Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | PENNS WOODS BANCORP INC | |
Entity Central Index Key | 716,605 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,688,739 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Noninterest-bearing balances | $ 22,042 | $ 26,766 |
Interest-bearing balances in other financial institutions | 5,705 | 16,905 |
Total cash and cash equivalents | 27,747 | 43,671 |
Investment securities, available for sale, at fair value | 132,313 | 133,492 |
Investment securities, trading | 210 | 58 |
Loans held for sale | 1,734 | 1,953 |
Loans | 1,189,714 | 1,093,681 |
Allowance for loan losses | (12,933) | (12,896) |
Loans, net | 1,176,781 | 1,080,785 |
Premises and equipment, net | 25,895 | 24,275 |
Accrued interest receivable | 4,289 | 3,672 |
Bank-owned life insurance | 27,827 | 27,332 |
Goodwill | 17,104 | 17,104 |
Intangibles | 1,543 | 1,799 |
Deferred tax asset | 7,984 | 8,397 |
Other assets | 6,770 | 6,052 |
TOTAL ASSETS | 1,430,197 | 1,348,590 |
LIABILITIES | ||
Interest-bearing deposits | 843,166 | 791,937 |
Noninterest-bearing deposits | 310,830 | 303,277 |
Total deposits | 1,153,996 | 1,095,214 |
Short-term borrowings | 41,596 | 13,241 |
Long-term borrowings | 80,998 | 85,998 |
Accrued interest payable | 483 | 455 |
Other liabilities | 13,455 | 15,433 |
TOTAL LIABILITIES | 1,290,528 | 1,210,341 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, par value $8.33, 15,000,000 shares authorized; 5,008,720 and 5,007,109 shares issued; 4,688,570 and 4,734,657 outstanding | 41,739 | 41,726 |
Additional paid-in capital | 50,142 | 50,075 |
Retained earnings | 64,033 | 61,610 |
Accumulated other comprehensive loss | ||
Net unrealized gain (loss) on available for sale securities | 73 | (639) |
Defined benefit plan | (4,203) | (4,289) |
Treasury stock at cost, 320,150 and 272,452 shares | (12,115) | (10,234) |
TOTAL SHAREHOLDERS’ EQUITY | 139,669 | 138,249 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,430,197 | $ 1,348,590 |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 8.33 | $ 8.33 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 5,008,720 | 5,007,109 |
Common stock, shares outstanding (in shares) | 4,688,570 | 4,734,657 |
Treasury stock (in shares) | 320,150 | 272,452 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans, including fees | $ 11,906 | $ 10,541 | $ 33,642 | $ 31,362 |
Investment securities | ||||
Taxable | 553 | 601 | 1,665 | 1,825 |
Tax-exempt | 319 | 329 | 940 | 1,203 |
Dividend and other interest income | 170 | 189 | 592 | 666 |
TOTAL INTEREST AND DIVIDEND INCOME | 12,948 | 11,660 | 36,839 | 35,056 |
INTEREST EXPENSE | ||||
Deposits | 1,058 | 909 | 2,968 | 2,624 |
Short-term borrowings | 31 | 7 | 39 | 41 |
Long-term borrowings | 407 | 497 | 1,220 | 1,481 |
TOTAL INTEREST EXPENSE | 1,496 | 1,413 | 4,227 | 4,146 |
NET INTEREST INCOME | 11,452 | 10,247 | 32,612 | 30,910 |
PROVISION FOR LOAN LOSSES | 60 | 258 | 605 | 866 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,392 | 9,989 | 32,007 | 30,044 |
NON-INTEREST INCOME | ||||
Service charges | 550 | 585 | 1,637 | 1,678 |
Net securities gains, available for sale | 302 | 487 | 1,174 | |
Net securities (losses) gains, trading | (2) | 54 | ||
Net Realized and Unrealized Gain (Loss) on Trading Securities | (4) | 8 | (2) | 54 |
Bank-owned life insurance | 166 | 172 | 499 | 516 |
Gain on sale of loans | 455 | 658 | 1,316 | 1,691 |
Insurance commissions | 109 | 198 | 399 | 604 |
Brokerage commissions | 352 | 290 | 1,044 | 817 |
Debit card fees | 514 | 690 | 1,450 | 1,413 |
Other | 296 | 228 | 1,325 | 1,310 |
TOTAL NON-INTEREST INCOME | 2,740 | 3,082 | 8,155 | 9,257 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 4,738 | 4,507 | 14,116 | 13,433 |
Occupancy | 603 | 544 | 1,855 | 1,630 |
Furniture and equipment | 816 | 662 | 2,129 | 2,042 |
Software amortization | 235 | 580 | 750 | 950 |
Pennsylvania shares tax | 228 | 220 | 696 | 698 |
Professional fees | 560 | 502 | 1,816 | 1,512 |
Federal Deposit Insurance Corporation deposit insurance | 194 | 202 | 514 | 670 |
Debit card expenses | 168 | 246 | 478 | 456 |
Marketing | 315 | 173 | 690 | 568 |
Intangible amortization | 81 | 90 | 256 | 276 |
Other | 1,628 | 1,013 | 4,314 | 4,230 |
TOTAL NON-INTEREST EXPENSE | 9,566 | 8,739 | 27,614 | 26,465 |
INCOME BEFORE INCOME TAX PROVISION | 4,566 | 4,332 | 12,548 | 12,836 |
INCOME TAX PROVISION | 1,282 | 1,273 | 3,491 | 3,307 |
NET INCOME | $ 3,284 | $ 3,059 | $ 9,057 | $ 9,529 |
EARNINGS PER SHARE - BASIC AND DILUTED (in dollars per share) | $ 0.70 | $ 0.65 | $ 1.92 | $ 2.01 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED (in shares) | 4,688,222 | 4,733,800 | 4,711,282 | 4,735,844 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $ 0.47 | $ 0.47 | $ 1.41 | $ 1.41 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 3,284 | $ 3,059 | $ 9,057 | $ 9,529 |
Other comprehensive income (loss) | ||||
Change in unrealized gain (loss) on available for sale securities | 437 | (276) | 1,565 | 3,039 |
Tax effect | (150) | 94 | (532) | (1,032) |
Net realized gain on available for sale securities included in net income | (302) | (253) | (487) | (1,174) |
Tax effect | 104 | 86 | 166 | 398 |
Amortization of unrecognized pension loss | 45 | 39 | 129 | 117 |
Tax effect | (15) | (13) | (43) | (40) |
Total other comprehensive income (loss) | 119 | (323) | 798 | 1,308 |
Comprehensive income | $ 3,403 | $ 2,736 | $ 9,855 | $ 10,837 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TREASURY STOCK |
Beginning balance (in shares) at Dec. 31, 2015 | 5,004,984 | |||||
Beginning balance at Dec. 31, 2015 | $ 136,279 | $ 41,708 | $ 49,992 | $ 58,038 | $ (3,799) | $ (9,660) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,529 | 9,529 | ||||
Other comprehensive income | 1,308 | 1,308 | ||||
Dividends declared | (6,678) | (6,678) | ||||
Common shares issued for employee stock purchase plan (in shares) | 1,617 | |||||
Common shares issued for employee stock purchase plan | 71 | $ 13 | 58 | |||
Purchase of treasury stock | (574) | (574) | ||||
Ending balance (in shares) at Sep. 30, 2016 | 5,006,601 | |||||
Ending balance at Sep. 30, 2016 | 139,935 | $ 41,721 | 50,050 | 60,889 | (2,491) | (10,234) |
Beginning balance (in shares) at Dec. 31, 2016 | 5,007,109 | |||||
Beginning balance at Dec. 31, 2016 | 138,249 | $ 41,726 | 50,075 | 61,610 | (4,928) | (10,234) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,057 | 9,057 | ||||
Other comprehensive income | 798 | 798 | ||||
Dividends declared | (6,634) | (6,634) | ||||
Common shares issued for employee stock purchase plan (in shares) | 1,611 | |||||
Common shares issued for employee stock purchase plan | 80 | $ 13 | 67 | |||
Purchase of treasury stock | (1,881) | (1,881) | ||||
Ending balance (in shares) at Sep. 30, 2017 | 5,008,720 | |||||
Ending balance at Sep. 30, 2017 | $ 139,669 | $ 41,739 | $ 50,142 | $ 64,033 | $ (4,130) | $ (12,115) |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared, per share (in dollars per share) | $ 1.41 | $ 1.41 |
Purchase of treasury stock (in shares) | 47,698 | 14,600 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net Income | $ 9,057 | $ 9,529 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 1,979 | 2,394 |
Amortization of intangible assets | 256 | 276 |
Provision for loan losses | 605 | 866 |
Accretion and amortization of investment security discounts and premiums | 688 | 657 |
Net securities gains, available for sale | (487) | (1,174) |
Originations of loans held for sale | (41,503) | (50,824) |
Proceeds of loans held for sale | 43,038 | 51,112 |
Gain on sale of loans | (1,316) | (1,691) |
Net securities gains, trading | 2 | (54) |
Proceeds from the sale of trading securities | 332 | 3,723 |
Purchases of trading securities | (486) | (3,596) |
Earnings on bank-owned life insurance | (499) | (516) |
Decrease in deferred tax asset | 46 | 952 |
Other, net | (4,361) | 508 |
Net cash provided by operating activities | 7,351 | 12,162 |
INVESTING ACTIVITIES | ||
Proceeds from sales of available for sale securities | 15,443 | 42,180 |
Proceeds from calls and maturities of available for sale securities | 7,198 | 19,267 |
Purchases of available for sale securities | (18,434) | (24,040) |
Net increase in loans | (97,109) | (24,548) |
Acquisition of premises and equipment | (2,849) | (2,347) |
Proceeds from the sale of foreclosed assets | 958 | 486 |
Purchase of bank-owned life insurance | (34) | (27) |
Proceeds from redemption of regulatory stock | 4,844 | 2,644 |
Purchases of regulatory stock | (6,994) | (2,569) |
Net cash (used for) provided by investing activities | (96,977) | 11,046 |
FINANCING ACTIVITIES | ||
Net increase in interest-bearing deposits | 51,229 | 40,901 |
Net increase in noninterest-bearing deposits | 7,553 | 15,516 |
Proceeds from long-term borrowings | 30,000 | 0 |
Repayment of long-term borrowings | (35,000) | 0 |
Net increase (decrease) in short-term borrowings | 28,355 | (35,059) |
Dividends paid | (6,634) | (6,678) |
Issuance of common stock | 80 | 71 |
Purchases of treasury stock | (1,881) | (574) |
Net cash provided by financing activities | 73,702 | 14,177 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (15,924) | 37,385 |
CASH AND CASH EQUIVALENTS, BEGINNING | 43,671 | 22,796 |
CASH AND CASH EQUIVALENTS, ENDING | 27,747 | 60,181 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | 4,199 | 4,091 |
Income taxes paid | 3,950 | 3,050 |
Transfer of loans to foreclosed real estate | $ 508 | $ 83 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Penns Woods Bancorp, Inc. (the “Company”) and its wholly-owned subsidiaries: Woods Investment Company, Inc., Woods Real Estate Development Company, Inc., Luzerne Bank, and Jersey Shore State Bank (Jersey Shore State Bank and Luzerne Bank are referred to together as the “Banks”) and Jersey Shore State Bank’s wholly-owned subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group (“The M Group”). All significant inter-company balances and transactions have been eliminated in the consolidation. The interim financial statements are unaudited, but in the opinion of management reflect all adjustments necessary for the fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The accounting policies followed in the presentation of interim financial results are the same as those followed on an annual basis. These policies are presented on pages 39 through 48 of the Form 10-K for the year ended December 31, 2016 . In reference to the attached financial statements, all adjustments are of a normal recurring nature pursuant to Rule 10-01(b) (8) of Regulation S-X. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component shown net of tax and parenthesis indicating debits, as of September 30, 2017 and 2016 were as follows: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (16 ) $ (4,233 ) $ (4,249 ) $ 1,838 $ (4,006 ) $ (2,168 ) Other comprehensive income (loss) before reclassifications 287 — 287 (182 ) — (182 ) Amounts reclassified from accumulated other comprehensive loss (198 ) 30 (168 ) (167 ) 26 (141 ) Net current-period other comprehensive income 89 30 119 (349 ) 26 (323 ) Ending balance $ 73 $ (4,203 ) $ (4,130 ) $ 1,489 $ (3,980 ) $ (2,491 ) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (639 ) $ (4,289 ) $ (4,928 ) $ 258 $ (4,057 ) $ (3,799 ) Other comprehensive income before reclassifications 1,033 — 1,033 2,007 — 2,007 Amounts reclassified from accumulated other comprehensive loss (321 ) 86 (235 ) (776 ) 77 (699 ) Net current-period other comprehensive income 712 86 798 1,231 77 1,308 Ending balance $ 73 $ (4,203 ) $ (4,130 ) $ 1,489 $ (3,980 ) $ (2,491 ) The reclassifications out of accumulated other comprehensive loss shown, net of tax and parenthesis indicating debits to net income, as of September 30, 2017 and 2016 were as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Net unrealized (loss) gain on available for sale securities $ 302 $ 253 Net securities (losses) gains, available for sale Income tax effect (104 ) (86 ) Income tax provision Total reclassifications for the period $ 198 $ 167 Net unrecognized pension costs (45 ) (39 ) Salaries and employee benefits Income tax effect 15 13 Income tax provision Total reclassifications for the period (30 ) (26 ) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Consolidated Statement of Income Nine months ended September 30, 2017 Nine months ended September 30, 2016 Net unrealized gain on available for sale securities $ 487 $ 1,174 Net securities gains, available for sale Income tax effect (166 ) (398 ) Income tax provision Total reclassifications for the period $ 321 $ 776 Net unrecognized pension costs (129 ) (117 ) Salaries and employee benefits Income tax effect 43 40 Income tax provision Total reclassifications for the period (86 ) (77 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. Subsequently, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) . The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1 percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow-scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this Update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) , which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810) , which amends the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. The provisions in ASU 2016-17 are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the Update is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the Update in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) , which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . This Update, among others things, clarifies that guarantee fees within the scope of Topic 460, Guarantees , (other than product or service warranties) are not within the scope of Topic 606. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for the new revenue recognition guidance. For public entities with a calendar year-end, the new guidance is effective in the quarter and year beginning January 1, 2018. For all other entities with a calendar year-end, the new guidance is effective in the year ending December 31, 2019, and interim periods in 2020. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides a more robust framework to use in determining when a set of assets and activities (collectively referred to as a “set”) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied prospectively on or after the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should 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 an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities, that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). The amendments in this Update clarify what constitutes a financial asset within the scope of Subtopic 610-20. The amendments also clarify that entities should identify each distinct nonfinancial asset or in substance nonfinancial asset that is promised to a counterparty and to derecognize each asset when the counterparty obtains control. There is also additional guidance provided for partial sales of a nonfinancial asset and when derecognition, and the related gain or loss, should be recognized. The amendments in this Update are effective at the same time as the amendments in Update 2014-09. Therefore, for public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements, or the Company is currently evaluating the impact the adoption. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) . The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. For all other entities (including all nonprofit organizations “NPOs”), it is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. This guidance is required to be applied on a retrospective basis for the presentation of the service cost component and the other components of net benefit cost and on a prospective basis for the capitalization of only the service cost component of net benefit cost. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) , which affects any entity that changes the terms or conditions of a share-based payment award. This Update amends the definition of modification by qualifying that modification accounting does not apply to changes to outstanding share-based payment awards that do not affect the total fair value, vesting requirements, or equity/liability classification of the awards. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-10, Service Concession Arrangements (Topic 853) , which applies to the accounting by operating entities for service concession arrangements within the scope of Topic 853. The amendments in this Update clarify that the grantor (government), rather than the third-party drivers, is the customer of the operation services in all cases for service concession arrangements within the scope of Topic 853. For an entity that has not adopted Topic 606 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update generally are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by ASU 2014-09, Revenue from Contracts with Customers (Topic 606)) . ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , deferred the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) . The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt-Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) , the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early application is permitted in any period after issuance. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated othe |
Per Share Data
Per Share Data | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Per Share Data | Per Share Data There are no convertible securities which would affect the denominator in calculating basic and dilutive earnings per share. There were a total of 95,000 stock options, with an average exercise price of $43.64 , outstanding on September 30, 2017 . These options were excluded, on a weighted average basis, in the computation of diluted earnings per share for the period due to the average market price of common shares of $ 43.53 being less than the exercise price of the options. There were a total of 31,000 stock options outstanding for the same period end in 2016 that had an average exercise price of $42.03 and were excluded from the computation of diluted earnings per share because the average market price of common shares was $41.10 for the period. Net income as presented on the consolidated statement of income will be used as the numerator. The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and dilutive earnings per share computation. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted average common shares outstanding - basic 4,688,222 5,006,252 4,711,282 5,005,707 Weighted average treasury stock shares (320,150 ) (272,452 ) (296,514 ) (269,863 ) Weighted average common shares outstanding - diluted 4,368,072 4,733,800 4,414,768 4,735,844 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair values of investment securities available for sale at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 4,544 $ 79 $ (93 ) $ 4,530 State and political securities 61,868 640 (181 ) 62,327 Other debt securities 52,954 220 (1,201 ) 51,973 Total debt securities 119,366 939 (1,475 ) 118,830 Financial institution equity securities 11,537 687 — 12,224 Non-financial institution equity securities 1,300 — (41 ) 1,259 Total equity securities 12,837 687 (41 ) 13,483 Total investment securities AFS $ 132,203 $ 1,626 $ (1,516 ) $ 132,313 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 9,295 $ 182 $ (164 ) $ 9,313 Asset-backed securities 109 — — 109 State and political securities 60,777 666 (509 ) 60,934 Other debt securities 53,046 137 (2,065 ) 51,118 Total debt securities 123,227 985 (2,738 ) 121,474 Financial institution equity securities 9,566 969 — 10,535 Non-financial institution equity securities 1,667 — (184 ) 1,483 Total equity securities 11,233 969 (184 ) 12,018 Total investment securities AFS $ 134,460 $ 1,954 $ (2,922 ) $ 133,492 The amortized cost and fair values of trading investment securities at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading: Financial institution equity securities $ 61 $ 3 $ (1 ) $ 63 Non-financial institution equity securities 157 4 (14 ) 147 Total trading securities $ 218 $ 7 $ (15 ) $ 210 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading: Financial institution equity securities $ — $ — $ — $ — Non-financial institution equity securities 56 2 — 58 Total trading securities $ 56 $ 2 $ — $ 58 Total net trading losses of $ 4,000 and $ 2,000 for the three and nine month periods ended September 30, 2017 compared to net trading gains of $ 8,000 and $ 54,000 for the three and nine month periods ended September 30, 2016 were included in the Consolidated Statement of Income. The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at September 30, 2017 and December 31, 2016 . September 30, 2017 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for sale (AFS): Mortgage-backed securities $ 1,048 $ (4 ) $ 2,302 $ (89 ) $ 3,350 $ (93 ) State and political securities 13,651 (120 ) 2,170 (61 ) 15,821 (181 ) Other debt securities 9,689 (145 ) 22,733 (1,056 ) 32,422 (1,201 ) Total debt securities 24,388 (269 ) 27,205 (1,206 ) 51,593 (1,475 ) Non-financial institution equity securities 1,259 (41 ) — — 1,259 (41 ) Total equity securities 1,259 (41 ) — — 1,259 (41 ) Total investment securities AFS $ 25,647 $ (310 ) $ 27,205 $ (1,206 ) $ 52,852 $ (1,516 ) December 31, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for sale (AFS): Mortgage-backed securities $ 3,572 $ (106 ) $ 3,627 $ (58 ) $ 7,199 $ (164 ) State and political securities 26,113 (509 ) — — 26,113 (509 ) Other debt securities 28,140 (1,179 ) 12,240 (886 ) 40,380 (2,065 ) Total debt securities 57,825 (1,794 ) 15,867 (944 ) 73,692 (2,738 ) Non-financial institution equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total investment securities AFS $ 58,552 $ (1,934 ) $ 16,623 $ (988 ) $ 75,175 $ (2,922 ) At September 30, 2017 , there were a total of 34 securities in a continuous unrealized loss position for less than twelve months and 20 individual securities that were in a continuous unrealized loss position for twelve months or greater. The Company reviews its position quarterly and has determined that, at September 30, 2017 , the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes, sector credit ratings changes, or company-specific ratings changes that are not expected to result in the non-collection of principal and interest during the period. The amortized cost and fair value of debt securities at September 30, 2017 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) Amortized Cost Fair Value Due in one year or less $ 4,839 $ 4,836 Due after one year to five years 45,064 44,918 Due after five years to ten years 54,858 54,301 Due after ten years 14,605 14,775 Total $ 119,366 $ 118,830 Total gross proceeds from sales of securities available for sale for the three and nine months ended September 30, 2017 were $ 6,478,000 and $ 15,443,000 , a decrease from the 2016 totals of $ 16,168,000 and $ 42,180,000 . The following table represents gross realized gains and losses within the available for sale portfolio: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2017 2016 2017 2016 Gross realized gains: U.S. Government and agency securities $ — $ 11 $ — $ 11 Mortgage-backed securities — 29 69 35 State and political securities 313 146 343 784 Other debt securities 5 — 5 258 Financial institution equity securities — 68 288 150 Non-financial institution equity securities — 73 — 217 Total gross realized gains $ 318 $ 327 $ 705 $ 1,455 Gross realized losses: U.S. Government and agency securities $ — $ 2 $ — $ 5 Mortgage-backed securities — — — — Asset-backed securities — — — — State and political securities 16 1 17 1 Other debt securities — 26 51 189 Financial institution equity securities — — — — Non-financial institution equity securities — 45 150 86 Total gross realized losses $ 16 $ 74 $ 218 $ 281 The following table represents gross realized gains and losses within the trading portfolios: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2017 2016 2017 2016 Gross realized gains: Financial institution equity securities $ 3 $ — $ 3 $ 6 Non-financial institution equity securities 4 8 12 76 Total gross realized gains $ 7 $ 8 $ 15 $ 82 Gross realized losses: Financial institution equity securities $ — $ — $ — $ 12 Non-financial institution equity securities 11 — 17 16 Total gross realized losses $ 11 $ — $ 17 $ 28 There were no impairment charges included in gross realized losses for the three and nine months ended September 30, 2017 and 2016 , respectively. Investment securities with a carrying value of approximately $98,157,000 and $95,199,000 at September 30, 2017 and December 31, 2016 , respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | Loans Management segments the Banks' loan portfolio to a level that enables risk and performance monitoring according to similar risk characteristics. Loans are segmented based on the underlying collateral characteristics. Categories include commercial, financial, and agricultural, real estate, and installment loans to individuals. Real estate loans are further segmented into three categories: residential, commercial, and construction. The following table presents the related aging categories of loans, by segment, as of September 30, 2017 and December 31, 2016 : September 30, 2017 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 174,993 $ 6 $ 53 $ 247 $ 175,299 Real estate mortgage: Residential 572,303 1,929 26 1,876 576,134 Commercial 316,493 1,144 — 5,873 323,510 Construction 29,243 9 100 — 29,352 Installment loans to individuals 85,872 625 82 60 86,639 1,178,904 $ 3,713 $ 261 $ 8,056 1,190,934 Net deferred loan fees and discounts (1,220 ) (1,220 ) Allowance for loan losses (12,933 ) (12,933 ) Loans, net $ 1,164,751 $ 1,176,781 December 31, 2016 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 145,179 $ 785 $ 14 $ 132 $ 146,110 Real estate mortgage: Residential 553,053 9,112 587 1,988 564,740 Commercial 296,537 786 268 8,591 306,182 Construction 33,879 771 — — 34,650 Installment loans to individuals 43,008 202 1 45 43,256 1,071,656 $ 11,656 $ 870 $ 10,756 1,094,938 Net deferred loan fees and discounts (1,257 ) (1,257 ) Allowance for loan losses (12,896 ) (12,896 ) Loans, net $ 1,057,503 $ 1,080,785 Purchased loans acquired are recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. The following table presents interest income the Banks would have recorded if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 2016 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 8 $ 2 $ 1 $ — Real estate mortgage: Residential 29 30 57 68 Commercial 90 23 109 90 Construction — — — Installment 1 1 — — $ 128 $ 56 $ 167 $ 158 Nine Months Ended September 30, 2017 2016 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 21 $ 8 $ 5 $ 1 Real estate mortgage: Residential 123 81 113 95 Commercial 322 42 388 170 Construction — — — — Installment 3 2 — — $ 469 $ 133 $ 506 $ 266 Impaired Loans Impaired loans are loans for which it is probable the Banks will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Banks evaluate such loans for impairment individually and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. The Banks may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Management evaluates individual loans in all of the commercial segments for possible impairment if the loan is greater than $100,000 and if the loan is either on non-accrual status or has a risk rating of substandard. Management may also elect to measure an individual loan for impairment if less than $100,000 on a case-by-case basis. Mortgage loans on one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Interest income for impaired loans is recorded consistent with the Banks' policy on non-accrual loans. The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of September 30, 2017 and December 31, 2016 : September 30, 2017 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,141 $ 1,141 $ — Real estate mortgage: Residential 1,775 1,775 — Commercial 2,222 2,222 — Installment loans to individuals — — — 5,138 5,138 — With an allowance recorded: Commercial, financial, and agricultural 255 255 207 Real estate mortgage: Residential 1,022 1,070 224 Commercial 8,433 8,529 1,629 Installment loans to individuals — — — 9,710 9,854 2,060 Total: Commercial, financial, and agricultural 1,396 1,396 207 Real estate mortgage: Residential 2,797 2,845 224 Commercial 10,655 10,751 1,629 Installment loans to individuals — — — $ 14,848 $ 14,992 $ 2,060 December 31, 2016 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 109 $ 109 $ — Real estate mortgage: Residential 1,584 1,584 — Commercial 1,833 1,833 — Installment loans to individuals — — — 3,526 3,526 — With an allowance recorded: Commercial, financial, and agricultural 132 132 74 Real estate mortgage: Residential 1,893 1,893 437 Commercial 10,425 10,520 1,668 Installment loans to individuals — — — 12,450 12,545 2,179 Total: Commercial, financial, and agricultural 241 241 74 Real estate mortgage: Residential 3,477 3,477 437 Commercial 12,258 12,353 1,668 Installment loans to individuals — — — $ 15,976 $ 16,071 $ 2,179 The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended for September 30, 2017 and 2016 : Three Months Ended September 30, 2017 2016 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 394 $ 17 $ 1 $ 346 $ 4 $ — Real estate mortgage: Residential 3,199 12 34 2,784 23 41 Commercial 12,885 52 23 12,383 83 16 Construction — — — 67 — — Installment loans to individuals — — — — — — $ 16,478 $ 81 $ 58 $ 15,580 $ 110 $ 57 Nine Months Ended September 30, 2017 2016 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 324 $ 24 $ 7 $ 586 $ 12 $ 1 Real estate mortgage: Residential 3,212 48 80 4,539 67 68 Commercial 12,635 137 42 16,988 247 96 Construction — — — 208 — — Installment loans to individuals 8 — 2 — — — $ 16,179 $ 209 $ 131 $ 22,321 $ 326 $ 165 Currently, there is $10,000 committed to be advanced in connection with impaired loans. Troubled Debt Restructurings The loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (“TDR”), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months . There were two loan modifications that were considered TDRs completed during the three and nine months ended September 30, 2017. Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2016 were as follows: Three Months Ended September 30, 2017 2016 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural — $ — $ — — $ — $ — Real estate mortgage: Residential — — — 2 580 580 Commercial 2 375 375 — — — Construction — — — — — — 2 $ 375 $ 375 2 $ 580 $ 580 Nine Months Ended September 30, 2017 2016 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural — $ — $ — — $ — $ — Real estate mortgage: Residential — — — 4 922 922 Commercial 2 375 375 1 838 838 Construction — — — — — — 2 $ 375 $ 375 5 $ 1,760 $ 1,760 There were no loan modifications considered to be TDRs made during the twelve months previous to September 30, 2017 that defaulted during the nine months ended September 30, 2017 . There were five loan modifications considered TDRs made during the twelve months previous to September 30, 2016 that defaulted during the nine months ended September 30, 2016 . The defaulted loan types and recorded investments at September 30, 2016 are as follows: one commercial loan with a recorded investment of $103,000 , one commercial real estate loan with a recorded investment of $239,000 , and three residential real estate loan with a recorded investment of $173,000 . Troubled debt restructurings amounted to $ 8,429,000 and $9,180,000 as of September 30, 2017 and December 31, 2016 . The amount of foreclosed residential real estate held at September 30, 2017 and December 31, 2016 , totaled $458,000 and $839,000 , respectively. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at September 30, 2017 and December 31, 2016 , totaled $458,000 and $167,000 , respectively. Internal Risk Ratings Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are evaluated for substandard classification. Loans in the doubtful category exhibit the same weaknesses found in the substandard loans, however, the weaknesses are more pronounced. Such loans are static and collection in full is improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Loans classified loss are considered uncollectible and charge-off is imminent. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Banks have a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the pass category unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. An external annual loan review of large commercial relationships is performed, as well as a sample of smaller transactions. Confirmation of the appropriate risk category is included in the review. Detailed reviews, including plans for resolution, are performed on loans classified as substandard, doubtful, or loss on a quarterly basis. The following table presents the credit quality categories identified above as of September 30, 2017 and December 31, 2016 : September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 170,812 $ 572,591 $ 300,679 $ 29,202 $ 86,639 $ 1,159,923 Special Mention 775 1,287 8,522 — — 10,584 Substandard 3,712 2,256 14,309 150 — 20,427 $ 175,299 $ 576,134 $ 323,510 $ 29,352 $ 86,639 $ 1,190,934 December 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 140,497 $ 561,440 $ 277,916 $ 34,493 $ 43,256 $ 1,057,602 Special Mention 2,943 740 11,143 — — 14,826 Substandard 2,670 2,560 17,123 157 — 22,510 $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938 Allowance for Loan Losses An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated future loss experience, and the amount of non-performing loans. The Banks' methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (previously discussed) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Banks' ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. Allowances are segmented based on collateral characteristics previously disclosed, and consistent with credit quality monitoring. Loans that are collectively evaluated for impairment are grouped into two classes for evaluation. A general allowance is determined for “Pass” rated credits, while a separate pool allowance is provided for “Criticized” rated credits that are not individually evaluated for impairment. For the general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. A historical charge-off factor is calculated utilizing a twelve quarter moving average. However, management may adjust the moving average time frame by up to four quarters to adjust for variances in the economic cycle. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management also monitors industry loss factors by loan segment for applicable adjustments to actual loss experience. Management reviews the loan portfolio on a quarterly basis in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Activity in the allowance is presented for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,731 $ 5,337 $ 3,727 $ 172 $ 779 $ 1,363 $ 13,109 Charge-offs (68 ) (155 ) — — (55 ) — (278 ) Recoveries 6 16 — 2 18 — 42 Provision (81 ) 232 300 (26 ) 144 (509 ) 60 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 886 $ 854 $ 12,933 Three Months Ended September 30, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,273 $ 5,851 $ 4,001 $ 143 $ 277 $ 972 $ 12,517 Charge-offs (18 ) (4 ) — — (67 ) — (89 ) Recoveries 4 8 3 1 16 — 32 Provision (9 ) (550 ) 642 (29 ) 111 93 258 Ending Balance $ 1,250 $ 5,305 $ 4,646 $ 115 $ 337 $ 1,065 $ 12,718 Nine Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Charge-offs (81 ) (540 ) — — (186 ) — (807 ) Recoveries 117 51 1 7 63 — 239 Provision (2 ) 536 (949 ) (37 ) 593 464 605 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 886 $ 854 $ 12,933 Nine Months Ended September 30, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Charge-offs (167 ) (11 ) — — (171 ) — (349 ) Recoveries 56 14 8 6 73 — 157 Provision (171 ) 186 421 (51 ) 192 289 866 Ending Balance $ 1,250 $ 5,305 $ 4,646 $ 115 $ 337 $ 1,065 $ 12,718 The shifts in allocation of the loan provision is due to an increase in residential originations along with a tapering of commercial originations along with the increase in installment loan volume. Within installment loans to individuals is indirect auto lending that was started during 2016. The Company grants commercial, industrial, residential, and installment loans to customers primarily throughout north-east and central Pennsylvania. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic conditions within this region. The Company has a concentration of the following to gross loans at September 30, 2017 and 2016 : September 30, 2017 2016 Owners of residential rental properties 15.34 % 16.64 % Owners of commercial rental properties 13.45 % 14.11 % The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2017 and December 31, 2016 : September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 207 $ 224 $ 1,629 $ — $ — $ — $ 2,060 Collectively evaluated for impairment 1,381 5,206 2,398 148 886 854 10,873 Total ending allowance balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 886 $ 854 $ 12,933 Loans: Individually evaluated for impairment $ 1,396 $ 2,797 $ 10,655 $ — $ — $ 14,848 Collectively evaluated for impairment 173,903 573,337 312,855 29,352 86,639 1,176,086 Total ending loans balance $ 175,299 $ 576,134 $ 323,510 $ 29,352 $ 86,639 $ 1,190,934 December 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 74 $ 437 $ 1,668 $ — $ — $ — $ 2,179 Collectively evaluated for impairment 1,480 4,946 3,307 178 416 390 10,717 Total ending allowance balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Loans: Individually evaluated for impairment $ 241 $ 3,477 $ 12,258 $ — $ — $ 15,976 Collectively evaluated for impairment 145,869 561,263 293,924 34,650 43,256 1,078,962 Total ending loans balance $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938 |
Net Periodic Benefit Cost-Defin
Net Periodic Benefit Cost-Defined Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Net Periodic Benefit Cost-Defined Benefit Plans | Net Periodic Benefit Cost-Defined Benefit Plans For a detailed disclosure on the Company’s pension and employee benefits plans, please refer to Note 13 of the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 . The following sets forth the components of the net periodic benefit/cost of the domestic non-contributory defined benefit plan for the three and nine months ended September 30, 2017 and 2016 , respectively: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2017 2016 2017 2016 Service cost $ 41 $ 17 $ 124 $ 51 Interest cost 188 193 566 579 Expected return on plan assets (262 ) (251 ) (787 ) (753 ) Amortization of net loss 45 39 129 117 Net periodic benefit cost $ 12 $ (2 ) $ 32 $ (6 ) Employer Contributions The Company previously disclosed in its consolidated financial statements, included in the Annual Report on Form 10-K for the year ended December 31, 2016 , that it expected to contribute a minimum of $500,000 to its defined benefit plan in 2017 . As of September 30, 2017 , there were contributions of $500,000 made to the plan with additional contributions of at least $250,000 anticipated during the remainder of 2017 . |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Purchase Plan | Employee Stock Purchase Plan The Company maintains an Employee Stock Purchase Plan (“Plan”). The Plan is intended to encourage employee participation in the ownership and economic progress of the Company. The Plan allows for up to 1,000,000 shares to be purchased by employees. The purchase price of the shares is 95% of market value with an employee eligible to purchase up to the lesser of 15% of base compensation or $12,000 in market value annually. During the nine months ended September 30, 2017 and 2016 , there were 1,611 and 1,617 shares issued under the plan, respectively. |
Off Balance Sheet Risk
Off Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2017 | |
Off Balance Sheet Risk | |
Off Balance Sheet Risk | Off Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are primarily comprised of commitments to extend credit, standby letters of credit, and credit exposure from the sale of assets with recourse. These instruments involve, to varying degrees, elements of credit, interest rate, or liquidity risk in excess of the amount recognized in the Consolidated Balance Sheet. The contract amounts of these instruments express the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company may require collateral or other security to support financial instruments with off-balance sheet credit risk. Financial instruments whose contract amounts represent credit risk are as follows at September 30, 2017 and December 31, 2016 : (In Thousands) September 30, 2017 December 31, 2016 Commitments to extend credit $ 270,046 $ 263,487 Standby letters of credit 9,923 6,515 Credit exposure from the sale of assets with recourse 4,699 6,341 $ 284,668 $ 276,343 Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, on an extension of credit is based on management’s credit assessment of the counterparty. Standby letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance related contracts. The coverage period for these instruments is typically a one year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the coverage period. For secured letters of credit, the collateral is typically Bank deposit instruments or customer business assets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. This hierarchy requires the use of observable market data when available. The following table presents the assets reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 4,530 $ — $ 4,530 State and political securities — 62,327 — 62,327 Other debt securities — 51,973 — 51,973 Financial institution equity securities 12,224 — — 12,224 Non-financial institution equity securities 1,259 — — 1,259 Investment securities, trading: Financial institution equity securities 63 — — 63 Non-financial institution equity securities 147 — — 147 December 31, 2016 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 9,313 $ — $ 9,313 Asset-backed securities — 109 — 109 State and political securities — 60,934 — 60,934 Other debt securities — 51,118 — 51,118 Financial institution equity securities 10,535 — — 10,535 Non-financial institution equity securities 1,483 — — 1,483 Investment securities, trading: Non-financial institution equity securities 58 — — 58 The following table presents the assets reported on the Consolidated Balance Sheet at their fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 12,788 $ 12,788 Other real estate owned — — 108 108 December 31, 2016 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 13,797 $ 13,797 Other real estate owned — — 839 839 The following tables present a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of September 30, 2017 and December 31, 2016 : September 30, 2017 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,753 Discounted cash flow Temporary reduction in payment amount 0 to (100)% (18)% 7,035 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (16)% Other real estate owned $ 108 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. December 31, 2016 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,304 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (20)% 8,493 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 839 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The discounted cash flow valuation technique is utilized to determine the fair value of performing impaired loans, while non-performing impaired loans utilize the appraisal of collateral method. The significant unobservable inputs used in the fair value measurement of the Company’s impaired loans using the discounted cash flow valuation technique include temporary changes in payment amounts and the probability of default. Significant increases (decreases) in payment amounts would result in significantly higher (lower) fair value measurements. The probability of default is 0% for impaired loans using the discounted cash flow valuation technique because all defaulted impaired loans are valued using the appraisal of collateral valuation technique. The significant unobservable input used in the fair value measurement of the Company’s impaired loans using the appraisal of collateral valuation technique include appraisal adjustments, which are adjustments to appraisals by management for qualitative factors such as economic conditions and estimated liquidation expenses. The significant unobservable input used in the fair value measurement of the Company’s other real estate owned are the same inputs used to value impaired loans using the appraisal of collateral valuation technique. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company is required to disclose fair values for its financial instruments. Fair values are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Also, it is the Company’s general practice and intention to hold most of its financial instruments to maturity and not to engage in trading or sales activities. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the fair values. Fair values have been determined by the Company using historical data and an estimation methodology suitable for each category of financial instruments. The Company’s fair values, methods, and assumptions are set forth below for the Company’s other financial instruments. As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Company, are not considered financial instruments but have value, this fair value of financial instruments would not represent the full market value of the Company. The fair values of the Company’s financial instruments are as follows at September 30, 2017 and December 31, 2016 : Carrying Fair Fair Value Measurements at September 30, 2017 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 27,747 $ 27,747 $ 27,747 $ — $ — Investment securities: Available for sale 132,313 132,313 13,483 118,830 — Trading 210 210 210 — — Loans held for sale 1,734 1,734 1,734 — — Loans, net 1,176,781 1,210,822 — — 1,210,822 Bank-owned life insurance 27,827 27,827 27,827 — — Accrued interest receivable 4,289 4,289 4,289 — — Financial liabilities: Interest-bearing deposits $ 843,166 $ 845,103 $ 637,841 $ — $ 207,262 Noninterest-bearing deposits 310,830 310,830 310,830 — — Short-term borrowings 41,596 41,596 41,596 — — Long-term borrowings 80,998 80,787 — — 80,787 Accrued interest payable 483 483 483 — — Carrying Fair Fair Value Measurements at December 31, 2016 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 43,671 $ 43,671 $ 43,671 $ — $ — Investment securities: Available for sale 133,492 133,492 12,018 121,474 — Trading 58 58 58 — — Loans held for sale 1,953 1,953 1,953 — — Loans, net 1,080,785 1,088,122 — — 1,088,122 Bank-owned life insurance 27,332 27,332 27,332 — — Accrued interest receivable 3,672 3,672 3,672 — — Financial liabilities: Interest-bearing deposits $ 791,937 $ 789,401 $ 571,768 $ — $ 217,633 Noninterest-bearing deposits 303,277 303,277 303,277 — — Short-term borrowings 13,241 13,241 13,241 — — Long-term borrowings 85,998 86,353 — — 86,353 Accrued interest payable 455 455 455 — — Cash and Cash Equivalents, Loans Held for Sale, Accrued Interest Receivable, Short-term Borrowings, and Accrued Interest Payable: The fair value is equal to the carrying value. Investment Securities: The fair value of investment securities available for sale and trading is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Regulatory stocks’ fair value is equal to the carrying value. Loans: Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, financial, and agricultural, commercial real estate, residential real estate, construction real estate, and installment loans to individuals. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories. The fair value of performing loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Company’s historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions. Fair value for significant nonperforming loans is based on recent external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discounted rates are judgmentally determined using available market information and specific borrower information. Bank-Owned Life Insurance: The fair value is equal to the cash surrender value of the life insurance policies. Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible. Long Term Borrowings: The fair value of long term borrowings is based on the discounted value of contractual cash flows. Commitments to Extend Credit, Standby Letters of Credit, and Financial Guarantees Written: There is no material difference between the notional amount and the estimated fair value of off-balance sheet items. The contractual amounts of unfunded commitments and letters of credit are presented in Note 9 (Off Balance Sheet Risk). |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | Stock Options In 2014, the Company adopted the 2014 Equity Incentive Plan designed to help the Company attract, retain, and motivate employees and non-employee directors. Incentive stock options, non-qualified stock options, and restricted stock may be granted as part of the plan. On August 27, 2015, the Company issued 38,750 stock options with a strike price of $42.03 to employees that have a five year vesting period and expire ten years from the grant date. On March 24, 2017 , the Company issued 70,000 stock options in total, to a group of employees, that have a strike price of $44.21 . The options granted in 2017 all expire ten years from the grant date however, of the 70,000 grants awarded, 46,250 of the options have a three year vesting period while the remaining 23,750 options vest in five years. Stock Options Granted Date Shares Forfeited Outstanding Strike Price Vesting Period Expiration March 24, 2017 46,250 — 46,250 $ 44.21 3 years 10 years March 24, 2017 23,750 — 23,750 44.21 5 years 10 years August 27, 2015 38,750 (13,750 ) 25,000 42.03 5 years 10 years A summary of stock option activity is presented below: September 30, 2017 September 30, 2016 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 26,500 $ 42.03 34,750 $ 42.03 Granted 70,000 44.21 — — Exercised — — — — Forfeited (1,500 ) 42.03 (3,750 ) 42.03 Expired — — — — Outstanding, end of year 95,000 $ 43.64 31,000 $ 42.03 Exercisable, end of year — $ — — $ — The estimated fair value of options, including the effect of estimated forfeitures, is recognized as expense on a straightline basis over the options’ vesting periods while ensuring that the cumulative amount of compensation cost recognized at least equals the value of the vested portion of the award at that date. The Company determines the fair value of options granted using the Black-Scholes option-pricing model. The risk-free interest rate is based on the United States Treasury bond with a similar term to the expected life of the options at the grant date. Expected volatility was estimated based on the adjusted historic volatility of the Company’s shares. The expected life was estimated to equal the contractual life of the options. The dividend yield rate was based upon recent historical dividends paid on shares. Compensation expense for stock options is recognized using the fair value when the stock options are granted and is amortized over the options' vesting period. Compensation expense, with a corresponding increase in contributed surplus, related to stock options was $8,000 and $21,000 for the three and nine month periods ended September 30, 2017 compared to $6,000 and $17,000 for the same periods of 2016. As of September 30, 2017, no stock options were exercisable and the weighted average years to expiration were 9 years. The fair value of options granted during the three and nine month periods ending September 30, 2017 was approximately zero and $2,173,000 respectively or zero and $31.04 per award. Total unrecognized compensation cost for non-vested shares, $99,000 , will be recognized over their weighted average remaining vesting period of 3.56 years. |
Reclassification of Comparative
Reclassification of Comparative Amounts | 9 Months Ended |
Sep. 30, 2017 | |
Reclassification of Comparative Amounts | |
Reclassification of Comparative Amounts | Reclassification of Comparative Amounts Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders’ equity. |
Recent Accounting Pronounceme22
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. Subsequently, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) . The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1 percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow-scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this Update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) , which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810) , which amends the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. The provisions in ASU 2016-17 are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the Update is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the Update in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) , which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . This Update, among others things, clarifies that guarantee fees within the scope of Topic 460, Guarantees , (other than product or service warranties) are not within the scope of Topic 606. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for the new revenue recognition guidance. For public entities with a calendar year-end, the new guidance is effective in the quarter and year beginning January 1, 2018. For all other entities with a calendar year-end, the new guidance is effective in the year ending December 31, 2019, and interim periods in 2020. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides a more robust framework to use in determining when a set of assets and activities (collectively referred to as a “set”) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied prospectively on or after the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should 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 an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities, that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). The amendments in this Update clarify what constitutes a financial asset within the scope of Subtopic 610-20. The amendments also clarify that entities should identify each distinct nonfinancial asset or in substance nonfinancial asset that is promised to a counterparty and to derecognize each asset when the counterparty obtains control. There is also additional guidance provided for partial sales of a nonfinancial asset and when derecognition, and the related gain or loss, should be recognized. The amendments in this Update are effective at the same time as the amendments in Update 2014-09. Therefore, for public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements, or the Company is currently evaluating the impact the adoption. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) . The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. For all other entities (including all nonprofit organizations “NPOs”), it is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. This guidance is required to be applied on a retrospective basis for the presentation of the service cost component and the other components of net benefit cost and on a prospective basis for the capitalization of only the service cost component of net benefit cost. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) , which affects any entity that changes the terms or conditions of a share-based payment award. This Update amends the definition of modification by qualifying that modification accounting does not apply to changes to outstanding share-based payment awards that do not affect the total fair value, vesting requirements, or equity/liability classification of the awards. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-10, Service Concession Arrangements (Topic 853) , which applies to the accounting by operating entities for service concession arrangements within the scope of Topic 853. The amendments in this Update clarify that the grantor (government), rather than the third-party drivers, is the customer of the operation services in all cases for service concession arrangements within the scope of Topic 853. For an entity that has not adopted Topic 606 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update generally are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by ASU 2014-09, Revenue from Contracts with Customers (Topic 606)) . ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , deferred the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) . The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt-Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) , the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early application is permitted in any period after issuance. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a cor |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive income by component | The changes in accumulated other comprehensive loss by component shown net of tax and parenthesis indicating debits, as of September 30, 2017 and 2016 were as follows: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (16 ) $ (4,233 ) $ (4,249 ) $ 1,838 $ (4,006 ) $ (2,168 ) Other comprehensive income (loss) before reclassifications 287 — 287 (182 ) — (182 ) Amounts reclassified from accumulated other comprehensive loss (198 ) 30 (168 ) (167 ) 26 (141 ) Net current-period other comprehensive income 89 30 119 (349 ) 26 (323 ) Ending balance $ 73 $ (4,203 ) $ (4,130 ) $ 1,489 $ (3,980 ) $ (2,491 ) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (639 ) $ (4,289 ) $ (4,928 ) $ 258 $ (4,057 ) $ (3,799 ) Other comprehensive income before reclassifications 1,033 — 1,033 2,007 — 2,007 Amounts reclassified from accumulated other comprehensive loss (321 ) 86 (235 ) (776 ) 77 (699 ) Net current-period other comprehensive income 712 86 798 1,231 77 1,308 Ending balance $ 73 $ (4,203 ) $ (4,130 ) $ 1,489 $ (3,980 ) $ (2,491 ) |
Schedule of reclassifications out of accumulated other comprehensive income | The reclassifications out of accumulated other comprehensive loss shown, net of tax and parenthesis indicating debits to net income, as of September 30, 2017 and 2016 were as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Net unrealized (loss) gain on available for sale securities $ 302 $ 253 Net securities (losses) gains, available for sale Income tax effect (104 ) (86 ) Income tax provision Total reclassifications for the period $ 198 $ 167 Net unrecognized pension costs (45 ) (39 ) Salaries and employee benefits Income tax effect 15 13 Income tax provision Total reclassifications for the period (30 ) (26 ) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Consolidated Statement of Income Nine months ended September 30, 2017 Nine months ended September 30, 2016 Net unrealized gain on available for sale securities $ 487 $ 1,174 Net securities gains, available for sale Income tax effect (166 ) (398 ) Income tax provision Total reclassifications for the period $ 321 $ 776 Net unrecognized pension costs (129 ) (117 ) Salaries and employee benefits Income tax effect 43 40 Income tax provision Total reclassifications for the period (86 ) (77 ) |
Per Share Data (Tables)
Per Share Data (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average common shares (denominator) used in the basic and dilutive earnings per share computation | The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and dilutive earnings per share computation. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted average common shares outstanding - basic 4,688,222 5,006,252 4,711,282 5,005,707 Weighted average treasury stock shares (320,150 ) (272,452 ) (296,514 ) (269,863 ) Weighted average common shares outstanding - diluted 4,368,072 4,733,800 4,414,768 4,735,844 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale securities | The amortized cost, gross unrealized gains and losses, and fair values of investment securities available for sale at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 4,544 $ 79 $ (93 ) $ 4,530 State and political securities 61,868 640 (181 ) 62,327 Other debt securities 52,954 220 (1,201 ) 51,973 Total debt securities 119,366 939 (1,475 ) 118,830 Financial institution equity securities 11,537 687 — 12,224 Non-financial institution equity securities 1,300 — (41 ) 1,259 Total equity securities 12,837 687 (41 ) 13,483 Total investment securities AFS $ 132,203 $ 1,626 $ (1,516 ) $ 132,313 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 9,295 $ 182 $ (164 ) $ 9,313 Asset-backed securities 109 — — 109 State and political securities 60,777 666 (509 ) 60,934 Other debt securities 53,046 137 (2,065 ) 51,118 Total debt securities 123,227 985 (2,738 ) 121,474 Financial institution equity securities 9,566 969 — 10,535 Non-financial institution equity securities 1,667 — (184 ) 1,483 Total equity securities 11,233 969 (184 ) 12,018 Total investment securities AFS $ 134,460 $ 1,954 $ (2,922 ) $ 133,492 |
Schedule of amortized cost and fair values of investment securities | The amortized cost and fair values of trading investment securities at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading: Financial institution equity securities $ 61 $ 3 $ (1 ) $ 63 Non-financial institution equity securities 157 4 (14 ) 147 Total trading securities $ 218 $ 7 $ (15 ) $ 210 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading: Financial institution equity securities $ — $ — $ — $ — Non-financial institution equity securities 56 2 — 58 Total trading securities $ 56 $ 2 $ — $ 58 |
Schedule of gross unrealized losses and fair value | The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at September 30, 2017 and December 31, 2016 . September 30, 2017 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for sale (AFS): Mortgage-backed securities $ 1,048 $ (4 ) $ 2,302 $ (89 ) $ 3,350 $ (93 ) State and political securities 13,651 (120 ) 2,170 (61 ) 15,821 (181 ) Other debt securities 9,689 (145 ) 22,733 (1,056 ) 32,422 (1,201 ) Total debt securities 24,388 (269 ) 27,205 (1,206 ) 51,593 (1,475 ) Non-financial institution equity securities 1,259 (41 ) — — 1,259 (41 ) Total equity securities 1,259 (41 ) — — 1,259 (41 ) Total investment securities AFS $ 25,647 $ (310 ) $ 27,205 $ (1,206 ) $ 52,852 $ (1,516 ) December 31, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for sale (AFS): Mortgage-backed securities $ 3,572 $ (106 ) $ 3,627 $ (58 ) $ 7,199 $ (164 ) State and political securities 26,113 (509 ) — — 26,113 (509 ) Other debt securities 28,140 (1,179 ) 12,240 (886 ) 40,380 (2,065 ) Total debt securities 57,825 (1,794 ) 15,867 (944 ) 73,692 (2,738 ) Non-financial institution equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total investment securities AFS $ 58,552 $ (1,934 ) $ 16,623 $ (988 ) $ 75,175 $ (2,922 ) |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities at September 30, 2017 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) Amortized Cost Fair Value Due in one year or less $ 4,839 $ 4,836 Due after one year to five years 45,064 44,918 Due after five years to ten years 54,858 54,301 Due after ten years 14,605 14,775 Total $ 119,366 $ 118,830 |
Schedule of gross realized gains and losses | The following table represents gross realized gains and losses within the available for sale portfolio: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2017 2016 2017 2016 Gross realized gains: U.S. Government and agency securities $ — $ 11 $ — $ 11 Mortgage-backed securities — 29 69 35 State and political securities 313 146 343 784 Other debt securities 5 — 5 258 Financial institution equity securities — 68 288 150 Non-financial institution equity securities — 73 — 217 Total gross realized gains $ 318 $ 327 $ 705 $ 1,455 Gross realized losses: U.S. Government and agency securities $ — $ 2 $ — $ 5 Mortgage-backed securities — — — — Asset-backed securities — — — — State and political securities 16 1 17 1 Other debt securities — 26 51 189 Financial institution equity securities — — — — Non-financial institution equity securities — 45 150 86 Total gross realized losses $ 16 $ 74 $ 218 $ 281 The following table represents gross realized gains and losses within the trading portfolios: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2017 2016 2017 2016 Gross realized gains: Financial institution equity securities $ 3 $ — $ 3 $ 6 Non-financial institution equity securities 4 8 12 76 Total gross realized gains $ 7 $ 8 $ 15 $ 82 Gross realized losses: Financial institution equity securities $ — $ — $ — $ 12 Non-financial institution equity securities 11 — 17 16 Total gross realized losses $ 11 $ — $ 17 $ 28 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of related aging categories of loans by segment | The following table presents the related aging categories of loans, by segment, as of September 30, 2017 and December 31, 2016 : September 30, 2017 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 174,993 $ 6 $ 53 $ 247 $ 175,299 Real estate mortgage: Residential 572,303 1,929 26 1,876 576,134 Commercial 316,493 1,144 — 5,873 323,510 Construction 29,243 9 100 — 29,352 Installment loans to individuals 85,872 625 82 60 86,639 1,178,904 $ 3,713 $ 261 $ 8,056 1,190,934 Net deferred loan fees and discounts (1,220 ) (1,220 ) Allowance for loan losses (12,933 ) (12,933 ) Loans, net $ 1,164,751 $ 1,176,781 December 31, 2016 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 145,179 $ 785 $ 14 $ 132 $ 146,110 Real estate mortgage: Residential 553,053 9,112 587 1,988 564,740 Commercial 296,537 786 268 8,591 306,182 Construction 33,879 771 — — 34,650 Installment loans to individuals 43,008 202 1 45 43,256 1,071,656 $ 11,656 $ 870 $ 10,756 1,094,938 Net deferred loan fees and discounts (1,257 ) (1,257 ) Allowance for loan losses (12,896 ) (12,896 ) Loans, net $ 1,057,503 $ 1,080,785 |
Schedule of interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans | The following table presents interest income the Banks would have recorded if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 2016 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 8 $ 2 $ 1 $ — Real estate mortgage: Residential 29 30 57 68 Commercial 90 23 109 90 Construction — — — Installment 1 1 — — $ 128 $ 56 $ 167 $ 158 Nine Months Ended September 30, 2017 2016 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 21 $ 8 $ 5 $ 1 Real estate mortgage: Residential 123 81 113 95 Commercial 322 42 388 170 Construction — — — — Installment 3 2 — — $ 469 $ 133 $ 506 $ 266 |
Schedule of recorded investment, unpaid principal balance, and related allowance of impaired loans by segment | The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of September 30, 2017 and December 31, 2016 : September 30, 2017 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,141 $ 1,141 $ — Real estate mortgage: Residential 1,775 1,775 — Commercial 2,222 2,222 — Installment loans to individuals — — — 5,138 5,138 — With an allowance recorded: Commercial, financial, and agricultural 255 255 207 Real estate mortgage: Residential 1,022 1,070 224 Commercial 8,433 8,529 1,629 Installment loans to individuals — — — 9,710 9,854 2,060 Total: Commercial, financial, and agricultural 1,396 1,396 207 Real estate mortgage: Residential 2,797 2,845 224 Commercial 10,655 10,751 1,629 Installment loans to individuals — — — $ 14,848 $ 14,992 $ 2,060 December 31, 2016 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 109 $ 109 $ — Real estate mortgage: Residential 1,584 1,584 — Commercial 1,833 1,833 — Installment loans to individuals — — — 3,526 3,526 — With an allowance recorded: Commercial, financial, and agricultural 132 132 74 Real estate mortgage: Residential 1,893 1,893 437 Commercial 10,425 10,520 1,668 Installment loans to individuals — — — 12,450 12,545 2,179 Total: Commercial, financial, and agricultural 241 241 74 Real estate mortgage: Residential 3,477 3,477 437 Commercial 12,258 12,353 1,668 Installment loans to individuals — — — $ 15,976 $ 16,071 $ 2,179 |
Schedule of average recorded investment in impaired loans and related interest income recognized | The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended for September 30, 2017 and 2016 : Three Months Ended September 30, 2017 2016 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 394 $ 17 $ 1 $ 346 $ 4 $ — Real estate mortgage: Residential 3,199 12 34 2,784 23 41 Commercial 12,885 52 23 12,383 83 16 Construction — — — 67 — — Installment loans to individuals — — — — — — $ 16,478 $ 81 $ 58 $ 15,580 $ 110 $ 57 Nine Months Ended September 30, 2017 2016 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 324 $ 24 $ 7 $ 586 $ 12 $ 1 Real estate mortgage: Residential 3,212 48 80 4,539 67 68 Commercial 12,635 137 42 16,988 247 96 Construction — — — 208 — — Installment loans to individuals 8 — 2 — — — $ 16,179 $ 209 $ 131 $ 22,321 $ 326 $ 165 |
Schedule of loan modifications that are considered TDRs | Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2016 were as follows: Three Months Ended September 30, 2017 2016 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural — $ — $ — — $ — $ — Real estate mortgage: Residential — — — 2 580 580 Commercial 2 375 375 — — — Construction — — — — — — 2 $ 375 $ 375 2 $ 580 $ 580 Nine Months Ended September 30, 2017 2016 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural — $ — $ — — $ — $ — Real estate mortgage: Residential — — — 4 922 922 Commercial 2 375 375 1 838 838 Construction — — — — — — 2 $ 375 $ 375 5 $ 1,760 $ 1,760 |
Schedule of credit quality categories | The following table presents the credit quality categories identified above as of September 30, 2017 and December 31, 2016 : September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 170,812 $ 572,591 $ 300,679 $ 29,202 $ 86,639 $ 1,159,923 Special Mention 775 1,287 8,522 — — 10,584 Substandard 3,712 2,256 14,309 150 — 20,427 $ 175,299 $ 576,134 $ 323,510 $ 29,352 $ 86,639 $ 1,190,934 December 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 140,497 $ 561,440 $ 277,916 $ 34,493 $ 43,256 $ 1,057,602 Special Mention 2,943 740 11,143 — — 14,826 Substandard 2,670 2,560 17,123 157 — 22,510 $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938 |
Schedule of activity in the allowance | Activity in the allowance is presented for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,731 $ 5,337 $ 3,727 $ 172 $ 779 $ 1,363 $ 13,109 Charge-offs (68 ) (155 ) — — (55 ) — (278 ) Recoveries 6 16 — 2 18 — 42 Provision (81 ) 232 300 (26 ) 144 (509 ) 60 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 886 $ 854 $ 12,933 Three Months Ended September 30, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,273 $ 5,851 $ 4,001 $ 143 $ 277 $ 972 $ 12,517 Charge-offs (18 ) (4 ) — — (67 ) — (89 ) Recoveries 4 8 3 1 16 — 32 Provision (9 ) (550 ) 642 (29 ) 111 93 258 Ending Balance $ 1,250 $ 5,305 $ 4,646 $ 115 $ 337 $ 1,065 $ 12,718 Nine Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Charge-offs (81 ) (540 ) — — (186 ) — (807 ) Recoveries 117 51 1 7 63 — 239 Provision (2 ) 536 (949 ) (37 ) 593 464 605 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 886 $ 854 $ 12,933 Nine Months Ended September 30, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Charge-offs (167 ) (11 ) — — (171 ) — (349 ) Recoveries 56 14 8 6 73 — 157 Provision (171 ) 186 421 (51 ) 192 289 866 Ending Balance $ 1,250 $ 5,305 $ 4,646 $ 115 $ 337 $ 1,065 $ 12,718 |
Schedule of concentration of loan | The Company has a concentration of the following to gross loans at September 30, 2017 and 2016 : September 30, 2017 2016 Owners of residential rental properties 15.34 % 16.64 % Owners of commercial rental properties 13.45 % 14.11 % |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2017 and December 31, 2016 : September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 207 $ 224 $ 1,629 $ — $ — $ — $ 2,060 Collectively evaluated for impairment 1,381 5,206 2,398 148 886 854 10,873 Total ending allowance balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 886 $ 854 $ 12,933 Loans: Individually evaluated for impairment $ 1,396 $ 2,797 $ 10,655 $ — $ — $ 14,848 Collectively evaluated for impairment 173,903 573,337 312,855 29,352 86,639 1,176,086 Total ending loans balance $ 175,299 $ 576,134 $ 323,510 $ 29,352 $ 86,639 $ 1,190,934 December 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 74 $ 437 $ 1,668 $ — $ — $ — $ 2,179 Collectively evaluated for impairment 1,480 4,946 3,307 178 416 390 10,717 Total ending allowance balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Loans: Individually evaluated for impairment $ 241 $ 3,477 $ 12,258 $ — $ — $ 15,976 Collectively evaluated for impairment 145,869 561,263 293,924 34,650 43,256 1,078,962 Total ending loans balance $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938 |
Net Periodic Benefit Cost-Def27
Net Periodic Benefit Cost-Defined Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of components of the net periodic benefit/cost of the domestic non-contributory defined benefit plan | The following sets forth the components of the net periodic benefit/cost of the domestic non-contributory defined benefit plan for the three and nine months ended September 30, 2017 and 2016 , respectively: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2017 2016 2017 2016 Service cost $ 41 $ 17 $ 124 $ 51 Interest cost 188 193 566 579 Expected return on plan assets (262 ) (251 ) (787 ) (753 ) Amortization of net loss 45 39 129 117 Net periodic benefit cost $ 12 $ (2 ) $ 32 $ (6 ) |
Off Balance Sheet Risk (Tables)
Off Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Off Balance Sheet Risk | |
Schedule of Financial instruments whose contract amounts represent credit risk | Financial instruments whose contract amounts represent credit risk are as follows at September 30, 2017 and December 31, 2016 : (In Thousands) September 30, 2017 December 31, 2016 Commitments to extend credit $ 270,046 $ 263,487 Standby letters of credit 9,923 6,515 Credit exposure from the sale of assets with recourse 4,699 6,341 $ 284,668 $ 276,343 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets reported on the balance sheet at their fair value on a recurring basis | The following table presents the assets reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 4,530 $ — $ 4,530 State and political securities — 62,327 — 62,327 Other debt securities — 51,973 — 51,973 Financial institution equity securities 12,224 — — 12,224 Non-financial institution equity securities 1,259 — — 1,259 Investment securities, trading: Financial institution equity securities 63 — — 63 Non-financial institution equity securities 147 — — 147 December 31, 2016 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 9,313 $ — $ 9,313 Asset-backed securities — 109 — 109 State and political securities — 60,934 — 60,934 Other debt securities — 51,118 — 51,118 Financial institution equity securities 10,535 — — 10,535 Non-financial institution equity securities 1,483 — — 1,483 Investment securities, trading: Non-financial institution equity securities 58 — — 58 |
Schedule of assets reported on the consolidated balance sheet at their fair value on a non-recurring basis | The following table presents the assets reported on the Consolidated Balance Sheet at their fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 12,788 $ 12,788 Other real estate owned — — 108 108 December 31, 2016 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 13,797 $ 13,797 Other real estate owned — — 839 839 |
Schedule of listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | The following tables present a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of September 30, 2017 and December 31, 2016 : September 30, 2017 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,753 Discounted cash flow Temporary reduction in payment amount 0 to (100)% (18)% 7,035 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (16)% Other real estate owned $ 108 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. December 31, 2016 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,304 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (20)% 8,493 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 839 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial instruments | The fair values of the Company’s financial instruments are as follows at September 30, 2017 and December 31, 2016 : Carrying Fair Fair Value Measurements at September 30, 2017 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 27,747 $ 27,747 $ 27,747 $ — $ — Investment securities: Available for sale 132,313 132,313 13,483 118,830 — Trading 210 210 210 — — Loans held for sale 1,734 1,734 1,734 — — Loans, net 1,176,781 1,210,822 — — 1,210,822 Bank-owned life insurance 27,827 27,827 27,827 — — Accrued interest receivable 4,289 4,289 4,289 — — Financial liabilities: Interest-bearing deposits $ 843,166 $ 845,103 $ 637,841 $ — $ 207,262 Noninterest-bearing deposits 310,830 310,830 310,830 — — Short-term borrowings 41,596 41,596 41,596 — — Long-term borrowings 80,998 80,787 — — 80,787 Accrued interest payable 483 483 483 — — Carrying Fair Fair Value Measurements at December 31, 2016 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 43,671 $ 43,671 $ 43,671 $ — $ — Investment securities: Available for sale 133,492 133,492 12,018 121,474 — Trading 58 58 58 — — Loans held for sale 1,953 1,953 1,953 — — Loans, net 1,080,785 1,088,122 — — 1,088,122 Bank-owned life insurance 27,332 27,332 27,332 — — Accrued interest receivable 3,672 3,672 3,672 — — Financial liabilities: Interest-bearing deposits $ 791,937 $ 789,401 $ 571,768 $ — $ 217,633 Noninterest-bearing deposits 303,277 303,277 303,277 — — Short-term borrowings 13,241 13,241 13,241 — — Long-term borrowings 85,998 86,353 — — 86,353 Accrued interest payable 455 455 455 — — |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock Options Granted Date Shares Forfeited Outstanding Strike Price Vesting Period Expiration March 24, 2017 46,250 — 46,250 $ 44.21 3 years 10 years March 24, 2017 23,750 — 23,750 44.21 5 years 10 years August 27, 2015 38,750 (13,750 ) 25,000 42.03 5 years 10 years A summary of stock option activity is presented below: September 30, 2017 September 30, 2016 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 26,500 $ 42.03 34,750 $ 42.03 Granted 70,000 44.21 — — Exercised — — — — Forfeited (1,500 ) 42.03 (3,750 ) 42.03 Expired — — — — Outstanding, end of year 95,000 $ 43.64 31,000 $ 42.03 Exercisable, end of year — $ — — $ — |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | $ 287 | $ (182) | $ 1,033 | $ 2,007 |
Amounts reclassified from accumulated other comprehensive (loss) income | (168) | (141) | (235) | (699) |
Total other comprehensive income (loss) | 119 | (323) | 798 | 1,308 |
Net Unrealized Loss on Available for Sale Securities | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | (16) | 1,838 | (639) | 258 |
Other comprehensive income (loss) before reclassifications | 287 | (182) | 1,033 | 2,007 |
Amounts reclassified from accumulated other comprehensive (loss) income | (198) | (167) | (321) | (776) |
Total other comprehensive income (loss) | 89 | (349) | 712 | 1,231 |
Ending balance | 73 | 1,489 | 73 | 1,489 |
Defined Benefit Plan | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | (4,233) | (4,006) | (4,289) | (4,057) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (loss) income | 30 | 26 | 86 | 77 |
Total other comprehensive income (loss) | 30 | 26 | 86 | 77 |
Ending balance | (4,203) | (3,980) | (4,203) | (3,980) |
AOCI Attributable to Parent | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | (4,249) | (2,168) | (4,928) | (3,799) |
Total other comprehensive income (loss) | 798 | 1,308 | ||
Ending balance | $ (4,130) | $ (2,491) | $ (4,130) | $ (2,491) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss - Schedule of Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassifications out of accumulated other comprehensive income | ||||
Net securities (losses) gains, available for sale | $ 302 | $ 487 | $ 1,174 | |
Income tax provision | (1,282) | $ (1,273) | (3,491) | (3,307) |
Salaries and employee benefits | (4,738) | (4,507) | (14,116) | (13,433) |
NET INCOME | 3,284 | 3,059 | 9,057 | 9,529 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Net Unrealized Gain on Available for Sale Securities | ||||
Reclassifications out of accumulated other comprehensive income | ||||
Net securities (losses) gains, available for sale | 302 | 253 | 487 | 1,174 |
Income tax provision | (104) | (86) | (166) | (398) |
NET INCOME | 198 | 167 | 321 | 776 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
Reclassifications out of accumulated other comprehensive income | ||||
Income tax provision | 15 | 13 | 43 | 40 |
Salaries and employee benefits | (45) | (39) | (129) | (117) |
NET INCOME | $ (30) | $ (26) | $ (86) | $ (77) |
Recent Accounting Pronounceme34
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Percent change in assets and liabilities (less than) | 1.00% |
Per Share Data (Details)
Per Share Data (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 27, 2015 | |
Earnings Per Share [Abstract] | |||||||
Convertible securities which would affect denominator in calculating basic and dilutive earnings per share (in shares) | 0 | ||||||
Options, outstanding (in shares) | 95,000 | 31,000 | 95,000 | 31,000 | 26,500 | 34,750 | 25,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ 43.64 | $ 42.03 | $ 43.64 | $ 42.03 | $ 42.03 | $ 42.03 | |
Weighted average exercise price (in dollars per share) | 42.03 | 42.03 | |||||
Share price (in dollars per share) | $ 43.53 | $ 41.10 | $ 43.53 | $ 41.10 | |||
Weighted average common shares outstanding - basic (in shares) | 4,688,222 | 5,006,252 | 4,711,282 | 5,005,707 | |||
Weighted average treasury stock shares (in shares) | (320,150) | (272,452) | (296,514) | (269,863) | |||
Weighted average common shares outstanding - diluted (in shares) | 4,368,072 | 4,733,800 | 4,414,768 | 4,735,844 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Investment securities, trading | $ 210 | $ 58 |
Available for sale (AFS) | ||
Amortized Cost | 132,203 | 134,460 |
Gross Unrealized Gains | 1,626 | 1,954 |
Gross Unrealized Losses | (1,516) | (2,922) |
Available for sale | 132,313 | 133,492 |
Debt securities | ||
Available for sale (AFS) | ||
Amortized Cost | 119,366 | 123,227 |
Gross Unrealized Gains | 939 | 985 |
Gross Unrealized Losses | (1,475) | (2,738) |
Available for sale | 118,830 | 121,474 |
Mortgage-backed securities | ||
Available for sale (AFS) | ||
Amortized Cost | 4,544 | 9,295 |
Gross Unrealized Gains | 79 | 182 |
Gross Unrealized Losses | (93) | (164) |
Available for sale | 4,530 | 9,313 |
Asset-backed securities | ||
Available for sale (AFS) | ||
Amortized Cost | 109 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Available for sale | 109 | |
State and political securities | ||
Available for sale (AFS) | ||
Amortized Cost | 61,868 | 60,777 |
Gross Unrealized Gains | 640 | 666 |
Gross Unrealized Losses | (181) | (509) |
Available for sale | 62,327 | 60,934 |
Other debt securities | ||
Available for sale (AFS) | ||
Amortized Cost | 52,954 | 53,046 |
Gross Unrealized Gains | 220 | 137 |
Gross Unrealized Losses | (1,201) | (2,065) |
Available for sale | 51,973 | 51,118 |
Financial institution equity securities | ||
Available for sale (AFS) | ||
Amortized Cost | 11,537 | 9,566 |
Gross Unrealized Gains | 687 | 969 |
Gross Unrealized Losses | 0 | 0 |
Available for sale | 12,224 | 10,535 |
Non-financial institution equity securities | ||
Investment securities | ||
Investment securities, trading | 147 | 58 |
Available for sale (AFS) | ||
Amortized Cost | 1,300 | 1,667 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (41) | (184) |
Available for sale | 1,259 | 1,483 |
Other equity securities | ||
Available for sale (AFS) | ||
Amortized Cost | 12,837 | 11,233 |
Gross Unrealized Gains | 687 | 969 |
Gross Unrealized Losses | (41) | (184) |
Available for sale | $ 13,483 | $ 12,018 |
Investment Securities - Trading
Investment Securities - Trading Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | $ 218 | $ 56 |
Trading securities accumulated gross unrealized gain before tax | 7 | 2 |
Trading securities accumulated gross unrealized loss before tax | (15) | 0 |
Trading securities fair value | 210 | 58 |
Financial institution equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 61 | 0 |
Trading securities accumulated gross unrealized gain before tax | 3 | 0 |
Trading securities accumulated gross unrealized loss before tax | (1) | 0 |
Trading securities fair value | 63 | 0 |
Non-financial institution equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 157 | 56 |
Trading securities accumulated gross unrealized gain before tax | 4 | 2 |
Trading securities accumulated gross unrealized loss before tax | (14) | 0 |
Trading securities fair value | $ 147 | $ 58 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ (4,000) | $ 8,000 | $ (2,000) | $ 54,000 | |
Available for sale securities in unrealized loss, positions number of positions, less than twelve months | security | 34 | 34 | |||
Available for sale securities in unrealized loss, positions number of positions, greater than twelve months | security | 20 | 20 | |||
Proceeds from sales of available for sale securities | $ 6,478,000 | 16,168,000 | $ 15,443,000 | 42,180,000 | |
Impairment charges | 0 | $ 0 | 0 | $ 0 | |
Investment securities, carrying value | $ 98,157,000 | $ 98,157,000 | $ 95,199,000 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Fair value, less than twelve months | $ 25,647 | $ 58,552 |
Gross unrealized losses, less than twelve months | (310) | (1,934) |
Fair value, twelve months or greater | 27,205 | 16,623 |
Gross unrealized losses, twelve months or greater | (1,206) | (988) |
Fair value, total | 52,852 | 75,175 |
Gross unrealized losses, total | (1,516) | (2,922) |
Mortgage-backed securities | ||
Investment securities | ||
Fair value, less than twelve months | 1,048 | 3,572 |
Gross unrealized losses, less than twelve months | (4) | (106) |
Fair value, twelve months or greater | 2,302 | 3,627 |
Gross unrealized losses, twelve months or greater | (89) | (58) |
Fair value, total | 3,350 | 7,199 |
Gross unrealized losses, total | (93) | (164) |
State and political securities | ||
Investment securities | ||
Fair value, less than twelve months | 13,651 | 26,113 |
Gross unrealized losses, less than twelve months | (120) | (509) |
Fair value, twelve months or greater | 2,170 | 0 |
Gross unrealized losses, twelve months or greater | (61) | 0 |
Fair value, total | 15,821 | 26,113 |
Gross unrealized losses, total | (181) | (509) |
Other debt securities | ||
Investment securities | ||
Fair value, less than twelve months | 9,689 | 28,140 |
Gross unrealized losses, less than twelve months | (145) | (1,179) |
Fair value, twelve months or greater | 22,733 | 12,240 |
Gross unrealized losses, twelve months or greater | (1,056) | (886) |
Fair value, total | 32,422 | 40,380 |
Gross unrealized losses, total | (1,201) | (2,065) |
Debt securities | ||
Investment securities | ||
Fair value, less than twelve months | 24,388 | 57,825 |
Gross unrealized losses, less than twelve months | (269) | (1,794) |
Fair value, twelve months or greater | 27,205 | 15,867 |
Gross unrealized losses, twelve months or greater | (1,206) | (944) |
Fair value, total | 51,593 | 73,692 |
Gross unrealized losses, total | (1,475) | (2,738) |
Non-financial institution equity securities | ||
Investment securities | ||
Fair value, less than twelve months | 1,259 | 727 |
Gross unrealized losses, less than twelve months | (41) | (140) |
Fair value, twelve months or greater | 0 | 756 |
Gross unrealized losses, twelve months or greater | 0 | (44) |
Fair value, total | 1,259 | 1,483 |
Gross unrealized losses, total | (41) | (184) |
Other equity securities | ||
Investment securities | ||
Fair value, less than twelve months | 1,259 | 727 |
Gross unrealized losses, less than twelve months | (41) | (140) |
Fair value, twelve months or greater | 0 | 756 |
Gross unrealized losses, twelve months or greater | 0 | (44) |
Fair value, total | 1,259 | 1,483 |
Gross unrealized losses, total | $ (41) | $ (184) |
Investment Securities - Amort40
Investment Securities - Amortized Cost and Fair Value of Debt Securities (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Amortized Cost | |
Amortized Cost - Due in one year or less | $ 4,839 |
Amortized Cost - Due after one year to five years | 45,064 |
Amortized Cost - Due after five years to ten years | 54,858 |
Amortized Cost - Due after ten years | 14,605 |
Amortized Cost - Total | 119,366 |
Fair Value | |
Fair Value - Due in one year or less | 4,836 |
Fair Value - Due after one year to five years | 44,918 |
Fair Value - Due after five years to ten years | 54,301 |
Fair Value - Due after ten years | 14,775 |
Fair Value - Total | $ 118,830 |
Investment Securities - Total G
Investment Securities - Total Gross Proceeds from Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | $ 318 | $ 327 | $ 705 | $ 1,455 |
Available-for-sale securities, gross realized losses | 16 | 74 | 218 | 281 |
Gross realized gains | 7 | 8 | 15 | 82 |
Gross realized losses | 11 | 0 | 17 | 28 |
US Government Agencies Debt Securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | 0 | 11 | 0 | 11 |
Available-for-sale securities, gross realized losses | 0 | 2 | 0 | 5 |
Mortgage-backed securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | 0 | 29 | 69 | 35 |
Available-for-sale securities, gross realized losses | 0 | 0 | 0 | 0 |
Asset-backed securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized losses | 0 | 0 | 0 | 0 |
State and political securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | 313 | 146 | 343 | 784 |
Available-for-sale securities, gross realized losses | 16 | 1 | 17 | 1 |
Other debt securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | 5 | 0 | 5 | 258 |
Available-for-sale securities, gross realized losses | 0 | 26 | 51 | 189 |
Financial institution equity securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | 0 | 68 | 288 | 150 |
Available-for-sale securities, gross realized losses | 0 | 0 | 0 | 0 |
Gross realized gains | 3 | 0 | 3 | 6 |
Gross realized losses | 0 | 0 | 0 | 12 |
Non-financial institution equity securities | ||||
Gross realized gains and losses | ||||
Available-for-sale securities, gross realized gains | 0 | 73 | 0 | 217 |
Available-for-sale securities, gross realized losses | 0 | 45 | 150 | 86 |
Gross realized gains | 4 | 8 | 12 | 76 |
Gross realized losses | $ 11 | $ 0 | $ 17 | $ 16 |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)categorycomponentclasscontract | Sep. 30, 2017USD ($)categorycomponentclasscontract | Sep. 30, 2016contract | Mar. 31, 2017contract | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable individually evaluated for impairment minimum amount | $ 100,000 | ||||
Individually evaluated for impairment | $ 100,000 | ||||
Payment delays limit (in days) | 90 days | ||||
Impaired financing receivable commitment to lend | $ 10,000 | $ 10,000 | |||
Reasonable period to classify from troubled debt restructuring non performing loans to performing loans (in months) | 6 months | ||||
Number of contracts | contract | 2 | 2 | 0 | ||
Recorded investment | $ 8,429,000 | $ 8,429,000 | $ 9,180,000 | ||
Real estate acquired through foreclosure | $ 458,000 | $ 458,000 | 839,000 | ||
Mortgage loans in process of foreclosure, amount | $ 167,000 | ||||
Number of categories considered not criticized and rated as, Pass | category | 6 | 6 | |||
Minimum period after which loans are considered as substandard (in days) | 90 days | ||||
Number of components that represents the allowance for loan losses | component | 2 | 2 | |||
Number of classes that groups of loans are collectively evaluated for impairment | class | 2 | 2 | |||
Period considered for quarter moving average which used in calculating historical charge off (in months) | 36 months | ||||
Commercial Loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of contracts | contract | 1 | ||||
Recorded investment | $ 103,000 | ||||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of contracts | contract | 1 | 5 | |||
Recorded investment | $ 239,000 | ||||
Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of contracts | contract | 3 | ||||
Recorded investment | $ 173,000 | ||||
Real estate mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of categories in which real estate loans segmented | category | 3 |
Loans - Aging Categories of Loa
Loans - Aging Categories of Loans by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Aging categories of loans by segment | ||||||
Current | $ 1,178,904 | $ 1,071,656 | ||||
Past Due 30 To 89 Days | 3,713 | 11,656 | ||||
Past Due 90 Days Or More & Still Accruing | 261 | 870 | ||||
Non-Accrual | 8,056 | 10,756 | ||||
Total | 1,190,934 | 1,094,938 | ||||
Net deferred loan fees and discounts | (1,220) | (1,257) | ||||
Allowance for loan losses | (12,933) | $ (13,109) | (12,896) | $ (12,718) | $ (12,517) | $ (12,044) |
Current loans, net | 1,164,751 | 1,057,503 | ||||
Loans, net | 1,176,781 | 1,080,785 | ||||
Commercial, financial, and agricultural | ||||||
Aging categories of loans by segment | ||||||
Current | 174,993 | 145,179 | ||||
Past Due 30 To 89 Days | 6 | 785 | ||||
Past Due 90 Days Or More & Still Accruing | 53 | 14 | ||||
Non-Accrual | 247 | 132 | ||||
Total | 175,299 | 146,110 | ||||
Allowance for loan losses | (1,588) | (1,731) | (1,554) | (1,250) | (1,273) | (1,532) |
Real estate mortgage | Residential | ||||||
Aging categories of loans by segment | ||||||
Current | 572,303 | 553,053 | ||||
Past Due 30 To 89 Days | 1,929 | 9,112 | ||||
Past Due 90 Days Or More & Still Accruing | 26 | 587 | ||||
Non-Accrual | 1,876 | 1,988 | ||||
Total | 576,134 | 564,740 | ||||
Allowance for loan losses | (5,430) | (5,337) | (5,383) | (5,305) | (5,851) | (5,116) |
Real estate mortgage | Commercial | ||||||
Aging categories of loans by segment | ||||||
Current | 316,493 | 296,537 | ||||
Past Due 30 To 89 Days | 1,144 | 786 | ||||
Past Due 90 Days Or More & Still Accruing | 0 | 268 | ||||
Non-Accrual | 5,873 | 8,591 | ||||
Total | 323,510 | 306,182 | ||||
Allowance for loan losses | (4,027) | (3,727) | (4,975) | (4,646) | (4,001) | (4,217) |
Real estate mortgage | Construction | ||||||
Aging categories of loans by segment | ||||||
Current | 29,243 | 33,879 | ||||
Past Due 30 To 89 Days | 9 | 771 | ||||
Past Due 90 Days Or More & Still Accruing | 100 | 0 | ||||
Non-Accrual | 0 | 0 | ||||
Total | 29,352 | 34,650 | ||||
Allowance for loan losses | (148) | (172) | (178) | (115) | (143) | (160) |
Installment loans to individuals | ||||||
Aging categories of loans by segment | ||||||
Current | 85,872 | 43,008 | ||||
Past Due 30 To 89 Days | 625 | 202 | ||||
Past Due 90 Days Or More & Still Accruing | 82 | 1 | ||||
Non-Accrual | 60 | 45 | ||||
Total | 86,639 | 43,256 | ||||
Allowance for loan losses | $ (886) | $ (779) | $ (416) | $ (337) | $ (277) | $ (243) |
Loans - Interest Income (Detail
Loans - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | $ 128 | $ 167 | $ 469 | $ 506 |
Interest Income Recorded on a Cash Basis | 56 | 158 | 133 | 266 |
Commercial, financial, and agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 8 | 1 | 21 | 5 |
Interest Income Recorded on a Cash Basis | 2 | 0 | 8 | 1 |
Real estate mortgage | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 29 | 57 | 123 | 113 |
Interest Income Recorded on a Cash Basis | 30 | 68 | 81 | 95 |
Real estate mortgage | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 90 | 109 | 322 | 388 |
Interest Income Recorded on a Cash Basis | 23 | 90 | 42 | 170 |
Real estate mortgage | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 0 | 0 | 0 | |
Interest Income Recorded on a Cash Basis | 0 | 0 | 0 | 0 |
Installment loans to individuals | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 1 | 0 | 3 | 0 |
Interest Income Recorded on a Cash Basis | $ 1 | $ 0 | $ 2 | $ 0 |
Loans - Recorded Investment, Un
Loans - Recorded Investment, Unpaid Principal Balance, Related Allowance of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | $ 5,138 | $ 3,526 |
Recorded Investment, With an allowance recorded | 9,710 | 12,450 |
Recorded Investment | 14,848 | 15,976 |
Unpaid Principal Balance, With no related allowance recorded | 5,138 | 3,526 |
Unpaid Principal Balance, With an allowance recorded | 9,854 | 12,545 |
Unpaid Principal Balance | 14,992 | 16,071 |
Related Allowance | 2,060 | 2,179 |
Commercial, financial, and agricultural | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 1,141 | 109 |
Recorded Investment, With an allowance recorded | 255 | 132 |
Recorded Investment | 1,396 | 241 |
Unpaid Principal Balance, With no related allowance recorded | 1,141 | 109 |
Unpaid Principal Balance, With an allowance recorded | 255 | 132 |
Unpaid Principal Balance | 1,396 | 241 |
Related Allowance | 207 | 74 |
Real estate mortgage | Residential | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 1,775 | 1,584 |
Recorded Investment, With an allowance recorded | 1,022 | 1,893 |
Recorded Investment | 2,797 | 3,477 |
Unpaid Principal Balance, With no related allowance recorded | 1,775 | 1,584 |
Unpaid Principal Balance, With an allowance recorded | 1,070 | 1,893 |
Unpaid Principal Balance | 2,845 | 3,477 |
Related Allowance | 224 | 437 |
Real estate mortgage | Commercial | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 2,222 | 1,833 |
Recorded Investment, With an allowance recorded | 8,433 | 10,425 |
Recorded Investment | 10,655 | 12,258 |
Unpaid Principal Balance, With no related allowance recorded | 2,222 | 1,833 |
Unpaid Principal Balance, With an allowance recorded | 8,529 | 10,520 |
Unpaid Principal Balance | 10,751 | 12,353 |
Related Allowance | 1,629 | 1,668 |
Real estate mortgage | Installment loans to individuals | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 0 | 0 |
Recorded Investment, With an allowance recorded | 0 | 0 |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance, With no related allowance recorded | 0 | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | $ 0 | $ 0 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | $ 16,478 | $ 15,580 | $ 16,179 | $ 22,321 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 81 | 110 | 209 | 326 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 58 | 57 | 131 | 165 |
Commercial, financial, and agricultural | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 394 | 346 | 324 | 586 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 17 | 4 | 24 | 12 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 1 | 0 | 7 | 1 |
Real estate mortgage | Residential | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 3,199 | 2,784 | 3,212 | 4,539 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 12 | 23 | 48 | 67 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 34 | 41 | 80 | 68 |
Real estate mortgage | Commercial | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 12,885 | 12,383 | 12,635 | 16,988 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 52 | 83 | 137 | 247 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 23 | 16 | 42 | 96 |
Real estate mortgage | Construction | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 0 | 67 | 0 | 208 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 0 | 0 | 0 | 0 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 0 | 0 | 0 | 0 |
Installment loans to individuals | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 0 | 0 | 8 | 0 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 0 | 0 | 0 | 0 |
Interest Income Recognized on a Cash Basis on Impaired Loans | $ 0 | $ 0 | $ 2 | $ 0 |
Loans - Loan Modifications (Det
Loans - Loan Modifications (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 2 | 2 | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 375 | $ 580 | $ 375 | $ 1,760 |
Post-Modification Outstanding Recorded Investment | $ 375 | $ 580 | $ 375 | $ 1,760 |
Commercial, financial, and agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate mortgage | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 2 | 0 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 580 | $ 0 | $ 922 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 580 | $ 0 | $ 922 |
Real estate mortgage | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 2 | 0 | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 375 | $ 0 | $ 375 | $ 838 |
Post-Modification Outstanding Recorded Investment | $ 375 | $ 0 | $ 375 | $ 838 |
Real estate mortgage | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Credit quality categories | ||
Total | $ 1,190,934 | $ 1,094,938 |
Pass | ||
Credit quality categories | ||
Total | 1,159,923 | 1,057,602 |
Special Mention | ||
Credit quality categories | ||
Total | 10,584 | 14,826 |
Substandard | ||
Credit quality categories | ||
Total | 20,427 | 22,510 |
Commercial, financial, and agricultural | ||
Credit quality categories | ||
Total | 175,299 | 146,110 |
Commercial, financial, and agricultural | Pass | ||
Credit quality categories | ||
Total | 170,812 | 140,497 |
Commercial, financial, and agricultural | Special Mention | ||
Credit quality categories | ||
Total | 775 | 2,943 |
Commercial, financial, and agricultural | Substandard | ||
Credit quality categories | ||
Total | 3,712 | 2,670 |
Installment loans to individuals | ||
Credit quality categories | ||
Total | 86,639 | 43,256 |
Installment loans to individuals | Pass | ||
Credit quality categories | ||
Total | 86,639 | 43,256 |
Installment loans to individuals | Special Mention | ||
Credit quality categories | ||
Total | 0 | 0 |
Installment loans to individuals | Substandard | ||
Credit quality categories | ||
Total | 0 | 0 |
Residential | Real estate mortgage | ||
Credit quality categories | ||
Total | 576,134 | 564,740 |
Residential | Real estate mortgage | Pass | ||
Credit quality categories | ||
Total | 572,591 | 561,440 |
Residential | Real estate mortgage | Special Mention | ||
Credit quality categories | ||
Total | 1,287 | 740 |
Residential | Real estate mortgage | Substandard | ||
Credit quality categories | ||
Total | 2,256 | 2,560 |
Commercial | Real estate mortgage | ||
Credit quality categories | ||
Total | 323,510 | 306,182 |
Commercial | Real estate mortgage | Pass | ||
Credit quality categories | ||
Total | 300,679 | 277,916 |
Commercial | Real estate mortgage | Special Mention | ||
Credit quality categories | ||
Total | 8,522 | 11,143 |
Commercial | Real estate mortgage | Substandard | ||
Credit quality categories | ||
Total | 14,309 | 17,123 |
Construction | Real estate mortgage | ||
Credit quality categories | ||
Total | 29,352 | 34,650 |
Construction | Real estate mortgage | Pass | ||
Credit quality categories | ||
Total | 29,202 | 34,493 |
Construction | Real estate mortgage | Special Mention | ||
Credit quality categories | ||
Total | 0 | 0 |
Construction | Real estate mortgage | Substandard | ||
Credit quality categories | ||
Total | $ 150 | $ 157 |
Loans - Allowance for Credit Lo
Loans - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for Loan Losses: | ||||
Beginning Balance | $ 13,109 | $ 12,517 | $ 12,896 | $ 12,044 |
Charge-offs | (278) | (89) | (807) | (349) |
Recoveries | 42 | 32 | 239 | 157 |
Provision for loan losses | 60 | 258 | 605 | 866 |
Provision | 12,933 | 12,718 | 12,933 | 12,718 |
Commercial, financial, and agricultural | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 1,731 | 1,273 | 1,554 | 1,532 |
Charge-offs | (68) | (18) | (81) | (167) |
Recoveries | 6 | 4 | 117 | 56 |
Provision for loan losses | (81) | (9) | (2) | (171) |
Provision | 1,588 | 1,250 | 1,588 | 1,250 |
Real estate mortgage | Residential | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 5,337 | 5,851 | 5,383 | 5,116 |
Charge-offs | (155) | (4) | (540) | (11) |
Recoveries | 16 | 8 | 51 | 14 |
Provision for loan losses | 232 | (550) | 536 | 186 |
Provision | 5,430 | 5,305 | 5,430 | 5,305 |
Real estate mortgage | Commercial | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 3,727 | 4,001 | 4,975 | 4,217 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 3 | 1 | 8 |
Provision for loan losses | 300 | 642 | (949) | 421 |
Provision | 4,027 | 4,646 | 4,027 | 4,646 |
Real estate mortgage | Construction | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 172 | 143 | 178 | 160 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 2 | 1 | 7 | 6 |
Provision for loan losses | (26) | (29) | (37) | (51) |
Provision | 148 | 115 | 148 | 115 |
Installment loans to individuals | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 779 | 277 | 416 | 243 |
Charge-offs | (55) | (67) | (186) | (171) |
Recoveries | 18 | 16 | 63 | 73 |
Provision for loan losses | 144 | 111 | 593 | 192 |
Provision | 886 | 337 | 886 | 337 |
Unallocated | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 1,363 | 972 | 390 | 776 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | (509) | 93 | 464 | 289 |
Provision | $ 854 | $ 1,065 | $ 854 | $ 1,065 |
Loans - Schedule of Concentrati
Loans - Schedule of Concentration Risk (Details) - Owners of rental properties - Financing receivable | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Residential | ||
Concentration Risk [Line Items] | ||
Concentration of loans (as a percent) | 15.34% | 16.64% |
Commercial | ||
Concentration Risk [Line Items] | ||
Concentration of loans (as a percent) | 13.45% | 14.11% |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | $ 2,060 | $ 2,179 | ||||
Collectively evaluated for impairment | 10,873 | 10,717 | ||||
Total ending allowance balance | 12,933 | $ 13,109 | 12,896 | $ 12,718 | $ 12,517 | $ 12,044 |
Loans: | ||||||
Individually evaluated for impairment | 14,848 | 15,976 | ||||
Collectively evaluated for impairment | 1,176,086 | 1,078,962 | ||||
Total | 1,190,934 | 1,094,938 | ||||
Commercial, financial, and agricultural | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 207 | 74 | ||||
Collectively evaluated for impairment | 1,381 | 1,480 | ||||
Total ending allowance balance | 1,588 | 1,731 | 1,554 | 1,250 | 1,273 | 1,532 |
Loans: | ||||||
Individually evaluated for impairment | 1,396 | 241 | ||||
Collectively evaluated for impairment | 173,903 | 145,869 | ||||
Total | 175,299 | 146,110 | ||||
Real estate mortgage | Residential | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 224 | 437 | ||||
Collectively evaluated for impairment | 5,206 | 4,946 | ||||
Total ending allowance balance | 5,430 | 5,337 | 5,383 | 5,305 | 5,851 | 5,116 |
Loans: | ||||||
Individually evaluated for impairment | 2,797 | 3,477 | ||||
Collectively evaluated for impairment | 573,337 | 561,263 | ||||
Total | 576,134 | 564,740 | ||||
Real estate mortgage | Commercial | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 1,629 | 1,668 | ||||
Collectively evaluated for impairment | 2,398 | 3,307 | ||||
Total ending allowance balance | 4,027 | 3,727 | 4,975 | 4,646 | 4,001 | 4,217 |
Loans: | ||||||
Individually evaluated for impairment | 10,655 | 12,258 | ||||
Collectively evaluated for impairment | 312,855 | 293,924 | ||||
Total | 323,510 | 306,182 | ||||
Real estate mortgage | Construction | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 148 | 178 | ||||
Total ending allowance balance | 148 | 172 | 178 | 115 | 143 | 160 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 29,352 | 34,650 | ||||
Total | 29,352 | 34,650 | ||||
Installment loans to individuals | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 886 | 416 | ||||
Total ending allowance balance | 886 | 779 | 416 | 337 | 277 | 243 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 86,639 | 43,256 | ||||
Total | 86,639 | 43,256 | ||||
Unallocated | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 854 | 390 | ||||
Total ending allowance balance | $ 854 | $ 1,363 | $ 390 | $ 1,065 | $ 972 | $ 776 |
Net Periodic Benefit Cost-Def52
Net Periodic Benefit Cost-Defined Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Net periodic benefit cost of the domestic non-contributory defined benefit plan | |||||
Service cost | $ 41,000 | $ 17,000 | $ 124,000 | $ 51,000 | |
Interest cost | 188,000 | 193,000 | 566,000 | 579,000 | |
Expected return on plan assets | (262,000) | (251,000) | (787,000) | (753,000) | |
Amortization of net loss | 45,000 | 39,000 | 129,000 | 117,000 | |
Net periodic benefit cost | 12,000 | $ (2,000) | 32,000 | $ (6,000) | |
Expected contribution to Pension Plan in 2017 (minimum) | $ 500,000 | ||||
Employer contributions made to the defined benefit plan | 500,000 | ||||
Anticipated additional contributions anticipated during the remainder of 2017 (at least) | $ 250,000 | $ 250,000 |
Employee Stock Purchase Plan (D
Employee Stock Purchase Plan (Details) - Employee Stock - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Stock Purchase Plan | ||
Number of shares allowed to be purchased by employees (in shares) | 1,000,000 | |
Purchase price of the shares with respect to market value (as a percent) | 95.00% | |
Maximum percentage of base compensation | 15.00% | |
Maximum market value | $ 12,000 | |
Number of shares issued under the plan (in shares) | 1,611 | 1,617 |
Off Balance Sheet Risk (Details
Off Balance Sheet Risk (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 284,668 | $ 276,343 |
Commitments to extend credit | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | 270,046 | 263,487 |
Standby letters of credit | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 9,923 | 6,515 |
Coverage period for instrument (in years) | 1 year | |
Credit exposure from the sale of assets with recourse | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 4,699 | $ 6,341 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Assets (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | $ 4,530 | $ 9,313 |
Available-for-sale Securities | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 109 | |
Available-for-sale Securities | State and political securities | ||
Fair Value Measurements | ||
Total assets | 62,327 | 60,934 |
Available-for-sale Securities | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 51,973 | 51,118 |
Available-for-sale Securities | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 12,224 | 10,535 |
Available-for-sale Securities | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 1,259 | 1,483 |
Available-for-sale Securities | Level I | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level I | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level I | State and political securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level I | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level I | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 12,224 | 10,535 |
Available-for-sale Securities | Level I | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 1,259 | 1,483 |
Available-for-sale Securities | Level II | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 4,530 | 9,313 |
Available-for-sale Securities | Level II | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 109 | |
Available-for-sale Securities | Level II | State and political securities | ||
Fair Value Measurements | ||
Total assets | 62,327 | 60,934 |
Available-for-sale Securities | Level II | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 51,973 | 51,118 |
Available-for-sale Securities | Level II | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level II | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level III | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level III | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | State and political securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level III | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level III | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Available-for-sale Securities | Level III | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Trading Securities | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 63 | |
Trading Securities | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 147 | 58 |
Trading Securities | Level I | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 63 | |
Trading Securities | Level I | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 147 | 58 |
Trading Securities | Level II | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Trading Securities | Level II | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Trading Securities | Level III | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Trading Securities | Level III | Non-financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | $ 0 | $ 0 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Assets (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Impaired loans | ||
Fair Value Measurements | ||
Fair value | $ 12,788 | $ 13,797 |
Impaired loans | Level I | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Impaired loans | Level II | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Impaired loans | Level III | ||
Fair Value Measurements | ||
Fair value | 12,788 | 13,797 |
Other real estate owned | ||
Fair Value Measurements | ||
Fair value | 108 | 839 |
Other real estate owned | Level I | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value Measurements | ||
Fair value | $ 108 | $ 839 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2016 | ||||
Impaired loans | Discounted cash flow | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Probability of default | 0.00% | ||||
Nonrecurring | Impaired loans | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | $ 12,788 | $ 13,797 | |||
Nonrecurring | Other real estate owned | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | 108 | 839 | |||
Nonrecurring | Level III | Impaired loans | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | 12,788 | 13,797 | |||
Nonrecurring | Level III | Impaired loans | Discounted cash flow | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | $ 5,753 | $ 5,304 | |||
Nonrecurring | Level III | Impaired loans | Discounted cash flow | Minimum | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Temporary reduction in payment amount (as a percent) | 0.00% | 0.00% | |||
Nonrecurring | Level III | Impaired loans | Discounted cash flow | Maximum | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Temporary reduction in payment amount (as a percent) | (100.00%) | (70.00%) | |||
Nonrecurring | Level III | Impaired loans | Discounted cash flow | Weighted Average | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Temporary reduction in payment amount (as a percent) | (18.00%) | (20.00%) | |||
Nonrecurring | Level III | Impaired loans | Appraisal of collateral | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | $ 7,035 | $ 8,493 | |||
Nonrecurring | Level III | Impaired loans | Appraisal of collateral | Minimum | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Appraisal adjustments (as a percent) | [1] | 0.00% | 0.00% | ||
Nonrecurring | Level III | Impaired loans | Appraisal of collateral | Maximum | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Appraisal adjustments (as a percent) | [1] | (20.00%) | (20.00%) | ||
Nonrecurring | Level III | Impaired loans | Appraisal of collateral | Weighted Average | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Appraisal adjustments (as a percent) | (16.00%) | [2] | (15.00%) | [1] | |
Nonrecurring | Level III | Other real estate owned | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | $ 108 | $ 839 | |||
Nonrecurring | Level III | Other real estate owned | Appraisal of collateral | |||||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||||
Fair value | $ 108 | [2] | $ 839 | [1] | |
Appraisal adjustments (as a percent) | (20.00%) | (20.00%) | |||
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value of Financial Instr58
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities | ||
Available for sale | $ 132,313 | $ 133,492 |
Investment securities, trading | 210 | 58 |
Bank-owned life insurance | 27,827 | 27,332 |
Accrued interest receivable | 4,289 | 3,672 |
Financial liabilities | ||
Interest-bearing deposits | 843,166 | 791,937 |
Noninterest-bearing deposits | 310,830 | 303,277 |
Level I | ||
Financial assets | ||
Cash and cash equivalents | 27,747 | 43,671 |
Investment securities | ||
Available for sale | 13,483 | 12,018 |
Investment securities, trading | 210 | 58 |
Loans held for sale | 1,734 | 1,953 |
Loans, net | 0 | 0 |
Bank-owned life insurance | 27,827 | 27,332 |
Accrued interest receivable | 4,289 | 3,672 |
Financial liabilities | ||
Interest-bearing deposits | 637,841 | 571,768 |
Noninterest-bearing deposits | 310,830 | 303,277 |
Short-term borrowings | 41,596 | 13,241 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 483 | 455 |
Level II | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | ||
Available for sale | 118,830 | 121,474 |
Investment securities, trading | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Interest-bearing deposits | 0 | 0 |
Noninterest-bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level III | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | ||
Available for sale | 0 | 0 |
Investment securities, trading | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 1,210,822 | 1,088,122 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Interest-bearing deposits | 207,262 | 217,633 |
Noninterest-bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 80,787 | 86,353 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 27,747 | 43,671 |
Investment securities | ||
Available for sale | 132,313 | 133,492 |
Investment securities, trading | 210 | 58 |
Loans held for sale | 1,734 | 1,953 |
Loans, net | 1,176,781 | 1,080,785 |
Bank-owned life insurance | 27,827 | 27,332 |
Accrued interest receivable | 4,289 | 3,672 |
Financial liabilities | ||
Interest-bearing deposits | 843,166 | 791,937 |
Noninterest-bearing deposits | 310,830 | 303,277 |
Short-term borrowings | 41,596 | 13,241 |
Long-term borrowings | 80,998 | 85,998 |
Accrued interest payable | 483 | 455 |
Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 27,747 | 43,671 |
Investment securities | ||
Available for sale | 132,313 | 133,492 |
Investment securities, trading | 210 | 58 |
Loans held for sale | 1,734 | 1,953 |
Loans, net | 1,210,822 | 1,088,122 |
Bank-owned life insurance | 27,827 | 27,332 |
Accrued interest receivable | 4,289 | 3,672 |
Financial liabilities | ||
Interest-bearing deposits | 845,103 | 789,401 |
Noninterest-bearing deposits | 310,830 | 303,277 |
Short-term borrowings | 41,596 | 13,241 |
Long-term borrowings | 80,787 | 86,353 |
Accrued interest payable | $ 483 | $ 455 |
Stock Options - Additional Info
Stock Options - Additional Information (Details) - USD ($) | Mar. 24, 2017 | Aug. 27, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Employee Stock Purchase Plan | ||||||
Granted (in shares) | 70,000 | 38,750 | 70,000 | 0 | ||
Granted (in dollars per share) | $ 44.21 | $ 42.03 | $ 44.21 | $ 0 | ||
Exercisable period (in years) | 5 years | |||||
Expiration period (in years) | 10 years | |||||
Employee Stock Option | ||||||
Employee Stock Purchase Plan | ||||||
Exercisable period (in years) | 5 years | |||||
Expiration period (in years) | 10 years | 10 years | ||||
Compensation expense | $ 8,000 | $ 6,000 | $ 21,000 | $ 17,000 | ||
Number of exercisable options (in shares) | 0 | 0 | ||||
Weighted average remaining contractual term (in years) | 9 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value | $ 0 | $ 2,173,000 | ||||
Fair value of options granted (in dollars per share) | $ 0 | $ 31.04 | ||||
Unrecognized compensation cost for non-vested shares | $ 99,000 | $ 99,000 | ||||
Period for recognition (in years) | 42 months 23 days | |||||
Tranche One | ||||||
Employee Stock Purchase Plan | ||||||
Granted (in shares) | 46,250 | 46,250 | ||||
Granted (in dollars per share) | $ 44.21 | |||||
Exercisable period (in years) | 3 years | |||||
Expiration period (in years) | 10 years | |||||
Tranche One | Employee Stock Option | ||||||
Employee Stock Purchase Plan | ||||||
Exercisable period (in years) | 3 years | |||||
Tranche Two | ||||||
Employee Stock Purchase Plan | ||||||
Granted (in shares) | 23,750 | 23,750 | ||||
Granted (in dollars per share) | $ 44.21 | |||||
Exercisable period (in years) | 5 years | |||||
Expiration period (in years) | 10 years | |||||
Tranche Two | Employee Stock Option | ||||||
Employee Stock Purchase Plan | ||||||
Exercisable period (in years) | 5 years |
Stock Options - Schedule of Sto
Stock Options - Schedule of Stock Options Granted (Details) - $ / shares | Mar. 24, 2017 | Aug. 27, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Employee Stock Purchase Plan | ||||||
Shares (in shares) | 70,000 | 38,750 | 70,000 | 0 | ||
Forfeited (in shares) | (13,750) | (1,500) | (3,750) | |||
Outstanding (in shares) | 25,000 | 95,000 | 31,000 | 26,500 | 34,750 | |
Strike Price (in dollars per share) | $ 44.21 | $ 42.03 | $ 44.21 | $ 0 | ||
Vesting Period (in years) | 5 years | |||||
Expiration (in years) | 10 years | |||||
Tranche One | ||||||
Employee Stock Purchase Plan | ||||||
Shares (in shares) | 46,250 | 46,250 | ||||
Forfeited (in shares) | 0 | |||||
Outstanding (in shares) | 46,250 | |||||
Strike Price (in dollars per share) | $ 44.21 | |||||
Vesting Period (in years) | 3 years | |||||
Expiration (in years) | 10 years | |||||
Tranche Two | ||||||
Employee Stock Purchase Plan | ||||||
Shares (in shares) | 23,750 | 23,750 | ||||
Forfeited (in shares) | 0 | |||||
Outstanding (in shares) | 23,750 | |||||
Strike Price (in dollars per share) | $ 44.21 | |||||
Vesting Period (in years) | 5 years | |||||
Expiration (in years) | 10 years |
Stock Options - Schedule of Opt
Stock Options - Schedule of Options Outstanding (Details) - $ / shares | Mar. 24, 2017 | Aug. 27, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Options, Outstanding | ||||||
Outstanding, beginning of year (in shares) | 26,500 | 34,750 | ||||
Granted (in shares) | 70,000 | 38,750 | 70,000 | 0 | ||
Exercised (in shares) | 0 | 0 | ||||
Forfeited (in shares) | (13,750) | (1,500) | (3,750) | |||
Expired (in shares) | 0 | 0 | ||||
Outstanding, end of year (in shares) | 25,000 | 95,000 | 31,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Outstanding, weighted average exercise price (in dollars per share) | $ 43.64 | $ 42.03 | $ 42.03 | $ 42.03 | ||
Granted (in dollars per share) | $ 44.21 | $ 42.03 | 44.21 | 0 | ||
Exercised (in dollars per share) | 0 | 0 | ||||
Forfeited (in dollars per share) | 42.03 | 42.03 | ||||
Expired (in dollars per share) | $ 0 | $ 0 | ||||
Exercisable, end of year (in shares) | 0 | 0 | ||||
Exercisable, end of year (in dollars per share) | $ 0 | $ 0 |
Reclassification of Comparati62
Reclassification of Comparative Amounts (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Reclassification of Comparative Amounts | |
Effect of reclassification adjustment on net income or shareholders' equity | $ 0 |