Other Income | 15,948,000 | 14,149,000 |
OTHER EXPENSES | ||
Salaries and employee benefits | 26,734,000 | 24,654,000 |
Net occupancy | 2,971,000 | 2,403,000 |
Equipment | 4,959,000 | 3,757,000 |
Other tax | 902,000 | 791,000 |
Professional services | 1,468,000 | 1,134,000 |
Supplies and postage | 766,000 | 731,000 |
Marketing and corporate relations | 565,000 | 433,000 |
FDIC and regulatory | 688,000 | 644,000 |
Merger related expenses | 0 | 4,728,000 |
Intangible assets amortization | 745,000 | 537,000 |
Foreclosed real estate expenses | 129,000 | 93,000 |
Other operating | 4,776,000 | 4,174,000 |
Total Other Expenses | 44,703,000 | 44,079,000 |
Income Before Income Taxes | 26,720,000 | 16,422,000 |
PROVISION FOR INCOME TAXES | 4,972,000 | 6,634,000 |
Net Income | $ 21,748,000 | $ 9,788,000 |
PER SHARE DATA | ||
Basic earnings | $ 3.09 | $ 1.50 |
Cash dividends declared | $ 0.89 | $ 0.80 |
Service charges on deposit accounts | ||
OTHER INCOME | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 3,350,000 | $ 2,940,000 |
Income from fiduciary, investment management and brokerage activities | ||
OTHER INCOME | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,364,000 | 2,012,000 |
Service charges on ATM and debit card transactions | ||
OTHER INCOME | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,375,000 | $ 1,762,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 21,748 | $ 9,788 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
SECURITIES: Unrealized losses arising during the period, net of income taxes of $(153) and $(227), respectively | (537) | (609) | |
SECURITIES: Reclassification adjustment for net gains included in net income, net of income taxes, $(46) and $0, respectively | [1],[2] | (157) | 0 |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, net of income taxes of $116 and $237, respectively | [2],[3] | 400 | 440 |
PENSION: Unrecognized net gain (loss), net of income taxes of $(534) and $(26), respectively | [2] | (1,831) | 284 |
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (2,125) | 115 | |
TOTAL COMPREHENSIVE INCOME | $ 19,623 | $ 9,903 | |
[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 CO_3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
SECURITIES: Unrealized losses arising during the period, income taxes | $ (153) | $ (227) |
SECURITIES: Reclassification adjustment for net gains included in net income, income taxes | (46) | 0 |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, income taxes | 116 | 237 |
PENSION: Unrecognized net gain (loss), income taxes | $ (534) | $ (26) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2016 | $ 120,061,000 | $ 15,317,000 | $ (728,000) | $ 10,941,000 | $ 100,555,000 | $ (6,024,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,788,000 | 9,788,000 | ||||
Other comprehensive income (loss), net of taxes | 115,000 | 115,000 | ||||
Reclass of stranded AOCI tax reform adjustment | 0 | 1,183,000 | (1,183,000) | |||
Common stock shares issued | 28,982,000 | 2,384,000 | 26,598,000 | |||
Restricted stock grants | 120,000 | 15,000 | 105,000 | |||
Restricted stock compensation expense | 133,000 | 133,000 | ||||
Cash dividends declared | (5,233,000) | (5,233,000) | ||||
Ending Balance at Dec. 31, 2017 | 153,966,000 | 17,716,000 | (728,000) | 37,777,000 | 106,293,000 | (7,092,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21,748,000 | 21,748,000 | ||||
Other comprehensive income (loss), net of taxes | (2,125,000) | |||||
Other comprehensive loss, net of tax and AOCI tax reform adjustment | (2,043,000) | (2,043,000) | ||||
Reclass of stranded AOCI tax reform adjustment | 0 | 82,000 | (82,000) | |||
Common stock shares issued | 528,000 | 39,000 | 489,000 | |||
Restricted stock grants | 13,000 | 17,000 | (4,000) | |||
Restricted stock compensation expense | 186,000 | 186,000 | ||||
Cash dividends declared | (6,261,000) | (6,261,000) | ||||
Ending Balance at Dec. 31, 2018 | $ 168,137,000 | $ 17,772,000 | $ (728,000) | $ 38,448,000 | $ 121,862,000 | $ (9,217,000) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock issued, Shares | 15,618 | 953,327 |
Restricted stock grants, shares | 6,744 | 6,193 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 21,748,000 | $ 9,788,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of loans originated for sale | (542,000) | (506,000) |
Loss (gain) on sales of foreclosed assets held for resale, including writedowns | 1,000 | (28,000) |
Earnings on investment in bank-owned life insurance | (1,068,000) | (1,075,000) |
Gain on sales or calls of securities | (85,000) | 0 |
Loss on equity securities | 296,000 | 0 |
Restricted stock compensation expense | 186,000 | 133,000 |
Depreciation and amortization | 2,853,000 | 2,292,000 |
Provision for loan losses | 1,620,000 | 0 |
Net amortization of investment securities premiums | 465,000 | 518,000 |
Increase in accrued interest receivable | (875,000) | (512,000) |
Increase in accrued interest payable | 201,000 | 326,000 |
Mortgage loans originated for sale | (32,436,000) | (27,426,000) |
Proceeds from sales of loans originated for sale | 34,306,000 | 27,965,000 |
Decrease in other assets | 2,502,000 | 3,014,000 |
Decrease in deferred tax expense | 557,000 | 1,711,000 |
(Decrease) increase in other liabilities | (185,000) | 807,000 |
Net Cash Provided by Operating Activities | 29,544,000 | 17,007,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from maturities of investment securities held to maturity | 17,558,000 | 10,680,000 |
Proceeds from maturities of investment securities available for sale | 17,925,000 | 34,404,000 |
Proceeds from sales of investment securities available for sale | 15,566,000 | 0 |
Purchase of investment securities available for sale | (39,129,000) | (30,136,000) |
Redemption (purchase) of restricted investment in bank stocks | 437,000 | (88,000) |
Net increase in loans | (60,254,000) | (71,830,000) |
Purchase of bank-owned life insurance | (2,000,000) | 0 |
Bank acquisition, net of cash acquired | 0 | 6,444,000 |
Insurance book- acquisition | (2,583,000) | 0 |
Capital expenditures | (1,743,000) | (1,757,000) |
Proceeds from sale of premises and equipment | 0 | 6,000 |
Proceeds from sale of foreclosed real estate | 607,000 | 324,000 |
Net Cash Used in Investing Activities | (53,616,000) | (51,953,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in demand deposits | 22,981,000 | 18,814,000 |
Net increase in time certificates of deposits and interest bearing deposits | 26,619,000 | 18,725,000 |
Net (decrease) increase in short-term borrowings | (2,260,000) | 2,318,000 |
Proceeds from long-term borrowings | 17,716,000 | 29,600,000 |
Repayments on long-term borrowings | (28,800,000) | (14,250,000) |
Dividends paid | (6,261,000) | (5,233,000) |
Common stock issued | 541,000 | 482,000 |
Net Cash Provided by (Used in) Financing Activities | 30,536,000 | 50,456,000 |
Net Increase (Decrease) in Cash and Cash Equivalents | 6,464,000 | 15,510,000 |
CASH AND CASH EQUIVALENTS — BEGINNING | 34,441,000 | 18,931,000 |
CASH AND CASH EQUIVALENTS — ENDING | 40,905,000 | 34,441,000 |
Supplemental disclosures of cash flow information | ||
Interest paid | 7,198,000 | 5,107,000 |
Income taxes paid | 4,600,000 | 3,850,000 |
Loans transferred to foreclosed assets held for resale and other foreclosed transactions | 327,000 | 265,000 |
Increase in assets and liabilities: | ||
Securities | 0 | (21,624,000) |
Loans | 0 | (264,913,000) |
Premises and equipment | 0 | (8,624,000) |
Investment in bank-owned life insurance | 0 | (3,118,000) |
Restricted investments in bank stocks | 0 | (336,000) |
Foreclosed assets held for resale | 0 | (211,000) |
Goodwill | 0 | (13,272,000) |
Core deposit intangible assets | 0 | (2,418,000) |
Other assets | 0 | (7,463,000) |
Noninterest bearing deposits | 0 | 80,006,000 |
Interest bearing deposits | 0 | 213,327,000 |
Trust preferred subordinated debt | 0 | 4,688,000 |
Other liabilities | $ 0 | $ 1,782,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 wealth management services, including trust and retail brokerage, through its twenty-two community banking office locations in Adams, Cumberland, Franklin, and York Counties, Pennsylvania. There is also a loan production office situated in York County, Pennsylvania, as well as another loan production office in Hunt Valley, Maryland, effective July 25, 2018. On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp, Inc. (New Windsor) of Taneytown, Maryland. At the effective time of the acquisition, New Windsor merged with and into a wholly-owned subsidiary of ACNB, immediately followed by the merger of New Windsor State Bank (NWSB) with and into ACNB Bank. ACNB Bank now operates in the Maryland market as “NWSB Bank, A Division of ACNB Bank” and serves its marketplace with banking and wealth management services via a network of seven community banking offices located in Carroll County, Maryland. RIG is a full-service insurance agency based in Westminster, Maryland with additional locations in Germantown, Maryland, and Jarrettsville, 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 (US 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 Wealth Management Department, including trust and retail brokerage, in an agency, fiduciary or retail brokerage capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Corporation. Assets held by the Wealth Management Department amounted to $342,000,000 and $327,000,000 at December 31, 2018 and 2017 , respectively. Income from fiduciary, investment management and brokerage activities are included in other income. The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2018 , 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 $287,030,000 , or 22.0% , of total loans at December 31, 2018 . 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. Debt securities not classified as held to maturity or trading 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). As of January 1, 2018, equity securities with readily determined fair values are recorded at fair value with changes in fair value recognized in net income. Prior to 2018, fair value changes were 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 risk 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. The Corporation orders valuations 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 are subject to 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 are subject to 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. Acquired Loans Acquired Loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected lifetime losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The carryover of allowance for loan losses related to acquired loans is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. The allowance for loan losses on acquired loans reflects only those losses incurred after acquisition and represents the present value of cash flows expected at acquisition that is no longer expected to be collected. Acquired loans are marked to fair value on the date of acquisition. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Corporation performs an analysis on acquired loans to determine whether or not there has been subsequent deterioration in relation to those loans. If deterioration has occurred, the Corporation will include these loans in the calculation of the allowance for loan losses after the initial valuation, and provide accordingly. Upon acquisition, in accordance with US GAAP, the Corporation has individually determined whether each acquired loan is within the scope of ASC 310-30. The Corporation’s senior lending management reviewed the accounting seller’s loan portfolio on a loan by loan basis to determine if any loans met the two-part definition of an impaired loan as defined by ASC 310-30: 1) Credit deterioration on the loan from its inception until the acquisition date, and 2) It is probable that not all of the contractual cash flows will be collected on the loan. Acquired ASC 310-20 loans, which are loans that did not meet the criteria above, were pooled into groups of similar loans based on various factors including borrower type, loan purpose, and collateral type. For these pools, the Corporation used certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average margin, and weighted average interest rate along with estimated prepayment rates, expected lifetime losses, environment factors to estimate the expected cash flow for each loan pool. With regards to ASC 310-30 loans, for external disclosure purposes, the aggregate contractual cash flows less the aggregate expected cash flows resulted in a credit related non-accretable yield amount. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount. The accretable yield reflects the contractual cash flows management expects to collect above the loan’s acquisition date fair value and will be recognized over the life of the loan on a level-yield basis as a component of interest income. Over the life of the acquired ASC 310-30 loan, the Corporation continues to estimate cash flows expected to be collected. Decreases in expected cash flows, other than from prepayments or rate adjustments, are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the allowance for credit losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized on a prospective basis over the loan’s remaining life. Acquired ASC 310-30 loans that met the criteria for non-accrual of interest prior to acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of expected cash flows on such loans. Accordingly, we do not consider acquired contractually delinquent loans to be non-accruing and continue to recognize interest income on these loans using the accretion model. For loans acquired without evidence of credit quality deterioration, ACNB prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into homogeneous pools by characteristics such as loan type, term, |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , compensating balances approximated $1,880,000 and $1,769,000 , respectively. During 2018 and 2017 , average compensating balances approximated $2,073,000 and $1,992,000 , respectively. All compensating balances are met by vault cash. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Amortized cost and fair value at December 31, 2018 and 2017 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE December 31, 2018 U.S. Government and agencies $ 120,420 $ 142 $ 2,149 $ 118,413 Mortgage-backed securities, residential 33,960 194 343 33,811 State and municipal 9,482 60 36 9,506 $ 163,862 $ 396 $ 2,528 $ 161,730 December 31, 2017 U.S. Government and agencies $ 105,899 $ 2 $ 1,818 $ 104,083 Mortgage-backed securities, residential 34,473 461 101 34,833 State and municipal 13,227 109 42 13,294 Corporate bonds 5,000 57 — 5,057 $ 158,599 $ 629 $ 1,961 $ 157,267 SECURITIES HELD TO MATURITY December 31, 2018 U.S. Government and agencies $ 7,000 $ — $ 69 $ 6,931 Mortgage-backed securities, residential 20,266 4 290 19,980 $ 27,266 $ 4 $ 359 $ 26,911 December 31, 2017 U.S. Government and agencies $ 19,000 $ 2 $ 99 $ 18,903 Mortgage-backed securities, residential 25,829 55 238 25,646 $ 44,829 $ 57 $ 337 $ 44,549 The Corporation adopted ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018. The required fair value disclosures are as follows: In thousands Fair Value at January 1, 2018 Unrealized Gains Unrealized Losses Fair Value at December 31, 2018 DECEMBER 31, 2018 CRA Mutual Fund $ 1,044 $ — $ 32 $ 1,012 Stock in other banks 749 247 169 827 $ 1,793 $ 247 $ 201 $ 1,839 Amortized cost and fair value disclosures of equity securities prior to ASU 2016-01 implementation are as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value DECEMBER 31, 2017 CRA Mutual Fund $ 1,044 $ — $ 9 $ 1,035 Stock in other banks 647 102 — 749 $ 1,691 $ 102 $ 9 $ 1,784 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, 2018 and 2017 : 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, 2018 U.S. Government and agencies $ 1,997 $ 5 $ 87,216 $ 2,144 $ 89,213 $ 2,149 Mortgage-backed securities, residential 9,410 134 8,586 209 17,996 343 State and municipal — — 2,696 36 2,696 36 $ 11,407 $ 139 $ 98,498 $ 2,389 $ 109,905 $ 2,528 December 31, 2017 U.S. Government and agencies $ 42,775 $ 445 $ 58,279 $ 1,373 $ 101,054 $ 1,818 Mortgage-backed securities, residential 7,228 56 2,845 45 10,073 101 State and municipal 1,042 8 1,950 34 2,992 42 CRA Mutual Fund — — 1,035 9 1,035 9 $ 51,045 $ 509 $ 64,109 $ 1,461 $ 115,154 $ 1,970 SECURITIES HELD TO MATURITY December 31, 2018 U.S. Government and agencies $ 2,975 $ 25 $ 3,956 $ 44 $ 6,931 $ 69 Mortgage-backed securities, residential 5,408 59 12,636 231 18,044 290 $ 8,383 $ 84 $ 16,592 $ 275 $ 24,975 $ 359 December 31, 2017 U.S. Government and agencies $ 4,985 $ 15 $ 10,916 $ 84 $ 15,901 $ 99 Mortgage-backed security, residential 4,946 29 11,070 209 16,016 238 $ 9,931 $ 44 $ 21,986 $ 293 $ 31,917 $ 337 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, 2018 , fifty-one available for sale U.S. Government and agency securities had unrealized losses that individually did not exceed 5% of amortized cost. Fifty of these securities have 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, 2018 , twenty-eight available for sale residential mortgage-backed securities had unrealized losses that individually did not exceed 4% of amortized cost. Twelve of these securities have 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, 2018 , ten available for sale state and municipal securities had unrealized losses that individually did not exceed 3% of amortized cost. All of these securities have 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, 2018 , five held to maturity U.S. Government and agency securities had unrealized losses that individually did not exceed 2% of amortized cost. Three of these securities have 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, 2018 , thirty held to maturity residential mortgage-backed securities had unrealized losses that individually did not exceed 3% of amortized cost. Twenty of these securities have 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, 2018 , 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, 2018 , 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 $ 8,483 $ 8,439 $ 3,000 $ 2,970 Over 1 year through 5 years 121,220 119,284 4,000 3,961 Over 5 years through 10 years 199 196 — — Over 10 years — — — — Mortgage-backed securities, residential 33,960 33,811 20,266 19,980 $ 163,862 $ 161,730 $ 27,266 $ 26,911 The Corporation realized gross gains of $288,000 during 2018 and $0 during 2017 , and gross losses of $203,000 during 2018 and $0 during 2017 on sales of securities available for sale. At December 31, 2018 and 2017 , securities with a carrying value of $165,792,000 and $157,601,000 , respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES 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, 2018 and 2017 : In thousands Pass Special Substandard Doubtful Total December 31, 2018 Originated Loans Commercial and industrial $ 166,035 $ 2,902 $ 161 $ — $ 169,098 Commercial real estate 393,987 18,079 7,899 — 419,965 Commercial real estate construction 15,471 835 — — 16,306 Residential mortgage 381,525 6,492 733 — 388,750 Home equity lines of credit 90,941 334 — — 91,275 Consumer 14,174 — — — 14,174 Total Originated Loans 1,062,133 28,642 8,793 — 1,099,568 Acquired Loans Commercial and industrial 4,803 134 147 — 5,084 Commercial real estate 120,321 5,112 3,525 — 128,958 Commercial real estate construction 3,276 716 — — 3,992 Residential mortgage 41,193 1,896 2,460 — 45,549 Home equity lines of credit 18,614 88 386 — 19,088 Consumer 226 — — — 226 Total Acquired Loans 188,433 7,946 6,518 — 202,897 Total Loans Commercial and industrial 170,838 3,036 308 — 174,182 Commercial real estate 514,308 23,191 11,424 — 548,923 Commercial real estate construction 18,747 1,551 — — 20,298 Residential mortgage 422,718 8,388 3,193 — 434,299 Home equity lines of credit 109,555 422 386 — 110,363 Consumer 14,400 — — — 14,400 Total Loans $ 1,250,566 $ 36,588 $ 15,311 $ — $ 1,302,465 In thousands Pass Special Substandard Doubtful Total December 31, 2017 Originated Loans Commercial and industrial $ 154,177 $ 3,466 $ 1,812 $ — $ 159,455 Commercial real estate 325,002 17,666 9,277 — 351,945 Commercial real estate construction 27,413 767 250 — 28,430 Residential mortgage 363,195 3,251 478 — 366,924 Home equity lines of credit 81,976 360 — — 82,336 Consumer 14,454 — — — 14,454 Total Originated Loans 966,217 25,510 11,817 — 1,003,544 Acquired Loans Commercial and industrial 6,120 244 10 — 6,374 Commercial real estate 124,852 12,734 3,228 — 140,814 Commercial real estate construction 6,742 388 — — 7,130 Residential mortgage 52,959 2,762 3,248 — 58,969 Home equity lines of credit 24,990 88 378 — 25,456 Consumer 1,525 358 — — 1,883 Total Acquired Loans 217,188 16,574 6,864 — 240,626 Total Loans Commercial and industrial 160,297 3,710 1,822 $ — 165,829 Commercial real estate 449,854 30,400 12,505 — 492,759 Commercial real estate construction 34,155 1,155 250 — 35,560 Residential mortgage 416,154 6,013 3,726 — 425,893 Home equity lines of credit 106,966 448 378 — 107,792 Consumer 15,979 358 — — 16,337 Total Loans $ 1,183,405 $ 42,084 $ 18,681 $ — $ 1,244,170 The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. In thousands Year Ended December 31, 2018 Balance at beginning of period $ 1,234 Acquisitions of impaired loans — Reclassification from non-accretable differences 402 Accretion to loan interest income (745 ) Balance at end of period $ 891 Cash flows expected to be collected on acquired loans are estimated quarterly by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. Improved cash flow expectations for loans or pools are recorded first as a reversal of previously recorded impairment, if any, and then as an increase in prospective yield when all previously recorded impairment has been recaptured. Decreases in expected cash flows are recognized as impairment through a charge to the provision for loan losses and credit to the allowance for loan losses. The following table summarizes information relative to impaired loans by loan portfolio class as of December 31, 2018 and 2017 : 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, 2018 Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 6,763 6,763 Commercial real estate construction — — — — — Residential mortgage — — — 537 537 Home equity lines of credit — — — — — Total $ — $ — $ — $ 7,300 $ 7,300 December 31, 2017 Commercial and industrial $ 1,311 $ 1,311 $ 792 $ 188 $ 188 Commercial real estate 832 832 60 7,528 7,528 Commercial real estate construction — — — — — Residential mortgage 377 377 377 101 101 Total $ 2,520 $ 2,520 $ 1,229 $ 7,817 $ 7,817 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, 2018 Commercial and industrial $ 436 $ — $ 73 $ 44 Commercial real estate — — 7,372 216 Commercial real estate construction — — — — Residential mortgage 75 — 275 — Home equity lines of credit 30 — — — Total $ 541 $ — $ 7,720 $ 260 December 31, 2017 Commercial and industrial $ 1,184 $ — $ 785 $ — Commercial real estate 499 — 8,030 330 Commercial real estate construction — — 60 25 Residential mortgage 377 — 210 15 Total $ 2,060 $ — $ 9,085 $ 370 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 $269,000 in 2018 and $437,000 in 2017 . The following table presents nonaccrual loans by loan portfolio class as of December 31, 2018 and 2017 , the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands 2018 2017 Commercial and industrial $ — $ 1,499 Commercial real estate 2,880 4,378 Commercial real estate construction — — Residential mortgage 537 478 Home equity lines of credit — — Total $ 3,417 $ 6,355 There were no loans whose terms have been modified resulting in a troubled debt restructuring during the years ended December 31, 2018 and 2017 . The Corporation classifies certain loans as troubled debt restructurings when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term and/or the restructuring of scheduled principal payments. The Corporation had pre-existing nonaccruing and accruing troubled debt restructurings of $6,226,000 and $7,387,000 at December 31, 2018 and 2017 , respectively. 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. Included in the non-accrual loan total at December 31, 2018 and 2017 , were $2,343,000 and $3,405,000 , respectively, of troubled debt restructurings. In addition to the troubled debt restructurings included in non-accrual loans, the Corporation also has loans classified as accruing troubled debt restructurings at December 31, 2018 and 2017 , which total $3,883,000 and $3,982,000 , respectively. There were no defaulted troubled debt restructured loans as of December 31, 2018 and 2017 , however two borrowers advised that further payments were unlikely, therefore they were moved to nonaccrual status in the second quarter of 2017. There were no charge-offs on any of the troubled debt restructured loans for the years ended December 31, 2018 and 2017 . There was no specific allocation on any troubled debt restructured loans for the year ended December 31, 2018 . One troubled debt restructured loan had a specific allocation in the amount of $60,000 at December 31, 2017. One troubled debt restructured loan paid off during 2018 in the amount of $832,000 and one troubled debt restructured loan paid off during 2017 in the amount of $283,000 . 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, 2018 , one of the loans classified as a troubled debt restructured loan has an active forbearance agreement. The loan was negotiated during 2016. All other forbearance agreements have expired or the loans have paid off. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at December 31, 2018 and 2017 , totaled $661,000 and $848,000 , 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, 2018 and 2017 : 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, 2018 Originated Loans Commercial and industrial $ 49 $ 49 $ 4 $ 102 $ 168,996 $ 169,098 $ 4 Commercial real estate 775 550 114 1,439 418,526 419,965 — Commercial real estate construction — — — — 16,306 16,306 — Residential mortgage 1,783 529 2,361 4,673 384,077 388,750 1,824 Home equity lines of credit 16 38 375 429 90,846 91,275 375 Consumer 36 14 — 50 14,124 14,174 — Total originated loans 2,659 1,180 2,854 6,693 1,092,875 1,099,568 2,203 Acquired Loans Commercial and industrial 27 — — 27 5,057 5,084 — Commercial real estate 64 — 851 915 128,043 128,958 851 Commercial real estate construction 343 — 77 420 3,572 3,992 77 Residential mortgage 1,235 251 907 2,393 43,156 45,549 125 Home equity lines of credit 227 — 89 316 18,772 19,088 89 Consumer — 7 — 7 219 226 — Total acquired loans 1,896 258 1,924 4,078 198,819 202,897 1,142 Total Loans Commercial and industrial 76 49 4 129 174,053 174,182 4 Commercial real estate 839 550 965 2,354 546,569 548,923 851 Commercial real estate construction 343 — 77 420 19,878 20,298 77 Residential mortgage 3,018 780 3,268 7,066 427,233 434,299 1,949 Home equity lines of credit 243 38 464 745 109,618 110,363 464 Consumer 36 21 — 57 14,343 14,400 — Total Loans $ 4,555 $ 1,438 $ 4,778 $ 10,771 $ 1,291,694 $ 1,302,465 $ 3,345 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, 2017 Originated Loans Commercial and industrial $ 55 $ 76 $ 1,503 $ 1,634 $ 157,821 $ 159,455 $ 4 Commercial real estate 436 317 1,400 2,153 349,792 351,945 88 Commercial real estate construction 252 — — 252 28,178 28,430 — Residential mortgage 3,006 646 1,500 5,152 361,772 366,924 1,022 Home equity lines of credit 254 29 183 466 81,870 82,336 183 Consumer 72 26 3 101 14,353 14,454 3 Total originated loans 4,075 1,094 4,589 9,758 993,786 1,003,544 1,300 Acquired Loans Commercial and industrial 83 — — 83 6,291 6,374 — Commercial real estate 916 — — 916 139,898 140,814 — Commercial real estate construction — — — — 7,130 7,130 — Residential mortgage 930 304 137 1,371 57,598 58,969 137 Home equity lines of credit 83 — 70 153 25,303 25,456 70 Consumer — — — — 1,883 1,883 — Total acquired loans 2,012 304 207 2,523 238,103 240,626 207 Total Loans Commercial and industrial $ 138 $ 76 $ 1,503 $ 1,717 $ 164,112 $ 165,829 $ 4 Commercial real estate 1,352 317 1,400 3,069 489,690 492,759 88 Commercial real estate construction 252 — — 252 35,308 35,560 — Residential mortgage 3,936 950 1,637 6,523 419,370 425,893 1,159 Home equity lines of credit 337 29 253 619 107,173 107,792 253 Consumer 72 26 3 101 16,236 16,337 3 Total Loans $ 6,087 $ 1,398 $ 4,796 $ 12,281 $ 1,231,889 $ 1,244,170 $ 1,507 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, 2018 Allowance for loan losses Beginning balance- January 1, 2018 $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Charge-offs (934 ) (33 ) — (530 ) (148 ) (165 ) — (1,810 ) Recoveries 36 — 103 32 — 7 — 178 Provisions 276 1,013 (26 ) 86 147 101 23 1,620 Ending balance- December 31, 2018 $ 2,597 $ 6,208 $ 203 $ 2,814 $ 611 $ 692 $ 839 $ 13,964 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 2,597 $ 6,208 $ 203 $ 2,814 $ 611 $ 692 $ 839 $ 13,964 Loans receivables Ending balance $ 174,182 $ 548,923 $ 20,298 $ 434,299 $ 110,363 $ 14,400 $ — $ 1,302,465 Ending balance: individually evaluated for impairment $ — $ 6,763 $ — $ 537 $ — $ — $ — $ 7,300 Ending balance: collectively evaluated for impairment $ 174,182 $ 542,160 $ 20,298 $ 433,762 $ 110,363 $ 14,400 $ — $ 1,295,165 December 31, 2017 Allowance for loan losses Beginning balance- January 1, 2017 $ 3,055 $ 4,968 $ 147 $ 3,478 $ 648 $ 923 $ 975 $ 14,194 Charge-offs (181 ) — — (132 ) (9 ) (139 ) — (461 ) Recoveries 21 61 80 62 — 19 — 243 Provisions 324 199 (101 ) (182 ) (27 ) (54 ) (159 ) — Ending balance- December 31, 2017 $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Ending balance: individually evaluated for impairment $ 792 $ 60 $ — $ 377 $ — $ — $ — $ 1,229 Ending balance: collectively evaluated for impairment $ 2,427 $ 5,168 $ 126 $ 2,849 $ 612 $ 749 $ 816 $ 12,747 Loans receivables Ending balance $ 165,829 $ 492,759 $ 35,560 $ 425,893 $ 107,792 $ 16,337 $ — $ 1,244,170 Ending balance: individually evaluated for impairment $ 1,499 $ 8,360 $ — $ 478 $ — $ — $ — $ 10,337 Ending balance: collectively evaluated for impairment $ 164,330 $ 484,399 $ 35,560 $ 425,415 $ 107,792 $ 16,337 $ — $ 1,233,833 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 $5,858,000 and $5,703,000 at December 31, 2018 and 2017 , respectively. During 2018 , $600,000 new loans or advances were extended and repayments totaled $445,000 . None of these loans were past due, in nonaccrual status, or restructured at December 31, 2018 . |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment at December 31 were as follows: In thousands 2018 2017 Land $ 5,050 $ 5,050 Buildings and improvements 27,509 25,881 Furniture and equipment 14,111 14,856 Construction in process 460 182 47,130 45,969 Accumulated depreciation (20,721 ) (19,195 ) $ 26,409 $ 26,774 Depreciation expense was $2,108,000 and $1,755,000 for the years ended December 31, 2018 and 2017 , respectively. |
INVESTMENTS IN LOW-INCOME HOUSI
INVESTMENTS IN LOW-INCOME HOUSING PARTNERSHIPS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , the carrying value of these investments was approximately $1,871,000 and $2,446,000 , respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Interest-bearing Deposit Liabilities [Abstract] | |
DEPOSITS | DEPOSITS Deposits were comprised of the following as of December 31: In thousands 2018 2017 Non-interest bearing demand $ 302,394 $ 279,413 Interest bearing demand 160,718 163,278 Savings 516,872 501,710 Time certificates of deposit of $250,000 or less 307,407 295,279 Time certificates of deposit greater than $250,000 60,701 58,812 $ 1,348,092 $ 1,298,492 Scheduled maturities of time certificates of deposit at December 31, 2018 , were as follows: Years Ending In thousands 2019 $ 213,669 2020 74,837 2021 62,171 2022 12,216 2023 5,215 $ 368,108 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS Certain branch offices and equipment are leased under agreements which expire at varying dates through 2029. Most leases contain renewal provisions at the Corporation’s option. The total rental expense for all operating leases was $890,000 and $642,000 for the years ended December 31, 2018 and 2017 , 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 2019 $ 811 2020 710 2021 617 2022 528 2023 507 Later years 2,186 $ 5,359 ACNB leases space at several of its owned offices to other unrelated organizations. Total rental income for these properties was $131,000 and $60,000 for the years ended December 31, 2018 and 2017 , respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Short-term borrowings and weighted-average interest rates at December 31 are as follows: 2018 2017 Dollars in thousands Amount Rate Amount Rate FHLB overnight advance $ 32 2.62 % $ — — % Securities sold under repurchase agreements 34,616 0.12 36,908 0.12 $ 34,648 0.12 % $ 36,908 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 $4,067,300 at December 31, 2018 . The Corporation also has lines of credit that total $29,000,000 with correspondent banks for overnight federal funds borrowings. There were no advances on these lines at December 31, 2018 and 2017 . 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, 2018 and 2017 : 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, 2018 Repurchase agreements Commercial customers and government entities (a) $ 34,616 $ — $ 34,616 $ (34,616 ) $ — $ — December 31, 2017 Repurchase agreements Commercial customers and government entities (a) $ 36,908 $ — $ 36,908 $ (36,908 ) $ — $ — (a) As of December 31, 2018 and 2017 , the fair value of securities pledged in connection with repurchase agreements was $39,788,000 and $42,397,000 , respectively. A summary of long-term debt as of December 31 is as follows: 2018 2017 Dollars in thousands Amount Rate Amount Rate FHLB fixed-rate advances maturing: 2018 $ — — % $ 25,500 1.87 % 2019 23,500 1.73 % 23,500 1.73 % 2020 20,000 1.87 % 20,000 1.87 % 2021 22,716 2.10 % 16,000 2.01 % 2022 9,000 2.70 % — — % Loan Payable to local bank 2,300 4.50 % 4,600 1.53 % Loan Payable to local bank 1,000 5.25 % — — % Trust preferred subordinated debt 5,000 6.39 % 5,000 6.39 % $ 83,516 2.47 % $ 94,600 2.06 % The FHLB advances are collateralized by the assets defined in the security agreement and FHLB capital stock described previously. The Corporation can borrow a maximum of $685,765,000 from the FHLB, of which $588,734,000 was available at December 31, 2018 . The loan payable to a local bank has a fixed rate of 4.5% for the first five years and a variable rate of interest with Prime Rate thereafter to final maturity in June 2028. The principal balance of this note may be prepaid at any time without penalty. The loan payable to a local bank is a commercial revolving line of credit which has a variable rate equal to the Wall Street Journal Prime Rate minus 0.25% , 5.25% at December 31, 2018 . Principal shall be payable when and in amounts demanded by the Bank. The principal balance of this note may be prepaid at anytime without penalty. The trust preferred subordinated debt is comprised of debt securities issued by New Windsor in June 2005 and assumed by ACNB Corporation through the acquisition. New Windsor issued $5,000,000 of 6.39% fixed rate capital securities to institutional investors in a private pooled transaction. The proceeds were transferred to New Windsor as trust preferred subordinated debt under the same terms and conditions. The Corporation then contributed the full amount to the Bank in the form of Tier 1 capital. The Corporation has, through various contractual agreements, fully and unconditionally guaranteed all of the trust obligations with respect to the capital securities. |
REGULATORY RESTRICTIONS ON DIVI
REGULATORY RESTRICTIONS ON DIVIDENDS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , $26,090,000 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, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense for the years ended December 31, 2018 and 2017 , are as follows: In thousands 2018 2017 Federal: Current $ 4,036 $ 4,767 Deferred 388 1,413 4,424 6,180 State: Current 479 156 Deferred 69 298 548 454 $ 4,972 $ 6,634 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, 2018 and 2017 , are as follows: Percentage of Income before Income Taxes 2018 2017 Federal income tax at statutory rate 21.0 % 35.0 % State income taxes, net of federal benefit 1.6 % 1.8 % Tax-exempt income (1.7 )% (5.0 )% Earnings on investment in bank-owned life insurance (0.9 )% (2.3 )% Rehabilitation and low-income housing credits (1.1 )% (1.7 )% Reduction of federal tax rate — % 10.2 % Other (0.3 )% 2.4 % 18.6 % 40.4 % The provision for federal income taxes includes $46,000 and $0 of income taxes related to net gains on sales of securities in 2018 and 2017 , respectively. Rehabilitation and low-income housing income tax credits were $287,000 , during 2018 and 2017 , respectively. Projected credits are $287,000 in 2019 and 2020, and $589,000 thereafter. Components of deferred tax assets and liabilities at December 31 were as follows: In thousands 2018 2017 Deferred tax assets: Allowance for loan losses $ 3,054 $ 3,052 Available for sale securities 409 282 Accrued deferred compensation 884 852 Pension 2,207 1,789 Other-than-temporary impairment 43 43 Nonaccrual interest 192 171 Deferred director fees 589 520 Acquisition accounting 785 1,357 Other 602 521 8,765 8,587 Deferred tax liabilities: Deferred loan fees 101 114 Available for sale securities — — Prepaid pension benefit cost 4,289 4,248 Prepaid expenses 130 132 Accumulated depreciation 347 426 Goodwill/intangibles 1,056 928 5,923 5,848 Net Deferred Tax Asset included in Other Assets $ 2,842 $ 2,739 The Corporation did not have any uncertain tax positions at December 31, 2018 and 2017 . 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 2015 through 2018. On December 22, 2017, the United States government enacted comprehensive tax legislation, known as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code, including a reduction in the base corporate tax rate from the prior existing statutory rate, which was 35% for ACNB, to 21%. Based on estimates and current accounting guidance, the Corporation estimated that the Tax Act resulted in a charge against 2017 net income of approximately $1.7 million, due to the write down of ACNB’s net deferred tax assets due to the Tax Act’s reduction in the base corporate tax rate to 21%. This estimate was based on a review and analysis of the Corporation’s net deferred tax assets at December 31, 2017, as well as adjustments to various deferred tax assets and deferred tax liabilities in the fourth quarter, including those accounted for in accumulated other comprehensive income. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , are as follows: Fair Value Measurements at December 31, 2018 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 118,413 $ — $ 118,413 $ — Mortgage-backed securities, residential 33,811 — 33,811 — State and municipal 9,506 — 9,506 — Total securities available for sale Recurring $ 161,730 $ — $ 161,730 $ — Equity securities with readily determinable fair values Recurring $ 1,839 $ 1,839 $ — $ — Collateral dependent impaired loans Non-recurring $ 3,883 $ — $ — $ 3,883 Fair Value Measurements at December 31, 2017 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 104,083 $ — $ 104,083 $ — Mortgage-backed securities, residential 34,833 — 34,833 — State and municipal 13,294 — 13,294 — Corporate bonds 5,057 — 5,057 — Total securities available for sale Recurring $ 157,267 $ — $ 157,267 $ — Equity securities with readily determinable fair values Recurring $ 1,784 $ 1,784 $ — $ — Collateral dependent impaired loans Non-recurring $ 5,426 $ — $ — $ 5,426 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, 2018 Impaired loans $ 3,883 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (16 )% December 31, 2017 Impaired loans $ 5,426 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (36 )% (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 downward 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, and/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 presents the carrying amount, exit pricing concept fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2018 : December 31, 2018 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 20,105 $ 20,105 $ 8,190 $ 11,915 $ — Interest-bearing deposits in banks 20,800 20,800 20,800 — — Equity securities available for sale 1,839 1,839 1,839 — — Investment securities available for sale 161,730 161,730 — 161,730 — Investment securities held to maturity 27,266 26,911 — 26,911 — Loans held for sale 408 408 — 408 — Loans, less allowance for loan losses 1,288,501 1,272,393 — — 1,272,393 Accrued interest receivable 3,670 3,670 — 3,670 — Restricted investment in bank stocks 4,336 4,336 — 4,336 — Financial liabilities: Demand deposits and savings 979,964 979,964 — 979,964 — Time deposits 368,128 364,093 — 364,093 — Short-term borrowings 34,648 34,648 — 34,648 — Long-term borrowings 78,516 78,545 — 78,545 — Trust preferred subordinated debt 5,000 4,701 — 4,701 — Accrued interest payable 1,163 1,163 — 1,163 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2017 : December 31, 2017 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 19,304 $ 19,304 $ 8,313 $ 10,991 $ — Interest-bearing deposits in banks 15,137 15,137 15,137 — — Equity securities available for sale 1,784 1,784 1,784 — — Investment securities available for sale 157,267 157,267 — 157,267 — Investment securities held to maturity 44,829 44,549 — 44,549 — Loans held for sale 1,736 1,736 — 1,736 — Loans, less allowance for loan losses 1,230,194 1,213,932 — — 1,213,932 Accrued interest receivable 3,670 3,670 — 3,670 — Restricted investment in bank stocks 4,773 4,773 — 4,773 — Financial liabilities: Demand deposits and savings 944,401 944,401 — 944,401 — Time deposits 354,091 351,055 — 351,055 — Short-term borrowings 36,908 36,908 — 36,908 — Long-term borrowings 89,600 89,571 — 89,571 — Trust preferred subordinated debt 5,000 4,692 — 4,692 — Accrued interest payable 1,163 1,163 — 1,163 — Off-balance sheet financial instruments — — — — — |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 . In thousands 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 31,547 $ 28,625 Service cost 860 839 Interest cost 1,096 1,135 Change in assumptions (1,944 ) 2,040 Benefits paid (1,221 ) (1,092 ) Benefit obligation at end of year 30,338 31,547 Change in plan assets: Fair value of plan assets at beginning of year 42,439 38,715 Actual return on plan assets (1,538 ) 4,816 Employer contribution — — Benefits paid (1,221 ) (1,092 ) Fair value of plan assets at end of year 39,680 42,439 Funded Status, included in other assets $ 9,342 $ 10,892 Amounts recognized in accumulated other comprehensive loss: Total net actuarial loss $ 9,773 $ 7,924 Prior service cost — — Total included in accumulated other comprehensive loss (pretax) $ 9,773 $ 7,924 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 $ 850 Prior service cost — $ 850 The accumulated benefit obligation totaled $29,115,000 and $30,228,000 at December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 and 2017 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 (income) costs related to the non-contributory, defined benefit pension plan for the years ended December 31 are as follows: In thousands 2018 2017 Components of net periodic benefit (income) cost: Service cost $ 860 $ 839 Interest cost 1,096 1,135 Expected return on plan assets (2,770 ) (2,518 ) Recognized net actuarial loss 515 676 Amortization of prior service cost — — Net Periodic Benefit (Income) Cost (299 ) 132 Net loss (gain) 2,365 (259 ) Amortization of net loss (515 ) (676 ) Amortization of prior service cost — — Total recognized in other comprehensive loss (income) $ 1,850 $ (935 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 1,551 $ (803 ) For the years ended December 31, 2018 and 2017 , the assumptions used to determine the benefit obligation are as follows: 2018 2017 Discount rate 4.10 % 3.55 % Rate of compensation increase 3.50 % 3.50 % For the years ended December 31, 2018 and 2017 , the assumptions used to determine the net periodic benefit (income) cost are as follows: 2018 2017 Discount rate 3.55 % 4.05 % Expected long-term rate of return on plan assets 6.75 % 6.75 % Rate of compensation increase 3.50 % 3.50 % The Corporation’s pension plan weighted-average assets’ allocations at December 31, 2018 and 2017 , are as follows: 2018 2017 Equity securities 63 % 50 % Debt securities 34 % 44 % Short-term fixed income — % — % Real estate 3 % 6 % 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 $2,882,000 , or 7% of total plan assets, and $2,114,000 , or 5% of total plan assets, at December 31, 2018 and 2017 , respectively. Fair value measurements at December 31, 2018 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 25,150 $ 2,882 $ 22,268 $ — Debt securities 13,376 — 13,376 — Real estate 1,154 — 1,154 — Fair value measurements at December 31, 2017 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 21,423 $ 2,114 $ 19,309 $ — Debt securities 18,668 — 18,668 — Real estate 2,348 — 2,348 — It has not yet been determined the amount that the Bank may contribute to the Plan in 2019 . 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 353 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 2019 $ 1,500 2020 1,520 2021 1,650 2022 1,670 2023 1,790 2024 - 2028 9,360 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 $664,000 and $626,000 for 2018 and 2017 , 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 $97,000 and $86,000 for 2018 and 2017 , 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, 2018 and 2017 , totaled $2,932,000 and $2,803,000 , respectively. The annual expense included in salaries and benefits expense totaled $463,000 and $279,000 during the years ended December 31, 2018 and 2017 , 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. |
STOCKHOLDERS' EQUITY AND REGULA
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
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 2018, 15,618 shares were issued under this plan with proceeds in the amount of $528,000 . During 2017, 14,967 shares were issued under this plan with proceeds in the amount of $362,000 . 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. To date, 26,045 shares were issued under this plan. The acquisition of New Windsor Bancorp, Inc. resulted in 938,360 new ACNB shares issued to the New Windsor Bancorp, Inc. shareholders valued at $28,620,000 in 2017. 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% (after a 0.625% per year phase-in period) for the capital conservation and countercyclical capital buffers for all banking organizations began on January 1, 2016. The required capital conservation buffer was 1.875% at December 31, 2018 . Management believes, as of December 31, 2018 , that the Corporation and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2018 , 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, 2018 Tier 1 leverage ratio (to average assets) $ 158,404 9.66 % $ ≥65,568 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 158,404 13.19 ≥54,026 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 158,404 13.19 ≥72,034 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 172,449 14.36 ≥96,046 ≥8.0 N/A N/A As of December 31, 2017 Tier 1 leverage ratio (to average assets) $ 144,376 9.04 % $ ≥63,871 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 144,376 12.79 ≥50,796 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 144,376 12.79 ≥67,728 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 158,479 14.04 ≥90,304 ≥8.0 N/A N/A BANK As of December 31, 2018 Tier 1 leverage ratio (to average assets) $ 154,215 9.44 % $ ≥65,348 ≥4.0% $ ≥81,686 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 154,215 12.89 ≥53,826 ≥4.5 ≥77,748 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 154,215 12.89 ≥71,768 ≥6.0 ≥95,690 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 168,260 14.07 ≥95,690 ≥8.0 ≥119,613 ≥10.0 As of December 31, 2017 Tier 1 leverage ratio (to average assets) $ 138,811 8.70 % $ ≥68,857 ≥4.0% $ ≥79,822 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 138,811 12.34 ≥50,639 ≥4.5 ≥73,145 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 138,811 12.34 ≥67,519 ≥6.0 ≥90,025 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 152,868 13.58 ≥90,025 ≥8.0 ≥112,532 ≥10.0 (1) Amounts and ratios do not include capital conservation buffer. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , for guarantees under standby letters of credit issued is not material. In 2018, ACNB Corporation executed a guaranty for a note related to a $1,500,000 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 as they arise by the borrower. A draw of $1,000,000 was taken on this commercial line of credit since its inception. The liability is recorded for the drawn amount of this line, no further liability is recorded for the remaining line as to the guarantor’s obligation as the guarantor would have full recourse from all assets of its wholly-owned subsidiary. 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 2018 2017 Commitments to extend credit $ 279,729 $ 264,368 Standby letters of credit 3,909 6,362 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION STATEMENTS OF CONDITION December 31, In thousands 2018 2017 ASSETS Cash $ 7,391 $ 9,440 Investment in banking subsidiary 156,651 143,288 Investment in other subsidiaries 9,389 8,517 Investments in low-income housing partnerships 240 689 Securities and other assets 1,271 1,548 Receivable from banking subsidiary 518 118 Total Assets $ 175,460 $ 163,600 LIABILITIES AND STOCKHOLDERS’ EQUITY Long-term debt $ 7,300 $ 9,600 Other liabilities 23 34 Stockholders’ equity 168,137 153,966 Total Liabilities and Stockholders’ Equity $ 175,460 $ 163,600 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, In thousands 2018 2017 Dividends from banking subsidiary $ 6,261 $ 5,233 Gain on sale of securities 47 — Other income 35 31 6,343 5,264 Expenses 1,421 1,572 4,922 3,692 Income tax benefit 547 507 5,469 4,199 Equity in undistributed earnings of subsidiaries 16,279 5,589 Net Income $ 21,748 $ 9,788 Comprehensive Income $ 19,623 $ 9,903 STATEMENTS OF CASH FLOWS Years Ended December 31, In thousands 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 21,748 $ 9,788 Equity in undistributed earnings of subsidiaries (16,279 ) (5,589 ) (Increase) Decrease in receivable from banking subsidiary (400 ) 12 Gain on sale of securities 47 — Other 669 129 Net Cash Provided by Operating Activities 5,785 4,340 CASH FLOWS FROM INVESTING ACTIVITIES Return of investment from subsidiary — 1,000 Outlay for business combination — (4,445 ) Net Cash Used in Investing Activities — (3,445 ) CASH FLOWS USED IN FINANCING ACTIVITIES Proceeds from long-term debt — 4,600 Repayments on long-term debt (2,300 ) — Proceeds from issuance of common stock 727 615 Dividends paid (6,261 ) (5,233 ) Net Cash Used in Financing Activities (7,834 ) (18 ) Net (Decrease) Increase in Cash and Cash Equivalents (2,049 ) 877 CASH AND CASH EQUIVALENTS — BEGINNING 9,440 8,563 CASH AND CASH EQUIVALENTS — ENDING $ 7,391 $ 9,440 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLES On January 5, 2005 , ACNB Corporation completed its acquisition of Russell Insurance Group, Inc. (RIG) of Westminster, Maryland. The acquisition of RIG resulted in goodwill of approximately $6,308,000 . On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp Inc. (New Windsor) of Taneytown, Maryland. The acquisition of New Windsor resulted in goodwill of approximately $13,272,000 and generated $2,418,000 in core deposit intangibles. Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, customer relationship intangibles and renewal lists, are amortized over their estimated useful lives and subject to periodic impairment testing. Core deposit intangibles are primarily amortized over ten years using accelerated methods. Customer renewal lists are amortized over their estimated useful lives which range from eight to fifteen years. Combining goodwill resulting from this transaction with existing goodwill from the 2005 RIG purchase of $6,308,000 , total goodwill included in the Corporation’s consolidated statement of condition is $19,580,000 . Goodwill is not deductible for federal income tax purposes. Goodwill, which has an indefinite useful life, is evaluated for impairment annually and is evaluated for impairment more frequently if events and circumstances indicate that the asset might be impaired. The Corporation did not identify any impairment on RIG’s or the Bank’s outstanding goodwill from its most recent testing. No change occurred during the year with RIG’s goodwill, $6,308,000 , or the Bank’s goodwill of $13,272,000 . The carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows: 2018 2017 Year Purchased Dollars in thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization 2005 $ 3,282 $ 3,282 $ 3,282 $ 3,282 2007 637 637 637 637 2008 1,165 1,165 1,165 1,101 2009 1,300 1,300 1,300 1,170 2010 33 30 33 26 2014 77 39 77 31 2015 173 67 173 49 2018 2,583 90 — — RIG amortized intangible assets 9,250 6,623 6,667 6,296 2017 New Windsor core deposit intangibles 2,418 638 2,418 220 $ 11,668 $ 7,261 $ 9,085 $ 6,516 Amortization expense was $745,000 and $537,000 for the years ended December 31, 2018 and 2017 , respectively. Amortization of the intangible assets for the five years subsequent to December 31, 2018 , is expected to be as follows: Years Ending In thousands 2019 $ 683 2020 635 2021 591 2022 547 2023 503 Thereafter 1,448 |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 and 2017 is as follows: In thousands Banking Insurance Total 2018 Net interest income and other income from external customers $ 67,654 $ 5,389 $ 73,043 Income before income taxes 25,515 1,205 26,720 Total assets 1,634,750 12,974 1,647,724 Capital expenditures 1,341 402 1,743 2017 Net interest income and other income from external customers $ 55,763 $ 4,738 $ 60,501 Income before income taxes 15,585 837 16,422 Total assets 1,586,064 9,368 1,595,432 Capital expenditures 1,727 30 1,757 |
NEW WINDSOR ACQUISITION
NEW WINDSOR ACQUISITION | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
NEW WINDSOR ACQUISITION | NEW WINDSOR ACQUISITION On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp Inc. (New Windsor) of Taneytown, Maryland. New Windsor was a locally owned and managed institution with seven locations in north central Maryland that complemented, enhanced and expanded ACNB’s physical presence in north central Maryland. ACNB transacted the acquisition to enhance its competitive strategic position, potential prospective business opportunities, operations, management, prospective financial condition, future earnings and business prospects. Specifically, ACNB believes that the acquisition will enhance its business opportunities in Northern Maryland due to the combined company having a greater market share, market presence and the ability to offer more diverse (i.e. Trust Services) and more profitable products, as well as a broader based and geographically diversified branch system to enhance deposit collection and potentially improve funding costs. The fair value of total assets acquired as a result of the acquisition totaled $319.8 million, loans totaled $263.5 million and deposits totaled $293.3 million. Goodwill recorded in the acquisition was $13.3 million. In accordance with the terms of the Reorganization Agreement, dated November 21, 2016, as amended, New Windsor shareholders received, in aggregate, $4.5 million in cash and 938,360 shares of ACNB common stock or approximately 13% of the post transaction outstanding shares of the Corporation’s common stock. The transaction was valued at $33.3 million based on the Corporation’s June 30, 2017 closing price of $30.50 as quoted on NASDAQ. The results of the combined entity’s operations are included in the Corporation’s Consolidated Financial Statements from the date of acquisition. The acquisition of New Windsor is being accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition. The following table summarizes the consideration paid for New Windsor and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock New Windsor shares of common stock outstanding 1,003,703 Shares paid cash consideration 150,555 Cash consideration (per New Windsor share) $ 30.00 Cash portion of purchase price $ 4,519,995 New Windsor shares of common stock outstanding 1,003,703 Shares of common stock paid stock consideration 853,148 Exchange ratio 1.10 Total ACNB shares of common stock issued 938,360 ACNB’s share price of common stock for purposes of calculation $ 30.50 Equity portion of purchase price $ 28,619,980 Cost of shares owned by buyer $ 150,000 Total consideration paid $ 33,289,975 Allocation of Purchase Price In thousands Total Purchase Price $ 33,290 Fair Value of Assets Acquired Cash and cash equivalents 10,964 Investment securities 21,624 Loans held for sale 1,463 Loans 263,450 Restricted stock 486 Premises and equipment 8,624 Core deposit intangible asset 2,418 Other assets 10,792 Total assets 319,821 Fair Value of Liabilities Assumed Non-interest bearing deposits 80,006 Interest bearing deposits 213,327 Subordinated debt 4,688 Other liabilities 1,782 Total liabilities 299,803 Net Assets Acquired 20,018 Goodwill Recorded in Acquisition $ 13,272 Pursuant to the accounting requirements, the Corporation assigned a fair value to the assets acquired and liabilities assumed of New Windsor. ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Goodwill and core deposit intangibles are allocated to the banking business segment. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Investment securities available-for-sale The estimated fair values of the investment securities available for sale, primarily comprised of U.S. Government agency mortgage-backed securities, U.S. government agencies and municipal bonds, were determined using Level 2 inputs in the fair value hierarchy. The fair values were determined using independent pricing services. The Corporation’s independent pricing service utilized matrix pricing, 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 relying on the security’s relationship to other benchmark quoted prices. Management reviewed the data and assumptions used in pricing the securities. Loans Acquired loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected life time losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The acquired loans were recorded at fair value at the acquisition date without carryover of New Windsor’s previously established allowance for loan losses. The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $272,646,000 . The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Corporation’s expectations of future cash flows for each respective loan. In thousands Gross amortized cost basis at July 1, 2017 $ 272,646 Interest rate fair value adjustment on pools of homogeneous loans (731 ) Credit fair value adjustment on pools of homogeneous loans (4,501 ) Credit fair value adjustment on purchased credit impaired loans (3,964 ) Fair value of acquired loans at July 1, 2017 $ 263,450 For loans acquired without evidence of credit quality deterioration, ACNB prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into homogeneous pools by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value discount of $731,000 . Additionally for loans acquired without credit deterioration, a credit fair value adjustment was calculated using a two-part credit fair value analysis: 1) expected lifetime credit migration losses; and 2) estimated fair value adjustment for certain qualitative factors. The expected lifetime losses were calculated using historical losses observed at the Bank, NWSB and peer banks. ACNB also estimated an environmental factor to apply to each loan type. The environmental factor represents potential discount which may arise due to general credit and economic factors. A credit fair value discount of $4.5 million was determined. Both the interest rate and credit fair value adjustments relate to loans acquired without evidence of credit quality deterioration will be substantially recognized as interest income on a level yield amortization method over the expected life of the loans. The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date: In thousands Contractual principal and interest at acquisition $ 13,439 Nonaccretable difference (5,651 ) Expected cash flows at acquisition 7,788 Accretable yield (1,458 ) Fair value of purchased impaired loans $ 6,330 Premises and Equipment The Corporation acquired seven branches from New Windsor. The fair value of New Windsor’s premises, including land, buildings, and improvements, was determined based upon independent third-party appraisals and other data in the market in which the premises are located. The Corporation prepared an internal analysis to compare the lease contract obligations to comparable market rental rates. The Corporation believed that the leased contract rates were in a reasonable range of market rental rates and concluded that no fair market value adjustment related to leasehold interest was necessary. Core Deposit Intangible The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate commensurate with market participants. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available through national brokered CD offering rates. The projected cash flows were developed using projected deposit attrition rates. The core deposit intangible will be amortized over ten years using the sum-of-years digits method. Time Deposits The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $847,500 is being amortized into income on a level yield amortization method over the contractual life of the deposits. Long-term Borrowings The Corporation assumed a trust preferred subordinated debt in connection with the acquisition. The fair value of the trust preferred subordinated debt was determined based upon an estimated fair value from an independent brokerage firm. The trust preferred capital note was valued at discount of $312,500 , which is being amortized into income on a level yield amortization method based upon the assumed market rate, and the term of the trust preferred subordinated debt instrument. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION As disclosed in Note A, as of January 1, 2018, the Corporation adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , as well as subsequent ASUs that modified ASC 606. The Company has elected to apply the ASU and all related ASUs using the cumulative effect approach. The implementation of the guidance had no material impact on the measurement or recognition of revenue of prior periods. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Additional disclosures related to the Corporation’s largest sources of noninterest income within the consolidated statements of income that are subject to ASC 606 are as follows: Income from fiduciary, investment management and brokerage activities - ACNB Bank’s Trust & Investment Services, under the umbrella of ACNB Wealth Management, provides a wide range of financial services, including trust services for individuals, businesses and retirement funds. Other services include, but are not limited to, those related to testamentary trusts, life insurance trusts, charitable remainder trusts, guardianships, power of attorney, custodial accounts and investment management and advisor accounts. In addition, ACNB’s Wealth Management Department offers retail brokerage-services through a third party provider. Wealth Management clients are located primarily within the Corporation’s geographic markets. Assets held by the Corporation’s Wealth Management Department, including trust and retail brokerage, in an agency, fiduciary or retail brokerage capacity for its customers are excluded from the consolidated financial statement since they do constitute assets of the Corporation. Assets held by the Wealth Management Department amounted to $342,000,000 and $327,000,000 at December 31, 2018 and 2017 , respectively. Income from fiduciary, investment management and brokerage activities are included in other income. The majority of trust services revenue is earned and collected monthly, with the amount determined based on the investment funds in each trust multiplied by a fee schedule for type of trust. Each trust has one integrated set of performance obligations so no allocation is required. The performance obligation is met by performing the identified fiduciary service. Successful performance is confirmed by ongoing internal and regulatory control, measurement is by valuing the trust assets at a monthly date to which a fee schedule is applied. Wealth management fees are contractually agreed with each customer, and fee levels vary based mainly on the size of assets under management. The costs of acquiring trust customers are incremental and recognized within noninterest expense in the consolidated statements of income. Service charges on deposit accounts - Deposits are included as liabilities in the consolidated balance sheets. Service charges on deposit accounts include: overdraft fees, which are charged when customers overdraw their accounts beyond available funds; automated teller machine (ATM) fees charged for withdrawals by deposit customers from other financial institutions’ ATMs; and a variety of other monthly or transactional fees for services provided to retail and business customers, mainly associated with checking accounts. All deposit liabilities are considered to have one-day terms and therefore related fees are recognized in income at the time when the services are provided to the customers. Incremental costs of obtaining deposit contracts are not significant and are recognized as expense when incurred within noninterest expense in the consolidated statements of income. Interchange revenue from debit card transactions - The Corporation issues debit cards to consumer and business customers with checking, savings or money market deposit accounts. Debit card and ATM transactions are processed via electronic systems that involve several parties. The Corporation’s debit card and ATM transaction processing is executed via contractual arrangements with payment processing networks, a processor and a settlement bank. As described above, all deposit liabilities are considered to have one-day terms and therefore interchange revenue from customers’ use of their debit cards to initiate transactions are recognized in income at the time when the services are provided and related fees received in the Corporation’s deposit account with the settlement bank. Incremental costs associated with ATM and interchange processing are recognized as expense when incurred within noninterest expense in the consolidated statements of income. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
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 wealth management services, including trust and retail brokerage, through its twenty-two community banking office locations in Adams, Cumberland, Franklin, and York Counties, Pennsylvania. There is also a loan production office situated in York County, Pennsylvania, as well as another loan production office in Hunt Valley, Maryland, effective July 25, 2018. On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp, Inc. (New Windsor) of Taneytown, Maryland. At the effective time of the acquisition, New Windsor merged with and into a wholly-owned subsidiary of ACNB, immediately followed by the merger of New Windsor State Bank (NWSB) with and into ACNB Bank. ACNB Bank now operates in the Maryland market as “NWSB Bank, A Division of ACNB Bank” and serves its marketplace with banking and wealth management services via a network of seven community banking offices located in Carroll County, Maryland. RIG is a full-service insurance agency based in Westminster, Maryland with additional locations in Germantown, Maryland, and Jarrettsville, 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 (US 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 Wealth Management Department, including trust and retail brokerage, in an agency, fiduciary or retail brokerage capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Corporation. Assets held by the Wealth Management Department amounted to $342,000,000 and $327,000,000 at December 31, 2018 and 2017 , respectively. Income from fiduciary, investment management and brokerage activities are included in other income. The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2018 , 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 $287,030,000 , or 22.0% , of total loans at December 31, 2018 . 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. Debt securities not classified as held to maturity or trading 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). As of January 1, 2018, equity securities with readily determined fair values are recorded at fair value with changes in fair value recognized in net income. Prior to 2018, fair value changes were 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 risk 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. The Corporation orders valuations 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 are subject to 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 are subject to 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. |
Acquired Loans | Acquired Loans Acquired Loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected lifetime losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The carryover of allowance for loan losses related to acquired loans is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. The allowance for loan losses on acquired loans reflects only those losses incurred after acquisition and represents the present value of cash flows expected at acquisition that is no longer expected to be collected. Acquired loans are marked to fair value on the date of acquisition. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Corporation performs an analysis on acquired loans to determine whether or not there has been subsequent deterioration in relation to those loans. If deterioration has occurred, the Corporation will include these loans in the calculation of the allowance for loan losses after the initial valuation, and provide accordingly. Upon acquisition, in accordance with US GAAP, the Corporation has individually determined whether each acquired loan is within the scope of ASC 310-30. The Corporation’s senior lending management reviewed the accounting seller’s loan portfolio on a loan by loan basis to determine if any loans met the two-part definition of an impaired loan as defined by ASC 310-30: 1) Credit deterioration on the loan from its inception until the acquisition date, and 2) It is probable that not all of the contractual cash flows will be collected on the loan. Acquired ASC 310-20 loans, which are loans that did not meet the criteria above, were pooled into groups of similar loans based on various factors including borrower type, loan purpose, and collateral type. For these pools, the Corporation used certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average margin, and weighted average interest rate along with estimated prepayment rates, expected lifetime losses, environment factors to estimate the expected cash flow for each loan pool. With regards to ASC 310-30 loans, for external disclosure purposes, the aggregate contractual cash flows less the aggregate expected cash flows resulted in a credit related non-accretable yield amount. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount. The accretable yield reflects the contractual cash flows management expects to collect above the loan’s acquisition date fair value and will be recognized over the life of the loan on a level-yield basis as a component of interest income. Over the life of the acquired ASC 310-30 loan, the Corporation continues to estimate cash flows expected to be collected. Decreases in expected cash flows, other than from prepayments or rate adjustments, are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the allowance for credit losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized on a prospective basis over the loan’s remaining life. Acquired ASC 310-30 loans that met the criteria for non-accrual of interest prior to acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of expected cash flows on such loans. Accordingly, we do not consider acquired contractually delinquent loans to be non-accruing and continue to recognize interest income on these loans using the accretion model. For loans acquired without evidence of credit quality deterioration, ACNB prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into homogeneous pools by characteristics such as loan type, term, collateral, and rate. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value discount of $731,000 . Additionally, for loans acquired without credit quality deterioration, a credit fair value adjustment was calculated using a two-part credit fair value analysis: 1) expected lifetime credit migration losses; and 2) estimated fair value adjustment for certain qualitative factors. The expected lifetime losses were calculated using historical losses observed at the Bank, NWSB and peer banks. ACNB also estimated an environmental factor to apply to each loan type. The environmental factor represents potential discount which may arise due to general credit and economic factors. A credit fair value discount of $4.5 million was determined. Both the interest rate and credit fair value adjustments relate to loans acquired with evidence of credit quality deterioration will be substantially recognized as interest income on a level yield amortization method over the expected life of the 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 fifteen years. Bank equipment, including furniture and fixtures, is normally depreciated over five - fifteen 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, 2018 and 2017 , and consists of common stock in the Atlantic Central Bankers Bank, Maryland Financial Bank, Community 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 2018 or 2017 . 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 $95,000 and $96,000 of expense in 2018 and 2017 , 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 RIG’s outstanding goodwill from its most recent testing, which was performed as of October 1, 2018 . A qualitative assessment on the Bank’s outstanding goodwill, resulting from the 2017 New Windsor acquisition, was performed on June 30th which showed no impairment. Subsequent to that evaluation, ACNB concluded that it would be preferable to evaluate goodwill at December 31st. This date was preferable from the June 30th measurement as events happening nearer to year-end could be factored in if necessary. The second evaluation completed as of December 31, 2018, again revealed no impairment and it was agreed to continue to evaluate goodwill for the Bank at December 31st. If certain events occur which might indicate goodwill has been impaired, the goodwill is tested for impairment when such events occur. Other acquired intangible assets that have finite lives, such as core deposit intangibles, customer relationship intangibles and renewal lists, are amortized over their estimated useful lives and subject to periodic impairment testing. Core deposit intangibles are primarily amortized over ten years using accelerated methods. Customer renewal lists are amortized using the straight line method over their estimated useful lives which range from eight to fifteen 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. To date, 26,045 shares were issued under this plan, which resulted in $186,000 and $133,000 of compensation expense for the years ended December 31, 2018 and 2017 , respectively. Of the 26,045 shares issued under the plan, 19,485 shares are fully vested and 6,560 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 7,035,818 and 6,543,756 weighted average shares of common stock outstanding for 2018 and 2017 , 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 on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — DECEMBER 31, 2018 $ (1,651 ) $ (7,566 ) $ (9,217 ) BALANCE — DECEMBER 31, 2017 $ (957 ) $ (6,135 ) $ (7,092 ) |
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 community 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, community and mortgage banking operations of the Bank. As such, discrete financial information for commercial, community 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 On January 1, 2018, the Corporation adopted ASU 2014-09, Revenue from Contracts with Customers, and all subsequent amendments to the ASU (collectively “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Corporation’s revenue comes from interest income, including loans and securities, that are outside the scope of ASC 606. The Corporation’s services that fall within the scope of ASC 606 are presented within other income on the consolidated statement of income and are recognized as revenue as the Corporation satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges on deposit accounts, service charges on ATM and debit card transactions, income from fiduciary, investment management and brokerage activities and commissions from insurance sales. ASC 606 did not result in a change to the accounting for any in-scope revenue streams; as such, no cumulative effect adjustment was recorded. On January 1, 2018, the Corporation adopted ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amended the guidance on the classification and measurement of financial instruments. Upon adoption of ASU 2016-01, the Corporation recognized the equity securities fair value change in net income. Previously, the fair value changes were recognized, net of tax, in other comprehensive income (loss). The adoption of this ASU did not have a material effect on the Corporation’s consolidated financial condition or results of operations. The Corporation early adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. An entity may still perform the option qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. However, the ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with a zero or negative carrying amount. Therefore, the same one-step impairment assessment will apply to all reporting units. However, for a reporting unit with a zero or negative carrying amount, the ASU adds a requirement to disclose the amount of goodwill allocated to it and the reportable segment in which it is included. The amendments in this ASU would be effective with their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of this ASU did not have a material effect on the Corporation’s consolidated financial condition or results of operations. ASU 2016-02, ASU 2018-10 and ASU 2018-11 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 an 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases. In this ASU, FASB corrects inconsistencies in the guidance and clarifies how to apply certain provisions of the leases standard. The amendment targets 16 issues: • residual value guarantees; • rate implicit in the lease; • lessee reassessment of lease classification; • lessor reassessment of lease term and purchase option; • variable lease payments that depend on an index or a rate; • investment tax credits; • lease term and purchase option; • transition guidance for amounts previously recognized in business combinations; • recognition of certain transition adjustments in earnings rather than equity; • transition guidance for leases previously classified as capital leases under Topic 840; • transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840; • transition guidance for sale and leaseback transactions; • impairment of net investment in the lease; • unguaranteed residual asset; • effect of initial direct costs on rate implicit in the lease; and, • failed sale and leaseback transaction. The effective date and transition requirements are consistent with ASU 2016-02. For entities that have early adopted Topic 842 issued in ASU 2016-02, the amendments are effective upon issuance. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The ASU provides an optional transition method for adopting the new leases guidance in Topic 842 that will eliminate comparative period reporting under the new guidance in the year of adoption. This option addresses preparer feedback about the related costs of presenting comparative periods under Topic 842. Under the optional transition method, only the most recent period presented will reflect the adoption of Topic 842 with a cumulative-effect adjustment to the opening balance of retained earnings, and the comparative prior periods will be reported under the previous guidance in Topic 840. Also, the ASU offers lessors a practical expedient that mirrors the practical expedient already provided to lessees in ASU 2016-02, Leases (Topic 842) . The new practical expedient will allow lessors to elect, by class of underlying asset, to not separate nonlease components from the associated lease component when specified conditions are met. Examples of nonlease components include equipment maintenance services, common area maintenance services in real estate, or other goods or services provided to the lessee apart from the right to use the underlying asset. The practical expedient must be applied consistently for all lease contracts. The effective date and transition requirements for lessors electing the practical expedient for separating components of a contract are the same as the requirements for Topic 842 issued in ASU 2016-02. For entities that have early adopted Topic 842, the ASU provides specific transition guidance for lessors electing the practical expedient. The Corporation intends on adopting the ASU under the optional transition method, where only the most recent period presented will reflect the adoption of Topic 842 with a cumulative-effect adjustment to the opening balance of retained earnings, and the comparative prior periods will be reported under the previous guidance in Topic 840. The Corporation estimates recording a $4 million right-of-use asset and lease liability, which represents all of its operating lease commitments, based on the present value of committed lease payments as of the adoption date. The effect on operations and capital adequacy is not expected to be material. 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. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. Management has developed a committee to address CECL and the committee is currently evaluating options to comply with the ASU in a timely manner. ASU 2017-08 In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . ASU 2017-08 shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization), rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans, not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Corporation has evaluated the provision of ASU 2017-08 to determine the potential impact of the new standard and has determined that it is not expected to have a significant impact on its consolidated financial condition or results of operations, as the Corporation holds one security that this ASU would impact. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. However, the ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with a zero or negative carrying amount. Therefore, the same one-step impairment assessment will apply to all reporting units. However, for a reporting unit with a zero or negative carrying amount, the ASU adds a requirement to disclose the amount of goodwill allocated to it and the reportable segment in which it is included. For public business entities that are SEC filers, the amendments are effective with their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Corporation has evaluated the provision of ASU 2017-04 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 based on the current circumstances. ASU 2018-09 In July 2018, the FASB issued ASU 2018-09, Codification Improvements. The ASU contains various improvements to various topics in the codification, including clarification that an entity must disclose the required and actual amounts of regulatory capital for each measure of regulatory capital for which the entity must comply. For year-end public business entities, the improvements are effective upon issuance, which was July 2018. The Corporation has evaluated the improvements of ASU 2018-09 and determined that the ASU will not impact its consolidated financial condition or results of operations since the Corporation already discloses capital requirements with the Management’s Discussion and Analysis section of the Form 10-Q. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU removes, modifies, and adds to existing fair value measurement disclosure requirements. The following are removed: • transfers between Level 1 and Level 2 of the fair value hierarchy; • the policy for determining when transfers between any of the three levels have occurred; and, • the valuation processes used for Level 3 measurements. The following are modified: • a clarification that the Level 3 measurement uncertainty disclosure should communicate information about the uncertainty at the balance sheet date. The following are new: • for public entities, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 instruments held at the balance sheet date; and, • for public entities, the range and weighted average of significant unobservable inputs used for Level 3 measurements. For certain unobservable inputs, an option to disclose other quantitative information in place of the weighted average is available to the extent that it would be a more reasonable and rational method to reflect the distribution of unobservable inputs. The ASU is effective for all entities in fiscal years beginning after December 15, 2019, including interim periods, which is first effective for calendar year entities in the March 31, 2020, interim financial statements. Early adoption is permitted. In addition, an entity may early adopt any of the removed or modified disclosures immediately and delay adoption of the new disclosures until the effective date. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. ASU 2018-14 In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The ASU removes the following disclosures: • the amounts in accumulated other comprehensive income that the entity expects to recognize in net periodic benefit cost during the next fiscal year; • the amount and timing of plan assets expected to be returned to the employer; and, • certain related party disclosures. The ASU clarifies the following disclosure requirements: • the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets must be disclosed; and, • the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets must be disclosed. The ASU adds the following disclosure requirements: • the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and, • an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for public business entities in fiscal years ending after December 15, 2020. Early adoption is permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — DECEMBER 31, 2018 $ (1,651 ) $ (7,566 ) $ (9,217 ) BALANCE — DECEMBER 31, 2017 $ (957 ) $ (6,135 ) $ (7,092 ) |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | Amortized cost and fair value at December 31, 2018 and 2017 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE December 31, 2018 U.S. Government and agencies $ 120,420 $ 142 $ 2,149 $ 118,413 Mortgage-backed securities, residential 33,960 194 343 33,811 State and municipal 9,482 60 36 9,506 $ 163,862 $ 396 $ 2,528 $ 161,730 December 31, 2017 U.S. Government and agencies $ 105,899 $ 2 $ 1,818 $ 104,083 Mortgage-backed securities, residential 34,473 461 101 34,833 State and municipal 13,227 109 42 13,294 Corporate bonds 5,000 57 — 5,057 $ 158,599 $ 629 $ 1,961 $ 157,267 SECURITIES HELD TO MATURITY December 31, 2018 U.S. Government and agencies $ 7,000 $ — $ 69 $ 6,931 Mortgage-backed securities, residential 20,266 4 290 19,980 $ 27,266 $ 4 $ 359 $ 26,911 December 31, 2017 U.S. Government and agencies $ 19,000 $ 2 $ 99 $ 18,903 Mortgage-backed securities, residential 25,829 55 238 25,646 $ 44,829 $ 57 $ 337 $ 44,549 The required fair value disclosures are as follows: In thousands Fair Value at January 1, 2018 Unrealized Gains Unrealized Losses Fair Value at December 31, 2018 DECEMBER 31, 2018 CRA Mutual Fund $ 1,044 $ — $ 32 $ 1,012 Stock in other banks 749 247 169 827 $ 1,793 $ 247 $ 201 $ 1,839 Amortized cost and fair value disclosures of equity securities prior to ASU 2016-01 implementation are as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value DECEMBER 31, 2017 CRA Mutual Fund $ 1,044 $ — $ 9 $ 1,035 Stock in other banks 647 102 — 749 $ 1,691 $ 102 $ 9 $ 1,784 |
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, 2018 and 2017 : 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, 2018 U.S. Government and agencies $ 1,997 $ 5 $ 87,216 $ 2,144 $ 89,213 $ 2,149 Mortgage-backed securities, residential 9,410 134 8,586 209 17,996 343 State and municipal — — 2,696 36 2,696 36 $ 11,407 $ 139 $ 98,498 $ 2,389 $ 109,905 $ 2,528 December 31, 2017 U.S. Government and agencies $ 42,775 $ 445 $ 58,279 $ 1,373 $ 101,054 $ 1,818 Mortgage-backed securities, residential 7,228 56 2,845 45 10,073 101 State and municipal 1,042 8 1,950 34 2,992 42 CRA Mutual Fund — — 1,035 9 1,035 9 $ 51,045 $ 509 $ 64,109 $ 1,461 $ 115,154 $ 1,970 SECURITIES HELD TO MATURITY December 31, 2018 U.S. Government and agencies $ 2,975 $ 25 $ 3,956 $ 44 $ 6,931 $ 69 Mortgage-backed securities, residential 5,408 59 12,636 231 18,044 290 $ 8,383 $ 84 $ 16,592 $ 275 $ 24,975 $ 359 December 31, 2017 U.S. Government and agencies $ 4,985 $ 15 $ 10,916 $ 84 $ 15,901 $ 99 Mortgage-backed security, residential 4,946 29 11,070 209 16,016 238 $ 9,931 $ 44 $ 21,986 $ 293 $ 31,917 $ 337 |
Investments Classified by Contractual Maturity Date | Amortized cost and fair value at December 31, 2018 , 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 $ 8,483 $ 8,439 $ 3,000 $ 2,970 Over 1 year through 5 years 121,220 119,284 4,000 3,961 Over 5 years through 10 years 199 196 — — Over 10 years — — — — Mortgage-backed securities, residential 33,960 33,811 20,266 19,980 $ 163,862 $ 161,730 $ 27,266 $ 26,911 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 : In thousands Pass Special Substandard Doubtful Total December 31, 2018 Originated Loans Commercial and industrial $ 166,035 $ 2,902 $ 161 $ — $ 169,098 Commercial real estate 393,987 18,079 7,899 — 419,965 Commercial real estate construction 15,471 835 — — 16,306 Residential mortgage 381,525 6,492 733 — 388,750 Home equity lines of credit 90,941 334 — — 91,275 Consumer 14,174 — — — 14,174 Total Originated Loans 1,062,133 28,642 8,793 — 1,099,568 Acquired Loans Commercial and industrial 4,803 134 147 — 5,084 Commercial real estate 120,321 5,112 3,525 — 128,958 Commercial real estate construction 3,276 716 — — 3,992 Residential mortgage 41,193 1,896 2,460 — 45,549 Home equity lines of credit 18,614 88 386 — 19,088 Consumer 226 — — — 226 Total Acquired Loans 188,433 7,946 6,518 — 202,897 Total Loans Commercial and industrial 170,838 3,036 308 — 174,182 Commercial real estate 514,308 23,191 11,424 — 548,923 Commercial real estate construction 18,747 1,551 — — 20,298 Residential mortgage 422,718 8,388 3,193 — 434,299 Home equity lines of credit 109,555 422 386 — 110,363 Consumer 14,400 — — — 14,400 Total Loans $ 1,250,566 $ 36,588 $ 15,311 $ — $ 1,302,465 In thousands Pass Special Substandard Doubtful Total December 31, 2017 Originated Loans Commercial and industrial $ 154,177 $ 3,466 $ 1,812 $ — $ 159,455 Commercial real estate 325,002 17,666 9,277 — 351,945 Commercial real estate construction 27,413 767 250 — 28,430 Residential mortgage 363,195 3,251 478 — 366,924 Home equity lines of credit 81,976 360 — — 82,336 Consumer 14,454 — — — 14,454 Total Originated Loans 966,217 25,510 11,817 — 1,003,544 Acquired Loans Commercial and industrial 6,120 244 10 — 6,374 Commercial real estate 124,852 12,734 3,228 — 140,814 Commercial real estate construction 6,742 388 — — 7,130 Residential mortgage 52,959 2,762 3,248 — 58,969 Home equity lines of credit 24,990 88 378 — 25,456 Consumer 1,525 358 — — 1,883 Total Acquired Loans 217,188 16,574 6,864 — 240,626 Total Loans Commercial and industrial 160,297 3,710 1,822 $ — 165,829 Commercial real estate 449,854 30,400 12,505 — 492,759 Commercial real estate construction 34,155 1,155 250 — 35,560 Residential mortgage 416,154 6,013 3,726 — 425,893 Home equity lines of credit 106,966 448 378 — 107,792 Consumer 15,979 358 — — 16,337 Total Loans $ 1,183,405 $ 42,084 $ 18,681 $ — $ 1,244,170 |
Schedule Of Changes In Accretable Yields Of Acquired Loans [Table Text Block] | The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. In thousands Year Ended December 31, 2018 Balance at beginning of period $ 1,234 Acquisitions of impaired loans — Reclassification from non-accretable differences 402 Accretion to loan interest income (745 ) Balance at end of period $ 891 |
Impaired Loans By Loan Portfolio Class | The following table summarizes information relative to impaired loans by loan portfolio class as of December 31, 2018 and 2017 : 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, 2018 Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 6,763 6,763 Commercial real estate construction — — — — — Residential mortgage — — — 537 537 Home equity lines of credit — — — — — Total $ — $ — $ — $ 7,300 $ 7,300 December 31, 2017 Commercial and industrial $ 1,311 $ 1,311 $ 792 $ 188 $ 188 Commercial real estate 832 832 60 7,528 7,528 Commercial real estate construction — — — — — Residential mortgage 377 377 377 101 101 Total $ 2,520 $ 2,520 $ 1,229 $ 7,817 $ 7,817 |
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, 2018 Commercial and industrial $ 436 $ — $ 73 $ 44 Commercial real estate — — 7,372 216 Commercial real estate construction — — — — Residential mortgage 75 — 275 — Home equity lines of credit 30 — — — Total $ 541 $ — $ 7,720 $ 260 December 31, 2017 Commercial and industrial $ 1,184 $ — $ 785 $ — Commercial real estate 499 — 8,030 330 Commercial real estate construction — — 60 25 Residential mortgage 377 — 210 15 Total $ 2,060 $ — $ 9,085 $ 370 |
Nonaccrual Loans By Classes Of The Loan Portfolio | The following table presents nonaccrual loans by loan portfolio class as of December 31, 2018 and 2017 , the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands 2018 2017 Commercial and industrial $ — $ 1,499 Commercial real estate 2,880 4,378 Commercial real estate construction — — Residential mortgage 537 478 Home equity lines of credit — — Total $ 3,417 $ 6,355 |
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, 2018 and 2017 : 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, 2018 Originated Loans Commercial and industrial $ 49 $ 49 $ 4 $ 102 $ 168,996 $ 169,098 $ 4 Commercial real estate 775 550 114 1,439 418,526 419,965 — Commercial real estate construction — — — — 16,306 16,306 — Residential mortgage 1,783 529 2,361 4,673 384,077 388,750 1,824 Home equity lines of credit 16 38 375 429 90,846 91,275 375 Consumer 36 14 — 50 14,124 14,174 — Total originated loans 2,659 1,180 2,854 6,693 1,092,875 1,099,568 2,203 Acquired Loans Commercial and industrial 27 — — 27 5,057 5,084 — Commercial real estate 64 — 851 915 128,043 128,958 851 Commercial real estate construction 343 — 77 420 3,572 3,992 77 Residential mortgage 1,235 251 907 2,393 43,156 45,549 125 Home equity lines of credit 227 — 89 316 18,772 19,088 89 Consumer — 7 — 7 219 226 — Total acquired loans 1,896 258 1,924 4,078 198,819 202,897 1,142 Total Loans Commercial and industrial 76 49 4 129 174,053 174,182 4 Commercial real estate 839 550 965 2,354 546,569 548,923 851 Commercial real estate construction 343 — 77 420 19,878 20,298 77 Residential mortgage 3,018 780 3,268 7,066 427,233 434,299 1,949 Home equity lines of credit 243 38 464 745 109,618 110,363 464 Consumer 36 21 — 57 14,343 14,400 — Total Loans $ 4,555 $ 1,438 $ 4,778 $ 10,771 $ 1,291,694 $ 1,302,465 $ 3,345 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, 2017 Originated Loans Commercial and industrial $ 55 $ 76 $ 1,503 $ 1,634 $ 157,821 $ 159,455 $ 4 Commercial real estate 436 317 1,400 2,153 349,792 351,945 88 Commercial real estate construction 252 — — 252 28,178 28,430 — Residential mortgage 3,006 646 1,500 5,152 361,772 366,924 1,022 Home equity lines of credit 254 29 183 466 81,870 82,336 183 Consumer 72 26 3 101 14,353 14,454 3 Total originated loans 4,075 1,094 4,589 9,758 993,786 1,003,544 1,300 Acquired Loans Commercial and industrial 83 — — 83 6,291 6,374 — Commercial real estate 916 — — 916 139,898 140,814 — Commercial real estate construction — — — — 7,130 7,130 — Residential mortgage 930 304 137 1,371 57,598 58,969 137 Home equity lines of credit 83 — 70 153 25,303 25,456 70 Consumer — — — — 1,883 1,883 — Total acquired loans 2,012 304 207 2,523 238,103 240,626 207 Total Loans Commercial and industrial $ 138 $ 76 $ 1,503 $ 1,717 $ 164,112 $ 165,829 $ 4 Commercial real estate 1,352 317 1,400 3,069 489,690 492,759 88 Commercial real estate construction 252 — — 252 35,308 35,560 — Residential mortgage 3,936 950 1,637 6,523 419,370 425,893 1,159 Home equity lines of credit 337 29 253 619 107,173 107,792 253 Consumer 72 26 3 101 16,236 16,337 3 Total Loans $ 6,087 $ 1,398 $ 4,796 $ 12,281 $ 1,231,889 $ 1,244,170 $ 1,507 |
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, 2018 Allowance for loan losses Beginning balance- January 1, 2018 $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Charge-offs (934 ) (33 ) — (530 ) (148 ) (165 ) — (1,810 ) Recoveries 36 — 103 32 — 7 — 178 Provisions 276 1,013 (26 ) 86 147 101 23 1,620 Ending balance- December 31, 2018 $ 2,597 $ 6,208 $ 203 $ 2,814 $ 611 $ 692 $ 839 $ 13,964 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 2,597 $ 6,208 $ 203 $ 2,814 $ 611 $ 692 $ 839 $ 13,964 Loans receivables Ending balance $ 174,182 $ 548,923 $ 20,298 $ 434,299 $ 110,363 $ 14,400 $ — $ 1,302,465 Ending balance: individually evaluated for impairment $ — $ 6,763 $ — $ 537 $ — $ — $ — $ 7,300 Ending balance: collectively evaluated for impairment $ 174,182 $ 542,160 $ 20,298 $ 433,762 $ 110,363 $ 14,400 $ — $ 1,295,165 December 31, 2017 Allowance for loan losses Beginning balance- January 1, 2017 $ 3,055 $ 4,968 $ 147 $ 3,478 $ 648 $ 923 $ 975 $ 14,194 Charge-offs (181 ) — — (132 ) (9 ) (139 ) — (461 ) Recoveries 21 61 80 62 — 19 — 243 Provisions 324 199 (101 ) (182 ) (27 ) (54 ) (159 ) — Ending balance- December 31, 2017 $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Ending balance: individually evaluated for impairment $ 792 $ 60 $ — $ 377 $ — $ — $ — $ 1,229 Ending balance: collectively evaluated for impairment $ 2,427 $ 5,168 $ 126 $ 2,849 $ 612 $ 749 $ 816 $ 12,747 Loans receivables Ending balance $ 165,829 $ 492,759 $ 35,560 $ 425,893 $ 107,792 $ 16,337 $ — $ 1,244,170 Ending balance: individually evaluated for impairment $ 1,499 $ 8,360 $ — $ 478 $ — $ — $ — $ 10,337 Ending balance: collectively evaluated for impairment $ 164,330 $ 484,399 $ 35,560 $ 425,415 $ 107,792 $ 16,337 $ — $ 1,233,833 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and equipment | Premises and equipment at December 31 were as follows: In thousands 2018 2017 Land $ 5,050 $ 5,050 Buildings and improvements 27,509 25,881 Furniture and equipment 14,111 14,856 Construction in process 460 182 47,130 45,969 Accumulated depreciation (20,721 ) (19,195 ) $ 26,409 $ 26,774 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest-bearing Deposit Liabilities [Abstract] | |
Schedule Of Deposits | Deposits were comprised of the following as of December 31: In thousands 2018 2017 Non-interest bearing demand $ 302,394 $ 279,413 Interest bearing demand 160,718 163,278 Savings 516,872 501,710 Time certificates of deposit of $250,000 or less 307,407 295,279 Time certificates of deposit greater than $250,000 60,701 58,812 $ 1,348,092 $ 1,298,492 |
Schedule Of Maturities Of Time Certificates Of Deposits | Scheduled maturities of time certificates of deposit at December 31, 2018 , were as follows: Years Ending In thousands 2019 $ 213,669 2020 74,837 2021 62,171 2022 12,216 2023 5,215 $ 368,108 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2019 $ 811 2020 710 2021 617 2022 528 2023 507 Later years 2,186 $ 5,359 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short-term borrowings and weighted-average interest rates at December 31 are as follows: 2018 2017 Dollars in thousands Amount Rate Amount Rate FHLB overnight advance $ 32 2.62 % $ — — % Securities sold under repurchase agreements 34,616 0.12 36,908 0.12 $ 34,648 0.12 % $ 36,908 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, 2018 and 2017 : 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, 2018 Repurchase agreements Commercial customers and government entities (a) $ 34,616 $ — $ 34,616 $ (34,616 ) $ — $ — December 31, 2017 Repurchase agreements Commercial customers and government entities (a) $ 36,908 $ — $ 36,908 $ (36,908 ) $ — $ — (a) As of December 31, 2018 and 2017 , the fair value of securities pledged in connection with repurchase agreements was $39,788,000 and $42,397,000 , respectively. |
Schedule of Maturities of Long-term Debt | A summary of long-term debt as of December 31 is as follows: 2018 2017 Dollars in thousands Amount Rate Amount Rate FHLB fixed-rate advances maturing: 2018 $ — — % $ 25,500 1.87 % 2019 23,500 1.73 % 23,500 1.73 % 2020 20,000 1.87 % 20,000 1.87 % 2021 22,716 2.10 % 16,000 2.01 % 2022 9,000 2.70 % — — % Loan Payable to local bank 2,300 4.50 % 4,600 1.53 % Loan Payable to local bank 1,000 5.25 % — — % Trust preferred subordinated debt 5,000 6.39 % 5,000 6.39 % $ 83,516 2.47 % $ 94,600 2.06 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years ended December 31, 2018 and 2017 , are as follows: In thousands 2018 2017 Federal: Current $ 4,036 $ 4,767 Deferred 388 1,413 4,424 6,180 State: Current 479 156 Deferred 69 298 548 454 $ 4,972 $ 6,634 |
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, 2018 and 2017 , are as follows: Percentage of Income before Income Taxes 2018 2017 Federal income tax at statutory rate 21.0 % 35.0 % State income taxes, net of federal benefit 1.6 % 1.8 % Tax-exempt income (1.7 )% (5.0 )% Earnings on investment in bank-owned life insurance (0.9 )% (2.3 )% Rehabilitation and low-income housing credits (1.1 )% (1.7 )% Reduction of federal tax rate — % 10.2 % Other (0.3 )% 2.4 % 18.6 % 40.4 % |
Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities at December 31 were as follows: In thousands 2018 2017 Deferred tax assets: Allowance for loan losses $ 3,054 $ 3,052 Available for sale securities 409 282 Accrued deferred compensation 884 852 Pension 2,207 1,789 Other-than-temporary impairment 43 43 Nonaccrual interest 192 171 Deferred director fees 589 520 Acquisition accounting 785 1,357 Other 602 521 8,765 8,587 Deferred tax liabilities: Deferred loan fees 101 114 Available for sale securities — — Prepaid pension benefit cost 4,289 4,248 Prepaid expenses 130 132 Accumulated depreciation 347 426 Goodwill/intangibles 1,056 928 5,923 5,848 Net Deferred Tax Asset included in Other Assets $ 2,842 $ 2,739 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , are as follows: Fair Value Measurements at December 31, 2018 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 118,413 $ — $ 118,413 $ — Mortgage-backed securities, residential 33,811 — 33,811 — State and municipal 9,506 — 9,506 — Total securities available for sale Recurring $ 161,730 $ — $ 161,730 $ — Equity securities with readily determinable fair values Recurring $ 1,839 $ 1,839 $ — $ — Collateral dependent impaired loans Non-recurring $ 3,883 $ — $ — $ 3,883 Fair Value Measurements at December 31, 2017 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 104,083 $ — $ 104,083 $ — Mortgage-backed securities, residential 34,833 — 34,833 — State and municipal 13,294 — 13,294 — Corporate bonds 5,057 — 5,057 — Total securities available for sale Recurring $ 157,267 $ — $ 157,267 $ — Equity securities with readily determinable fair values Recurring $ 1,784 $ 1,784 $ — $ — Collateral dependent impaired loans Non-recurring $ 5,426 $ — $ — $ 5,426 |
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, 2018 Impaired loans $ 3,883 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (16 )% December 31, 2017 Impaired loans $ 5,426 Appraisal of collateral (1) Appraisal adjustments (2) (10) - (50)% (36 )% (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 downward 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, and/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, exit pricing concept fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2018 : December 31, 2018 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 20,105 $ 20,105 $ 8,190 $ 11,915 $ — Interest-bearing deposits in banks 20,800 20,800 20,800 — — Equity securities available for sale 1,839 1,839 1,839 — — Investment securities available for sale 161,730 161,730 — 161,730 — Investment securities held to maturity 27,266 26,911 — 26,911 — Loans held for sale 408 408 — 408 — Loans, less allowance for loan losses 1,288,501 1,272,393 — — 1,272,393 Accrued interest receivable 3,670 3,670 — 3,670 — Restricted investment in bank stocks 4,336 4,336 — 4,336 — Financial liabilities: Demand deposits and savings 979,964 979,964 — 979,964 — Time deposits 368,128 364,093 — 364,093 — Short-term borrowings 34,648 34,648 — 34,648 — Long-term borrowings 78,516 78,545 — 78,545 — Trust preferred subordinated debt 5,000 4,701 — 4,701 — Accrued interest payable 1,163 1,163 — 1,163 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments at December 31, 2017 : December 31, 2017 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 19,304 $ 19,304 $ 8,313 $ 10,991 $ — Interest-bearing deposits in banks 15,137 15,137 15,137 — — Equity securities available for sale 1,784 1,784 1,784 — — Investment securities available for sale 157,267 157,267 — 157,267 — Investment securities held to maturity 44,829 44,549 — 44,549 — Loans held for sale 1,736 1,736 — 1,736 — Loans, less allowance for loan losses 1,230,194 1,213,932 — — 1,213,932 Accrued interest receivable 3,670 3,670 — 3,670 — Restricted investment in bank stocks 4,773 4,773 — 4,773 — Financial liabilities: Demand deposits and savings 944,401 944,401 — 944,401 — Time deposits 354,091 351,055 — 351,055 — Short-term borrowings 36,908 36,908 — 36,908 — Long-term borrowings 89,600 89,571 — 89,571 — Trust preferred subordinated debt 5,000 4,692 — 4,692 — Accrued interest payable 1,163 1,163 — 1,163 — Off-balance sheet financial instruments — — — — — |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 . In thousands 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 31,547 $ 28,625 Service cost 860 839 Interest cost 1,096 1,135 Change in assumptions (1,944 ) 2,040 Benefits paid (1,221 ) (1,092 ) Benefit obligation at end of year 30,338 31,547 Change in plan assets: Fair value of plan assets at beginning of year 42,439 38,715 Actual return on plan assets (1,538 ) 4,816 Employer contribution — — Benefits paid (1,221 ) (1,092 ) Fair value of plan assets at end of year 39,680 42,439 Funded Status, included in other assets $ 9,342 $ 10,892 Amounts recognized in accumulated other comprehensive loss: Total net actuarial loss $ 9,773 $ 7,924 Prior service cost — — Total included in accumulated other comprehensive loss (pretax) $ 9,773 $ 7,924 |
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 $ 850 Prior service cost — $ 850 |
Components Of Net Periodic Benefit Costs (Income) | The components of net periodic benefit (income) costs related to the non-contributory, defined benefit pension plan for the years ended December 31 are as follows: In thousands 2018 2017 Components of net periodic benefit (income) cost: Service cost $ 860 $ 839 Interest cost 1,096 1,135 Expected return on plan assets (2,770 ) (2,518 ) Recognized net actuarial loss 515 676 Amortization of prior service cost — — Net Periodic Benefit (Income) Cost (299 ) 132 Net loss (gain) 2,365 (259 ) Amortization of net loss (515 ) (676 ) Amortization of prior service cost — — Total recognized in other comprehensive loss (income) $ 1,850 $ (935 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 1,551 $ (803 ) |
Assumptions Used To Determine The Benefit Obligation and Net Periodic Benefit Cost (Income) | For the years ended December 31, 2018 and 2017 , the assumptions used to determine the benefit obligation are as follows: 2018 2017 Discount rate 4.10 % 3.55 % Rate of compensation increase 3.50 % 3.50 % For the years ended December 31, 2018 and 2017 , the assumptions used to determine the net periodic benefit (income) cost are as follows: 2018 2017 Discount rate 3.55 % 4.05 % Expected long-term rate of return on plan assets 6.75 % 6.75 % Rate of compensation increase 3.50 % 3.50 % |
Pension Plan Weighted-Average Assets' Allocations | The Corporation’s pension plan weighted-average assets’ allocations at December 31, 2018 and 2017 , are as follows: 2018 2017 Equity securities 63 % 50 % Debt securities 34 % 44 % Short-term fixed income — % — % Real estate 3 % 6 % 100 % 100 % |
Fair Value Measurements | Fair value measurements at December 31, 2018 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 25,150 $ 2,882 $ 22,268 $ — Debt securities 13,376 — 13,376 — Real estate 1,154 — 1,154 — Fair value measurements at December 31, 2017 , are as follows: In thousands Total Level 1 Level 2 Level 3 Equity securities $ 21,423 $ 2,114 $ 19,309 $ — Debt securities 18,668 — 18,668 — Real estate 2,348 — 2,348 — |
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 2019 $ 1,500 2020 1,520 2021 1,650 2022 1,670 2023 1,790 2024 - 2028 9,360 |
STOCKHOLDERS' EQUITY AND REGU_2
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Tier 1 leverage ratio (to average assets) $ 158,404 9.66 % $ ≥65,568 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 158,404 13.19 ≥54,026 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 158,404 13.19 ≥72,034 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 172,449 14.36 ≥96,046 ≥8.0 N/A N/A As of December 31, 2017 Tier 1 leverage ratio (to average assets) $ 144,376 9.04 % $ ≥63,871 ≥4.0% N/A N/A Common Tier 1 risk-based capital ratio (to risk-weighted assets) 144,376 12.79 ≥50,796 ≥4.5 N/A N/A Tier 1 risk-based capital ratio (to risk-weighted assets) 144,376 12.79 ≥67,728 ≥6.0 N/A N/A Total risk-based capital ratio (to risk-weighted assets) 158,479 14.04 ≥90,304 ≥8.0 N/A N/A BANK As of December 31, 2018 Tier 1 leverage ratio (to average assets) $ 154,215 9.44 % $ ≥65,348 ≥4.0% $ ≥81,686 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 154,215 12.89 ≥53,826 ≥4.5 ≥77,748 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 154,215 12.89 ≥71,768 ≥6.0 ≥95,690 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 168,260 14.07 ≥95,690 ≥8.0 ≥119,613 ≥10.0 As of December 31, 2017 Tier 1 leverage ratio (to average assets) $ 138,811 8.70 % $ ≥68,857 ≥4.0% $ ≥79,822 ≥5.0% Common Tier 1 risk-based capital ratio (to risk-weighted assets) 138,811 12.34 ≥50,639 ≥4.5 ≥73,145 ≥6.5 Tier 1 risk-based capital ratio (to risk-weighted assets) 138,811 12.34 ≥67,519 ≥6.0 ≥90,025 ≥8.0 Total risk-based capital ratio (to risk-weighted assets) 152,868 13.58 ≥90,025 ≥8.0 ≥112,532 ≥10.0 (1) Amounts and ratios do not include capital conservation buffer. |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Commitments to extend credit $ 279,729 $ 264,368 Standby letters of credit 3,909 6,362 |
ACNB CORPORATION (PARENT COMP_2
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Statements of Condition | December 31, In thousands 2018 2017 ASSETS Cash $ 7,391 $ 9,440 Investment in banking subsidiary 156,651 143,288 Investment in other subsidiaries 9,389 8,517 Investments in low-income housing partnerships 240 689 Securities and other assets 1,271 1,548 Receivable from banking subsidiary 518 118 Total Assets $ 175,460 $ 163,600 LIABILITIES AND STOCKHOLDERS’ EQUITY Long-term debt $ 7,300 $ 9,600 Other liabilities 23 34 Stockholders’ equity 168,137 153,966 Total Liabilities and Stockholders’ Equity $ 175,460 $ 163,600 |
Statements of Income | Years Ended December 31, In thousands 2018 2017 Dividends from banking subsidiary $ 6,261 $ 5,233 Gain on sale of securities 47 — Other income 35 31 6,343 5,264 Expenses 1,421 1,572 4,922 3,692 Income tax benefit 547 507 5,469 4,199 Equity in undistributed earnings of subsidiaries 16,279 5,589 Net Income $ 21,748 $ 9,788 Comprehensive Income $ 19,623 $ 9,903 |
Statements of Cash Flows | Years Ended December 31, In thousands 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 21,748 $ 9,788 Equity in undistributed earnings of subsidiaries (16,279 ) (5,589 ) (Increase) Decrease in receivable from banking subsidiary (400 ) 12 Gain on sale of securities 47 — Other 669 129 Net Cash Provided by Operating Activities 5,785 4,340 CASH FLOWS FROM INVESTING ACTIVITIES Return of investment from subsidiary — 1,000 Outlay for business combination — (4,445 ) Net Cash Used in Investing Activities — (3,445 ) CASH FLOWS USED IN FINANCING ACTIVITIES Proceeds from long-term debt — 4,600 Repayments on long-term debt (2,300 ) — Proceeds from issuance of common stock 727 615 Dividends paid (6,261 ) (5,233 ) Net Cash Used in Financing Activities (7,834 ) (18 ) Net (Decrease) Increase in Cash and Cash Equivalents (2,049 ) 877 CASH AND CASH EQUIVALENTS — BEGINNING 9,440 8,563 CASH AND CASH EQUIVALENTS — ENDING $ 7,391 $ 9,440 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Carrying Value And Accumulated Amortization Of The Intangible Assets (RIG Customer Lists and New Windsor Core Deposit Intangibles) | The carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows: 2018 2017 Year Purchased Dollars in thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization 2005 $ 3,282 $ 3,282 $ 3,282 $ 3,282 2007 637 637 637 637 2008 1,165 1,165 1,165 1,101 2009 1,300 1,300 1,300 1,170 2010 33 30 33 26 2014 77 39 77 31 2015 173 67 173 49 2018 2,583 90 — — RIG amortized intangible assets 9,250 6,623 6,667 6,296 2017 New Windsor core deposit intangibles 2,418 638 2,418 220 $ 11,668 $ 7,261 $ 9,085 $ 6,516 |
Expected Amortization Expense | Amortization of the intangible assets for the five years subsequent to December 31, 2018 , is expected to be as follows: Years Ending In thousands 2019 $ 683 2020 635 2021 591 2022 547 2023 503 Thereafter 1,448 |
SEGMENT AND RELATED INFORMATI_2
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information for 2018 and 2017 is as follows: In thousands Banking Insurance Total 2018 Net interest income and other income from external customers $ 67,654 $ 5,389 $ 73,043 Income before income taxes 25,515 1,205 26,720 Total assets 1,634,750 12,974 1,647,724 Capital expenditures 1,341 402 1,743 2017 Net interest income and other income from external customers $ 55,763 $ 4,738 $ 60,501 Income before income taxes 15,585 837 16,422 Total assets 1,586,064 9,368 1,595,432 Capital expenditures 1,727 30 1,757 |
NEW WINDSOR ACQUISITION (Tables
NEW WINDSOR ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Purchase Price Consideration in Common Stock | The following table summarizes the consideration paid for New Windsor and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock New Windsor shares of common stock outstanding 1,003,703 Shares paid cash consideration 150,555 Cash consideration (per New Windsor share) $ 30.00 Cash portion of purchase price $ 4,519,995 New Windsor shares of common stock outstanding 1,003,703 Shares of common stock paid stock consideration 853,148 Exchange ratio 1.10 Total ACNB shares of common stock issued 938,360 ACNB’s share price of common stock for purposes of calculation $ 30.50 Equity portion of purchase price $ 28,619,980 Cost of shares owned by buyer $ 150,000 Total consideration paid $ 33,289,975 Allocation of Purchase Price In thousands Total Purchase Price $ 33,290 Fair Value of Assets Acquired Cash and cash equivalents 10,964 Investment securities 21,624 Loans held for sale 1,463 Loans 263,450 Restricted stock 486 Premises and equipment 8,624 Core deposit intangible asset 2,418 Other assets 10,792 Total assets 319,821 Fair Value of Liabilities Assumed Non-interest bearing deposits 80,006 Interest bearing deposits 213,327 Subordinated debt 4,688 Other liabilities 1,782 Total liabilities 299,803 Net Assets Acquired 20,018 Goodwill Recorded in Acquisition $ 13,272 |
Fair Value Adjustments | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Corporation’s expectations of future cash flows for each respective loan. In thousands Gross amortized cost basis at July 1, 2017 $ 272,646 Interest rate fair value adjustment on pools of homogeneous loans (731 ) Credit fair value adjustment on pools of homogeneous loans (4,501 ) Credit fair value adjustment on purchased credit impaired loans (3,964 ) Fair value of acquired loans at July 1, 2017 $ 263,450 |
Acquired Purchased Credit Impaired Loans Receivable | The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date: In thousands Contractual principal and interest at acquisition $ 13,439 Nonaccretable difference (5,651 ) Expected cash flows at acquisition 7,788 Accretable yield (1,458 ) Fair value of purchased impaired loans $ 6,330 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Jul. 01, 2017USD ($)bank | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Summary of Significant Accounting Policies [Line Items] | |||
Number of community banking office locations, ACNB | 22 | ||
Number of community banking office locations, NWSB | 7 | ||
Assets Held-in-trust | $ 342,000,000 | $ 327,000,000 | |
Total Loans Receivable | $ 1,302,465,000 | 1,244,170,000 | |
Number of minimum months for corporation to order updated valuation | 18 months | ||
Post-employment benefit cost for continuing life insurance | $ 95,000 | 96,000 | |
Foreclosed assets held for resale | $ 155,000 | $ 436,000 | |
Weighted average number of shares outstanding, basic | shares | 7,035,818 | 6,543,756 | |
Restricted Stock | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative amount of shares issued under the plan (in shares) | shares | 26,045 | ||
Compensation expense | $ 186,000 | $ 133,000 | |
Shares vested | shares | 19,485 | ||
Shares expected to vest over next two years | shares | 6,560 | ||
Weighted average remaining contractual term | 2 years | ||
Credit Concentration Risk | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total Loans Receivable | $ 287,030,000 | ||
Concentration Risk, Percentage | 22.00% | ||
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 | $ 14,400,000 | 16,337,000 | |
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 | $ 548,923,000 | $ 492,759,000 | |
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 (no greater than) | 80.00% | ||
Residential Mortgage | |||
Summary of Significant Accounting Policies [Line Items] | |||
Loan-to-value ratio that requires private mortgage insurance (in excess of) | 80.00% | ||
Foreclosed assets held for resale | $ 92,000 | ||
Residential Mortgage | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Financing receivable term | 30 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Home Equity Line of Credit | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 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 | ||
New Windsor | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of community banking office locations, NWSB | bank | 7 | ||
Interest rate fair value discount | $ 731,000 | ||
Credit fair value discount | $ 4,501,000 | ||
Core Deposits | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible asset amortization life | 10 years | ||
Core Deposits | New Windsor | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible asset amortization life | 10 years | ||
Customer Lists | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible asset amortization life | 8 years | ||
Customer Lists | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible asset amortization life | 15 years | ||
Pro Forma | Accounting Standards Update 2016-02 | |||
Summary of Significant Accounting Policies [Line Items] | |||
Right-of-use asset | $ 4,000,000 | ||
Lease liability | $ 4,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Components Of The Accumulated Other Comprehensive Income, Net Of Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Loss [Line Items] | |||
Components of accumulated other comprehensive loss | $ 168,137 | $ 153,966 | $ 120,061 |
Unrealized Losses on Securities | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Components of accumulated other comprehensive loss | (1,651) | (957) | |
Pension Liability | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Components of accumulated other comprehensive loss | (7,566) | (6,135) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Components of accumulated other comprehensive loss | $ (9,217) | $ (7,092) | $ (6,024) |
RESTRICTIONS ON CASH AND DUE _2
RESTRICTIONS ON CASH AND DUE FROM BANKS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Cash and Investments [Abstract] | ||
Compensating Balance Amount | $ 1,880 | $ 1,769 |
Average Compensating Balance Amount | $ 2,073 | $ 1,992 |
SECURITIES (Unrealized Gain (Lo
SECURITIES (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Securities Available for sale, Amortized Cost | $ 163,862 | $ 158,599 |
Securities Available for sale, Gross Unrealized Gains | 396 | 629 |
Securities Available for sale, Gross Unrealized Losses | 2,528 | 1,961 |
Debt securities available for sale | 161,730 | 157,267 |
Securities Held to maturity, Amortized Cost | 27,266 | 44,829 |
Securities Held to maturity, Gross Unrealized Gains | 4 | 57 |
Securities Held to maturity, Gross Unrealized Losses | 359 | 337 |
Securities held to maturity, fair value | 26,911 | 44,549 |
U.S. Government and agencies | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Amortized Cost | 120,420 | 105,899 |
Securities Available for sale, Gross Unrealized Gains | 142 | 2 |
Securities Available for sale, Gross Unrealized Losses | 2,149 | 1,818 |
Debt securities available for sale | 118,413 | 104,083 |
Securities Held to maturity, Amortized Cost | 7,000 | 19,000 |
Securities Held to maturity, Gross Unrealized Gains | 0 | 2 |
Securities Held to maturity, Gross Unrealized Losses | 69 | 99 |
Securities held to maturity, fair value | 6,931 | 18,903 |
Residential Mortgage Backed Securities | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Amortized Cost | 33,960 | 34,473 |
Securities Available for sale, Gross Unrealized Gains | 194 | 461 |
Securities Available for sale, Gross Unrealized Losses | 343 | 101 |
Debt securities available for sale | 33,811 | 34,833 |
Securities Held to maturity, Amortized Cost | 20,266 | 25,829 |
Securities Held to maturity, Gross Unrealized Gains | 4 | 55 |
Securities Held to maturity, Gross Unrealized Losses | 290 | 238 |
Securities held to maturity, fair value | 19,980 | 25,646 |
State and municipal | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Amortized Cost | 9,482 | 13,227 |
Securities Available for sale, Gross Unrealized Gains | 60 | 109 |
Securities Available for sale, Gross Unrealized Losses | 36 | 42 |
Debt securities available for sale | $ 9,506 | 13,294 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Amortized Cost | 5,000 | |
Securities Available for sale, Gross Unrealized Gains | 57 | |
Securities Available for sale, Gross Unrealized Losses | 0 | |
Debt securities available for sale | $ 5,057 |
SECURITIES (Schedule of Require
SECURITIES (Schedule of Required Fair Value Disclosures for Equity Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | ||
Fair Value at January 1, 2018 | $ 1,784 | |
Fair Value at December 31, 2018 | 1,839 | |
Amortized Cost | $ 1,691 | |
Gross Unrealized Gains | 102 | |
Gross Unrealized Losses | 9 | |
Fair Value | 1,784 | |
Accounting Standards Update 2016-01 | ||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | ||
Fair Value at January 1, 2018 | 1,793 | |
Unrealized Gains | 247 | |
Unrealized Losses | 201 | |
Fair Value at December 31, 2018 | 1,839 | |
CRA mutual fund | ||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | ||
Amortized Cost | 1,044 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 9 | |
Fair Value | 1,035 | |
CRA mutual fund | Accounting Standards Update 2016-01 | ||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | ||
Fair Value at January 1, 2018 | 1,044 | |
Unrealized Gains | 0 | |
Unrealized Losses | 32 | |
Fair Value at December 31, 2018 | 1,012 | |
Stock In Other Banks | ||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | ||
Amortized Cost | 647 | |
Gross Unrealized Gains | 102 | |
Gross Unrealized Losses | $ 0 | |
Fair Value | 749 | |
Stock In Other Banks | Accounting Standards Update 2016-01 | ||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | ||
Fair Value at January 1, 2018 | 749 | |
Unrealized Gains | 247 | |
Unrealized Losses | 169 | |
Fair Value at December 31, 2018 | $ 827 |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Loss on Investments) (Details) $ in Thousands | Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Schedule of Investments [Line Items] | ||
Securities Available for sale, Less than 12 Months: Fair Value | $ 11,407 | $ 51,045 |
Securities Available for sale, Less than 12 Months: Unrealized Losses | 139 | 509 |
Securities Available for sale, 12 Months or More: Fair Value | 98,498 | 64,109 |
Securities Available for sale, 12 Months or More: Unrealized Losses | 2,389 | 1,461 |
Securities Available for sale, Total: Fair Value | 109,905 | 115,154 |
Securities Available for sale, Total Unrealized Loss | 2,528 | 1,970 |
Securities Held to maturity, Less than 12 Months: Fair Value | 8,383 | 9,931 |
Securities Held to maturity, Less than 12 Months: Unrealized Losses | 84 | 44 |
Securities Held to maturity, 12 Months or More, Fair Value | 16,592 | 21,986 |
Securities Held to maturity, 12 Months or More, Unrealized Losses | 275 | 293 |
Securities Held to maturity, Total: Fair Value | 24,975 | 31,917 |
Securities Held to maturity, Total Unrealized Losses | 359 | 337 |
U.S. Government and agencies | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Less than 12 Months: Fair Value | 1,997 | 42,775 |
Securities Available for sale, Less than 12 Months: Unrealized Losses | 5 | 445 |
Securities Available for sale, 12 Months or More: Fair Value | 87,216 | 58,279 |
Securities Available for sale, 12 Months or More: Unrealized Losses | 2,144 | 1,373 |
Securities Available for sale, Total: Fair Value | 89,213 | 101,054 |
Securities Available for sale, Total Unrealized Loss | 2,149 | 1,818 |
Securities Held to maturity, Less than 12 Months: Fair Value | 2,975 | 4,985 |
Securities Held to maturity, Less than 12 Months: Unrealized Losses | 25 | 15 |
Securities Held to maturity, 12 Months or More, Fair Value | 3,956 | 10,916 |
Securities Held to maturity, 12 Months or More, Unrealized Losses | 44 | 84 |
Securities Held to maturity, Total: Fair Value | 6,931 | 15,901 |
Securities Held to maturity, Total Unrealized Losses | $ 69 | 99 |
Available for sale securities in unrealized loss positions | Security | 51 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 5.00% | |
Available for sale securities in unrealized loss positions for 12 months or more | Security | 50 | |
Held to maturity securities in unrealized loss positions | Security | 5 | |
Held to maturity securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 2.00% | |
Held to maturity securities in unrealized loss positions for 12 months or more | Security | 3 | |
Residential Mortgage Backed Securities | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Less than 12 Months: Fair Value | $ 9,410 | 7,228 |
Securities Available for sale, Less than 12 Months: Unrealized Losses | 134 | 56 |
Securities Available for sale, 12 Months or More: Fair Value | 8,586 | 2,845 |
Securities Available for sale, 12 Months or More: Unrealized Losses | 209 | 45 |
Securities Available for sale, Total: Fair Value | 17,996 | 10,073 |
Securities Available for sale, Total Unrealized Loss | 343 | 101 |
Securities Held to maturity, Less than 12 Months: Fair Value | 5,408 | 4,946 |
Securities Held to maturity, Less than 12 Months: Unrealized Losses | 59 | 29 |
Securities Held to maturity, 12 Months or More, Fair Value | 12,636 | 11,070 |
Securities Held to maturity, 12 Months or More, Unrealized Losses | 231 | 209 |
Securities Held to maturity, Total: Fair Value | 18,044 | 16,016 |
Securities Held to maturity, Total Unrealized Losses | $ 290 | 238 |
Available for sale securities in unrealized loss positions | Security | 28 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 4.00% | |
Available for sale securities in unrealized loss positions for 12 months or more | Security | 12 | |
Held to maturity securities in unrealized loss positions | Security | 30 | |
Held to maturity securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 3.00% | |
Held to maturity securities in unrealized loss positions for 12 months or more | Security | 20 | |
State and municipal | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Less than 12 Months: Fair Value | $ 0 | 1,042 |
Securities Available for sale, Less than 12 Months: Unrealized Losses | 0 | 8 |
Securities Available for sale, 12 Months or More: Fair Value | 2,696 | 1,950 |
Securities Available for sale, 12 Months or More: Unrealized Losses | 36 | 34 |
Securities Available for sale, Total: Fair Value | 2,696 | 2,992 |
Securities Available for sale, Total Unrealized Loss | $ 36 | 42 |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 3.00% | |
Available for sale securities in unrealized loss positions for 12 months or more | Security | 10 | |
CRA mutual fund | ||
Schedule of Investments [Line Items] | ||
Securities Available for sale, Less than 12 Months: Fair Value | 0 | |
Securities Available for sale, Less than 12 Months: Unrealized Losses | 0 | |
Securities Available for sale, 12 Months or More: Fair Value | 1,035 | |
Securities Available for sale, 12 Months or More: Unrealized Losses | 9 | |
Securities Available for sale, Total: Fair Value | 1,035 | |
Securities Available for sale, Total Unrealized Loss | $ 9 |
SECURITIES (Investments Classif
SECURITIES (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, 1 year or less | $ 8,483 | |
Available for sale Securities, Fair Value, 1 year or less | 8,439 | |
Available for sale Securities, Amortized Cost, Over 1 year through 5 years | 121,220 | |
Available for sale Securities, Fair Value, Over 1 year through 5 years | 119,284 | |
Available for sale Securities, Amortized Cost, Over 5 years through 10 years | 199 | |
Available for sale Securities, Fair Value, Over 5 years through 10 years | 196 | |
Available for sale Securities, Amortized Cost, Over 10 years | 0 | |
Available for sale Securities, Fair Value, Over 10 years | 0 | |
Available for sale Securities, Amortized Cost | 163,862 | |
Available for sale Securities, Fair Value | 161,730 | |
Held to maturity Securities, Amortized Cost, 1 year or less | 3,000 | |
Held to maturity Securities, Fair Value, 1 year or less | 2,970 | |
Held to maturity Securities, Amortized Cost, Over 1 year through 5 years | 4,000 | |
Held to maturity Securities, Fair Value, Over 1 year through 5 years | 3,961 | |
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, Amortized Cost | 27,266 | $ 44,829 |
Investment securities held to maturity | $ 26,911 | 44,549 |
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, Amortized Cost, without a Single Maturity Date | $ 33,960 | |
Available for sale Securities, Fair Value, without a Single Maturity Date | 33,811 | |
Held to maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 20,266 | |
Held to maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 19,980 | |
Held to maturity Securities, Amortized Cost | 20,266 | 25,829 |
Investment securities held to maturity | $ 19,980 | $ 25,646 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale Securities, Gross Realized Gains | $ 288,000 | $ 0 |
Available for sale Securities, Gross Realized Losses | 203,000 | 0 |
Debt Securities, Available-for-sale, Restricted | $ 165,792,000 | $ 157,601,000 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 1,302,465 | $ 1,244,170 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 174,182 | 165,829 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 548,923 | 492,759 |
Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 20,298 | 35,560 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 434,299 | 425,893 |
Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 110,363 | 107,792 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 14,400 | 16,337 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,250,566 | 1,183,405 |
Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 170,838 | 160,297 |
Pass | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 514,308 | 449,854 |
Pass | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 18,747 | 34,155 |
Pass | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 422,718 | 416,154 |
Pass | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 109,555 | 106,966 |
Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 14,400 | 15,979 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 36,588 | 42,084 |
Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,036 | 3,710 |
Special Mention | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 23,191 | 30,400 |
Special Mention | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,551 | 1,155 |
Special Mention | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 8,388 | 6,013 |
Special Mention | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 422 | 448 |
Special Mention | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 358 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 15,311 | 18,681 |
Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 308 | 1,822 |
Substandard | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 11,424 | 12,505 |
Substandard | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 250 |
Substandard | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,193 | 3,726 |
Substandard | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 386 | 378 |
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 |
Originated Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,099,568 | 1,003,544 |
Originated Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 169,098 | 159,455 |
Originated Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 419,965 | 351,945 |
Originated Loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 16,306 | 28,430 |
Originated Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 388,750 | 366,924 |
Originated Loans | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 91,275 | 82,336 |
Originated Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 14,174 | 14,454 |
Originated Loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,062,133 | 966,217 |
Originated Loans | Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 166,035 | 154,177 |
Originated Loans | Pass | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 393,987 | 325,002 |
Originated Loans | Pass | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 15,471 | 27,413 |
Originated Loans | Pass | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 381,525 | 363,195 |
Originated Loans | Pass | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 90,941 | 81,976 |
Originated Loans | Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 14,174 | 14,454 |
Originated Loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 28,642 | 25,510 |
Originated Loans | Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,902 | 3,466 |
Originated Loans | Special Mention | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 18,079 | 17,666 |
Originated Loans | Special Mention | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 835 | 767 |
Originated Loans | Special Mention | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 6,492 | 3,251 |
Originated Loans | Special Mention | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 334 | 360 |
Originated Loans | Special Mention | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 8,793 | 11,817 |
Originated Loans | Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 161 | 1,812 |
Originated Loans | Substandard | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 7,899 | 9,277 |
Originated Loans | Substandard | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 250 |
Originated Loans | Substandard | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 733 | 478 |
Originated Loans | Substandard | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Substandard | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Originated Loans | Doubtful | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 202,897 | 240,626 |
Acquired Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 5,084 | 6,374 |
Acquired Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 128,958 | 140,814 |
Acquired Loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,992 | 7,130 |
Acquired Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 45,549 | 58,969 |
Acquired Loans | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 19,088 | 25,456 |
Acquired Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 226 | 1,883 |
Acquired Loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 188,433 | 217,188 |
Acquired Loans | Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 4,803 | 6,120 |
Acquired Loans | Pass | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 120,321 | 124,852 |
Acquired Loans | Pass | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,276 | 6,742 |
Acquired Loans | Pass | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 41,193 | 52,959 |
Acquired Loans | Pass | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 18,614 | 24,990 |
Acquired Loans | Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 226 | 1,525 |
Acquired Loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 7,946 | 16,574 |
Acquired Loans | Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 134 | 244 |
Acquired Loans | Special Mention | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 5,112 | 12,734 |
Acquired Loans | Special Mention | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 716 | 388 |
Acquired Loans | Special Mention | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,896 | 2,762 |
Acquired Loans | Special Mention | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 88 | 88 |
Acquired Loans | Special Mention | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 358 |
Acquired Loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 6,518 | 6,864 |
Acquired Loans | Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 147 | 10 |
Acquired Loans | Substandard | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,525 | 3,228 |
Acquired Loans | Substandard | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Substandard | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,460 | 3,248 |
Acquired Loans | Substandard | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 386 | 378 |
Acquired Loans | Substandard | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Acquired Loans | Doubtful | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Change in Accretable Yields of Acquired Loans) (Details) - Acquired Loans Accounted For Under ASC 310-30 $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Balance at beginning of period | $ 1,234 |
Acquisitions of impaired loans | 0 |
Reclassification from non-accretable differences | 402 |
Accretion to loan interest income | (745) |
Balance at end of period | $ 891 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans By Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | $ 0 | $ 2,520 |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | 2,520 |
Impaired Loans with Allowance, Related Allowance | 0 | 1,229 |
Impaired Loans with No Allowance, Recorded Investment | 7,300 | 7,817 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 7,300 | 7,817 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 0 | 1,311 |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | 1,311 |
Impaired Loans with Allowance, Related Allowance | 0 | 792 |
Impaired Loans with No Allowance, Recorded Investment | 0 | 188 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 0 | 188 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 0 | 832 |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | 832 |
Impaired Loans with Allowance, Related Allowance | 0 | 60 |
Impaired Loans with No Allowance, Recorded Investment | 6,763 | 7,528 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 6,763 | 7,528 |
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 | 0 | 0 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 0 | 377 |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | 377 |
Impaired Loans with Allowance, Related Allowance | 0 | 377 |
Impaired Loans with No Allowance, Recorded Investment | 537 | 101 |
Impaired Loans with No Allowance, Unpaid Principal Balance | 537 | $ 101 |
Home equity lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Recorded Investment | 0 | |
Impaired Loans with Allowance, Unpaid Principal Balance | 0 | |
Impaired Loans with Allowance, Related Allowance | 0 | |
Impaired Loans with No Allowance, Recorded Investment | 0 | |
Impaired Loans with No Allowance, Unpaid Principal Balance | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Average Of Impaired Loans And Related Interest Income By Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Average Recorded Investment | $ 541 | $ 2,060 |
Impaired Loans with Allowance, Interest Income | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 7,720 | 9,085 |
Impaired Loans with No Allowance, Interest Income | 260 | 370 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Average Recorded Investment | 436 | 1,184 |
Impaired Loans with Allowance, Interest Income | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 73 | 785 |
Impaired Loans with No Allowance, Interest Income | 44 | 0 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Average Recorded Investment | 0 | 499 |
Impaired Loans with Allowance, Interest Income | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 7,372 | 8,030 |
Impaired Loans with No Allowance, Interest Income | 216 | 330 |
Commercial real estate construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Average Recorded Investment | 0 | 0 |
Impaired Loans with Allowance, Interest Income | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 0 | 60 |
Impaired Loans with No Allowance, Interest Income | 0 | 25 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Average Recorded Investment | 75 | 377 |
Impaired Loans with Allowance, Interest Income | 0 | 0 |
Impaired Loans with No Allowance, Average Recorded Investment | 275 | 210 |
Impaired Loans with No Allowance, Interest Income | 0 | $ 15 |
Home equity lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance, Average Recorded Investment | 30 | |
Impaired Loans with Allowance, Interest Income | 0 | |
Impaired Loans with No Allowance, Average Recorded Investment | 0 | |
Impaired Loans with No Allowance, Interest Income | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Interest lost on nonaccrual loans | $ 269 | $ 437 |
Aggregate amount of loans with related parties | 5,858 | $ 5,703 |
New loans or advances extended to related parties | 600 | |
Repayments on loans or advances to related parties | $ 445 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Purchase credit impaired loans, net of unamortized fair value adjustments | $ 6,900 | |
Total nonaccrual loans | 3,417 | $ 6,355 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 1,499 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 2,880 | 4,378 |
Commercial real estate construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 537 | 478 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructurings) (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017Contract | Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ 6,226,000 | $ 7,387,000 | |
Number of loans moved to nonaccrual status | Contract | 2 | ||
Number of troubled debt restructured loans with a specific allocation | Contract | 1 | ||
Amount of specific allocation | $ 60,000 | ||
Number of troubled debt restructured loan paid off | Contract | 1 | 1 | |
Number of loans which has periodic payments | Contract | 1 | ||
Number of loans classified as troubled debt restructured loans with active forbearance agreements | Contract | 1 | ||
Mortgage loans in process of foreclosure | $ 661,000 | $ 848,000 | |
Entity Loan Modification Program | |||
Financing Receivable, Modifications [Line Items] | |||
Proceeds from paid off troubled debt restructured loans | 832,000 | 283,000 | |
Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | 2,343,000 | 3,405,000 | |
Accrual | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ 3,883,000 | $ 3,982,000 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 10,771 | $ 12,281 |
Current | 1,291,694 | 1,231,889 |
Total Loans Receivable | 1,302,465 | 1,244,170 |
Loans Receivable Greater than 90 Days and Accruing | 3,345 | 1,507 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,555 | 6,087 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,438 | 1,398 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,778 | 4,796 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 129 | 1,717 |
Current | 174,053 | 164,112 |
Total Loans Receivable | 174,182 | 165,829 |
Loans Receivable Greater than 90 Days and Accruing | 4 | 4 |
Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 76 | 138 |
Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49 | 76 |
Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 1,503 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,354 | 3,069 |
Current | 546,569 | 489,690 |
Total Loans Receivable | 548,923 | 492,759 |
Loans Receivable Greater than 90 Days and Accruing | 851 | 88 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 839 | 1,352 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 550 | 317 |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 965 | 1,400 |
Commercial real estate construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 420 | 252 |
Current | 19,878 | 35,308 |
Total Loans Receivable | 20,298 | 35,560 |
Loans Receivable Greater than 90 Days and Accruing | 77 | 0 |
Commercial real estate construction | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 343 | 252 |
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 | 77 | 0 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,066 | 6,523 |
Current | 427,233 | 419,370 |
Total Loans Receivable | 434,299 | 425,893 |
Loans Receivable Greater than 90 Days and Accruing | 1,949 | 1,159 |
Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,018 | 3,936 |
Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 780 | 950 |
Residential mortgage | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,268 | 1,637 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 745 | 619 |
Current | 109,618 | 107,173 |
Total Loans Receivable | 110,363 | 107,792 |
Loans Receivable Greater than 90 Days and Accruing | 464 | 253 |
Home equity lines of credit | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 243 | 337 |
Home equity lines of credit | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38 | 29 |
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 | 464 | 253 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 57 | 101 |
Current | 14,343 | 16,236 |
Total Loans Receivable | 14,400 | 16,337 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 3 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 36 | 72 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21 | 26 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 3 |
Originated Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,693 | 9,758 |
Current | 1,092,875 | 993,786 |
Total Loans Receivable | 1,099,568 | 1,003,544 |
Loans Receivable Greater than 90 Days and Accruing | 2,203 | 1,300 |
Originated Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,659 | 4,075 |
Originated Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,180 | 1,094 |
Originated Loans | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,854 | 4,589 |
Originated Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 102 | 1,634 |
Current | 168,996 | 157,821 |
Total Loans Receivable | 169,098 | 159,455 |
Loans Receivable Greater than 90 Days and Accruing | 4 | 4 |
Originated Loans | Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49 | 55 |
Originated Loans | Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 49 | 76 |
Originated Loans | Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 1,503 |
Originated Loans | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,439 | 2,153 |
Current | 418,526 | 349,792 |
Total Loans Receivable | 419,965 | 351,945 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 88 |
Originated Loans | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 775 | 436 |
Originated Loans | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 550 | 317 |
Originated Loans | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 114 | 1,400 |
Originated Loans | Commercial real estate construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 252 |
Current | 16,306 | 28,178 |
Total Loans Receivable | 16,306 | 28,430 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 |
Originated Loans | Commercial real estate construction | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 252 |
Originated Loans | 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 |
Originated Loans | 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 | 0 | 0 |
Originated Loans | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,673 | 5,152 |
Current | 384,077 | 361,772 |
Total Loans Receivable | 388,750 | 366,924 |
Loans Receivable Greater than 90 Days and Accruing | 1,824 | 1,022 |
Originated Loans | Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,783 | 3,006 |
Originated Loans | Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 529 | 646 |
Originated Loans | Residential mortgage | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,361 | 1,500 |
Originated Loans | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 429 | 466 |
Current | 90,846 | 81,870 |
Total Loans Receivable | 91,275 | 82,336 |
Loans Receivable Greater than 90 Days and Accruing | 375 | 183 |
Originated Loans | Home equity lines of credit | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16 | 254 |
Originated Loans | Home equity lines of credit | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38 | 29 |
Originated Loans | 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 | 375 | 183 |
Originated Loans | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 50 | 101 |
Current | 14,124 | 14,353 |
Total Loans Receivable | 14,174 | 14,454 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 3 |
Originated Loans | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 36 | 72 |
Originated Loans | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14 | 26 |
Originated Loans | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 3 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,078 | 2,523 |
Current | 198,819 | 238,103 |
Total Loans Receivable | 202,897 | 240,626 |
Loans Receivable Greater than 90 Days and Accruing | 1,142 | 207 |
Acquired Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,896 | 2,012 |
Acquired Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 258 | 304 |
Acquired Loans | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,924 | 207 |
Acquired Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 27 | 83 |
Current | 5,057 | 6,291 |
Total Loans Receivable | 5,084 | 6,374 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 |
Acquired Loans | Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 27 | 83 |
Acquired Loans | Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 915 | 916 |
Current | 128,043 | 139,898 |
Total Loans Receivable | 128,958 | 140,814 |
Loans Receivable Greater than 90 Days and Accruing | 851 | 0 |
Acquired Loans | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 64 | 916 |
Acquired Loans | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 851 | 0 |
Acquired Loans | Commercial real estate construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 420 | 0 |
Current | 3,572 | 7,130 |
Total Loans Receivable | 3,992 | 7,130 |
Loans Receivable Greater than 90 Days and Accruing | 77 | 0 |
Acquired Loans | Commercial real estate construction | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 343 | 0 |
Acquired Loans | 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 |
Acquired Loans | 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 | 77 | 0 |
Acquired Loans | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,393 | 1,371 |
Current | 43,156 | 57,598 |
Total Loans Receivable | 45,549 | 58,969 |
Loans Receivable Greater than 90 Days and Accruing | 125 | 137 |
Acquired Loans | Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,235 | 930 |
Acquired Loans | Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 251 | 304 |
Acquired Loans | Residential mortgage | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 907 | 137 |
Acquired Loans | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 316 | 153 |
Current | 18,772 | 25,303 |
Total Loans Receivable | 19,088 | 25,456 |
Loans Receivable Greater than 90 Days and Accruing | 89 | 70 |
Acquired Loans | Home equity lines of credit | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 227 | 83 |
Acquired Loans | Home equity lines of credit | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 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 | 89 | 70 |
Acquired Loans | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7 | 0 |
Current | 219 | 1,883 |
Total Loans Receivable | 226 | 1,883 |
Loans Receivable Greater than 90 Days and Accruing | 0 | 0 |
Acquired Loans | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7 | 0 |
Acquired Loans | 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 AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance For Loan Losses And Recorded Investment In Financing Receivables) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | $ 13,976,000 | $ 14,194,000 |
Charge-offs | (1,810,000) | (461,000) |
Recoveries | 178,000 | 243,000 |
Provisions | 1,620,000 | 0 |
Allowance for Loan Losses, Ending Balance | 13,964,000 | 13,976,000 |
Ending balance: individually evaluated for impairment | 0 | 1,229,000 |
Ending balance: collectively evaluated for impairment | 13,964,000 | 12,747,000 |
Loans receivables, Ending Balance | 1,302,465,000 | 1,244,170,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 7,300,000 | 10,337,000 |
Loans receivables: Ending balance: collectively evaluated for impairment | 1,295,165,000 | 1,233,833,000 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 3,219,000 | 3,055,000 |
Charge-offs | (934,000) | (181,000) |
Recoveries | 36,000 | 21,000 |
Provisions | 276,000 | 324,000 |
Allowance for Loan Losses, Ending Balance | 2,597,000 | 3,219,000 |
Ending balance: individually evaluated for impairment | 0 | 792,000 |
Ending balance: collectively evaluated for impairment | 2,597,000 | 2,427,000 |
Loans receivables, Ending Balance | 174,182,000 | 165,829,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 1,499,000 |
Loans receivables: Ending balance: collectively evaluated for impairment | 174,182,000 | 164,330,000 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 5,228,000 | 4,968,000 |
Charge-offs | (33,000) | 0 |
Recoveries | 0 | 61,000 |
Provisions | 1,013,000 | 199,000 |
Allowance for Loan Losses, Ending Balance | 6,208,000 | 5,228,000 |
Ending balance: individually evaluated for impairment | 0 | 60,000 |
Ending balance: collectively evaluated for impairment | 6,208,000 | 5,168,000 |
Loans receivables, Ending Balance | 548,923,000 | 492,759,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 6,763,000 | 8,360,000 |
Loans receivables: Ending balance: collectively evaluated for impairment | 542,160,000 | 484,399,000 |
Commercial real estate construction | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 126,000 | 147,000 |
Charge-offs | 0 | 0 |
Recoveries | 103,000 | 80,000 |
Provisions | (26,000) | (101,000) |
Allowance for Loan Losses, Ending Balance | 203,000 | 126,000 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 203,000 | 126,000 |
Loans receivables, Ending Balance | 20,298,000 | 35,560,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 |
Loans receivables: Ending balance: collectively evaluated for impairment | 20,298,000 | 35,560,000 |
Residential mortgage | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 3,226,000 | 3,478,000 |
Charge-offs | (530,000) | (132,000) |
Recoveries | 32,000 | 62,000 |
Provisions | 86,000 | (182,000) |
Allowance for Loan Losses, Ending Balance | 2,814,000 | 3,226,000 |
Ending balance: individually evaluated for impairment | 0 | 377,000 |
Ending balance: collectively evaluated for impairment | 2,814,000 | 2,849,000 |
Loans receivables, Ending Balance | 434,299,000 | 425,893,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 537,000 | 478,000 |
Loans receivables: Ending balance: collectively evaluated for impairment | 433,762,000 | 425,415,000 |
Home equity lines of credit | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 612,000 | 648,000 |
Charge-offs | (148,000) | (9,000) |
Recoveries | 0 | 0 |
Provisions | 147,000 | (27,000) |
Allowance for Loan Losses, Ending Balance | 611,000 | 612,000 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 611,000 | 612,000 |
Loans receivables, Ending Balance | 110,363,000 | 107,792,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 |
Loans receivables: Ending balance: collectively evaluated for impairment | 110,363,000 | 107,792,000 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 749,000 | 923,000 |
Charge-offs | (165,000) | (139,000) |
Recoveries | 7,000 | 19,000 |
Provisions | 101,000 | (54,000) |
Allowance for Loan Losses, Ending Balance | 692,000 | 749,000 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 692,000 | 749,000 |
Loans receivables, Ending Balance | 14,400,000 | 16,337,000 |
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 |
Loans receivables: Ending balance: collectively evaluated for impairment | 14,400,000 | 16,337,000 |
Unallocated | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for Loan Losses, Beginning Balance | 816,000 | 975,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | 23,000 | (159,000) |
Allowance for Loan Losses, Ending Balance | 839,000 | 816,000 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 839,000 | 816,000 |
Loans receivables, Ending Balance | 0 | 0 |
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 |
Loans receivables: Ending balance: collectively evaluated for impairment | $ 0 | $ 0 |
PREMISES AND EQUIPMENT (Table)
PREMISES AND EQUIPMENT (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 47,130 | $ 45,969 |
Accumulated depreciation | (20,721) | (19,195) |
Premises and equipment, net | 26,409 | 26,774 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,050 | 5,050 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 27,509 | 25,881 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 14,111 | 14,856 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 460 | $ 182 |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 2,108 | $ 1,755 |
INVESTMENTS IN LOW-INCOME HOU_2
INVESTMENTS IN LOW-INCOME HOUSING PARTNERSHIPS (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Partnership | Dec. 31, 2017USD ($) | |
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 | $ | $ 1,871 | $ 2,446 |
DEPOSITS (Schedule Of Deposits)
DEPOSITS (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Interest-bearing Deposit Liabilities [Abstract] | ||
Non-interest bearing demand | $ 302,394 | $ 279,413 |
Interest bearing demand | 160,718 | 163,278 |
Savings | 516,872 | 501,710 |
Time certificates of deposit of $250,000 or less | 307,407 | 295,279 |
Time certificates of deposit greater than $250,000 | 60,701 | 58,812 |
Total Deposits | 1,348,092 | $ 1,298,492 |
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, 2018USD ($) |
Interest-bearing Deposit Liabilities [Abstract] | |
2,019 | $ 213,669 |
2,020 | 74,837 |
2,021 | 62,171 |
2,022 | 12,216 |
2,023 | 5,215 |
Time Deposits | $ 368,108 |
LEASE COMMITMENTS (Narrative) (
LEASE COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Rental expense | $ 890 | $ 642 |
Description of lessee leasing arrangement, operating leases | ACNB leases space at several of its owned offices to other unrelated organizations. | |
Total rental income | $ 131 | $ 60 |
LEASE COMMITMENTS (Table) (Deta
LEASE COMMITMENTS (Table) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 811 |
2,020 | 710 |
2,021 | 617 |
2,022 | 528 |
2,023 | 507 |
Later years | 2,186 |
Total future minimum rental payments | $ 5,359 |
BORROWINGS (Schedule of Short-t
BORROWINGS (Schedule of Short-term Debt) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Amount | $ 34,648,000 | $ 36,908,000 |
Rate | 0.12% | 0.12% |
Federal Home Loan Bank Stock | $ 4,067,300 | |
Line of Credit Facility, Current Borrowing Capacity | 29,000,000 | |
FHLB overnight advance | ||
Short-term Debt [Line Items] | ||
Amount | $ 32,000 | $ 0 |
Rate | 2.62% | 0.00% |
Securities Sold under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Amount | $ 34,616,000 | $ 36,908,000 |
Rate | 0.12% | 0.12% |
BORROWINGS (Offsetting Liabilit
BORROWINGS (Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Fair value of securities pledged in connection with repurchase agreements | $ 39,788 | $ 42,397 |
Commercial Customers and Government Entities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 34,616 | 36,908 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 34,616 | 36,908 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | (34,616) | (36,908) |
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 ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
FHLB fixed-rate advances maturing within one year of balance sheet date, Amount | $ 23,500,000 | $ 25,500,000 |
FHLB fixed-rate advances maturing within one year of balance sheet date, Rate | 1.73% | 1.87% |
FHLB fixed-rate advances maturing from one to two years of balance sheet date, Amount | $ 20,000,000 | $ 23,500,000 |
FHLB fixed-rate advances maturing from one to two years from balance sheet date, Rate | 1.87% | 1.73% |
FHLB fixed-rate advances maturing from two to three years from balance sheet date, Amount | $ 22,716,000 | $ 20,000,000 |
FHLB fixed-rate advances maturing from two to three years from balance sheet date, Rate | 2.10% | 1.87% |
FHLB fixed-rate advances maturing from three to four years from balance sheet date, Amount | $ 9,000,000 | $ 16,000,000 |
FHLB fixed-rate advances maturing from three to four years from balance sheet date, Rate | 2.70% | 2.01% |
Long-term debt | $ 83,516,000 | $ 94,600,000 |
Long-term debt, Rate | 2.47% | 2.06% |
Maximum borrowings from FHLB | $ 685,765,000 | |
Available borrowings from FHLB | $ 588,734,000 | |
Loan payable to local bank | ||
Debt Instrument [Line Items] | ||
Fixed rate percentage | 1.53% | |
Trust preferred subordinated debt | ||
Debt Instrument [Line Items] | ||
Fixed rate percentage | 6.39% | 6.39% |
Long-term debt | $ 5,000,000 | $ 5,000,000 |
Trust preferred subordinated debt issued | $ 5,000,000 | |
Loan payable to local bank, 4.5% | Loan payable to local bank | ||
Debt Instrument [Line Items] | ||
Fixed rate percentage | 4.50% | |
Long-term debt | $ 2,300,000 | 4,600,000 |
Period of fixed interest rate | 5 years | |
Loan payable to local bank, 5.25% | Loan payable to local bank | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,000,000 | $ 0 |
Wall Street Journal Prime Rate | Loan payable to local bank, 5.25% | Loan payable to local bank | ||
Debt Instrument [Line Items] | ||
Basis spread on prime rate, percentage | 0.25% | |
Effective rate, percentage | 5.25% | 0.00% |
REGULATORY RESTRICTIONS ON DI_2
REGULATORY RESTRICTIONS ON DIVIDENDS (Narrative) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Undistributed earnings of the Bank available for distribution as dividends without prior regulatory approval | $ 26,090 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal: | ||
Current | $ 4,036 | $ 4,767 |
Deferred | 388 | 1,413 |
Federal Income Tax Expense, Total | 4,424 | 6,180 |
State: | ||
Current | 479 | 156 |
Deferred | 69 | 298 |
State Income Tax Expense, Total | 548 | 454 |
Income Tax Expense, Total | $ 4,972 | $ 6,634 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliations of the Statutory Federal Income Tax) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | 21.00% | 35.00% |
State income taxes, net of federal benefit | 1.60% | 1.80% |
Tax-exempt income | (1.70%) | (5.00%) |
Earnings on investment in bank-owned life insurance | (0.90%) | (2.30%) |
Rehabilitation and low-income housing credits | (1.10%) | (1.70%) |
Reduction of federal tax rate | 0.00% | 10.20% |
Other | (0.30%) | 2.40% |
Effective Income Tax Rate, Total | 18.60% | 40.40% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income Taxes Related To Net Gains On Sales Of Securities | $ 46 | $ 0 | |
Rehabilitation and Low-Income Housing Income Tax Credits | 287 | $ 287 | |
Projected Tax Credit, 2019 | 287 | ||
Projected Tax Credit, 2020 | 287 | ||
Projected Tax Credit, Thereafter | $ 589 | ||
Federal income tax at statutory rate | 21.00% | 35.00% | |
Increase in income tax expense as a result of the Tax Cuts and Jobs Act | $ 1,700 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Net [Abstract] | ||
Allowance for loan losses | $ 3,054 | $ 3,052 |
Available for sale securities | 409 | 282 |
Accrued deferred compensation | 884 | 852 |
Pension | 2,207 | 1,789 |
Other-than-temporary impairment | 43 | 43 |
Nonaccrual interest | 192 | 171 |
Deferred director fees | 589 | 520 |
Acquisition accounting | 785 | 1,357 |
Other | 602 | 521 |
Deferred tax assets: Total | 8,765 | 8,587 |
Deferred Tax Liabilities, Net [Abstract] | ||
Deferred loan fees | 101 | 114 |
Available for sale securities | 0 | 0 |
Prepaid pension benefit cost | 4,289 | 4,248 |
Prepaid expenses | 130 | 132 |
Accumulated depreciation | 347 | 426 |
Goodwill/intangibles | 1,056 | 928 |
Deferred tax liabilities: Total | 5,923 | 5,848 |
Net Deferred Tax Asset included in Other Assets | $ 2,842 | $ 2,739 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Measurements, Recurring and Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 161,730 | $ 157,267 |
Equity securities with readily determinable fair values | 1,839 | 1,784 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities with readily determinable fair values | 1,839 | 1,784 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities with readily determinable fair values | 1,839 | 1,784 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities with readily determinable fair values | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities with readily determinable fair values | 0 | 0 |
U.S. Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 118,413 | 104,083 |
Residential Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 33,811 | 34,833 |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 9,506 | 13,294 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 5,057 | |
Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 161,730 | 157,267 |
Equity securities with readily determinable fair values | 1,839 | 1,784 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Equity securities with readily determinable fair values | 1,839 | 1,784 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 161,730 | 157,267 |
Equity securities with readily determinable fair values | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Equity securities with readily determinable fair values | 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] | ||
Debt securities available for sale | 118,413 | 104,083 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 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] | ||
Debt securities available for sale | 118,413 | 104,083 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 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] | ||
Debt securities available for sale | 33,811 | 34,833 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 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] | ||
Debt securities available for sale | 33,811 | 34,833 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | State and municipal | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 9,506 | 13,294 |
Fair Value, Measurements, Recurring | State and municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | State and municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 9,506 | 13,294 |
Fair Value, Measurements, Recurring | State and municipal | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate bonds | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 5,057 | |
Fair Value, Measurements, Recurring | Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 5,057 | |
Fair Value, Measurements, Recurring | Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | |
Collateral dependent impaired loan | Nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 3,883 | 5,426 |
Collateral dependent impaired loan | Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Collateral dependent impaired loan | Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Collateral dependent impaired loan | Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 3,883 | $ 5,426 |
FAIR VALUE MEASUREMENTS (Fair_2
FAIR VALUE MEASUREMENTS (Fair Value Inputs, Assets, Quantitative Information) (Details) - Nonrecurring - Fair Value Estimate - Collateral dependent impaired loan $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 3,883 | $ 5,426 |
Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, Fair Value Measurement Input | 0.16 | 0.36 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, Fair Value Measurement Input | 0.10 | 0.10 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, Fair Value Measurement Input | 0.50 | 0.50 |
FAIR VALUE MEASUREMENTS (Fair_3
FAIR VALUE MEASUREMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets [Abstract] | ||
Interest-bearing deposits in banks | $ 20,800 | $ 15,137 |
Equity securities available for sale | 1,839 | 1,784 |
Investment securities available for sale | 161,730 | |
Investment securities held to maturity | 26,911 | 44,549 |
Restricted investment in bank stocks | 4,336 | 4,773 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 20,105 | 19,304 |
Interest-bearing deposits in banks | 20,800 | 15,137 |
Equity securities available for sale | 1,839 | 1,784 |
Investment securities available for sale | 161,730 | 157,267 |
Investment securities held to maturity | 27,266 | 44,829 |
Loans held for sale | 408 | 1,736 |
Loans, less allowance for loan losses | 1,288,501 | 1,230,194 |
Accrued interest receivable | 3,670 | 3,670 |
Restricted investment in bank stocks | 4,336 | 4,773 |
Financial Liabilities [Abstract] | ||
Demand deposits and savings | 979,964 | 944,401 |
Time deposits | 368,128 | 354,091 |
Short-term borrowings | 34,648 | 36,908 |
Long-term borrowings | 78,516 | 89,600 |
Trust preferred subordinated debt | 5,000 | 5,000 |
Accrued interest payable | 1,163 | 1,163 |
Off-balance sheet financial instruments | 0 | 0 |
Fair Value | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 20,105 | 19,304 |
Interest-bearing deposits in banks | 20,800 | 15,137 |
Equity securities available for sale | 1,839 | 1,784 |
Investment securities available for sale | 161,730 | 157,267 |
Investment securities held to maturity | 26,911 | 44,549 |
Loans held for sale | 408 | 1,736 |
Loans, less allowance for loan losses | 1,272,393 | 1,213,932 |
Accrued interest receivable | 3,670 | 3,670 |
Restricted investment in bank stocks | 4,336 | 4,773 |
Financial Liabilities [Abstract] | ||
Demand deposits and savings | 979,964 | 944,401 |
Time deposits | 364,093 | 351,055 |
Short-term borrowings | 34,648 | 36,908 |
Long-term borrowings | 78,545 | 89,571 |
Trust preferred subordinated debt | 4,701 | 4,692 |
Accrued interest payable | 1,163 | 1,163 |
Off-balance sheet financial instruments | 0 | 0 |
Level 1 | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 8,190 | 8,313 |
Interest-bearing deposits in banks | 20,800 | 15,137 |
Equity securities available for sale | 1,839 | 1,784 |
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 | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Financial Liabilities [Abstract] | ||
Demand deposits and savings | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Trust preferred subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet financial instruments | 0 | 0 |
Level 2 | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 11,915 | 10,991 |
Interest-bearing deposits in banks | 0 | 0 |
Equity securities available for sale | 0 | 0 |
Investment securities available for sale | 161,730 | 157,267 |
Investment securities held to maturity | 26,911 | 44,549 |
Loans held for sale | 408 | 1,736 |
Loans, less allowance for loan losses | 0 | 0 |
Accrued interest receivable | 3,670 | 3,670 |
Restricted investment in bank stocks | 4,336 | 4,773 |
Financial Liabilities [Abstract] | ||
Demand deposits and savings | 979,964 | 944,401 |
Time deposits | 364,093 | 351,055 |
Short-term borrowings | 34,648 | 36,908 |
Long-term borrowings | 78,545 | 89,571 |
Trust preferred subordinated debt | 4,701 | 4,692 |
Accrued interest payable | 1,163 | 1,163 |
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 |
Equity securities available for sale | 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 | 1,272,393 | 1,213,932 |
Accrued interest receivable | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Financial Liabilities [Abstract] | ||
Demand deposits and savings | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Trust preferred subordinated debt | 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, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | $ 31,547 | $ 28,625 |
Service cost | 860 | 839 |
Interest cost | 1,096 | 1,135 |
Change in assumptions | (1,944) | 2,040 |
Benefits paid | (1,221) | (1,092) |
Benefit obligation at end of year | 30,338 | 31,547 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 42,439 | 38,715 |
Actual return on plan assets | (1,538) | 4,816 |
Employer contribution | 0 | 0 |
Benefits paid | (1,221) | (1,092) |
Fair value of plan assets at end of year | 39,680 | 42,439 |
Funded Status, included in other assets | 9,342 | 10,892 |
Amounts recognized in accumulated other comprehensive income: Total net actuarial loss | 9,773 | 7,924 |
Amounts recognized in accumulated other comprehensive income: Prior service cost | 0 | 0 |
Total included in accumulated other comprehensive loss (pretax) | $ 9,773 | $ 7,924 |
RETIREMENT PLANS (Estimated Cos
RETIREMENT PLANS (Estimated Costs To Be Amortized From AOCI Into Net Periodic Pension Cost) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Postemployment Benefits [Abstract] | |
Net loss | $ 850 |
Prior service cost | 0 |
Total costs to be amortized from AOCI into Net Periodic Pension Cost | $ 850 |
RETIREMENT PLANS (Narrative) (D
RETIREMENT PLANS (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)person | Dec. 31, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated Benefit Obligation | $ 29,115 | $ 30,228 |
Corporation Common Stock Included in Equity Securities | $ 2,882 | $ 2,114 |
Corporation Common Stock Included in Equity Securities, Percentage of Total Plan Assets | 7.00% | 5.00% |
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 | 353 | |
Employee contribution percentage, maximum | 100.00% | |
Balance accrued included in other liabilities | $ 2,932 | $ 2,803 |
Annual expense included in salaries and benefits expense | $ 463 | 279 |
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 | $ 664 | 626 |
Insurance Subsidiary | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer Contributions to and Expenses for the Plan | $ 97 | $ 86 |
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, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | ||
Service cost | $ 860 | $ 839 |
Interest cost | 1,096 | 1,135 |
Expected return on plan assets | (2,770) | (2,518) |
Recognized net actuarial loss | 515 | 676 |
Amortization of prior service cost | 0 | 0 |
Net Periodic Benefit (Income) Cost | (299) | 132 |
Net loss (gain) | 2,365 | (259) |
Amortization of net loss | (515) | (676) |
Amortization of prior service cost | 0 | 0 |
Total recognized in other comprehensive loss (income) | 1,850 | (935) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 1,551 | $ (803) |
RETIREMENT PLANS (Assumptions U
RETIREMENT PLANS (Assumptions Used To Determine The Benefit Obligation and Net Periodic Benefit) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | ||
Assumptions Used Calculating Benefit Obligation: Discount rate | 4.10% | 3.55% |
Assumptions Used Calculating Benefit Obligation: Rate of compensation increase | 3.50% | 3.50% |
Assumptions Used Calculating Net Periodic Benefit Cost: Discount rate | 3.55% | 4.05% |
Assumptions Used Calculating Net Periodic Benefit Cost: Expected long-term rate of return on plan assets | 6.75% | 6.75% |
Assumptions Used Calculating Net Periodic Benefit Cost: Rate of compensation increase | 3.50% | 3.50% |
RETIREMENT PLANS (Pension Plan
RETIREMENT PLANS (Pension Plan Weighted-Average Assets' Allocations) (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 63.00% | 50.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-Average Asset Allocation | 34.00% | 44.00% |
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 | 3.00% | 6.00% |
RETIREMENT PLANS (Fair Value Me
RETIREMENT PLANS (Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 39,680 | $ 42,439 | $ 38,715 |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25,150 | 21,423 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,376 | 18,668 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,154 | 2,348 | |
Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,882 | 2,114 | |
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 | 22,268 | 19,309 | |
Level 2 | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,376 | 18,668 | |
Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,154 | 2,348 | |
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, 2018USD ($) |
Postemployment Benefits [Abstract] | |
2,019 | $ 1,500 |
2,020 | 1,520 |
2,021 | 1,650 |
2,022 | 1,670 |
2,023 | 1,790 |
2024 - 2028 | $ 9,360 |
STOCKHOLDERS' EQUITY AND REGU_3
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Narrative) (Details) - USD ($) | Jul. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | May 05, 2009 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Shares issued, Dividend Reinvestment and Stock Repurchase Plan (in shares) | 15,618 | 14,967 | ||
Proceeds from issuance of common stock, Dividend Reinvestment and Stock Purchase Plan | $ 528,000 | $ 362,000 | ||
Restricted Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cumulative amount of shares issued under the plan (in shares) | 26,045 | |||
Maximum | Restricted Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Awards authorized (in shares) | 200,000 | |||
New Windsor | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Equity portion of purchase price | $ 28,619,980 | $ 28,620,000 | ||
Common Stock | New Windsor | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Shares of common stock issued in acquisition (in shares) | 938,360 | 938,360 |
STOCKHOLDERS' EQUITY AND REGU_4
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (The Actual and Required Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Corporation | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual, Tier 1 leverage ratio (to average assets), Amount | $ 158,404 | $ 144,376 |
Actual, Tier 1 leverage ratio (to average assets), Ratio | 9.66% | 9.04% |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Amount (greater than or equal to) | $ 65,568 | $ 63,871 |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Ratio (greater than or equal to) | 4.00% | 4.00% |
Actual, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount | $ 158,404 | $ 144,376 |
Actual, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio | 13.19% | 12.79% |
For Capital Adequacy Purposes, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 54,026 | $ 50,796 |
For Capital Adequacy Purposes, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 4.50% | 4.50% |
Actual, Tier 1 risk-based capital ratio (to risk-weighted assets), Amount | $ 158,404 | $ 144,376 |
Actual, Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio | 13.19% | 12.79% |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 72,034 | $ 67,728 |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 6.00% | 6.00% |
Actual, Total risk-based capital ratio (to risk-weighted assets), Amount | $ 172,449 | $ 158,479 |
Actual, Total risk-based capital ratio (to risk-weighted assets), Ratio | 14.36% | 14.04% |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 96,046 | $ 90,304 |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 8.00% | 8.00% |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual, Tier 1 leverage ratio (to average assets), Amount | $ 154,215 | $ 138,811 |
Actual, Tier 1 leverage ratio (to average assets), Ratio | 9.44% | 8.70% |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Amount (greater than or equal to) | $ 65,348 | $ 68,857 |
For Capital Adequacy Purposes, Tier 1 leverage ratio (to average assets), Ratio (greater than or equal to) | 4.00% | 4.00% |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 leverage ratio (to average assets), Amount (greater than or equal to) | $ 81,686 | $ 79,822 |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 leverage ratio (to average assets), Ratio (greater than or equal to) | 5.00% | 5.00% |
Actual, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount | $ 154,215 | $ 138,811 |
Actual, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio | 12.89% | 12.34% |
For Capital Adequacy Purposes, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 53,826 | $ 50,639 |
For Capital Adequacy Purposes, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 4.50% | 4.50% |
To be Well Capitalized under Prompt Corrective Action Provisions, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 77,748 | $ 73,145 |
To be Well Capitalized under Prompt Corrective Action Provisions, Common Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 6.50% | 6.50% |
Actual, Tier 1 risk-based capital ratio (to risk-weighted assets), Amount | $ 154,215 | $ 138,811 |
Actual, Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio | 12.89% | 12.34% |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 71,768 | $ 67,519 |
For Capital Adequacy Purposes, Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 6.00% | 6.00% |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 95,690 | $ 90,025 |
To be Well Capitalized under Prompt Corrective Action Provisions, Tier 1 risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 8.00% | 8.00% |
Actual, Total risk-based capital ratio (to risk-weighted assets), Amount | $ 168,260 | $ 152,868 |
Actual, Total risk-based capital ratio (to risk-weighted assets), Ratio | 14.07% | 13.58% |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 95,690 | $ 90,025 |
For Capital Adequacy Purposes, Total risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 8.00% | 8.00% |
To be Well Capitalized under Prompt Corrective Action Provisions, Total risk-based capital ratio (to risk-weighted assets), Amount (greater than or equal to) | $ 119,613 | $ 112,532 |
To be Well Capitalized under Prompt Corrective Action Provisions, Total risk-based capital ratio (to risk-weighted assets), Ratio (greater than or equal to) | 10.00% | 10.00% |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan to value ratio requirement (no greater than) | 80.00% | |
Commercial line of credit borrowing capacity | $ 1,500,000 | |
Commercial line of credit draw amount | 1,000,000 | |
Commitments to Extend Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | 279,729,000 | $ 264,368,000 |
Standby Letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | $ 3,909,000 | $ 6,362,000 |
ACNB CORPORATION (PARENT COMP_3
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Statements of Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash | $ 20,105 | $ 19,304 |
Investments in low-income housing partnerships | 1,871 | 2,446 |
Securities and other assets | 22,314 | 23,668 |
Total assets | 1,647,724 | 1,595,432 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Long-term debt | 83,516 | 94,600 |
Other liabilities | 13,331 | 11,466 |
Stockholders’ equity | 168,137 | 153,966 |
Total Liabilities and Stockholders’ Equity | 1,647,724 | 1,595,432 |
Parent Company | ||
ASSETS | ||
Cash | 7,391 | 9,440 |
Investments in low-income housing partnerships | 240 | 689 |
Securities and other assets | 1,271 | 1,548 |
Receivable from banking subsidiary | 518 | 118 |
Total assets | 175,460 | 163,600 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Long-term debt | 7,300 | 9,600 |
Other liabilities | 23 | 34 |
Stockholders’ equity | 168,137 | 153,966 |
Total Liabilities and Stockholders’ Equity | 175,460 | 163,600 |
Banking Subsidiary | Parent Company | ||
ASSETS | ||
Investment | 156,651 | 143,288 |
Other Subsidiary | Parent Company | ||
ASSETS | ||
Investment | $ 9,389 | $ 8,517 |
ACNB CORPORATION (PARENT COMP_4
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Gain on sale of securities | $ 85 | $ 0 |
Other income | 15,948 | 14,149 |
Income tax benefit | (4,972) | (6,634) |
Net Income | 21,748 | 9,788 |
Comprehensive Income | 19,623 | 9,903 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Dividends from banking subsidiary | 6,261 | 5,233 |
Gain on sale of securities | 47 | 0 |
Other income | 35 | 31 |
Total Revenues | 6,343 | 5,264 |
Expenses | 1,421 | 1,572 |
Net income before taxes and equity in undistributed earnings of subsidiaries | 4,922 | 3,692 |
Income tax benefit | 547 | 507 |
Net income before equity in undistributed earnings of subsidiaries | 5,469 | 4,199 |
Equity in undistributed earnings of subsidiaries | 16,279 | 5,589 |
Net Income | 21,748 | 9,788 |
Comprehensive Income | $ 19,623 | $ 9,903 |
ACNB CORPORATION (PARENT COMP_5
ACNB CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 21,748 | $ 9,788 |
Gain on sale of securities | 85 | 0 |
Net Cash Provided by Operating Activities | 29,544 | 17,007 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net Cash Used in Investing Activities | (53,616) | (51,953) |
CASH FLOWS USED IN FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 17,716 | 29,600 |
Repayments on long-term debt | (28,800) | (14,250) |
Proceeds from issuance of common stock | 541 | 482 |
Dividends paid | (6,261) | (5,233) |
Net Cash Provided by (Used in) Financing Activities | 30,536 | 50,456 |
Net Increase (Decrease) in Cash and Cash Equivalents | 6,464 | 15,510 |
CASH AND CASH EQUIVALENTS — BEGINNING | 34,441 | 18,931 |
CASH AND CASH EQUIVALENTS — ENDING | 40,905 | 34,441 |
Parent Company | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 21,748 | 9,788 |
Equity in undistributed earnings of subsidiaries | (16,279) | (5,589) |
Decrease (Increase) in receivable from banking subsidiary | (400) | 12 |
Gain on sale of securities | 47 | 0 |
Other | 669 | 129 |
Net Cash Provided by Operating Activities | 5,785 | 4,340 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Return of investment from subsidiary | 0 | 1,000 |
Outlay for business combination | 0 | (4,445) |
Net Cash Used in Investing Activities | 0 | (3,445) |
CASH FLOWS USED IN FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 0 | 4,600 |
Repayments on long-term debt | (2,300) | 0 |
Proceeds from issuance of common stock | 727 | 615 |
Dividends paid | (6,261) | (5,233) |
Net Cash Provided by (Used in) Financing Activities | (7,834) | (18) |
Net Increase (Decrease) in Cash and Cash Equivalents | (2,049) | 877 |
CASH AND CASH EQUIVALENTS — BEGINNING | 9,440 | 8,563 |
CASH AND CASH EQUIVALENTS — ENDING | $ 7,391 | $ 9,440 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Carrying Value And Accumulated Amortization Of The Intangible Assets) (Details) - USD ($) | Jul. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 05, 2005 |
Finite-Lived Intangible Assets [Line Items] | ||||
Date of Acquisition, Russell Insurance Group, Inc. | Jan. 5, 2005 | |||
Goodwill | $ 19,580,000 | $ 19,580,000 | ||
Gross Carrying Amount of Intangible Asset | 11,668,000 | 9,085,000 | ||
Accumulated Amortization of Intangible Asset | 7,261,000 | 6,516,000 | ||
Amortization of Intangible Assets | 745,000 | 537,000 | ||
RIG Customer Lists, Purchased in 2005 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 3,282,000 | 3,282,000 | ||
Accumulated Amortization of Intangible Asset | 3,282,000 | 3,282,000 | ||
RIG Customer Lists, Purchased in 2007 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 637,000 | 637,000 | ||
Accumulated Amortization of Intangible Asset | 637,000 | 637,000 | ||
RIG Customer Lists, Purchased in 2008 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 1,165,000 | 1,165,000 | ||
Accumulated Amortization of Intangible Asset | 1,165,000 | 1,101,000 | ||
RIG Customer Lists, Purchased in 2009 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 1,300,000 | 1,300,000 | ||
Accumulated Amortization of Intangible Asset | 1,300,000 | 1,170,000 | ||
RIG Customer Lists, Purchased in 2010 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 33,000 | 33,000 | ||
Accumulated Amortization of Intangible Asset | 30,000 | 26,000 | ||
RIG Customer Lists, Purchased in 2014 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 77,000 | 77,000 | ||
Accumulated Amortization of Intangible Asset | 39,000 | 31,000 | ||
RIG Customer Lists, Purchased in 2015 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 173,000 | 173,000 | ||
Accumulated Amortization of Intangible Asset | 67,000 | 49,000 | ||
RIG Customer Lists, Purchased in 2018 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 2,583,000 | 0 | ||
Accumulated Amortization of Intangible Asset | $ 90,000 | 0 | ||
Core Deposits | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset amortization life | 10 years | |||
RIG | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 6,308,000 | $ 6,308,000 | ||
RIG | Customer Lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | 9,250,000 | 6,667,000 | ||
Accumulated Amortization of Intangible Asset | 6,623,000 | 6,296,000 | ||
New Windsor | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 13,272,000 | 13,300,000 | ||
New Windsor | Core Deposits | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount of Intangible Asset | $ 2,418,000 | 2,418,000 | 2,418,000 | |
Intangible asset amortization life | 10 years | |||
Accumulated Amortization of Intangible Asset | $ 638,000 | $ 220,000 | ||
Minimum | Customer Lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset amortization life | 8 years | |||
Maximum | Customer Lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset amortization life | 15 years |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES (Expected Amortization Expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Business Combinations [Abstract] | |
2,019 | $ 683 |
2,020 | 635 |
2,021 | 591 |
2,022 | 547 |
2,023 | 503 |
Thereafter | $ 1,448 |
SEGMENT AND RELATED INFORMATI_3
SEGMENT AND RELATED INFORMATION (Segment Information) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 2 | |
Net interest income and other income from external customers | $ 73,043 | $ 60,501 |
Income before income taxes | 26,720 | 16,422 |
Total assets | 1,647,724 | 1,595,432 |
Capital expenditures | 1,743 | 1,757 |
Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income and other income from external customers | 67,654 | 55,763 |
Income before income taxes | 25,515 | 15,585 |
Total assets | 1,634,750 | 1,586,064 |
Capital expenditures | 1,341 | 1,727 |
Insurance | ||
Segment Reporting Information [Line Items] | ||
Net interest income and other income from external customers | 5,389 | 4,738 |
Income before income taxes | 1,205 | 837 |
Total assets | 12,974 | 9,368 |
Capital expenditures | $ 402 | $ 30 |
NEW WINDSOR ACQUISITION (Narrat
NEW WINDSOR ACQUISITION (Narrative) (Details) | Jul. 01, 2017USD ($)bank$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares | Jun. 30, 2017$ / shares |
Business Acquisition [Line Items] | ||||
Number of community banking office locations, NWSB | 7 | |||
Goodwill | $ 19,580,000 | $ 19,580,000 | ||
Merger related expenses | 0 | $ 4,728,000 | ||
New Windsor | ||||
Business Acquisition [Line Items] | ||||
Number of community banking office locations, NWSB | bank | 7 | |||
Fair Value of total assets acquired | $ 319,821,000 | |||
Fair Value of total loans acquired | 263,450,000 | |||
Fair Value of total deposits acquired | 293,300,000 | |||
Goodwill | 13,272,000 | $ 13,300,000 | ||
Cash portion of purchase price | $ 4,519,995 | |||
Percent of post transaction outstanding shares of the Corporation's common stock issued in merger | 13.00% | |||
Total consideration paid | $ 33,289,975 | |||
ACNB’s share price for purposes of calculation (in dollars per share) | $ / shares | $ 30.50 | $ 30.50 | ||
Loans receivable, gross amortized cost bases | $ 272,646,000 | |||
Interest rate fair value discount | 731,000 | |||
Credit fair value discount | $ 4,501,000 | |||
Common Stock | New Windsor | ||||
Business Acquisition [Line Items] | ||||
Shares of common stock issued in acquisition (in shares) | shares | 938,360 | 938,360 | ||
Time Deposits | New Windsor | ||||
Business Acquisition [Line Items] | ||||
Assets, fair value premium (discount) | $ (847,500) | |||
Core Deposit Intangible | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 10 years | |||
Core Deposit Intangible | New Windsor | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 10 years | |||
Long-term Borrowings | New Windsor | ||||
Business Acquisition [Line Items] | ||||
Liabilities, fair value discount | $ 312,500 |
NEW WINDSOR ACQUISITION (Purcha
NEW WINDSOR ACQUISITION (Purchase Price Consideration in Common Stock) (Details) - USD ($) | Jul. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Jun. 30, 2017 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
New Windsor shares of common stock outstanding | 7,023,658 | 7,046,020 | ||
Fair Value of Liabilities Assumed | ||||
Goodwill Recorded in Acquisition | $ 19,580,000 | $ 19,580,000 | ||
New Windsor | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Cash consideration (per New Windsor share) | $ 30 | |||
Cash portion of purchase price | $ 4,519,995 | |||
ACNB’s share price of common stock for purposes of calculation | $ 30.50 | $ 30.50 | ||
Equity portion of purchase price | $ 28,619,980 | $ 28,620,000 | ||
Cost of shares owned by buyer | 150,000 | |||
Total consideration paid | 33,289,975 | |||
Fair Value of Assets Acquired | ||||
Cash and cash equivalents | 10,964,000 | |||
Investment securities | 21,624,000 | |||
Loans held for sale | 1,463,000 | |||
Loans | 263,450,000 | |||
Restricted stock | 486,000 | |||
Premises and equipment | 8,624,000 | |||
Core deposit intangible asset | 2,418,000 | |||
Other assets | 10,792,000 | |||
Total assets | 319,821,000 | |||
Fair Value of Liabilities Assumed | ||||
Non-interest bearing deposits | 80,006,000 | |||
Interest bearing deposits | 213,327,000 | |||
Subordinated debt | 4,688,000 | |||
Other liabilities | 1,782,000 | |||
Total liabilities | 299,803,000 | |||
Net Assets Acquired | 20,018,000 | |||
Goodwill Recorded in Acquisition | $ 13,272,000 | $ 13,300,000 | ||
New Windsor | Common Stock | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Exchange ratio | 1.10 | |||
Total ACNB shares of common stock issued | 938,360 | 938,360 | ||
NW Bancorp | New Windsor | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
New Windsor shares of common stock outstanding | 1,003,703 | |||
Shares paid cash consideration | 150,555 | |||
Shares of common stock paid stock consideration | 853,148 |
NEW WINDSOR ACQUISITION (Fair V
NEW WINDSOR ACQUISITION (Fair Value Adjustments) (Details) - New Windsor $ in Thousands | Jul. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at July 1, 2017 | $ 272,646 |
Interest rate fair value adjustment on pools of homogeneous loans | (731) |
Credit fair value adjustment | (4,501) |
Fair value of acquired loans at July 1, 2017 | 263,450 |
Purchased credit impaired loans | |
Business Acquisition [Line Items] | |
Credit fair value adjustment | $ (3,964) |
NEW WINDSOR ACQUISITION (Acquir
NEW WINDSOR ACQUISITION (Acquired Purchased Credit Impaired Loans Receivable) (Details) - New Windsor $ in Thousands | Jul. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Contractual principal and interest at acquisition | $ 13,439 |
Nonaccretable difference | (5,651) |
Expected cash flows at acquisition | 7,788 |
Accretable yield | (1,458) |
Fair value of purchased impaired loans | $ 6,330 |
REVENUE RECOGNITION (Narrative)
REVENUE RECOGNITION (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Assets Held-in-trust | $ 342,000,000 | $ 327,000,000 |