Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Registrant Name | ACNB CORP | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity Central Index Key | 0000715579 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,069,859 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
ASSETS | |||
Cash and due from banks | $ 18,216 | $ 20,105 | $ 18,403 |
Interest bearing deposits with banks | 58,390 | 20,800 | 44,650 |
Total Cash and Cash Equivalents | 76,606 | 40,905 | 63,053 |
Equity securities with readily determinable fair values | 2,001 | 1,839 | 1,767 |
Debt securities available for sale | 175,712 | 161,730 | 152,424 |
Securities held to maturity, fair value $24,772; $39,145; $26,911 | 24,722 | 27,266 | 39,894 |
Loans held for sale | 3,009 | 408 | 1,265 |
Loans, net of allowance for loan losses $14,057; $13,143; $13,964 | 1,265,207 | 1,288,501 | 1,233,655 |
Premises and equipment | 25,627 | 26,409 | 26,379 |
Right of use asset | 3,711 | 0 | 0 |
Restricted investment in bank stocks | 4,202 | 4,336 | 4,849 |
Investment in bank-owned life insurance | 50,076 | 48,003 | 45,973 |
Investments in low-income housing partnerships | 1,689 | 1,871 | 2,213 |
Goodwill | 19,580 | 19,580 | 19,580 |
Intangible assets | 4,735 | 4,407 | 2,801 |
Foreclosed assets held for resale | 0 | 155 | 287 |
Other assets | 22,428 | 22,314 | 29,202 |
Total Assets | 1,679,305 | 1,647,724 | 1,623,342 |
Deposits: | |||
Non-interest bearing | 305,353 | 302,394 | 288,215 |
Interest bearing | 1,071,924 | 1,045,698 | 1,045,760 |
Total Deposits | 1,377,277 | 1,348,092 | 1,333,975 |
Short-term borrowings | 24,137 | 34,648 | 26,418 |
Long-term borrowings | 78,288 | 83,516 | 89,816 |
Lease liability | 3,711 | 0 | 0 |
Other liabilities | 15,008 | 13,331 | 12,826 |
Total Liabilities | 1,498,421 | 1,479,587 | 1,463,035 |
STOCKHOLDERS’ EQUITY | |||
Preferred stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding | 0 | 0 | 0 |
Common stock, $2.50 par value; 20,000,000 shares authorized; 7,132,459, 7,101,368 and 7,108,620 shares issued; 7,069,859, 7,038,768 and 7,046,020 shares outstanding | 17,831 | 17,772 | 17,753 |
Treasury stock, at cost (62,600 shares) | (728) | (728) | (728) |
Additional paid-in capital | 39,264 | 38,448 | 38,193 |
Retained earnings | 130,809 | 121,862 | 113,772 |
Accumulated other comprehensive loss | (6,292) | (9,217) | (8,683) |
Total Stockholders’ Equity | 180,884 | 168,137 | 160,307 |
Total Liabilities and Stockholders’ Equity | $ 1,679,305 | $ 1,647,724 | $ 1,623,342 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Securities held to maturity, fair value | $ 24,772 | $ 26,911 | $ 39,145 |
Allowance for loan losses | $ 14,057 | $ 13,964 | $ 13,143 |
Preferred stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,132,459 | 7,108,620 | 7,101,368 |
Common stock, shares outstanding | 7,069,859 | 7,046,020 | 7,038,768 |
Treasury stock, shares | 62,600 | 62,600 | 62,600 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans, including fees | $ 16,038,000 | $ 14,623,000 | $ 31,706,000 | $ 28,780,000 |
Securities: | ||||
Taxable | 1,028,000 | 929,000 | 1,999,000 | 1,832,000 |
Tax-exempt | 38,000 | 59,000 | 82,000 | 124,000 |
Dividends | 81,000 | 74,000 | 175,000 | 152,000 |
Other | 270,000 | 179,000 | 378,000 | 231,000 |
Total Interest Income | 17,455,000 | 15,864,000 | 34,340,000 | 31,119,000 |
INTEREST EXPENSE | ||||
Deposits | 1,971,000 | 1,206,000 | 3,656,000 | 2,340,000 |
Short-term borrowings | 21,000 | 11,000 | 52,000 | 27,000 |
Long-term borrowings | 493,000 | 556,000 | 997,000 | 1,099,000 |
Total Interest Expense | 2,485,000 | 1,773,000 | 4,705,000 | 3,466,000 |
Net Interest Income | 14,970,000 | 14,091,000 | 29,635,000 | 27,653,000 |
PROVISION FOR LOAN LOSSES | 125,000 | 320,000 | 275,000 | 570,000 |
Net Interest Income after Provision for Loan Losses | 14,845,000 | 13,771,000 | 29,360,000 | 27,083,000 |
OTHER INCOME | ||||
Earnings on investment in bank-owned life insurance | 309,000 | 281,000 | 573,000 | 538,000 |
Gain on life insurance proceeds | 0 | 0 | 0 | 52,000 |
Net gains on sales of securities | 0 | 12,500 | 0 | 12,500 |
Net gains (losses) on equity securities | 129,000 | 6,000 | 162,000 | (27,000) |
Commissions from insurance sales | 1,914,000 | 1,707,000 | 3,234,000 | 2,908,000 |
Other | 289,000 | 327,000 | 544,000 | 645,000 |
Total Other Income | 4,820,000 | 4,317,000 | 8,760,000 | 8,029,000 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 7,189,000 | 6,683,000 | 14,154,000 | 13,310,000 |
Net occupancy | 734,000 | 720,000 | 1,597,000 | 1,499,000 |
Equipment | 1,219,000 | 1,321,000 | 2,322,000 | 2,483,000 |
Other tax | 274,000 | 235,000 | 536,000 | 441,000 |
Professional services | 283,000 | 344,000 | 483,000 | 713,000 |
Supplies and postage | 178,000 | 177,000 | 384,000 | 392,000 |
Marketing and corporate relations | 171,000 | 165,000 | 310,000 | 268,000 |
FDIC and regulatory | 160,000 | 164,000 | 329,000 | 348,000 |
Intangible assets amortization | 158,000 | 182,000 | 313,000 | 366,000 |
Foreclosed real estate (income) expenses | (3,000) | 84,000 | (56,000) | 132,000 |
Other operating | 1,322,000 | 1,176,000 | 2,574,000 | 2,285,000 |
Total Other Expenses | 11,685,000 | 11,251,000 | 22,946,000 | 22,237,000 |
Income before Income Taxes | 7,980,000 | 6,837,000 | 15,174,000 | 12,875,000 |
PROVISION FOR INCOME TAXES | 1,514,000 | 1,330,000 | 2,844,000 | 2,455,000 |
Net Income | $ 6,466,000 | $ 5,507,000 | $ 12,330,000 | $ 10,420,000 |
PER SHARE DATA | ||||
Basic earnings (in dollars per share) | $ 0.92 | $ 0.78 | $ 1.75 | $ 1.48 |
Cash dividends declared (in dollars per share) | $ 0.25 | $ 0.23 | $ 0.48 | $ 0.43 |
Service charges on deposit accounts | ||||
OTHER INCOME | ||||
Revenue from contract with customer, excluding assessed tax | $ 946,000 | $ 810,000 | $ 1,884,000 | $ 1,626,000 |
Income from fiduciary, investment management and brokerage activities | ||||
OTHER INCOME | ||||
Revenue from contract with customer, excluding assessed tax | 598,000 | 559,000 | 1,190,000 | 1,130,000 |
Service charges on ATM and debit card transactions | ||||
OTHER INCOME | ||||
Revenue from contract with customer, excluding assessed tax | $ 635,000 | $ 614,000 | $ 1,173,000 | $ 1,144,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME | $ 6,466 | $ 5,507 | $ 12,330 | $ 10,420 | |
SECURITIES | |||||
Unrealized gains (losses) arising during the period, net of income taxes of $434, $(228), $757 and $(603), respectively | 1,487 | (430) | 2,597 | (1,719) | |
Reclassification adjustment for net gains included in net income, net of income taxes of $0, $3, $0 and $3, respectively (A) (C) | [1],[2] | 0 | 10 | 0 | 10 |
PENSION | |||||
Amortization of pension net loss, transition liability, and prior service cost, net of income taxes of $48, $29, $96 and $58, respectively (B) (C) | [2],[3] | 164 | 100 | 328 | 200 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 1,651 | (320) | 2,925 | (1,509) | |
TOTAL COMPREHENSIVE INCOME | $ 8,117 | $ 5,187 | $ 15,255 | $ 8,911 | |
[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 (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
SECURITIES: Unrealized gains (losses) arising during the period, income taxes | $ 434 | $ (228) | $ 757 | $ (603) |
SECURITIES: Reclassification adjustment for net gains included in net income, income taxes | 0 | 3 | 0 | 3 |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, income taxes | $ 48 | $ 29 | $ 96 | $ 58 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
Beginning Balance at Dec. 31, 2017 | $ 153,966 | $ 17,716 | $ (728) | $ 37,777 | $ 106,293 | $ (7,092) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 4,913 | 4,913 | |||||
Other comprehensive income (loss), net of taxes | (1,189) | (1,189) | |||||
Reclassification of certain income tax effects from AOCI | [1] | 0 | 0 | 0 | |||
Common stock shares issued | 121 | 10 | 111 | ||||
Restricted stock grants | 13 | 17 | (4) | ||||
Restricted stock compensation expense | 186 | 186 | |||||
Cash dividends declared | (1,405) | (1,405) | |||||
Ending Balance at Mar. 31, 2018 | 156,605 | 17,743 | (728) | 38,070 | 109,801 | (8,281) | |
Beginning Balance at Dec. 31, 2017 | 153,966 | 17,716 | (728) | 37,777 | 106,293 | (7,092) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,420 | ||||||
Ending Balance at Jun. 30, 2018 | 160,307 | 17,753 | (728) | 38,193 | 113,772 | (8,683) | |
Beginning Balance at Mar. 31, 2018 | 156,605 | 17,743 | (728) | 38,070 | 109,801 | (8,281) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,507 | 5,507 | |||||
Other comprehensive income (loss), net of taxes | (320) | (320) | |||||
Reclassification of certain income tax effects from AOCI | [1] | 0 | 82 | (82) | |||
Common stock shares issued | 133 | 10 | 123 | ||||
Restricted stock grants | 0 | 0 | 0 | ||||
Restricted stock compensation expense | 0 | 0 | |||||
Cash dividends declared | (1,618) | (1,618) | |||||
Ending Balance at Jun. 30, 2018 | 160,307 | 17,753 | (728) | 38,193 | 113,772 | (8,683) | |
Beginning Balance at Dec. 31, 2018 | 168,137 | 17,772 | (728) | 38,448 | 121,862 | (9,217) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,864 | 5,864 | |||||
Other comprehensive income (loss), net of taxes | 1,274 | 1,274 | |||||
Common stock shares issued | 13 | 9 | 4 | ||||
Restricted stock grants | 0 | 0 | 0 | ||||
Restricted stock compensation expense | 126 | 126 | |||||
Cash dividends declared | (1,621) | (1,621) | |||||
Ending Balance at Mar. 31, 2019 | 173,793 | 17,781 | (728) | 38,578 | 126,105 | (7,943) | |
Beginning Balance at Dec. 31, 2018 | 168,137 | 17,772 | (728) | 38,448 | 121,862 | (9,217) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 12,330 | ||||||
Ending Balance at Jun. 30, 2019 | 180,884 | 17,831 | (728) | 39,264 | 130,809 | (6,292) | |
Beginning Balance at Mar. 31, 2019 | 173,793 | 17,781 | (728) | 38,578 | 126,105 | (7,943) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 6,466 | 6,466 | |||||
Other comprehensive income (loss), net of taxes | 1,651 | 1,651 | |||||
Common stock shares issued | 149 | 11 | 138 | ||||
Restricted stock grants | 391 | 39 | 352 | ||||
Restricted stock compensation expense | 196 | 196 | |||||
Cash dividends declared | (1,762) | (1,762) | |||||
Ending Balance at Jun. 30, 2019 | $ 180,884 | $ 17,831 | $ (728) | $ 39,264 | $ 130,809 | $ (6,292) | |
[1] | In January 2018, the Corporation adopted ASU 2018-02, as a result, the Corporation made a policy election to release income tax effects, as a result of the Tax Act, from AOCI to retained earnings. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock shares issued (in shares) | 4,162 | 3,662 | 4,228 | 4,138 |
Restricted stock grants, shares issued (in shares) | 16,015 | 0 | 0 | 6,744 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 12,330,000 | $ 10,420,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of loans originated for sale | (173,000) | (272,000) |
(Gain) loss on sales of foreclosed assets held for resale, including writedowns | (87,000) | 45,000 |
Earnings on investment in bank-owned life insurance | (573,000) | (538,000) |
Gain on sales or calls of securities | 0 | (12,500) |
(Gain) loss on equity securities | (162,000) | 27,000 |
Restricted stock compensation expense | 322,000 | 186,000 |
Depreciation and amortization | 1,369,000 | 1,418,000 |
Provision for loan losses | 275,000 | 570,000 |
Net amortization of investment securities premiums | 175,000 | 238,000 |
Increase in accrued interest receivable | (295,000) | (698,000) |
Increase in accrued interest payable | 701,000 | 284,000 |
Mortgage loans originated for sale | (11,619,000) | (15,975,000) |
Proceeds from sales of loans originated for sale | 9,191,000 | 16,718,000 |
Decrease in other assets | 1,800,000 | 440,000 |
(Increase) decrease in deferred tax expense | (1,790,000) | 396,000 |
Increase in other liabilities | 1,400,000 | 1,334,000 |
Net Cash Provided by Operating Activities | 12,864,000 | 14,580,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from maturities of investment securities held to maturity | 2,544,000 | 4,932,000 |
Proceeds from maturities of investment securities available for sale | 7,062,000 | 7,418,000 |
Proceeds from sales of investment securities available for sale | 0 | 1,446,000 |
Purchase of investment securities available for sale | (17,865,000) | (11,459,000) |
Purchase of equity securities | (500,000) | 0 |
Redemption (purchase) of restricted investment in bank stocks | 134,000 | (76,000) |
Net decrease (increase) in loans | 22,971,000 | (4,266,000) |
Purchase of bank-owned life insurance | (1,500,000) | (500,000) |
Insurance book- acquisition | (640,000) | (600,000) |
Capital expenditures | (275,000) | (655,000) |
Proceeds from sales of foreclosed real estate | 290,000 | 339,000 |
Net Cash Provided by (Used in) Investing Activities | 12,221,000 | (3,421,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in demand deposits | 2,959,000 | 8,802,000 |
Net increase in time certificates of deposits and interest bearing deposits | 26,226,000 | 26,681,000 |
Net decrease in short-term borrowings | (10,511,000) | (10,490,000) |
Proceeds from long-term borrowings | 7,000,000 | 8,716,000 |
Repayments on long-term borrowings | (12,228,000) | (13,500,000) |
Dividends paid | (3,383,000) | (3,023,000) |
Common stock issued | 553,000 | 267,000 |
Net Cash Provided by Financing Activities | 10,616,000 | 17,453,000 |
Net Increase in Cash and Cash Equivalents | 35,701,000 | 28,612,000 |
CASH AND CASH EQUIVALENTS — BEGINNING | 40,905,000 | 34,441,000 |
CASH AND CASH EQUIVALENTS — ENDING | 76,606,000 | 63,053,000 |
Supplemental disclosures of cash flow information | ||
Interest paid | 4,004,000 | 3,182,000 |
Income taxes paid | 1,520,000 | 1,700,000 |
Loans transferred to foreclosed assets held for resale and other foreclosed transactions | $ 48,000 | $ 235,000 |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and 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 are also loan production offices situated in Lancaster and York, Pennsylvania, and Hunt Valley, Maryland. RIG is a full-service insurance agency based in Westminster, Maryland, with additional locations in Germantown and Jarrettsville, Maryland. The agency offers a broad range of property and casualty and group life and health insurance to both individual and commercial clients. 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. On July 2 and 3, 2019, the Corporation filed Forms 8-K with the Securities and Exchange Commission announcing the execution of a definitive agreement whereby Frederick County Bancorp, Inc. (FCBI), headquartered in Frederick, Maryland, will be merged with and into an ACNB acquisition subsidiary and, as soon as possible thereafter, Frederick County Bank, FCBI’s wholly-owned subsidiary, will merge with and into ACNB Bank. With the consummation of the acquisition, ACNB Bank will operate former Frederick County Bank locations in the Frederick County market as “FCB Bank, A Division of ACNB Bank”. One director from FCBI will join the boards of directors of ACNB and ACNB Bank, respectively. Based on the financial results as of March 31, 2019, the combined company would have pro forma total assets of $2.2 billion , total deposits of $1.8 billion , and total loans of $1.7 billion . The transaction has been unanimously approved by the boards of directors of both companies. It is subject to FCBI shareholder approval of the transaction, ACNB shareholder approval of the issuance of ACNB common stock for the transaction, regulatory approvals, and other customary closing conditions. Currently, the transaction is expected to close in the fourth quarter of 2019 or the first quarter of 2020, after all such conditions are met. Approximately 1,600,596 shares of ACNB common stock are currently expected to be issued in connection with the FCBI acquisition at closing. Further discussion of the risk factors involved with the merger of FCBI into the Corporation can be found in Part II, Item 1A - Risk Factors. The Corporation’s primary sources of revenue are 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. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly ACNB Corporation’s financial position and the results of operations, comprehensive income, changes in stockholders’ equity, and cash flows. All such adjustments are of a normal recurring nature. The accounting policies followed by the Corporation are set forth in Note A to the Corporation’s consolidated financial statements in the 2018 ACNB Corporation Annual Report on Form 10-K, filed with the SEC on March 8, 2019 . It is suggested that the consolidated financial statements contained herein be read in conjunction with the consolidated financial statements and notes included in the Corporation’s Annual Report on Form 10-K. The results of operations for the three and six month periods ended June 30, 2019 , are not necessarily indicative of the results to be expected for the full year. 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 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. 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. On January 1, 2019, the Corporation adopted ASU 2016-02, Leases , and all subsequent amendments to the ASU (collectively “Topic 842”). From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. Under the optional transition method, only the most recent period presented will reflect the adoption of Topic 842 and the comparative prior periods will be reported under the previous guidance in Topic 840. The Corporation recorded 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. The ASU offers lessors a practical expedient that mirrors the practical expedient already provided to lessees in ASU 2016-02, Leases (Topic 842) . The Corporation adopted the new practical expedient which will allow the Corporation 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 effect on operations and capital adequacy was not material. On January 1, 2019, the Corporation adopted ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . The ASU 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 adoption of this ASU did not have a material effect on the Corporation’s consolidated financial condition or results of operations. The Corporation adopted 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. The adoption of this ASU did not impact the Corporation’s consolidated financial condition or results of operations since the Corporation already discloses capital requirements within the Management’s Discussion and Analysis section of this Form 10-Q. The Corporation early adopted 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 ASU would be 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. 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 adoption of this ASU did not have a material effect on the Corporation’s consolidated financial condition or results of operations. The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2019 , 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. |
Earnings Per Share and Restrict
Earnings Per Share and Restricted Stock | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Restricted Stock | Earnings Per Share and Restricted Stock The Corporation has a simple capital structure. Basic earnings per share of common stock is computed based on 7,049,857 and 7,030,441 weighted average shares of common stock outstanding for the six months ended June 30, 2019 and 2018 , respectively, and 7,053,008 and 7,035,237 for the three months ended June 30, 2019 and 2018 , respectively. All outstanding unvested restricted stock awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. The Corporation has no instruments that would create dilutive earnings per share. The ACNB Corporation 2009 Restricted Stock Plan expired by its own terms after 10 years on February 24, 2019. The purpose of this plan was to provide employees and directors of the Bank who have responsibility for its growth with additional incentives by allowing them to acquire ownership in the Corporation and, thereby, encouraging them to contribute to the organization’s success. As of June 30, 2019 , 25,945 shares were issued under this plan, of which 23,725 were fully vested, no shares vested during the quarter, and the remaining 2,220 will vest over the next year. No further shares may be issued under this restricted stock plan. The Corporation’s Registration Statement under the Securities Act of 1933 on Form S-8 for the ACNB Corporation 2009 Restricted Stock Plan was filed with the Securities and Exchange Commission on January 4, 2013. Post-Effective Amendment No. 1 to this Form S-8 was filed with the Commission on March 8, 2019, effectively transferring the 174,055 authorized, but not issued, shares under the ACNB Corporation 2009 Restricted Stock Plan to the ACNB Corporation 2018 Omnibus Stock Incentive Plan. On May 1, 2018, stockholders approved and ratified the ACNB Corporation 2018 Omnibus Stock Incentive Plan, effective as of March 20, 2018, in which awards shall not exceed, in the aggregate, 400,000 shares of common stock, plus any shares that are authorized, but not issued, under the ACNB Corporation 2009 Restricted Stock Plan. As of June 30, 2019 , 16,115 shares were issued under this plan, of which 5,372 vested during the quarter, and the remaining 10,743 will vest over the next two years . The Corporation’s Registration Statement under the Securities Act of 1933 on Form S-8 for the ACNB Corporation 2018 Omnibus Stock Incentive Plan was filed with the Securities and Exchange Commission on March 8, 2019. In addition, on March 8, 2019, the Corporation filed Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 for the ACNB Corporation 2009 Restricted Stock Plan to add the ACNB Corporation 2018 Omnibus Stock Incentive Plan to the registration statement. Plan expense is recognized over the vesting period of the stock issued under both plans. $196,000 and $0 of compensation expenses related to the grants were recognized during the three months ended June 30, 2019 and 2018 , respectively. $322,000 and $186,000 of compensation expenses related to the grants were recognized during the six months ended June 30, 2019 and 2018 , respectively. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit expense related to the non-contributory, defined benefit pension plan for the three and six month periods ended June 30 were as follows: Three Months Ended June 30, Six Months Ended June 30 In thousands 2019 2018 2019 2018 Service cost $ 174 $ 215 $ 348 $ 430 Interest cost 303 274 606 548 Expected return on plan assets (637 ) (692 ) (1,274 ) (1,384 ) Amortization of net loss 213 129 425 257 Net Periodic Benefit Expense $ 53 $ (74 ) $ 105 $ (149 ) The Corporation previously disclosed in its consolidated financial statements for the year ended December 31, 2018 , that it had not yet determined the amount the Bank planned on contributing to the defined benefit plan in 2019 . As of June 30, 2019 , this contribution amount had still not been determined. 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. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Corporation does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit are written conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year . The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Corporation generally holds collateral and/or personal guarantees supporting these commitments. The Corporation had $3,360,000 in standby letters of credit as of June 30, 2019 . Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees. The current amount of the liability, as of June 30, 2019 , for guarantees under standby letters of credit issued is not material. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized Gains (Losses) on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — JUNE 30, 2019 $ 946 $ (7,238 ) $ (6,292 ) BALANCE — DECEMBER 31, 2018 $ (1,651 ) $ (7,566 ) $ (9,217 ) BALANCE — JUNE 30, 2018 $ (2,748 ) $ (5,935 ) $ (8,683 ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting 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 the six month periods ended June 30, 2019 and 2018 , is as follows: In thousands Banking Insurance Total 2019 Net interest income and other income from external customers $ 35,162 $ 3,233 $ 38,395 Income before income taxes 14,315 859 15,174 Total assets 1,666,784 12,521 1,679,305 Capital expenditures 275 — 275 2018 Net interest income and other income from external customers $ 32,780 $ 2,902 $ 35,682 Income before income taxes 12,031 844 12,875 Total assets 1,613,462 9,880 1,623,342 Capital expenditures 614 41 655 Segment information for the three month periods ended June 30, 2019 and 2018 , is as follows: In thousands Banking Insurance Total 2019 Net interest income and other income from external customers $ 17,876 $ 1,914 $ 19,790 Income before income taxes 7,370 610 7,980 Total assets 1,666,784 12,521 1,679,305 Capital expenditures 114 — 114 2018 Net interest income and other income from external customers $ 16,706 $ 1,702 $ 18,408 Income before income taxes 6,213 624 6,837 Total assets 1,613,462 9,880 1,623,342 Capital expenditures 257 41 298 Customer renewal lists are amortized over their estimated useful lives which range from eight to fifteen years . Core deposit intangible assets are primarily amortized over 10 years using accelerated methods. Goodwill is not amortized, but rather is analyzed annually for impairment. If certain events occur which might indicate goodwill has been impaired, the goodwill is tested for impairment when such events occur. Tax amortization of goodwill and the intangible assets is deductible for tax purposes. Tax amortization of the goodwill associated with the New Windsor acquisition is not deductible for federal income tax purposes. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
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 determinable 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. Amortized cost and fair value of securities at June 30, 2019 , and December 31, 2018 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE JUNE 30, 2019 U.S. Government and agencies $ 117,743 $ 740 $ 474 $ 118,009 Mortgage-backed securities, residential 48,160 890 8 49,042 State and municipal 8,587 79 5 8,661 $ 174,490 $ 1,709 $ 487 $ 175,712 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 SECURITIES HELD TO MATURITY JUNE 30, 2019 U.S. Government and agencies $ 7,000 $ 6 $ 12 $ 6,994 Mortgage-backed securities, residential 17,722 69 13 17,778 $ 24,722 $ 75 $ 25 $ 24,772 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 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, 2019 Unrealized Gains Unrealized Losses Fair Value at June 30, 2019 JUNE 30, 2019 CRA Mutual Fund $ 1,012 $ 30 $ — $ 1,042 Stock in other banks 827 132 — 959 $ 1,839 $ 162 $ — $ 2,001 In thousands Fair Value at January 1, 2018 Unrealized Gains Unrealized Losses Fair Value at June 30, 2018 JUNE 30, 2018 CRA Mutual Fund $ 1,044 $ — $ 32 $ 1,012 Stock in other banks 749 22 16 755 $ 1,793 $ 22 $ 48 $ 1,767 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 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 June 30, 2019 , and December 31, 2018 : 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 JUNE 30, 2019 U.S. Government and agencies $ — $ — $ 64,265 $ 474 $ 64,265 $ 474 Mortgage-backed securities, residential — — 2,893 8 2,893 8 State and municipal — — 1,308 5 1,308 5 $ — $ — $ 68,466 $ 487 $ 68,466 $ 487 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 SECURITIES HELD TO MATURITY JUNE 30, 2019 U.S. Government and agencies $ — $ — $ 4,988 $ 12 $ 4,988 $ 12 Mortgage-backed securities, residential — — 7,727 13 7,727 13 $ — $ — $ 12,715 $ 25 $ 12,715 $ 25 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 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 June 30, 2019 , thirty-four available for sale U.S. Government and agency securities had unrealized losses that individually did not exceed 2% 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 June 30, 2019 , five available for sale residential mortgage-backed securities had unrealized losses that individually did not exceed 1% 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 June 30, 2019 , five available for sale state and municipal securities had unrealized losses that individually did not exceed 1% 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 June 30, 2019 , four held to maturity U.S. Government and agency securities had unrealized losses that individually did not exceed 1% 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 June 30, 2019 , fourteen held to maturity residential mortgage-backed securities had unrealized losses that individually did not exceed 1% 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. 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 June 30, 2019 , 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 June 30, 2019 , 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 $ 9,613 $ 9,603 $ 5,000 $ 4,988 Over 1 year through 5 years 116,518 116,866 2,000 2,006 Over 5 years through 10 years 199 201 — — Over 10 years — — — — Mortgage-backed securities, residential 48,160 49,042 17,722 17,778 $ 174,490 $ 175,712 $ 24,722 $ 24,772 The Corporation did not sell any securities available for sale during the first six months of 2019. The Corporation realized $12,500 gross gains on sales of securities available for sale during the three and six month periods ended June 30, 2018. At June 30, 2019 , and December 31, 2018 , securities with a carrying value of $138,082,000 and $165,792,000 , respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
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 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 the previous twelve quarters 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 present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. Consumer Lending — The Corporation offers a variety of secured and unsecured consumer loans, including those for vehicles and mobile homes and loans secured by savings deposits. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. Consumer loan terms vary according to the type and value of collateral and the creditworthiness of the borrower. In underwriting consumer loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Consumer loans may entail greater credit risk than residential mortgage loans or home equity lines of credit, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. 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. The following table presents 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 June 30, 2019 , and December 31, 2018 : In thousands Pass Special Mention Substandard Doubtful Total JUNE 30, 2019 Originated Loans Commercial and industrial $ 153,348 $ 2,966 $ 778 $ — $ 157,092 Commercial real estate 401,248 20,413 7,464 — 429,125 Commercial real estate construction 16,753 941 — — 17,694 Residential mortgage 371,949 6,442 294 — 378,685 Home equity lines of credit 92,720 365 — — 93,085 Consumer 14,052 — — — 14,052 Total Originated Loans 1,050,070 31,127 8,536 — 1,089,733 Acquired Loans Commercial and industrial 3,954 213 120 — 4,287 Commercial real estate 114,716 6,911 1,979 — 123,606 Commercial real estate construction 2,033 701 — — 2,734 Residential mortgage 36,798 1,945 2,512 — 41,255 Home equity lines of credit 16,971 103 426 — 17,500 Consumer 149 — — — 149 Total Acquired Loans 174,621 9,873 5,037 — 189,531 Total Loans Commercial and industrial 157,302 3,179 898 — 161,379 Commercial real estate 515,964 27,324 9,443 — 552,731 Commercial real estate construction 18,786 1,642 — — 20,428 Residential mortgage 408,747 8,387 2,806 — 419,940 Home equity lines of credit 109,691 468 426 — 110,585 Consumer 14,201 — — — 14,201 Total Loans $ 1,224,691 $ 41,000 $ 13,573 $ — $ 1,279,264 In thousands Pass Special Mention 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 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 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Balance at beginning of period $ 891 $ 1,234 Acquisitions of impaired loans — — Reclassification from non-accretable differences 393 114 Accretion to loan interest income (355 ) (350 ) Balance at end of period $ 929 $ 998 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 June 30, 2019 , and December 31, 2018 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance JUNE 30, 2019 Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 5,748 5,748 Commercial real estate construction — — — — — Residential mortgage — — — 649 649 Home equity lines of credit — — — — — $ — $ — $ — $ 6,397 $ 6,397 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 — — — — — $ — $ — $ — $ 7,300 $ 7,300 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended June 30, 2019 and 2018 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income JUNE 30, 2019 Commercial and industrial $ — $ — $ — $ — Commercial real estate — — 6,201 261 Commercial real estate construction — — — — Residential mortgage — — 594 — Home equity lines of credit 74 — — — $ 74 $ — $ 6,795 $ 261 JUNE 30, 2018 Commercial and industrial $ 434 $ — $ 89 $ 44 Commercial real estate — — 7,275 35 Commercial real estate construction — — — — Residential mortgage — — 101 — $ 434 $ — $ 7,465 $ 79 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the six months ended June 30, 2019 and 2018 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income JUNE 30, 2019 Commercial and industrial $ — $ — $ — $ — Commercial real estate — — 6,388 318 Commercial real estate construction — — — — Residential mortgage — — 575 — Home equity lines of credit — — — — $ — $ — $ 6,963 $ 318 JUNE 30, 2018 Commercial and industrial $ 726 $ — $ 122 $ 44 Commercial real estate — — 7,637 82 Commercial real estate construction — — — — Residential mortgage 126 — 101 — $ 852 $ — $ 7,860 $ 126 No additional funds are committed to be advanced in connection with impaired loans. The following table presents nonaccrual loans by loan portfolio class as of June 30, 2019 , and December 31, 2018 , the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands June 30, 2019 December 31, 2018 Commercial and industrial $ — $ — Commercial real estate 1,914 2,880 Commercial real estate construction — — Residential mortgage 650 537 Home equity lines of credit — — $ 2,564 $ 3,417 There were no loans whose terms have been modified thereby resulting in a troubled debt restructuring during the three and six months ended June 30, 2019 and 2018 . 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 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , and December 31, 2018 , are as follows: June 30, 2019 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 118,009 $ — $ 118,009 $ — Mortgage-backed securities, residential 49,042 — 49,042 — State and municipal 8,661 — 8,661 — Total securities available for sale Recurring $ 175,712 $ — $ 175,712 $ — Equity securities with readily determinable fair values Recurring $ 2,001 $ 2,001 $ — $ — Collateral dependent impaired loans Nonrecurring $ 3,833 $ — $ — $ 3,833 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 Nonrecurring $ 3,883 $ — $ — $ 3,883 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 June 30, 2019 Impaired loans $ 3,833 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (16)% December 31, 2018 Impaired loans $ 3,883 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (16)% (a) 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. (b) 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. 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, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of June 30, 2019 : June 30, 2019 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 18,216 $ 18,216 $ 7,845 $ 10,371 $ — Interest-bearing deposits in banks 58,390 58,390 58,390 — — Equity securities available for sale 2,001 2,001 2,001 — — Investment securities available for sale 175,712 175,712 — 175,712 — Investment securities held to maturity 24,722 24,772 — 24,772 — Loans held for sale 3,009 3,009 — 3,009 — Loans, less allowance for loan losses 1,265,207 1,268,766 — — 1,268,766 Accrued interest receivable 4,840 4,840 — 4,840 — Restricted investment in bank stocks 4,202 4,202 — 4,202 — Financial liabilities: Demand deposits and savings 974,490 974,490 — 974,490 — Time deposits 402,787 403,145 — 403,145 — Short-term borrowings 24,137 24,137 — 24,137 — Long-term borrowings 73,288 73,888 — 73,888 — Trust preferred subordinated debt 5,000 4,706 — 4,706 — Accrued interest payable 2,065 2,065 — 2,065 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, exit pricing concept fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of 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 4,545 4,545 — 4,545 — 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 1,364 1,364 — 1,364 — Off-balance sheet financial instruments — — — — — |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Repurchase Agreements [Abstract] | |
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) | Securities Sold Under Agreements to Repurchase (Repurchase Agreements) 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 June 30, 2019 , and December 31, 2018 : Gross Amounts Not Offset in the Statements of Condition 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 June 30, 2019 Repurchase agreements Commercial customers and government entities (a) $ 24,137 $ — $ 24,137 $ (24,137 ) $ — $ — December 31, 2018 Repurchase agreements Commercial customers and government entities (a) $ 34,616 $ — $ 34,616 $ (34,616 ) $ — $ — (a) As of June 30, 2019 , and December 31, 2018 , the fair value of securities pledged in connection with repurchase agreements was $29,028,000 and $39,788,000 , respectively. The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of June 30, 2019 : Remaining Contractual Maturity of the Agreements In thousands Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 24,137 $ — $ — $ — $ 24,137 Total $ 24,137 $ — $ — $ — $ 24,137 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Corporation had long-term debt outstanding as follows: In thousands June 30, 2019 December 31, 2018 FHLB advances $ 70,216 $ 75,216 Loan payable to local bank 2,072 2,300 Loan payable to local bank 1,000 1,000 Trust preferred subordinated debt 5,000 5,000 $ 78,288 $ 83,516 The FHLB advances are collateralized by the assets defined in the security agreement and FHLB capital stock. FHLB advances have maturity dates from 2019 to 2023 with a weighted average rate of 2.48% . The first 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 second 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 June 30, 2019 . Principal shall be payable when and in amounts demanded by the bank. The principal balance of this note may be prepaid at any time 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 arrangements, fully and unconditionally guaranteed all of the trust obligations with respect to the capital securities. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets 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 . The acquisition of New Windsor resulted in goodwill of approximately $13,272,000 and generated $2,418,000 in core deposit intangibles. Combining goodwill resulting from this transaction with existing goodwill from RIG purchases of $6,308,000 , total goodwill included in the Corporation’s consolidated statement of condition is $19,580,000 . 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 carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows: In thousands Gross carrying amount Accumulated amortization RIG amortized intangible assets $ 9,890 $ 6,738 New Windsor core deposit intangibles 2,418 836 The RIG intangible assets are being amortized on a straight line basis over their estimated useful lives which range from eight to fifteen years . The New Windsor core deposit intangible is being amortized using a sum of the year’s method over a 10-year period. Goodwill is subject to impairment testing at the reporting unit level, which must be conducted at least annually. The Corporation performs impairment testing during the fourth quarter of each year, or more frequently if impairment indicators exist. We also continue to monitor other intangibles for impairment and to evaluate carrying amounts, as necessary. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition 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 not constitute assets of the Corporation. Assets held by the Wealth Management Department amounted to $370,000,000 and $343,000,000 at June 30, 2019 and 2018 , 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. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within the fiscal year. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. 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 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. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within the fiscal year. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. 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 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. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | The components of net periodic benefit expense related to the non-contributory, defined benefit pension plan for the three and six month periods ended June 30 were as follows: Three Months Ended June 30, Six Months Ended June 30 In thousands 2019 2018 2019 2018 Service cost $ 174 $ 215 $ 348 $ 430 Interest cost 303 274 606 548 Expected return on plan assets (637 ) (692 ) (1,274 ) (1,384 ) Amortization of net loss 213 129 425 257 Net Periodic Benefit Expense $ 53 $ (74 ) $ 105 $ (149 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive loss | The components of accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized Gains (Losses) on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — JUNE 30, 2019 $ 946 $ (7,238 ) $ (6,292 ) BALANCE — DECEMBER 31, 2018 $ (1,651 ) $ (7,566 ) $ (9,217 ) BALANCE — JUNE 30, 2018 $ (2,748 ) $ (5,935 ) $ (8,683 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information for the six month periods ended June 30, 2019 and 2018 , is as follows: In thousands Banking Insurance Total 2019 Net interest income and other income from external customers $ 35,162 $ 3,233 $ 38,395 Income before income taxes 14,315 859 15,174 Total assets 1,666,784 12,521 1,679,305 Capital expenditures 275 — 275 2018 Net interest income and other income from external customers $ 32,780 $ 2,902 $ 35,682 Income before income taxes 12,031 844 12,875 Total assets 1,613,462 9,880 1,623,342 Capital expenditures 614 41 655 Segment information for the three month periods ended June 30, 2019 and 2018 , is as follows: In thousands Banking Insurance Total 2019 Net interest income and other income from external customers $ 17,876 $ 1,914 $ 19,790 Income before income taxes 7,370 610 7,980 Total assets 1,666,784 12,521 1,679,305 Capital expenditures 114 — 114 2018 Net interest income and other income from external customers $ 16,706 $ 1,702 $ 18,408 Income before income taxes 6,213 624 6,837 Total assets 1,613,462 9,880 1,623,342 Capital expenditures 257 41 298 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | Amortized cost and fair value of securities at June 30, 2019 , and December 31, 2018 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE JUNE 30, 2019 U.S. Government and agencies $ 117,743 $ 740 $ 474 $ 118,009 Mortgage-backed securities, residential 48,160 890 8 49,042 State and municipal 8,587 79 5 8,661 $ 174,490 $ 1,709 $ 487 $ 175,712 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 SECURITIES HELD TO MATURITY JUNE 30, 2019 U.S. Government and agencies $ 7,000 $ 6 $ 12 $ 6,994 Mortgage-backed securities, residential 17,722 69 13 17,778 $ 24,722 $ 75 $ 25 $ 24,772 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 The required fair value disclosures are as follows: In thousands Fair Value at January 1, 2019 Unrealized Gains Unrealized Losses Fair Value at June 30, 2019 JUNE 30, 2019 CRA Mutual Fund $ 1,012 $ 30 $ — $ 1,042 Stock in other banks 827 132 — 959 $ 1,839 $ 162 $ — $ 2,001 In thousands Fair Value at January 1, 2018 Unrealized Gains Unrealized Losses Fair Value at June 30, 2018 JUNE 30, 2018 CRA Mutual Fund $ 1,044 $ — $ 32 $ 1,012 Stock in other banks 749 22 16 755 $ 1,793 $ 22 $ 48 $ 1,767 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 |
Schedule of unrealized losses and fair value | 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 June 30, 2019 , and December 31, 2018 : 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 JUNE 30, 2019 U.S. Government and agencies $ — $ — $ 64,265 $ 474 $ 64,265 $ 474 Mortgage-backed securities, residential — — 2,893 8 2,893 8 State and municipal — — 1,308 5 1,308 5 $ — $ — $ 68,466 $ 487 $ 68,466 $ 487 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 SECURITIES HELD TO MATURITY JUNE 30, 2019 U.S. Government and agencies $ — $ — $ 4,988 $ 12 $ 4,988 $ 12 Mortgage-backed securities, residential — — 7,727 13 7,727 13 $ — $ — $ 12,715 $ 25 $ 12,715 $ 25 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 |
Schedule of amortized cost and fair value by contractual maturity | Amortized cost and fair value at June 30, 2019 , 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 $ 9,613 $ 9,603 $ 5,000 $ 4,988 Over 1 year through 5 years 116,518 116,866 2,000 2,006 Over 5 years through 10 years 199 201 — — Over 10 years — — — — Mortgage-backed securities, residential 48,160 49,042 17,722 17,778 $ 174,490 $ 175,712 $ 24,722 $ 24,772 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of classes of loan portfolio summarized by the aggregate risk rating | The following table presents 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 June 30, 2019 , and December 31, 2018 : In thousands Pass Special Mention Substandard Doubtful Total JUNE 30, 2019 Originated Loans Commercial and industrial $ 153,348 $ 2,966 $ 778 $ — $ 157,092 Commercial real estate 401,248 20,413 7,464 — 429,125 Commercial real estate construction 16,753 941 — — 17,694 Residential mortgage 371,949 6,442 294 — 378,685 Home equity lines of credit 92,720 365 — — 93,085 Consumer 14,052 — — — 14,052 Total Originated Loans 1,050,070 31,127 8,536 — 1,089,733 Acquired Loans Commercial and industrial 3,954 213 120 — 4,287 Commercial real estate 114,716 6,911 1,979 — 123,606 Commercial real estate construction 2,033 701 — — 2,734 Residential mortgage 36,798 1,945 2,512 — 41,255 Home equity lines of credit 16,971 103 426 — 17,500 Consumer 149 — — — 149 Total Acquired Loans 174,621 9,873 5,037 — 189,531 Total Loans Commercial and industrial 157,302 3,179 898 — 161,379 Commercial real estate 515,964 27,324 9,443 — 552,731 Commercial real estate construction 18,786 1,642 — — 20,428 Residential mortgage 408,747 8,387 2,806 — 419,940 Home equity lines of credit 109,691 468 426 — 110,585 Consumer 14,201 — — — 14,201 Total Loans $ 1,224,691 $ 41,000 $ 13,573 $ — $ 1,279,264 In thousands Pass Special Mention 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 |
Schedule of changes In accretable yields of acquired loans | 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 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Balance at beginning of period $ 891 $ 1,234 Acquisitions of impaired loans — — Reclassification from non-accretable differences 393 114 Accretion to loan interest income (355 ) (350 ) Balance at end of period $ 929 $ 998 |
Summary of information relative to impaired loans by loan portfolio class | The following table summarizes information relative to impaired loans by loan portfolio class as of June 30, 2019 , and December 31, 2018 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance JUNE 30, 2019 Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 5,748 5,748 Commercial real estate construction — — — — — Residential mortgage — — — 649 649 Home equity lines of credit — — — — — $ — $ — $ — $ 6,397 $ 6,397 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 — — — — — $ — $ — $ — $ 7,300 $ 7,300 |
Summary of information in regards to the average of impaired loans and related income by loan portfolio class | The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended June 30, 2019 and 2018 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income JUNE 30, 2019 Commercial and industrial $ — $ — $ — $ — Commercial real estate — — 6,201 261 Commercial real estate construction — — — — Residential mortgage — — 594 — Home equity lines of credit 74 — — — $ 74 $ — $ 6,795 $ 261 JUNE 30, 2018 Commercial and industrial $ 434 $ — $ 89 $ 44 Commercial real estate — — 7,275 35 Commercial real estate construction — — — — Residential mortgage — — 101 — $ 434 $ — $ 7,465 $ 79 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the six months ended June 30, 2019 and 2018 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income JUNE 30, 2019 Commercial and industrial $ — $ — $ — $ — Commercial real estate — — 6,388 318 Commercial real estate construction — — — — Residential mortgage — — 575 — Home equity lines of credit — — — — $ — $ — $ 6,963 $ 318 JUNE 30, 2018 Commercial and industrial $ 726 $ — $ 122 $ 44 Commercial real estate — — 7,637 82 Commercial real estate construction — — — — Residential mortgage 126 — 101 — $ 852 $ — $ 7,860 $ 126 |
Schedule of nonaccrual loans by loan portfolio class | The following table presents nonaccrual loans by loan portfolio class as of June 30, 2019 , and December 31, 2018 , the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands June 30, 2019 December 31, 2018 Commercial and industrial $ — $ — Commercial real estate 1,914 2,880 Commercial real estate construction — — Residential mortgage 650 537 Home equity lines of credit — — $ 2,564 $ 3,417 |
Schedule of classes of 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 June 30, 2019 , and December 31, 2018 : 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 JUNE 30, 2019 Originated Loans Commercial and industrial $ 87 $ 1 $ 10 $ 98 $ 156,994 $ 157,092 $ 10 Commercial real estate 222 378 1,514 2,114 427,011 429,125 — Commercial real estate construction 80 — — 80 17,614 17,694 — Residential mortgage 204 477 1,839 2,520 376,165 378,685 1,189 Home equity lines of credit 337 55 268 660 92,425 93,085 268 Consumer 160 13 — 173 13,879 14,052 — Total originated loans 1,090 924 3,631 5,645 1,084,088 1,089,733 1,467 Acquired Loans Commercial and industrial — 26 — 26 4,261 4,287 — Commercial real estate — — — — 123,606 123,606 — Commercial real estate construction — — — — 2,734 2,734 — Residential mortgage 248 — 127 375 40,880 41,255 127 Home equity lines of credit 322 74 237 633 16,867 17,500 237 Consumer 2 5 — 7 142 149 — Total acquired loans 572 105 364 1,041 188,490 189,531 364 Total Loans Commercial and industrial 87 27 10 124 161,255 161,379 10 Commercial real estate 222 378 1,514 2,114 550,617 552,731 — Commercial real estate construction 80 — — 80 20,348 20,428 — Residential mortgage 452 477 1,966 2,895 417,045 419,940 1,316 Home equity lines of credit 659 129 505 1,293 109,292 110,585 505 Consumer 162 18 — 180 14,021 14,201 — Total Loans $ 1,662 $ 1,029 $ 3,995 $ 6,686 $ 1,272,578 $ 1,279,264 $ 1,831 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 |
Summary of allowance for loan losses and recorded investment in loans receivable | The following tables summarize the allowance for loan losses and recorded investment in loans receivable: In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total AS OF AND FOR THE PERIOD ENDED JUNE 30, 2019 Allowance for Loan Losses Beginning balance - April 1, 2019 $ 2,620 $ 6,278 $ 241 $ 2,737 $ 616 $ 697 $ 831 $ 14,020 Charge-offs (71 ) — — — — (63 ) — (134 ) Recoveries 7 — — — 8 31 — 46 Provisions (94 ) 134 21 9 1 23 31 125 Ending balance - June 30, 2019 $ 2,462 $ 6,412 $ 262 $ 2,746 $ 625 $ 688 $ 862 $ 14,057 Beginning balance - January 1, 2019 $ 2,597 $ 6,208 $ 203 $ 2,814 $ 611 $ 692 $ 839 $ 13,964 Charge-offs (102 ) — — (6 ) (51 ) (107 ) — (266 ) Recoveries 21 — — 1 8 54 — 84 Provisions (54 ) 204 59 (63 ) 57 49 23 275 Ending balance - June 30, 2019 $ 2,462 $ 6,412 $ 262 $ 2,746 $ 625 $ 688 $ 862 $ 14,057 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 2,462 $ 6,412 $ 262 $ 2,746 $ 625 $ 688 $ 862 $ 14,057 Loans Receivable Ending balance $ 161,379 $ 552,731 $ 20,428 $ 419,940 $ 110,585 $ 14,201 $ — $ 1,279,264 Ending balance: individually evaluated for impairment $ — $ 5,747 $ — $ 650 $ — $ — $ — $ 6,397 Ending balance: collectively evaluated for impairment $ 161,379 $ 546,984 $ 20,428 $ 419,290 $ 110,585 $ 14,201 $ — $ 1,272,867 AS OF AND FOR THE PERIOD ENDED JUNE 30, 2018 Allowance for Loan Losses Beginning Balance - April 1, 2018 $ 2,974 $ 5,455 $ 135 $ 2,936 $ 593 $ 725 $ 599 $ 13,417 Charge-offs (489 ) — — (106 ) — (16 ) — (611 ) Recoveries 4 — — 12 — 1 — 17 Provisions (56 ) 266 11 (2 ) (29 ) (37 ) 167 320 Ending balance - June 30, 2018 $ 2,433 $ 5,721 $ 146 $ 2,840 $ 564 $ 673 $ 766 $ 13,143 Beginning Balance - January 1, 2018 $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Charge-offs (878 ) (33 ) — (489 ) — (37 ) — (1,437 ) Recoveries 11 — — 22 — 1 — 34 Provisions 81 526 20 81 (48 ) (40 ) (50 ) 570 Ending balance - June 30, 2018 $ 2,433 $ 5,721 $ 146 $ 2,840 $ 564 $ 673 $ 766 $ 13,143 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 2,433 $ 5,721 $ 146 $ 2,840 $ 564 $ 673 $ 766 $ 13,143 Loans Receivable Ending balance $ 160,674 $ 514,519 $ 19,615 $ 431,049 $ 106,089 $ 14,852 $ — $ 1,246,798 Ending balance: individually evaluated for impairment $ — $ 7,242 $ — $ 101 $ — $ — $ — $ 7,343 Ending balance: collectively evaluated for impairment $ 160,674 $ 507,277 $ 19,615 $ 430,948 $ 106,089 $ 14,852 $ — $ 1,239,455 In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total AS OF DECEMBER 31, 2018 Allowance for Loan Losses Ending balance $ 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 Receivable 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements by level within the fair value hierarchy and the basis of measurement used | For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at June 30, 2019 , and December 31, 2018 , are as follows: June 30, 2019 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 118,009 $ — $ 118,009 $ — Mortgage-backed securities, residential 49,042 — 49,042 — State and municipal 8,661 — 8,661 — Total securities available for sale Recurring $ 175,712 $ — $ 175,712 $ — Equity securities with readily determinable fair values Recurring $ 2,001 $ 2,001 $ — $ — Collateral dependent impaired loans Nonrecurring $ 3,833 $ — $ — $ 3,833 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 Nonrecurring $ 3,883 $ — $ — $ 3,883 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | 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 June 30, 2019 Impaired loans $ 3,833 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (16)% December 31, 2018 Impaired loans $ 3,883 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (16)% (a) 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. (b) 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. |
Schedule of carrying amount, exit pricing concept fair value and placement in the fair value hierarchy | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of June 30, 2019 : June 30, 2019 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 18,216 $ 18,216 $ 7,845 $ 10,371 $ — Interest-bearing deposits in banks 58,390 58,390 58,390 — — Equity securities available for sale 2,001 2,001 2,001 — — Investment securities available for sale 175,712 175,712 — 175,712 — Investment securities held to maturity 24,722 24,772 — 24,772 — Loans held for sale 3,009 3,009 — 3,009 — Loans, less allowance for loan losses 1,265,207 1,268,766 — — 1,268,766 Accrued interest receivable 4,840 4,840 — 4,840 — Restricted investment in bank stocks 4,202 4,202 — 4,202 — Financial liabilities: Demand deposits and savings 974,490 974,490 — 974,490 — Time deposits 402,787 403,145 — 403,145 — Short-term borrowings 24,137 24,137 — 24,137 — Long-term borrowings 73,288 73,888 — 73,888 — Trust preferred subordinated debt 5,000 4,706 — 4,706 — Accrued interest payable 2,065 2,065 — 2,065 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, exit pricing concept fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of 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 4,545 4,545 — 4,545 — 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 1,364 1,364 — 1,364 — Off-balance sheet financial instruments — — — — — |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement | The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of June 30, 2019 , and December 31, 2018 : Gross Amounts Not Offset in the Statements of Condition 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 June 30, 2019 Repurchase agreements Commercial customers and government entities (a) $ 24,137 $ — $ 24,137 $ (24,137 ) $ — $ — December 31, 2018 Repurchase agreements Commercial customers and government entities (a) $ 34,616 $ — $ 34,616 $ (34,616 ) $ — $ — (a) As of June 30, 2019 , and December 31, 2018 , the fair value of securities pledged in connection with repurchase agreements was $29,028,000 and $39,788,000 , respectively. |
Schedule of remaining contractual maturity of the master netting arrangement or repurchase agreements | The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of June 30, 2019 : Remaining Contractual Maturity of the Agreements In thousands Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 24,137 $ — $ — $ — $ 24,137 Total $ 24,137 $ — $ — $ — $ 24,137 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | The Corporation had long-term debt outstanding as follows: In thousands June 30, 2019 December 31, 2018 FHLB advances $ 70,216 $ 75,216 Loan payable to local bank 2,072 2,300 Loan payable to local bank 1,000 1,000 Trust preferred subordinated debt 5,000 5,000 $ 78,288 $ 83,516 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows: In thousands Gross carrying amount Accumulated amortization RIG amortized intangible assets $ 9,890 $ 6,738 New Windsor core deposit intangibles 2,418 836 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of Operations (Details) $ in Thousands | Jul. 02, 2019directorshares | Jun. 30, 2019USD ($)bank | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of community banking office locations, ACNB | bank | 22 | ||||
Number of community banking office locations, NWSB | bank | 7 | ||||
Right of use asset | $ 3,711 | $ 0 | $ 0 | ||
Lease liability | $ 3,711 | $ 0 | $ 0 | ||
FCBI | |||||
Business Acquisition [Line Items] | |||||
Pro forma assets | $ 2,200,000 | ||||
Pro forma deposits | 1,800,000 | ||||
Pro forma loans | $ 1,700,000 | ||||
FCBI | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Number of directors joining board of directors | director | 1 | ||||
Common Stock | FCBI | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Approximate number of shares of ACNB common stock expected to be issued in connection with the FCBI acquisition at closing | shares | 1,600,596 |
Earnings Per Share and Restri_2
Earnings Per Share and Restricted Stock (Details) - USD ($) | Feb. 24, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 08, 2019 | Mar. 20, 2018 |
Earnings Per Share [Abstract] | |||||||
Weighted average shares of common stock outstanding (in shares) | 7,053,008 | 7,035,237 | 7,049,857 | 7,030,441 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
2009 Restricted Stock Plan, Number of shares authorized, but not issued (in shares) | 174,055 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 196,000 | $ 0 | $ 322,000 | $ 186,000 | |||
ACNB Corporation 2009 Restricted Stock Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
2009 Restricted Stock Plan, expiration period | 10 years | ||||||
ACNB Corporation 2009 Restricted Stock Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued under plan (in shares) | 25,945 | 25,945 | |||||
Shares fully vested (in shares) | 23,725 | 23,725 | |||||
Shares vested during the quarter (in shares) | 0 | ||||||
Non-vested number of shares (in shares) | 2,220 | 2,220 | |||||
Vesting period (in years) | 1 year | ||||||
ACNB Corporation 2018 Omnibus Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate shares of common stock under new stock incentive plan (in shares) | 400,000 | ||||||
ACNB Corporation 2018 Omnibus Stock Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued under plan (in shares) | 16,115 | 16,115 | |||||
Shares vested during the quarter (in shares) | 5,372 | ||||||
Non-vested number of shares (in shares) | 10,743 | 10,743 | |||||
Vesting period (in years) | 2 years |
Retirement Benefits (Details)
Retirement Benefits (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)person | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)person | Jun. 30, 2018USD ($) | |
Postemployment Benefits [Abstract] | ||||
Service cost | $ 174 | $ 215 | $ 348 | $ 430 |
Interest cost | 303 | 274 | 606 | 548 |
Expected return on plan assets | (637) | (692) | (1,274) | (1,384) |
Amortization of net loss | 213 | 129 | 425 | 257 |
Net Periodic Benefit Expense | $ 53 | $ (74) | $ 105 | $ (149) |
Number of active, vested, terminated and retired persons in the Plan | person | 353 | 353 |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Guarantor Obligations [Line Items] | |
Line of credit facility expiration period | 1 year |
Standby Letters of Credit | |
Guarantor Obligations [Line Items] | |
Guarantees amount | $ 3,360 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Components of accumulated other comprehensive loss | $ 180,884 | $ 173,793 | $ 168,137 | $ 160,307 | $ 156,605 | $ 153,966 |
Unrealized Gains (Losses) on Securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Components of accumulated other comprehensive loss | 946 | (1,651) | (2,748) | |||
Pension Liability | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Components of accumulated other comprehensive loss | (7,238) | (7,566) | (5,935) | |||
Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Components of accumulated other comprehensive loss | $ (6,292) | $ (7,943) | $ (9,217) | $ (8,683) | $ (8,281) | $ (7,092) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reporting segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net interest income and other income from external customers | $ 19,790 | $ 18,408 | $ 38,395 | $ 35,682 | |
Income before income taxes | 7,980 | 6,837 | 15,174 | 12,875 | |
Total assets | 1,679,305 | 1,623,342 | 1,679,305 | 1,623,342 | $ 1,647,724 |
Capital expenditures | 114 | 298 | $ 275 | 655 | |
Core deposit intangibles | |||||
Segment Reporting Information [Line Items] | |||||
Amortization period | 10 years | ||||
Minimum | Customer lists | |||||
Segment Reporting Information [Line Items] | |||||
Amortization period | 8 years | ||||
Maximum | Customer lists | |||||
Segment Reporting Information [Line Items] | |||||
Amortization period | 15 years | ||||
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income and other income from external customers | 17,876 | 16,706 | $ 35,162 | 32,780 | |
Income before income taxes | 7,370 | 6,213 | 14,315 | 12,031 | |
Total assets | 1,666,784 | 1,613,462 | 1,666,784 | 1,613,462 | |
Capital expenditures | 114 | 257 | 275 | 614 | |
Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income and other income from external customers | 1,914 | 1,702 | 3,233 | 2,902 | |
Income before income taxes | 610 | 624 | 859 | 844 | |
Total assets | 12,521 | 9,880 | 12,521 | 9,880 | |
Capital expenditures | $ 0 | $ 41 | $ 0 | $ 41 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | $ 174,490 | $ 163,862 | |
Gross Unrealized Gains | 1,709 | 396 | |
Gross Unrealized Losses | 487 | 2,528 | |
Fair Value | 175,712 | 161,730 | |
SECURITIES HELD TO MATURITY | |||
Amortized Cost | 24,722 | 27,266 | $ 39,894 |
Gross Unrealized Gains | 75 | 4 | |
Gross Unrealized Losses | 25 | 359 | |
Fair Value | 24,772 | 26,911 | $ 39,145 |
U.S. Government and agencies | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 117,743 | 120,420 | |
Gross Unrealized Gains | 740 | 142 | |
Gross Unrealized Losses | 474 | 2,149 | |
Fair Value | 118,009 | 118,413 | |
SECURITIES HELD TO MATURITY | |||
Amortized Cost | 7,000 | 7,000 | |
Gross Unrealized Gains | 6 | 0 | |
Gross Unrealized Losses | 12 | 69 | |
Fair Value | 6,994 | 6,931 | |
Mortgage-backed securities, residential | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 48,160 | 33,960 | |
Gross Unrealized Gains | 890 | 194 | |
Gross Unrealized Losses | 8 | 343 | |
Fair Value | 49,042 | 33,811 | |
SECURITIES HELD TO MATURITY | |||
Amortized Cost | 17,722 | 20,266 | |
Gross Unrealized Gains | 69 | 4 | |
Gross Unrealized Losses | 13 | 290 | |
Fair Value | 17,778 | 19,980 | |
State and municipal | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 8,587 | 9,482 | |
Gross Unrealized Gains | 79 | 60 | |
Gross Unrealized Losses | 5 | 36 | |
Fair Value | $ 8,661 | $ 9,506 |
Securities - Schedule of Requir
Securities - Schedule of Required Fair Value Disclosures for Equity Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |||
Fair value at beginning of period | $ 1,839 | $ 1,793 | $ 1,793 |
Unrealized Gains | 162 | 22 | 247 |
Unrealized Losses | 0 | 48 | 201 |
Fair value at end of period | 2,001 | 1,767 | 1,839 |
CRA Mutual Fund | |||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |||
Fair value at beginning of period | 1,012 | 1,044 | 1,044 |
Unrealized Gains | 30 | 0 | 0 |
Unrealized Losses | 0 | 32 | 32 |
Fair value at end of period | 1,042 | 1,012 | 1,012 |
Stock in other banks | |||
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |||
Fair value at beginning of period | 827 | 749 | 749 |
Unrealized Gains | 132 | 22 | 247 |
Unrealized Losses | 0 | 16 | 169 |
Fair value at end of period | $ 959 | $ 755 | $ 827 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | $ 0 | $ 11,407 |
Unrealized Losses, Less than 12 Months | 0 | 139 |
Fair Value, 12 Months or More | 68,466 | 98,498 |
Unrealized Losses, 12 Months or More | 487 | 2,389 |
Total Fair Value | 68,466 | 109,905 |
Total Unrealized Losses | 487 | 2,528 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 0 | 8,383 |
Unrealized Losses, Less than 12 Months | 0 | 84 |
Fair Value, 12 Months or More | 12,715 | 16,592 |
Unrealized Losses, 12 Months or More | 25 | 275 |
Total Fair Value | 12,715 | 24,975 |
Total Unrealized Losses | 25 | 359 |
U.S. Government and agencies | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 0 | 1,997 |
Unrealized Losses, Less than 12 Months | 0 | 5 |
Fair Value, 12 Months or More | 64,265 | 87,216 |
Unrealized Losses, 12 Months or More | 474 | 2,144 |
Total Fair Value | 64,265 | 89,213 |
Total Unrealized Losses | 474 | 2,149 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 0 | 2,975 |
Unrealized Losses, Less than 12 Months | 0 | 25 |
Fair Value, 12 Months or More | 4,988 | 3,956 |
Unrealized Losses, 12 Months or More | 12 | 44 |
Total Fair Value | 4,988 | 6,931 |
Total Unrealized Losses | 12 | 69 |
Mortgage-backed securities, residential | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 0 | 9,410 |
Unrealized Losses, Less than 12 Months | 0 | 134 |
Fair Value, 12 Months or More | 2,893 | 8,586 |
Unrealized Losses, 12 Months or More | 8 | 209 |
Total Fair Value | 2,893 | 17,996 |
Total Unrealized Losses | 8 | 343 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 0 | 5,408 |
Unrealized Losses, Less than 12 Months | 0 | 59 |
Fair Value, 12 Months or More | 7,727 | 12,636 |
Unrealized Losses, 12 Months or More | 13 | 231 |
Total Fair Value | 7,727 | 18,044 |
Total Unrealized Losses | 13 | 290 |
State and municipal | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 0 | 0 |
Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 1,308 | 2,696 |
Unrealized Losses, 12 Months or More | 5 | 36 |
Total Fair Value | 1,308 | 2,696 |
Total Unrealized Losses | $ 5 | $ 36 |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Security | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Gross gains on sales of securities available for sale | $ | $ 0 | $ 12,500 | $ 0 | $ 12,500 | |
Carrying value of securities pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes | $ | $ 138,082,000 | $ 138,082,000 | $ 165,792,000 | ||
U.S. Government and agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for sale securities in unrealized loss positions for 12 months or more | 34 | 34 | |||
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 2.00% | 2.00% | |||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Held to maturity securities in unrealized loss positions for 12 months or more | 4 | 4 | |||
Held to maturity securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 1.00% | 1.00% | |||
Mortgage-backed securities, residential | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for sale securities in unrealized loss positions for 12 months or more | 5 | 5 | |||
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 1.00% | 1.00% | |||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Held to maturity securities in unrealized loss positions for 12 months or more | 14 | 14 | |||
Held to maturity securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 1.00% | 1.00% | |||
State and municipal | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for sale securities in unrealized loss positions for 12 months or more | 5 | 5 | |||
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 1.00% | 1.00% |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Available for Sale Amortized Cost | |||
1 year or less | $ 9,613 | ||
Over 1 year through 5 years | 116,518 | ||
Over 5 years through 10 years | 199 | ||
Over 10 years | 0 | ||
Total amortized cost | 174,490 | $ 163,862 | |
Available for Sale Fair Value | |||
1 year or less | 9,603 | ||
Over 1 year through 5 years | 116,866 | ||
Over 5 years through 10 years | 201 | ||
Over 10 years | 0 | ||
Total securities available for sale | 175,712 | 161,730 | |
Held-to-Maturity Amortized Cost | |||
1 year or less | 5,000 | ||
Over 1 year through 5 years | 2,000 | ||
Over 5 years through 10 years | 0 | ||
Over 10 years | 0 | ||
Total amortized costs | 24,722 | 27,266 | $ 39,894 |
Held-to-Maturity Fair Value | |||
1 year or less | 4,988 | ||
Over 1 year through 5 years | 2,006 | ||
Over 5 years through 10 years | 0 | ||
Over 10 years | 0 | ||
Securities held to maturity, fair value | 24,772 | 26,911 | $ 39,145 |
Mortgage-backed securities, residential | |||
Available for Sale Amortized Cost | |||
Without single maturity date | 48,160 | ||
Total amortized cost | 48,160 | 33,960 | |
Available for Sale Fair Value | |||
Without single maturity date | 49,042 | ||
Total securities available for sale | 49,042 | 33,811 | |
Held-to-Maturity Amortized Cost | |||
Without single maturity date | 17,722 | ||
Total amortized costs | 17,722 | 20,266 | |
Held-to-Maturity Fair Value | |||
Without single maturity date | 17,778 | ||
Securities held to maturity, fair value | $ 17,778 | $ 19,980 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | Jun. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period for order of valuations (at least) | 18 months | ||
Financing Receivable, Troubled Debt Restructuring | $ 4,061 | $ 6,474 | |
Number of troubled debt restructured loan paid off | Contract | 1 | 1 | |
Number of loans which has periodic late payments | Contract | 1 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts with Active Forbearance Agreements | 0 | ||
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | $ 795 | $ 661 | |
Residential mortgage and commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due to discontinue accrual interest on financing receivable | 90 days | ||
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due for write-off of financing receivable (no later than) | 120 days | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of financing receivable, updated valuation on real estate secured loans (number of days past due) | 90 days | ||
Number of previous months with no updated valuation completed for corporation to update valuation | 12 months | ||
Impaired financing receivable, valuation on real estate collateralized loans (number of days after the loan is classified as impaired) | 30 days | ||
Entity Loan Modification Program | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from paid off troubled debt restructured loans | $ 2,198 | $ 832 | |
Maximum | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Maximum | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 30 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Loan-to-value ratio that requires private mortgage insurance (in excess of) | 80.00% | ||
Maximum | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 90.00% | ||
Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring | $ 228 | 2,542 | |
Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring | $ 3,833 | $ 3,932 |
Loans - Schedule of Classes of
Loans - Schedule of Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 1,279,264 | $ 1,302,465 | $ 1,246,798 |
Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,224,691 | 1,250,566 | |
Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 41,000 | 36,588 | |
Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 13,573 | 15,311 | |
Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 161,379 | 174,182 | 160,674 |
Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 157,302 | 170,838 | |
Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,179 | 3,036 | |
Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 898 | 308 | |
Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 552,731 | 548,923 | 514,519 |
Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 515,964 | 514,308 | |
Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 27,324 | 23,191 | |
Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 9,443 | 11,424 | |
Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,428 | 20,298 | 19,615 |
Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 18,786 | 18,747 | |
Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,642 | 1,551 | |
Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 419,940 | 434,299 | 431,049 |
Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 408,747 | 422,718 | |
Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 8,387 | 8,388 | |
Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,806 | 3,193 | |
Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 110,585 | 110,363 | 106,089 |
Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 109,691 | 109,555 | |
Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 468 | 422 | |
Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 426 | 386 | |
Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,201 | 14,400 | $ 14,852 |
Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,201 | 14,400 | |
Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,089,733 | 1,099,568 | |
Originated Loans | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,050,070 | 1,062,133 | |
Originated Loans | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 31,127 | 28,642 | |
Originated Loans | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 8,536 | 8,793 | |
Originated Loans | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 157,092 | 169,098 | |
Originated Loans | Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 153,348 | 166,035 | |
Originated Loans | Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,966 | 2,902 | |
Originated Loans | Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 778 | 161 | |
Originated Loans | Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 429,125 | 419,965 | |
Originated Loans | Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 401,248 | 393,987 | |
Originated Loans | Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,413 | 18,079 | |
Originated Loans | Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 7,464 | 7,899 | |
Originated Loans | Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 17,694 | 16,306 | |
Originated Loans | Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 16,753 | 15,471 | |
Originated Loans | Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 941 | 835 | |
Originated Loans | Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 378,685 | 388,750 | |
Originated Loans | Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 371,949 | 381,525 | |
Originated Loans | Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 6,442 | 6,492 | |
Originated Loans | Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 294 | 733 | |
Originated Loans | Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 93,085 | 91,275 | |
Originated Loans | Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 92,720 | 90,941 | |
Originated Loans | Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 365 | 334 | |
Originated Loans | Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,052 | 14,174 | |
Originated Loans | Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,052 | 14,174 | |
Originated Loans | Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 189,531 | 202,897 | |
Acquired Loans | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 174,621 | 188,433 | |
Acquired Loans | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 9,873 | 7,946 | |
Acquired Loans | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 5,037 | 6,518 | |
Acquired Loans | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 4,287 | 5,084 | |
Acquired Loans | Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,954 | 4,803 | |
Acquired Loans | Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 213 | 134 | |
Acquired Loans | Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 120 | 147 | |
Acquired Loans | Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 123,606 | 128,958 | |
Acquired Loans | Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 114,716 | 120,321 | |
Acquired Loans | Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 6,911 | 5,112 | |
Acquired Loans | Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,979 | 3,525 | |
Acquired Loans | Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,734 | 3,992 | |
Acquired Loans | Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,033 | 3,276 | |
Acquired Loans | Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 701 | 716 | |
Acquired Loans | Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 41,255 | 45,549 | |
Acquired Loans | Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 36,798 | 41,193 | |
Acquired Loans | Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,945 | 1,896 | |
Acquired Loans | Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,512 | 2,460 | |
Acquired Loans | Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 17,500 | 19,088 | |
Acquired Loans | Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 16,971 | 18,614 | |
Acquired Loans | Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 103 | 88 | |
Acquired Loans | Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 426 | 386 | |
Acquired Loans | Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 149 | 226 | |
Acquired Loans | Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 149 | 226 | |
Acquired Loans | Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 0 | $ 0 |
Loans - Schedule of Change in A
Loans - Schedule of Change in Accretable Yields of Acquired Loans (Details) - Acquired Loans Accounted For Under ASC 310-30 - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 891 | $ 1,234 |
Acquisitions of impaired loans | 0 | 0 |
Reclassification from non-accretable differences | 393 | 114 |
Accretion to loan interest income | (355) | (350) |
Balance at end of period | $ 929 | $ 998 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 6,397 | 7,300 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 6,397 | 7,300 |
Commercial and industrial | ||
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 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Allowance: Recorded Investment | 5,748 | 6,763 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 5,748 | 6,763 |
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 | 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 | 649 | 537 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 649 | 537 |
Home equity lines of credit | ||
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 |
Loans - Summary of Average of I
Loans - Summary of Average of Impaired Loans and Related Interest Income by Loan Portfolio Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | $ 74 | $ 434 | $ 0 | $ 852 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 6,795 | 7,465 | 6,963 | 7,860 |
Impaired Loans with No Allowance: Interest Income | 261 | 79 | 318 | 126 |
Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 434 | 0 | 726 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 89 | 0 | 122 |
Impaired Loans with No Allowance: Interest Income | 0 | 44 | 0 | 44 |
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 6,201 | 7,275 | 6,388 | 7,637 |
Impaired Loans with No Allowance: Interest Income | 261 | 35 | 318 | 82 |
Commercial real estate construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Interest Income | 0 | 0 | 0 | 0 |
Residential mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 | 0 | 126 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 594 | 101 | 575 | 101 |
Impaired Loans with No Allowance: Interest Income | 0 | $ 0 | 0 | $ 0 |
Home equity lines of credit | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 74 | 0 | ||
Impaired Loans with Allowance: Interest Income | 0 | 0 | ||
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 0 | ||
Impaired Loans with No Allowance: Interest Income | $ 0 | $ 0 |
Loans - Schedule of Nonaccrual
Loans - Schedule of Nonaccrual Loans by Classes of the Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Purchase credit impaired loans, net of unamortized fair value adjustments | $ 6,900 | |
Total nonaccrual loans | 2,564 | $ 3,417 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 1,914 | 2,880 |
Commercial real estate construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | 650 | 537 |
Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans | $ 0 | $ 0 |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio Summarized by the Past Due Status (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 6,686 | $ 10,771 | |
Current | 1,272,578 | 1,291,694 | |
Total Loans Receivable | 1,279,264 | 1,302,465 | $ 1,246,798 |
Loans Receivable greater than 90 Days and Accruing | 1,831 | 3,345 | |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,662 | 4,555 | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,029 | 1,438 | |
Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,995 | 4,778 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 124 | 129 | |
Current | 161,255 | 174,053 | |
Total Loans Receivable | 161,379 | 174,182 | 160,674 |
Loans Receivable greater than 90 Days and Accruing | 10 | 4 | |
Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 87 | 76 | |
Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 27 | 49 | |
Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 10 | 4 | |
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,114 | 2,354 | |
Current | 550,617 | 546,569 | |
Total Loans Receivable | 552,731 | 548,923 | 514,519 |
Loans Receivable greater than 90 Days and Accruing | 0 | 851 | |
Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 222 | 839 | |
Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 378 | 550 | |
Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,514 | 965 | |
Commercial real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 80 | 420 | |
Current | 20,348 | 19,878 | |
Total Loans Receivable | 20,428 | 20,298 | 19,615 |
Loans Receivable greater than 90 Days and Accruing | 0 | 77 | |
Commercial real estate construction | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 80 | 343 | |
Commercial real estate construction | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 77 | |
Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,895 | 7,066 | |
Current | 417,045 | 427,233 | |
Total Loans Receivable | 419,940 | 434,299 | 431,049 |
Loans Receivable greater than 90 Days and Accruing | 1,316 | 1,949 | |
Residential mortgage | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 452 | 3,018 | |
Residential mortgage | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 477 | 780 | |
Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,966 | 3,268 | |
Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,293 | 745 | |
Current | 109,292 | 109,618 | |
Total Loans Receivable | 110,585 | 110,363 | 106,089 |
Loans Receivable greater than 90 Days and Accruing | 505 | 464 | |
Home equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 659 | 243 | |
Home equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 129 | 38 | |
Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 505 | 464 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 180 | 57 | |
Current | 14,021 | 14,343 | |
Total Loans Receivable | 14,201 | 14,400 | $ 14,852 |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 162 | 36 | |
Consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 18 | 21 | |
Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,645 | 6,693 | |
Current | 1,084,088 | 1,092,875 | |
Total Loans Receivable | 1,089,733 | 1,099,568 | |
Loans Receivable greater than 90 Days and Accruing | 1,467 | 2,203 | |
Originated Loans | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,090 | 2,659 | |
Originated Loans | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 924 | 1,180 | |
Originated Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,631 | 2,854 | |
Originated Loans | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 98 | 102 | |
Current | 156,994 | 168,996 | |
Total Loans Receivable | 157,092 | 169,098 | |
Loans Receivable greater than 90 Days and Accruing | 10 | 4 | |
Originated Loans | Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 87 | 49 | |
Originated Loans | Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1 | 49 | |
Originated Loans | Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 10 | 4 | |
Originated Loans | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,114 | 1,439 | |
Current | 427,011 | 418,526 | |
Total Loans Receivable | 429,125 | 419,965 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 222 | 775 | |
Originated Loans | Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 378 | 550 | |
Originated Loans | Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,514 | 114 | |
Originated Loans | Commercial real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 80 | 0 | |
Current | 17,614 | 16,306 | |
Total Loans Receivable | 17,694 | 16,306 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Commercial real estate construction | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 80 | 0 | |
Originated Loans | Commercial real estate construction | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,520 | 4,673 | |
Current | 376,165 | 384,077 | |
Total Loans Receivable | 378,685 | 388,750 | |
Loans Receivable greater than 90 Days and Accruing | 1,189 | 1,824 | |
Originated Loans | Residential mortgage | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 204 | 1,783 | |
Originated Loans | Residential mortgage | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 477 | 529 | |
Originated Loans | Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,839 | 2,361 | |
Originated Loans | Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 660 | 429 | |
Current | 92,425 | 90,846 | |
Total Loans Receivable | 93,085 | 91,275 | |
Loans Receivable greater than 90 Days and Accruing | 268 | 375 | |
Originated Loans | Home equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 337 | 16 | |
Originated Loans | Home equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 55 | 38 | |
Originated Loans | Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 268 | 375 | |
Originated Loans | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 173 | 50 | |
Current | 13,879 | 14,124 | |
Total Loans Receivable | 14,052 | 14,174 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 160 | 36 | |
Originated Loans | Consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 13 | 14 | |
Originated Loans | Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,041 | 4,078 | |
Current | 188,490 | 198,819 | |
Total Loans Receivable | 189,531 | 202,897 | |
Loans Receivable greater than 90 Days and Accruing | 364 | 1,142 | |
Acquired Loans | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 572 | 1,896 | |
Acquired Loans | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 105 | 258 | |
Acquired Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 364 | 1,924 | |
Acquired Loans | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 26 | 27 | |
Current | 4,261 | 5,057 | |
Total Loans Receivable | 4,287 | 5,084 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 27 | |
Acquired Loans | Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 26 | 0 | |
Acquired Loans | Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 915 | |
Current | 123,606 | 128,043 | |
Total Loans Receivable | 123,606 | 128,958 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 851 | |
Acquired Loans | Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 64 | |
Acquired Loans | Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 851 | |
Acquired Loans | Commercial real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 420 | |
Current | 2,734 | 3,572 | |
Total Loans Receivable | 2,734 | 3,992 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 77 | |
Acquired Loans | Commercial real estate construction | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 343 | |
Acquired Loans | Commercial real estate construction | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 77 | |
Acquired Loans | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 375 | 2,393 | |
Current | 40,880 | 43,156 | |
Total Loans Receivable | 41,255 | 45,549 | |
Loans Receivable greater than 90 Days and Accruing | 127 | 125 | |
Acquired Loans | Residential mortgage | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 248 | 1,235 | |
Acquired Loans | Residential mortgage | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 251 | |
Acquired Loans | Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 127 | 907 | |
Acquired Loans | Home equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 633 | 316 | |
Current | 16,867 | 18,772 | |
Total Loans Receivable | 17,500 | 19,088 | |
Loans Receivable greater than 90 Days and Accruing | 237 | 89 | |
Acquired Loans | Home equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 322 | 227 | |
Acquired Loans | Home equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 74 | 0 | |
Acquired Loans | Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 237 | 89 | |
Acquired Loans | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 7 | 7 | |
Current | 142 | 219 | |
Total Loans Receivable | 149 | 226 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2 | 0 | |
Acquired Loans | Consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5 | 7 | |
Acquired Loans | Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Loans - Schedule of Allowance f
Loans - Schedule of Allowance for Loan Losses and Recorded Investment in Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | $ 14,020 | $ 13,417 | $ 13,964 | $ 13,976 | |||
Charge-offs | (134) | (611) | (266) | (1,437) | |||
Recoveries | 46 | 17 | 84 | 34 | |||
Provisions | 125 | 320 | 275 | 570 | |||
Allowance for Loan Losses, Ending Balance | 14,057 | 13,143 | 14,057 | 13,143 | |||
Allowance for Loan Losses, Ending Balance | 14,020 | 13,417 | 13,964 | 13,976 | $ 14,057 | $ 13,964 | $ 13,143 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 14,057 | 13,964 | 13,143 | ||||
Total Loans Receivable | 1,279,264 | 1,302,465 | 1,246,798 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 6,397 | 7,300 | 7,343 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,272,867 | 1,295,165 | 1,239,455 | ||||
Commercial and Industrial | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 2,620 | 2,974 | 2,597 | 3,219 | |||
Charge-offs | (71) | (489) | (102) | (878) | |||
Recoveries | 7 | 4 | 21 | 11 | |||
Provisions | (94) | (56) | (54) | 81 | |||
Allowance for Loan Losses, Ending Balance | 2,462 | 2,433 | 2,462 | 2,433 | |||
Allowance for Loan Losses, Ending Balance | 2,620 | 2,974 | 2,597 | 3,219 | 2,462 | 2,597 | 2,433 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,462 | 2,597 | 2,433 | ||||
Total Loans Receivable | 161,379 | 174,182 | 160,674 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 161,379 | 174,182 | 160,674 | ||||
Commercial Real Estate | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 6,278 | 5,455 | 6,208 | 5,228 | |||
Charge-offs | 0 | 0 | 0 | (33) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions | 134 | 266 | 204 | 526 | |||
Allowance for Loan Losses, Ending Balance | 6,412 | 5,721 | 6,412 | 5,721 | |||
Allowance for Loan Losses, Ending Balance | 6,278 | 5,455 | 6,208 | 5,228 | 6,412 | 6,208 | 5,721 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 6,412 | 6,208 | 5,721 | ||||
Total Loans Receivable | 552,731 | 548,923 | 514,519 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 5,747 | 6,763 | 7,242 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 546,984 | 542,160 | 507,277 | ||||
Commercial Real Estate Construction | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 241 | 135 | 203 | 126 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions | 21 | 11 | 59 | 20 | |||
Allowance for Loan Losses, Ending Balance | 262 | 146 | 262 | 146 | |||
Allowance for Loan Losses, Ending Balance | 241 | 135 | 203 | 126 | 262 | 203 | 146 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 262 | 203 | 146 | ||||
Total Loans Receivable | 20,428 | 20,298 | 19,615 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 20,428 | 20,298 | 19,615 | ||||
Residential Mortgage | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 2,737 | 2,936 | 2,814 | 3,226 | |||
Charge-offs | 0 | (106) | (6) | (489) | |||
Recoveries | 0 | 12 | 1 | 22 | |||
Provisions | 9 | (2) | (63) | 81 | |||
Allowance for Loan Losses, Ending Balance | 2,746 | 2,840 | 2,746 | 2,840 | |||
Allowance for Loan Losses, Ending Balance | 2,737 | 2,936 | 2,814 | 3,226 | 2,746 | 2,814 | 2,840 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,746 | 2,814 | 2,840 | ||||
Total Loans Receivable | 419,940 | 434,299 | 431,049 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 650 | 537 | 101 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 419,290 | 433,762 | 430,948 | ||||
Home Equity Lines of Credit | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 616 | 593 | 611 | 612 | |||
Charge-offs | 0 | 0 | (51) | 0 | |||
Recoveries | 8 | 0 | 8 | 0 | |||
Provisions | 1 | (29) | 57 | (48) | |||
Allowance for Loan Losses, Ending Balance | 625 | 564 | 625 | 564 | |||
Allowance for Loan Losses, Ending Balance | 616 | 593 | 611 | 612 | 625 | 611 | 564 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 625 | 611 | 564 | ||||
Total Loans Receivable | 110,585 | 110,363 | 106,089 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 110,585 | 110,363 | 106,089 | ||||
Consumer | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 697 | 725 | 692 | 749 | |||
Charge-offs | (63) | (16) | (107) | (37) | |||
Recoveries | 31 | 1 | 54 | 1 | |||
Provisions | 23 | (37) | 49 | (40) | |||
Allowance for Loan Losses, Ending Balance | 688 | 673 | 688 | 673 | |||
Allowance for Loan Losses, Ending Balance | 697 | 725 | 692 | 749 | 688 | 692 | 673 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 688 | 692 | 673 | ||||
Total Loans Receivable | 14,201 | 14,400 | 14,852 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 14,201 | 14,400 | 14,852 | ||||
Unallocated | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 831 | 599 | 839 | 816 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions | 31 | 167 | 23 | (50) | |||
Allowance for Loan Losses, Ending Balance | 862 | 766 | 862 | 766 | |||
Allowance for Loan Losses, Ending Balance | $ 831 | $ 599 | $ 839 | $ 816 | 862 | 839 | 766 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 862 | 839 | 766 | ||||
Total Loans Receivable | 0 | 0 | 0 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | $ 175,712 | $ 161,730 | $ 152,424 | |
Equity securities with readily determinable fair values | 2,001 | 1,839 | $ 1,767 | $ 1,793 |
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 | 2,001 | 1,839 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 175,712 | 161,730 | ||
Equity securities with readily determinable fair values | 0 | 0 | ||
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 | ||
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 | 2,001 | 1,839 | ||
Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 175,712 | 161,730 | ||
Equity securities with readily determinable fair values | 0 | 0 | ||
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 | ||
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 | ||
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 | 118,009 | 118,413 | ||
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 | ||
Recurring | Mortgage-backed securities, residential | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
Recurring | Mortgage-backed securities, residential | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 49,042 | 33,811 | ||
Recurring | Mortgage-backed securities, residential | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 0 | 0 | ||
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 | ||
Recurring | State and municipal | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 8,661 | 9,506 | ||
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 | ||
Nonrecurring | Collateral dependent impaired loans | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0 | 0 | ||
Nonrecurring | Collateral dependent impaired loans | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0 | 0 | ||
Nonrecurring | Collateral dependent impaired loans | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 3,833 | 3,883 | ||
Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 175,712 | 161,730 | ||
Equity securities with readily determinable fair values | 2,001 | 1,839 | ||
Fair Value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 175,712 | 161,730 | ||
Equity securities with readily determinable fair values | 2,001 | 1,839 | ||
Fair Value | Recurring | U.S. Government and agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 118,009 | 118,413 | ||
Fair Value | Recurring | Mortgage-backed securities, residential | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 49,042 | 33,811 | ||
Fair Value | Recurring | State and municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities available for sale | 8,661 | 9,506 | ||
Fair Value | Nonrecurring | Collateral dependent impaired loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | $ 3,833 | $ 3,883 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Additional Quantitative Information (Details) - Nonrecurring - Collateral dependent impaired loans - Level 3 $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 3,833 | $ 3,883 |
Measurement Input, Discount Rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.16 | 0.16 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.10 | 0.10 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.50 | 0.50 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Carrying Amount, Fair Value and Placement in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||||
Interest-bearing deposits in banks | $ 58,390 | $ 20,800 | $ 44,650 | |
Equity securities available for sale | 2,001 | 1,839 | 1,767 | $ 1,793 |
Investment securities available for sale | 175,712 | 161,730 | 152,424 | |
Investment securities held to maturity | 24,772 | 26,911 | 39,145 | |
Restricted investment in bank stocks | 4,202 | 4,336 | $ 4,849 | |
Level 1 | ||||
Financial assets: | ||||
Cash and due from banks | 7,845 | 8,190 | ||
Interest-bearing deposits in banks | 58,390 | 20,800 | ||
Equity securities available for sale | 2,001 | 1,839 | ||
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: | ||||
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: | ||||
Cash and due from banks | 10,371 | 11,915 | ||
Interest-bearing deposits in banks | 0 | 0 | ||
Equity securities available for sale | 0 | 0 | ||
Investment securities available for sale | 175,712 | 161,730 | ||
Investment securities held to maturity | 24,772 | 26,911 | ||
Loans held for sale | 3,009 | 408 | ||
Loans, less allowance for loan losses | 0 | 0 | ||
Accrued interest receivable | 4,840 | 4,545 | ||
Restricted investment in bank stocks | 4,202 | 4,336 | ||
Financial liabilities: | ||||
Demand deposits and savings | 974,490 | 979,964 | ||
Time deposits | 403,145 | 364,093 | ||
Short-term borrowings | 24,137 | 34,648 | ||
Long-term borrowings | 73,888 | 78,545 | ||
Trust preferred subordinated debt | 4,706 | 4,701 | ||
Accrued interest payable | 2,065 | 1,364 | ||
Off-balance sheet financial instruments | 0 | 0 | ||
Level 3 | ||||
Financial assets: | ||||
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 | 1,268,766 | 1,272,393 | ||
Accrued interest receivable | 0 | 0 | ||
Restricted investment in bank stocks | 0 | 0 | ||
Financial liabilities: | ||||
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 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and due from banks | 18,216 | 20,105 | ||
Interest-bearing deposits in banks | 58,390 | 20,800 | ||
Equity securities available for sale | 2,001 | 1,839 | ||
Investment securities available for sale | 175,712 | 161,730 | ||
Investment securities held to maturity | 24,722 | 27,266 | ||
Loans held for sale | 3,009 | 408 | ||
Loans, less allowance for loan losses | 1,265,207 | 1,288,501 | ||
Accrued interest receivable | 4,840 | 4,545 | ||
Restricted investment in bank stocks | 4,202 | 4,336 | ||
Financial liabilities: | ||||
Demand deposits and savings | 974,490 | 979,964 | ||
Time deposits | 402,787 | 368,128 | ||
Short-term borrowings | 24,137 | 34,648 | ||
Long-term borrowings | 73,288 | 78,516 | ||
Trust preferred subordinated debt | 5,000 | 5,000 | ||
Accrued interest payable | 2,065 | 1,364 | ||
Off-balance sheet financial instruments | 0 | 0 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and due from banks | 18,216 | 20,105 | ||
Interest-bearing deposits in banks | 58,390 | 20,800 | ||
Equity securities available for sale | 2,001 | 1,839 | ||
Investment securities available for sale | 175,712 | 161,730 | ||
Investment securities held to maturity | 24,772 | 26,911 | ||
Loans held for sale | 3,009 | 408 | ||
Loans, less allowance for loan losses | 1,268,766 | 1,272,393 | ||
Accrued interest receivable | 4,840 | 4,545 | ||
Restricted investment in bank stocks | 4,202 | 4,336 | ||
Financial liabilities: | ||||
Demand deposits and savings | 974,490 | 979,964 | ||
Time deposits | 403,145 | 364,093 | ||
Short-term borrowings | 24,137 | 34,648 | ||
Long-term borrowings | 73,888 | 78,545 | ||
Trust preferred subordinated debt | 4,706 | 4,701 | ||
Accrued interest payable | 2,065 | 1,364 | ||
Off-balance sheet financial instruments | $ 0 | $ 0 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 24,137 | $ 34,616 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 24,137 | 34,616 |
Financial Instruments | (24,137) | (34,616) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Fair value of securities pledged in connection with repurchase agreements | 29,028 | $ 39,788 |
Total | 24,137 | |
U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 24,137 | |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 24,137 | |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 24,137 | |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Up to 30 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
30 - 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
30 - 90 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Greater than 90 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | $ 0 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 78,288 | $ 83,516 | $ 89,816 |
FHLB Advances | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 70,216 | 75,216 | |
Weighted average rate percentage | 2.48% | ||
Trust preferred subordinated debt | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 5,000 | 5,000 | |
Interest rate percentage | 6.39% | ||
Trust preferred subordinated debt issued | $ 5,000 | ||
Loan payable to local bank, 4.5% | Loan payable to local bank | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 2,072 | 2,300 | |
Interest rate percentage | 4.50% | ||
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 outstanding | $ 1,000 | $ 1,000 | |
Loan payable to local bank, 5.25% | Loan payable to local bank | Wall Street Journal Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on prime rate, percentage | 0.25% | ||
Effective rate, percentage | 5.25% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 19,580 | $ 19,580 | $ 19,580 |
RIG | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 6,308 | ||
New Windsor | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 13,272 | ||
Customer lists | RIG | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of intangible asset | 9,890 | ||
Accumulated amortization of intangible asset | $ 6,738 | ||
Customer lists | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 8 years | ||
Customer lists | Minimum | RIG | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 8 years | ||
Customer lists | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 15 years | ||
Customer lists | Maximum | RIG | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 15 years | ||
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Core deposit intangibles | New Windsor | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Gross carrying amount of intangible asset | $ 2,418 | ||
Accumulated amortization of intangible asset | $ 836 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Revenue Recognition [Abstract] | ||
Assets Held-in-trust | $ 370 | $ 343 |