Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
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, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | true | |
Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 4,691,102 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Noninterest-bearing balances | $ 33,675 | $ 25,692 |
Interest-bearing balances in other financial institutions | 38,672 | 1,551 |
Total cash and cash equivalents | 72,347 | 27,243 |
Investment debt securities, available for sale, at fair value | 128,905 | 108,627 |
Investment equity securities, at fair value | 1,902 | 2,516 |
Investment securities, trading | 45 | 190 |
Restricted investment in bank stock, at fair value | 17,834 | 13,332 |
Loans held for sale | 3,727 | 1,196 |
Loans | 1,369,105 | 1,246,614 |
Allowance for loan losses | (13,343) | (12,858) |
Loans, net | 1,355,762 | 1,233,756 |
Premises and equipment, net | 27,361 | 27,386 |
Accrued interest receivable | 5,353 | 4,321 |
Bank-owned life insurance | 28,472 | 27,982 |
Goodwill | 17,104 | 17,104 |
Intangibles | 1,233 | 1,462 |
Deferred tax asset | 5,310 | 4,388 |
Other assets | 4,993 | 4,989 |
TOTAL ASSETS | 1,670,348 | 1,474,492 |
LIABILITIES: | ||
Interest-bearing deposits | 897,366 | 843,004 |
Noninterest-bearing deposits | 313,111 | 303,316 |
Total deposits | 1,210,477 | 1,146,320 |
Short-term borrowings | 164,465 | 100,748 |
Long-term borrowings | 138,970 | 70,970 |
Accrued interest payable | 1,051 | 502 |
Other liabilities | 14,846 | 17,758 |
TOTAL LIABILITIES | 1,529,809 | 1,336,298 |
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; 5,011,063 and 5,009,339 shares issued; 4,690,913 and 4,689,189 outstanding | 41,757 | 41,744 |
Additional paid-in capital | 50,577 | 50,173 |
Retained earnings | 67,802 | 63,364 |
Accumulated other comprehensive loss: | ||
Net unrealized loss on available for sale securities | (2,663) | (54) |
Defined benefit plan | (4,820) | (4,920) |
Treasury stock at cost, 320,150 | (12,115) | (12,115) |
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY | 140,538 | 138,192 |
Non-controlling interest | 1 | 2 |
TOTAL SHAREHOLDERS' EQUITY | 140,539 | 138,194 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,670,348 | $ 1,474,492 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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) | 5,011,063 | 5,009,339 |
Common stock, shares outstanding (in shares) | 4,690,913 | 4,689,189 |
Treasury stock (in shares) | 320,150 | 320,150 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST AND DIVIDEND INCOME: | ||||
Loans, including fees | $ 13,982,000 | $ 11,906,000 | $ 39,172,000 | $ 33,642,000 |
Investment securities: | ||||
Taxable | 713,000 | 553,000 | 1,898,000 | 1,665,000 |
Tax-exempt | 207,000 | 319,000 | 678,000 | 940,000 |
Dividend and other interest income | 296,000 | 170,000 | 762,000 | 592,000 |
TOTAL INTEREST AND DIVIDEND INCOME | 15,198,000 | 12,948,000 | 42,510,000 | 36,839,000 |
INTEREST EXPENSE: | ||||
Deposits | 1,659,000 | 1,058,000 | 4,371,000 | 2,968,000 |
Short-term borrowings | 528,000 | 31,000 | 1,004,000 | 39,000 |
Long-term borrowings | 756,000 | 407,000 | 2,024,000 | 1,220,000 |
TOTAL INTEREST EXPENSE | 2,943,000 | 1,496,000 | 7,399,000 | 4,227,000 |
NET INTEREST INCOME | 12,255,000 | 11,452,000 | 35,111,000 | 32,612,000 |
PROVISION FOR LOAN LOSSES | 480,000 | 60,000 | 975,000 | 605,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,775,000 | 11,392,000 | 34,136,000 | 32,007,000 |
NON-INTEREST INCOME: | ||||
Service charges, insurance commissions, brokerage commissions, and debit card fees | 359,000 | 328,000 | 1,065,000 | 939,000 |
Net debt securities (losses) gains, available for sale | (22,000) | 302,000 | (17,000) | 487,000 |
Net equity securities (losses) | (16,000) | 0 | (44,000) | 0 |
Net securities gains (losses), trading | 14,000 | (4,000) | 12,000 | (2,000) |
Bank-owned life insurance | 165,000 | 166,000 | 496,000 | 499,000 |
Gain on sale of loans | 398,000 | 455,000 | 1,053,000 | 1,316,000 |
Other | 621,000 | 296,000 | 1,400,000 | 1,325,000 |
TOTAL NON-INTEREST INCOME | 2,589,000 | 2,740,000 | 7,032,000 | 8,155,000 |
NON-INTEREST EXPENSE: | ||||
Salaries and employee benefits | 5,420,000 | 4,738,000 | 15,387,000 | 14,116,000 |
Occupancy | 640,000 | 603,000 | 2,080,000 | 1,855,000 |
Furniture and equipment | 780,000 | 816,000 | 2,328,000 | 2,129,000 |
Software amortization | 208,000 | 235,000 | 504,000 | 750,000 |
Pennsylvania shares tax | 278,000 | 228,000 | 833,000 | 696,000 |
Professional fees | 459,000 | 560,000 | 1,674,000 | 1,816,000 |
Federal Deposit Insurance Corporation deposit insurance | 237,000 | 194,000 | 639,000 | 514,000 |
Marketing | 245,000 | 315,000 | 764,000 | 690,000 |
Intangible amortization | 71,000 | 81,000 | 229,000 | 256,000 |
Other | 1,343,000 | 1,796,000 | 4,037,000 | 4,792,000 |
TOTAL NON-INTEREST EXPENSE | 9,681,000 | 9,566,000 | 28,475,000 | 27,614,000 |
INCOME BEFORE INCOME TAX PROVISION | 4,683,000 | 4,566,000 | 12,693,000 | 12,548,000 |
INCOME TAX PROVISION | 857,000 | 1,282,000 | 2,179,000 | 3,491,000 |
CONSOLIDATED NET INCOME | 3,826,000 | 3,284,000 | 10,514,000 | 9,057,000 |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | (1,000) | 0 |
NET INCOME ATTRIBUTABLE TO PENNS WOODS BANCORP, INC. | $ 3,826,000 | $ 3,284,000 | $ 10,515,000 | $ 9,057,000 |
Earnings per share - basic (in dollars per share) | $ 0.82 | $ 0.70 | $ 2.24 | $ 1.92 |
Earnings per share - diluted (in dollars per share) | $ 0.82 | $ 0.70 | $ 2.24 | $ 1.92 |
Weighted average shares outstanding - basic (in dollars per share) | 4,690,560 | 4,688,222 | 4,689,960 | 4,711,282 |
Weighted average shares outstanding - diluted (in dollars per share) | 4,690,560 | 4,688,222 | 4,689,960 | 4,711,282 |
Dividends declared per share (in dollars per share) | $ 0.47 | $ 0.47 | $ 1.41 | $ 1.41 |
Deposit Account | ||||
NON-INTEREST INCOME: | ||||
Service charges, insurance commissions, brokerage commissions, and debit card fees | $ 645,000 | $ 550,000 | $ 1,788,000 | $ 1,637,000 |
Insurance Commissions | ||||
NON-INTEREST INCOME: | ||||
Service charges, insurance commissions, brokerage commissions, and debit card fees | 85,000 | 109,000 | 266,000 | 399,000 |
Brokerage Commissions | ||||
NON-INTEREST INCOME: | ||||
Service charges, insurance commissions, brokerage commissions, and debit card fees | 340,000 | 352,000 | 1,013,000 | 1,044,000 |
Debit Card | ||||
NON-INTEREST INCOME: | ||||
Service charges, insurance commissions, brokerage commissions, and debit card fees | $ 359,000 | $ 514,000 | $ 1,065,000 | $ 1,450,000 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 3,826 | $ 3,284 | $ 10,515 | $ 9,057 |
Other comprehensive (loss) income: | ||||
Change in unrealized (loss) gain on available for sale securities | (789) | 437 | (2,641) | 1,565 |
Tax effect | 166 | (150) | 556 | (532) |
Net realized loss (gain) on available for sale securities included in net income | 22 | (302) | 17 | (487) |
Tax effect | (5) | 104 | (4) | 166 |
Amortization of unrecognized pension gain | 41 | 45 | 125 | 129 |
Tax effect | (8) | (15) | (25) | (43) |
Total other comprehensive (loss) income | (573) | 119 | (1,972) | 798 |
Comprehensive income | $ 3,253 | $ 3,403 | $ 8,543 | $ 9,855 |
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 | NON-CONTROLLING INTEREST |
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) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,057 | 9,057 | |||||
Other comprehensive income (loss) | 798 | 798 | |||||
Stock-based compensation | 14 | 14 | |||||
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 | 66 | $ 13 | 53 | ||||
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) | 0 |
Beginning balance (in shares) at Jun. 30, 2017 | 5,008,192 | ||||||
Beginning balance at Jun. 30, 2017 | 138,440 | $ 41,735 | 50,117 | 62,952 | (4,249) | (12,115) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,284 | 3,284 | |||||
Other comprehensive income (loss) | 119 | 119 | |||||
Stock-based compensation | 7 | 7 | |||||
Dividends declared | (2,203) | (2,203) | |||||
Common shares issued for employee stock purchase plan (in shares) | 528 | ||||||
Common shares issued for employee stock purchase plan | 22 | $ 4 | 18 | ||||
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) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-01 | 0 | 537 | (537) | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 5,009,339 | ||||||
Beginning balance at Dec. 31, 2017 | 138,194 | $ 41,744 | 50,173 | 63,364 | (4,974) | (12,115) | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,514 | 10,515 | (1) | ||||
Other comprehensive income (loss) | (1,972) | (1,972) | |||||
Stock-based compensation | 345 | 345 | |||||
Dividends declared | (6,614) | (6,614) | |||||
Common shares issued for employee stock purchase plan (in shares) | 1,724 | ||||||
Common shares issued for employee stock purchase plan | 72 | $ 13 | 59 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 5,011,063 | ||||||
Ending balance at Sep. 30, 2018 | 140,539 | $ 41,757 | 50,577 | 67,802 | (7,483) | (12,115) | 1 |
Beginning balance (in shares) at Jun. 30, 2018 | 5,010,535 | ||||||
Beginning balance at Jun. 30, 2018 | 139,135 | $ 41,753 | 50,225 | 66,181 | (6,910) | (12,115) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,826 | 3,826 | |||||
Other comprehensive income (loss) | (573) | (573) | |||||
Stock-based compensation | 333 | 333 | |||||
Dividends declared | (2,205) | (2,205) | |||||
Common shares issued for employee stock purchase plan (in shares) | 528 | ||||||
Common shares issued for employee stock purchase plan | 23 | $ 4 | 19 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 5,011,063 | ||||||
Ending balance at Sep. 30, 2018 | $ 140,539 | $ 41,757 | $ 50,577 | $ 67,802 | $ (7,483) | $ (12,115) | $ 1 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared, per share (in dollars per share) | $ / shares | $ 1.41 |
Purchase of treasury stock (in shares) | shares | 47,698 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES: | ||
Net Income | $ 10,515,000 | $ 9,057,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,907,000 | 1,979,000 |
Amortization of intangible assets | 229,000 | 256,000 |
Provision for loan losses | 975,000 | 605,000 |
Accretion and amortization of investment security discounts and premiums | 591,000 | 688,000 |
Net securities losses (gains), available for sale | 17,000 | (487,000) |
Originations of loans held for sale | (39,979,000) | (41,503,000) |
Proceeds of loans held for sale | 38,501,000 | 43,038,000 |
Gain on sale of loans | (1,053,000) | (1,316,000) |
Net equity securities losses | 44,000 | 0 |
Net securities (gains) losses, trading | (12,000) | 2,000 |
Proceeds from the sale of trading securities | 466,000 | 332,000 |
Purchases of trading securities | (309,000) | (486,000) |
Earnings on bank-owned life insurance | (496,000) | (499,000) |
(Decrease) increase in deferred tax asset | (370,000) | 46,000 |
Other, net | (953,000) | (4,361,000) |
Net cash provided by operating activities | 10,073,000 | 7,351,000 |
INVESTING ACTIVITIES: | ||
Proceeds from sales of available for sale securities | 14,528,000 | 15,443,000 |
Proceeds from calls and maturities of available for sale securities | 6,160,000 | 7,198,000 |
Purchases of available for sale securities | (45,473,000) | (18,434,000) |
Net increase in loans | (123,857,000) | (97,109,000) |
Acquisition of premises and equipment | (1,374,000) | (2,849,000) |
Proceeds from the sale of foreclosed assets | 253,000 | 958,000 |
Purchase of bank-owned life insurance | (36,000) | (34,000) |
Proceeds from redemption of regulatory stock | 12,073,000 | 4,844,000 |
Purchases of regulatory stock | (16,575,000) | (6,994,000) |
Net cash used for investing activities | (154,301,000) | (96,977,000) |
FINANCING ACTIVITIES: | ||
Net increase in interest-bearing deposits | 54,362,000 | 51,229,000 |
Net increase in noninterest-bearing deposits | 9,795,000 | 7,553,000 |
Proceeds from long-term borrowings | 80,000,000 | 30,000,000 |
Repayment of long-term borrowings | (12,000,000) | (35,000,000) |
Net increase in short-term borrowings | 63,717,000 | 28,355,000 |
Dividends paid | (6,614,000) | (6,634,000) |
Issuance of common stock | 72,000 | 80,000 |
Purchases of treasury stock | 0 | (1,881,000) |
Net cash provided by financing activities | 189,332,000 | 73,702,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 45,104,000 | (15,924,000) |
CASH AND CASH EQUIVALENTS, BEGINNING | 27,243,000 | 43,671,000 |
CASH AND CASH EQUIVALENTS, ENDING | 72,347,000 | 27,747,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid | 6,850,000 | 4,199,000 |
Income taxes paid | 1,925,000 | 3,950,000 |
Transfer of loans to foreclosed real estate | 876,000 | 508,000 |
Transfer due to adoption of ASU 2016-01, equity securities fair value adjust, reclassification from AOCI to Retained Earnings, net of tax | $ 537,000 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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”). The Company also owns a controlling interest in United Insurance Solutions, LLC. 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, 2017 . Tax Cuts and Jobs Act Public law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), enacted on December 22, 2017, reduced the U.S. federal corporate tax rate from 34% to 21% effective January 1, 2018. Also on December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Act. SAB 118 provides a measurement period of up to one year from the enactment date to complete the accounting. Any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. Based on the information available and current interpretation of the rules, the Company estimated the impact of the reduction in the corporate tax rate and remeasurement of certain deferred tax assets and liabilities. The amount recorded in the fourth quarter of 2017 related to the remeasurement of the Company's deferred tax balance resulted in additional income tax expense of $2.7 million . Newly Adopted Accounting Standards 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. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Upon adoption on January 1, 2018, we have included the related new disclosure requirements in Note 13 . 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. Upon adoption on January 1, 2018, the Company made a one-time cumulative effect adjustment from accumulated other comprehensive income to retained earnings of $537,000 . The net effect was an increase to retained earnings. In August 2018, the Securities and Exchange Commission issued Final Rule Release No. 33-10532 - “Disclosure Update and Simplification.” The rule changes implemented by the Release amend, effective November 5, 2018, various SEC disclosure requirements that have been determined to be redundant, duplicative, overlapping, outdated, or superseded. The changes are generally expected to reduce or eliminate certain disclosures; however, the amendments did expand interim period disclosure requirements related to changes in shareholders' equity. The presentation of the Statement of Changes in Shareholders' Equity contained herein for the three and nine months ended September 30, 2018 includes the disclosures required by the Release. 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 40 through 50 of the Form 10-K for the year ended December 31, 2017 . 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, 2018 | |
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, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain (Loss) on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (2,057 ) $ (4,853 ) $ (6,910 ) $ (16 ) $ (4,233 ) $ (4,249 ) Other comprehensive (loss) gain before reclassifications (623 ) — (623 ) 287 — 287 Amounts reclassified from accumulated other comprehensive loss 17 33 50 (198 ) 30 (168 ) Net current-period other comprehensive (loss) income (606 ) 33 (573 ) 89 30 119 Ending balance $ (2,663 ) $ (4,820 ) $ (7,483 ) $ 73 $ (4,203 ) $ (4,130 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain (Loss) on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (54 ) $ (4,920 ) $ (4,974 ) $ (639 ) $ (4,289 ) $ (4,928 ) Other comprehensive (loss) gain before reclassifications (2,085 ) — (2,085 ) 1,033 — 1,033 Amounts reclassified from accumulated other comprehensive loss 13 100 113 (321 ) 86 (235 ) Net current-period other comprehensive (loss) income (2,072 ) 100 (1,972 ) 712 86 798 Reclassification from adoption of 2016-01 (537 ) — (537 ) — — — Ending balance $ (2,663 ) $ (4,820 ) $ (7,483 ) $ 73 $ (4,203 ) $ (4,130 ) The reclassifications out of accumulated other comprehensive loss shown, net of tax and parenthesis indicating debits to net income, as of September 30, 2018 and 2017 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, 2018 Three Months Ended September 30, 2017 Net unrealized (loss) gain on available for sale securities $ (22 ) $ 302 Net securities (losses) gains, available for sale Income tax effect 5 (104 ) Income tax provision Total reclassifications for the period $ (17 ) $ 198 Net unrecognized pension costs $ (41 ) $ (45 ) Salaries and employee benefits Income tax effect 8 15 Income tax provision Total reclassifications for the period $ (33 ) $ (30 ) 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, 2018 Nine months ended September 30, 2017 Net unrealized (loss) gain on available for sale securities $ (17 ) $ 487 Net securities gains, available for sale Income tax effect 4 (166 ) Income tax provision Total reclassifications for the period $ (13 ) $ 321 Net unrecognized pension costs $ (125 ) $ (129 ) Salaries and employee benefits Income tax effect 25 43 Income tax provision Total reclassifications for the period $ (100 ) $ (86 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 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 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 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitte d. 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 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 corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) , which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10) , to clarify certain aspects of the guidance issued in ASU 2016-01. (1) An entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820, Fair Value Measurement , through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer. Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820. (2) Adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place. (3) Remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities. (4) When the fair value option is elected for a financial liability, the guidance in paragraph 825-10-45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15, Derivatives and Hedging-Embedded Derivatives , or 825-10, Financial Instruments-Overall . (5) Financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates. (6) The prospective transition approach for equity securities without a readily determinable fair value in the amendments in Update 2016-01 is meant only for instances in which the measurement alternative is applied. An insurance entity subject to the guidance in Topic 944, Financial Services- Insurance , should apply a prospective transition method when applying the amendments related to equity securities without readily determinable fair values. An insurance entity should apply the selected prospective transition method consistently to the entity’s entire population of equity securities for which the measurement alternative is elected. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. For all other entities, the effective date is the same as the effective date in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. 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 March 2018, the FASB issued ASU 2018-04, Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, ASU 2018-04 supersedes various SEC paragraphs and adds an SEC paragraph pursuant to the issuance of Staff Accounting Bulletin No. 117. In July 2018, the FASB issued ASU 2018-09, Codification Improvements , represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . This Update provides another transition method which allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Entities that elect this approach should report comparative periods in accordance with ASC 840, Leases . In addition, this Update provides a practical expedient under which lessors may elect, by class of underlying assets, to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (a) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (b) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with ASC 606, Revenue from Contracts with Customers . Otherwise, the entity should account for the combined component as an operating lease in accordance with ASC 842. If a lessor elects the practical expedient, certain disclosures are required. This Update is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. 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. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits (Topic 715-20). This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. |
Per Share Data
Per Share Data | 9 Months Ended |
Sep. 30, 2018 | |
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 263,700 stock options, with an average exercise price of $45.11 , outstanding on September 30, 2018 . All 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 being $ 43.84 for the period. There were a total of 95,000 stock options outstanding for the same period end in 2017 that had an average exercise price of $43.64 and were excluded, on a weighted average basis, in the computation of diluted earnings per share because the quarterly average closing market price of common shares was $43.53 for the period. Net income as presented on the consolidated statement of income is 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, 2018 2017 2018 2017 Weighted average common shares issued 5,010,710 5,008,372 5,010,110 5,007,796 Weighted average treasury stock shares (320,150 ) (320,150 ) (320,150 ) (296,514 ) Weighted average common shares outstanding - basic and diluted 4,690,560 4,688,222 4,689,960 4,711,282 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair values of our investment securities portfolio at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 6,475 $ 7 $ (255 ) $ 6,227 State and political securities 75,859 68 (1,264 ) 74,663 Other debt securities 49,942 2 (1,929 ) 48,015 Total debt securities $ 132,276 $ 77 $ (3,448 ) $ 128,905 Investment equity securities: Financial institution equity securities $ 328 $ 362 $ — $ 690 Other equity securities 1,300 — (88 ) 1,212 Investment equity securities $ 1,628 $ 362 $ (88 ) $ 1,902 Trading: Other equity securities $ 49 $ — $ (4 ) $ 45 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 4,273 $ 51 $ (111 ) $ 4,213 State and political securities 56,295 411 (198 ) 56,508 Other debt securities 48,806 180 (1,080 ) 47,906 Total debt securities $ 109,374 $ 642 $ (1,389 ) $ 108,627 Investment equity securities: Financial institution equity securities $ 537 $ 728 $ — $ 1,265 Other equity securities 1,300 — (49 ) 1,251 Investment equity securities $ 1,837 $ 728 $ (49 ) $ 2,516 Trading: Financial institution equity securities $ 20 $ — $ — $ 20 Other equity securities 192 2 (24 ) 170 Trading investment equity securities $ 212 $ 2 $ (24 ) $ 190 Total net trading gains of $14,000 and $12,000 for the three and nine months ended September 30, 2018 along with net trading losses of $4,000 and $2,000 for the three and nine months ended September 30, 2017 are 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 debt securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017 . September 30, 2018 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 $ 3,084 $ (42 ) $ 2,943 $ (213 ) $ 6,027 $ (255 ) State and political securities 47,314 (774 ) 11,311 (490 ) 58,625 (1,264 ) Other debt securities 18,225 (436 ) 27,779 (1,493 ) 46,004 (1,929 ) Total debt securities $ 68,623 $ (1,252 ) $ 42,033 $ (2,196 ) $ 110,656 $ (3,448 ) December 31, 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 $ 981 $ (12 ) $ 2,276 $ (99 ) $ 3,257 $ (111 ) State and political securities 15,691 (104 ) 3,018 (94 ) 18,709 (198 ) Other debt securities 7,512 (148 ) 28,517 (932 ) 36,029 (1,080 ) Total debt securities $ 24,184 $ (264 ) $ 33,811 $ (1,125 ) $ 57,995 $ (1,389 ) Other equity securities $ 1,251 $ (49 ) $ — $ — $ 1,251 $ (49 ) At September 30, 2018 , there were a total of 71 securities in a continuous unrealized loss position for less than twelve months and 42 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, 2018 , 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, 2018 , 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 $ 3,972 $ 3,967 Due after one year to five years 45,584 44,327 Due after five years to ten years 64,109 62,345 Due after ten years 18,611 18,266 Total $ 132,276 $ 128,905 Total gross proceeds from sales of debt securities available for sale for the three and nine months ended September 30, 2018 were $10,450,000 and $14,528,000 , a decrease from the 2017 totals of $6,478,000 and $ 15,443,000 . 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) 2018 2017 2018 2017 Available for sale (AFS): Gross realized gains: Mortgage-backed securities $ 22 $ — $ 27 $ 69 State and political securities — 313 19 343 Other debt securities 3 5 3 5 Total gross realized gains $ 25 $ 318 $ 49 $ 417 Gross realized losses: State and political securities $ 47 $ 16 $ 56 $ 17 Other debt securities — — 10 51 Total gross realized losses $ 47 $ 16 $ 66 $ 68 Investment equity securities: Gross realized gains: Financial institution equity securities $ — $ — $ — $ 288 Gross realized losses: Other equity securities $ — $ — $ — $ 150 There were no impairment charges included in gross realized losses for the three and nine months ended September 30, 2018 and 2017 , respectively. Investment securities with a carrying value of approximately $80,035,000 and $90,286,000 at September 30, 2018 and December 31, 2017 , respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law. At September 30, 2018 and December 31, 2017 , we had $1,902,000 and $2,516,000 , respectively, in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. At December 31, 2017, net unrealized gains of $679,000 had been recognized in AOCI. On January 1, 2018, these unrealized gains and losses were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net equity securities gains (losses). The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and nine months ended September 30, 2018 : (In Thousands) Three Months Ended September 30, 2018 Nine months ended September 30, 2018 Net gains (losses) recognized in equity securities during the period $ (16 ) $ (44 ) Less: Net gains (losses) realized on the sale of equity securities during the period 5 13 Unrealized gains (losses) recognized in equity securities held at reporting date $ (21 ) $ (57 ) Net gains and losses on trading account securities are as follows for the three and nine months ended September 30, 2018 : Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2018 2017 2018 2017 Net gains (losses) on sale transactions $ 9 $ (2 ) $ 17 $ 7 Net mark-to-market gains (losses) 5 (2 ) (5 ) (9 ) Net gain (loss) on trading account securities $ 14 $ (4 ) $ 12 $ (2 ) |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
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. Real estate loans are further segmented into three categories: residential, commercial, and construction, while installment loans are classified as either consumer automobile loans or other installment loans. The following table presents the related aging categories of loans, by segment, as of September 30, 2018 and December 31, 2017 : September 30, 2018 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 185,951 $ 305 $ — $ 1,244 $ 187,500 Real estate mortgage: Residential 611,989 3,663 442 2,080 618,174 Commercial 365,334 2,427 — 4,815 372,576 Construction 39,831 149 12 — 39,992 Consumer automobile loans 123,943 499 58 88 124,588 Other consumer installment loans 25,012 511 — — 25,523 1,352,060 $ 7,554 $ 512 $ 8,227 1,368,353 Net deferred loan fees and discounts 752 752 Allowance for loan losses (13,343 ) (13,343 ) Loans, net $ 1,339,469 $ 1,355,762 December 31, 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 $ 178,022 $ 663 $ 86 $ 114 $ 178,885 Real estate mortgage: Residential 588,278 6,853 318 1,628 597,077 Commercial 325,148 1,823 80 4,968 332,019 Construction 31,547 116 20 — 31,683 Consumer automobile loans 79,595 87 — 32 79,714 Other consumer installment loans 26,740 202 5 17 26,964 1,229,330 $ 9,744 $ 509 $ 6,759 1,246,342 Net deferred loan fees and discounts 272 272 Allowance for loan losses (12,858 ) (12,858 ) Loans, net $ 1,216,744 $ 1,233,756 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, 2018 and 2017 : Three Months Ended September 30, 2018 2017 (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 $ 61 $ 51 $ 8 $ 2 Real estate mortgage: Residential 21 31 29 30 Commercial 33 4 90 23 Construction — — — — Consumer automobile loans — — — — Other consumer installment loans 2 1 1 1 $ 117 $ 87 $ 128 $ 56 Nine Months Ended September 30, 2018 2017 (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 $ 65 $ 52 $ 21 $ 8 Real estate mortgage: Residential 89 65 123 81 Commercial 171 43 322 42 Construction — — — — Consumer automobile loans — — — — Other consumer installment loans 3 2 3 2 $ 328 $ 162 $ 469 $ 133 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 do 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, 2018 and December 31, 2017 : September 30, 2018 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,028 $ 1,028 $ — Real estate mortgage: Residential 1,614 1,614 — Commercial 2,117 2,117 — Installment loans to individuals — — — 4,759 4,759 — With an allowance recorded: Commercial, financial, and agricultural 75 75 50 Real estate mortgage: Residential 1,698 1,747 121 Commercial 6,205 6,205 1,187 Installment loans to individuals 40 40 20 8,018 8,067 1,378 Total: Commercial, financial, and agricultural 1,103 1,103 50 Real estate mortgage: Residential 3,312 3,361 121 Commercial 8,322 8,322 1,187 Installment loans to individuals 40 40 20 $ 12,777 $ 12,826 $ 1,378 December 31, 2017 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,033 $ 1,033 $ — Real estate mortgage: Residential 1,428 1,428 — Commercial 1,465 1,465 — 3,926 3,926 — With an allowance recorded: Commercial, financial, and agricultural 235 235 96 Real estate mortgage: Residential 2,304 2,353 367 Commercial 7,981 8,031 1,721 10,520 10,619 2,184 Total: Commercial, financial, and agricultural 1,268 1,268 96 Real estate mortgage: Residential 3,732 3,781 367 Commercial 9,446 9,496 1,721 $ 14,446 $ 14,545 $ 2,184 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, 2018 and 2017 : Three Months Ended September 30, 2018 2017 (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 $ 1,154 $ 18 $ 51 $ 394 $ 17 $ 1 Real estate mortgage: Residential 3,703 40 31 3,199 12 34 Commercial 8,547 97 4 12,885 52 23 Construction — — — — — — Consumer automobile — — — — — — Other consumer installment loans 20 2 1 — — $ 13,404 $ 155 $ 87 $ 16,478 $ 81 $ 58 Nine Months Ended September 30, 2018 2017 (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 $ 1,206 $ 52 $ 52 $ 324 $ 24 $ 7 Real estate mortgage: Residential 3,901 107 65 3,212 48 80 Commercial 8,988 191 43 12,635 137 42 Construction — — — — — — Consumer automobile — — — — — — Other consumer installment loans 10 3 1 8 — 2 $ 14,095 $ 350 $ 161 $ 16,179 $ 209 $ 131 Currently, zero funds are 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 five loan modifications considered TDRs completed during the nine months ended September 30, 2018. Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2018 were as follows: Three Months Ended September 30, 2018 2017 (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 1 $ 1,028 $ 1,028 — $ — $ — Real estate mortgage: Residential — — — — $ — $ — Commercial — — — 2 375 375 1 $ 1,028 $ 1,028 2 $ 375 $ 375 Nine Months Ended September 30, 2018 2017 (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 1 $ 1,028 $ 1,028 — $ — $ — Real estate mortgage: Residential 3 169 169 — $ — $ — Commercial 1 106 106 2 375 375 5 $ 1,303 $ 1,303 2 $ 375 $ 375 There was one loan modification considered to be a TDR made during the twelve months previous to September 30, 2018 that defaulted during the nine months ended September 30, 2018 . This defaulted loan type and recorded investment as of September 30, 2018 is as follows: a residential real estate loan with a recorded investment of $3,000 . There were no loan modifications considered TDRs made during the twelve months previous to September 30, 2017 that defaulted during the three and nine months ended September 30, 2017 . Troubled debt restructurings amounted to $9,558,000 and $9,048,000 as of September 30, 2018 and December 31, 2017 . The amount of foreclosed residential real estate held at September 30, 2018 and December 31, 2017 , totaled $705,000 and $143,000 , respectively. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at September 30, 2018 and December 31, 2017 , totaled $223,000 and $378,000 , 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, 2018 and December 31, 2017 : September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment loans (In Thousands) Residential Commercial Construction Totals Pass $ 178,507 $ 616,578 $ 352,676 $ 39,992 $ 124,588 $ 25,523 $ 1,337,864 Special Mention 7,766 345 10,247 — — — 18,358 Substandard 1,227 1,251 9,653 — — — 12,131 $ 187,500 $ 618,174 $ 372,576 $ 39,992 $ 124,588 $ 25,523 $ 1,368,353 December 31, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment loans (In Thousands) Residential Commercial Construction Totals Pass $ 175,603 $ 593,828 $ 311,209 $ 31,535 $ 79,714 $ 26,964 $ 1,218,853 Special Mention 738 1,043 7,337 — — — 9,118 Substandard 2,544 2,206 13,473 148 — — 18,371 $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 79,714 $ 26,964 $ 1,246,342 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, 2018 and 2017 : Three Months Ended September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,055 $ 5,583 $ 3,814 $ 118 $ 1,069 $ 317 $ 1,078 $ 13,034 Charge-offs (6 ) (81 ) — — (31 ) (90 ) — (208 ) Recoveries 5 — — 2 9 21 — 37 Provision 187 (161 ) (370 ) 11 138 28 647 480 Ending Balance $ 1,241 $ 5,341 $ 3,444 $ 131 $ 1,185 $ 276 $ 1,725 $ 13,343 Three Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,731 $ 5,337 $ 3,727 $ 172 $ 349 $ 430 $ 1,363 $ 13,109 Charge-offs (68 ) (155 ) — — — (55 ) — (278 ) Recoveries 6 16 — 2 1 17 — 42 Provision (81 ) 232 300 (26 ) 100 44 (509 ) 60 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 450 $ 436 $ 854 $ 12,933 Nine Months Ended September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 804 $ 271 $ 495 $ 12,858 Charge-offs (42 ) (223 ) (55 ) — (83 ) (208 ) — (611 ) Recoveries 20 25 — 7 12 57 — 121 Provision 86 (140 ) (778 ) (31 ) 452 156 1,230 975 Ending Balance $ 1,241 $ 5,341 $ 3,444 $ 131 $ 1,185 $ 276 $ 1,725 $ 13,343 Nine Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 143 $ 273 $ 390 $ 12,896 Charge-offs (81 ) (540 ) — — (17 ) (169 ) — (807 ) Recoveries 117 51 1 7 1 62 — 239 Provision (2 ) 536 (949 ) (37 ) 323 270 464 605 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 450 $ 436 $ 854 $ 12,933 The shift in allocation of the loan provision is primarily due to portfolio growth in the consumer automobile segment and improved credit metrics within the real estate mortgage portfolio. 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, 2018 and 2017 : September 30, 2018 2017 Owners of residential rental properties 14.72 % 15.34 % Owners of commercial rental properties 13.18 % 13.45 % 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, 2018 and December 31, 2017 : September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer Automobile Other consumer installment Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 50 $ 121 $ 1,187 $ — $ — $ 20 $ — $ 1,378 Collectively evaluated for impairment 1,191 5,220 2,257 131 1,185 256 1,725 11,965 Total ending allowance balance $ 1,241 $ 5,341 $ 3,444 $ 131 $ 1,185 $ 276 $ 1,725 $ 13,343 Loans: Individually evaluated for impairment $ 1,103 $ 3,312 $ 8,322 $ — $ — $ 40 $ 12,777 Collectively evaluated for impairment 186,397 614,862 364,254 39,992 124,588 25,483 1,355,576 Total ending loans balance $ 187,500 $ 618,174 $ 372,576 $ 39,992 $ 124,588 $ 25,523 $ 1,368,353 December 31, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer Automobile Other consumer installment Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 96 $ 367 $ 1,721 $ — $ — $ — $ — $ 2,184 Collectively evaluated for impairment 1,081 5,312 2,556 155 804 271 495 10,674 Total ending allowance balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 804 $ 271 $ 495 $ 12,858 Loans: Individually evaluated for impairment $ 1,268 $ 3,732 $ 9,446 $ — $ — $ — $ 14,446 Collectively evaluated for impairment 177,617 593,345 322,573 31,683 79,714 26,964 1,231,896 Total ending loans balance $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 79,714 $ 26,964 $ 1,246,342 |
Net Periodic Benefit Cost-Defin
Net Periodic Benefit Cost-Defined Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 . 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, 2018 and 2017 , respectively: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2018 2017 2018 2017 Service cost $ — $ 41 $ — $ 124 Interest cost 177 188 530 566 Expected return on plan assets (272 ) (262 ) (820 ) (787 ) Amortization of net loss 41 45 125 129 Net periodic (benefit) cost $ (54 ) $ 12 $ (165 ) $ 32 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, 2017 , that it expected to contribute a minimum of $500,000 to its defined benefit plan in 2018 . As of September 30, 2018 , there were contributions of $500,000 made to the plan with additional contributions of at least $250,000 anticipated during the remainder of 2018 . |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 , there were 1,725 and 1,617 shares issued under the plan, respectively. |
Off-Balance Sheet Risk
Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 : (In Thousands) September 30, 2018 December 31, 2017 Commitments to extend credit $ 249,765 $ 264,982 Standby letters of credit 10,989 10,406 Credit exposure from the sale of assets with recourse 5,830 4,893 $ 266,584 $ 280,281 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, 2018 | |
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, 2018 and December 31, 2017 , 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, 2018 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 6,227 $ — $ 6,227 State and political securities — 74,663 — 74,663 Other debt securities — 48,015 — 48,015 Investment equity securities: Financial institution equity securities 690 — — 690 Other equity securities 1,212 — — 1,212 Investment securities, trading: Other equity securities 45 — — 45 December 31, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 4,213 $ — $ 4,213 State and political securities — 56,508 — 56,508 Other debt securities — 47,906 — 47,906 Financial institution equity securities 1,265 — — 1,265 Other equity securities 1,251 — — 1,251 Investment securities, trading: Other equity securities 190 — — 190 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, 2018 and December 31, 2017 , 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, 2018 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 11,399 $ 11,399 Other real estate owned — — 705 705 December 31, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 12,262 $ 12,262 Other real estate owned — — 143 143 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, 2018 and December 31, 2017 : September 30, 2018 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 6,387 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (8)% 5,012 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 705 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, 2017 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 6,583 Discounted cash flow Temporary reduction in payment amount 3 to (70)% (4)% 5,679 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (17)% Other real estate owned $ 143 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, 2018 | |
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 not recorded at fair value on a recurring or nonrecurring basis are as follows at September 30, 2018 and December 31, 2017 : Carrying Fair Fair Value Measurements at September 30, 2018 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents (1) $ 72,347 $ 72,347 $ 72,347 $ — $ — Restricted investment in bank stock 17,834 17,834 — 17,834 — Loans held for sale (1) 3,727 3,727 3,727 — — Loans, net 1,355,762 1,353,088 — — 1,353,088 Bank-owned life insurance (1) 28,472 28,472 28,472 — — Accrued interest receivable (1) 5,353 5,353 5,353 — — Financial liabilities: Interest-bearing deposits $ 897,366 $ 863,487 $ 597,024 $ — $ 266,463 Noninterest-bearing deposits (1) 313,111 313,111 313,111 — — Short-term borrowings (1) 164,465 164,465 164,465 — — Long-term borrowings 138,970 137,028 — — 137,028 Accrued interest payable (1) 1,051 1,051 1,051 — — (1) The financial instrument is carried at cost at September 30, 2018 , which approximate the fair value of the instruments Carrying Fair Fair Value Measurements at December 31, 2017 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 27,243 $ 27,243 $ 27,243 $ — $ — Investment securities: Available for sale 111,143 111,143 2,516 108,627 — Trading 190 190 190 — — Restricted investment in bank stock 13,332 13,332 — 13,332 — Loans held for sale 1,196 1,196 1,196 — — Loans, net 1,233,756 1,264,584 — — 1,264,584 Bank-owned life insurance 27,982 27,982 27,982 — — Accrued interest receivable 4,321 4,321 4,321 — — Financial liabilities: Interest-bearing deposits $ 843,004 $ 838,441 $ 611,187 $ — $ 227,254 Noninterest-bearing deposits 303,316 303,316 303,316 — — Short-term borrowings 100,748 100,748 100,748 — — Long-term borrowings 70,970 70,280 — — 70,280 Accrued interest payable 502 502 502 — — (1) The financial instrument is carried at cost at September 30, 2018 , which approximate the fair value of the instruments The methods and assumptions used by the Company in estimating fair values of financial instruments at September 30, 2018 is in accordance with ASC Topic 825, Financial Instruments, as amended by ASU 2016-01 which requires public entities to use exit pricing in the calculation of the above tables. Prior period fair value calculations were ran on the assumption of entry pricing and therefore the comparability between the periods above are diminished. Restricted Stock: The carrying value of restricted securities such as stock in the Federal Home Loan Bank ("FHLB") and other bankers' bank stock approximates fair 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. Deposits: The fair value of deposits with no stated maturity, such as 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. 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, 2018 | |
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. As of January 1, 2018, the Company had a total of 93,500 stock options outstanding. During the period ended September 30, 2018, the Company issued 25,000 stock options with a strike price of $45.11 and 149,700 stock options with a strike price of $46.00 , to a group of employees. The options granted in 2018 all expire ten years from the grant date however; of the 174,700 grants awarded, 62,700 of the options have a three year vesting period while the remaining 112,000 options vest in five years. Stock Options Granted Date Shares Forfeited Outstanding Strike Price Vesting Period Expiration August 24, 2018 50,200 — 50,200 $ 46.00 3 years 10 years August 24, 2018 99,500 — 99,500 46.00 5 years 10 years January 5, 2018 12,500 — 12,500 45.11 3 years 10 years January 5, 2018 12,500 — 12,500 45.11 5 years 10 years March 24, 2017 46,250 (4,500 ) 41,750 44.21 3 years 10 years March 24, 2017 23,750 — 23,750 44.21 5 years 10 years August 27, 2015 38,750 (15,250 ) 23,500 42.03 5 years 10 years A summary of stock option activity is presented below: September 30, 2018 September 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 93,500 $ 43.59 26,500 $ 42.03 Granted 174,700 45.87 70,000 44.21 Exercised — — — — Forfeited (4,500 ) 42.76 (1,500 ) 42.03 Expired — — — — Outstanding, end of period 263,700 $ 45.11 95,000 $ 43.64 Exercisable, end of period — $ — — $ — 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, related to stock options was $333,000 and $345,000 for the three and nine months ended September 30, 2018 compared to $7,000 and $14,000 for the same period of 2017 . As of September 30, 2018 , no stock options were exercisable and the weighted average years to expiration were 8.97 years. The fair value of options granted during the three and nine months ended September 30, 2018 was approximately $2,800,000 and $2,048,000 or $18.70 and $11.72 per award, respectively. Total unrecognized compensation cost for non-vested options was $1,806,000 and will be recognized over their weighted average remaining vesting period of 3.91 years. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606 using the modified retrospective method, and applied the guidance to all contracts in scope that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The core principle of Topic 606, Revenue from Contracts with Customers , is that an entity recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. Topic 606 requires entities to exercise more judgment when considering the terms of a contract than under Topic 605, Revenue Recognition . Topic 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. Topic 606 does not apply to revenue associated with interest income on financial instruments, including loans and securities. Additionally, certain noninterest income streams such as certain credit and debit card fees, income from bank owned life insurance, and gain and losses on sales of investment securities are out of scope of Topic 606. Topic 606 is applicable to noninterest revenue streams such as service charges on deposit accounts, merchant income, wire transfer income, check cashing fees, check printing fees, safe deposit box rental fees, life insurance and brokerage commissions. These revenue streams are largely transactional based and revenue is recognized upon completion of transaction. Principal versus Agent Considerations When more than one party is involved in providing goods or services to a customer, Topic 606 requires the Company to determine whether it is the principal or an agent in these transactions by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis if it controls a promised good or service before transferring that good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. The Company most commonly acts as a principal and records revenue on a gross basis, except in certain circumstances. As an example, revenues earned from interchange fees, in which the Company acts as an agent, are recorded as non-interest income, net of the related expenses paid to the principal. Brokerage and insurance commissions are recognized when The M Group's services to the broker dealer and investment representative are complete. Debit Card Fees Interchange fees are one source of debit and credit card income that is comprised of an amount merchants pay card-issuing banks for the processing of their electronic transactions as a form of payment. ATM service charges, check card usage, and POS debit card transactions generate interchange and debit card income. Per Topic 606 interchange and debit card transaction fees are reported net of related network costs. See Note 1 - Newly Adopted Accounting Standards. Prior to the adoption of Topic 606, non-interest expense included network costs. Interchange and debit card transaction fees for the three and nine months ended September 30, 2018 reported on a net basis totaled $359,000 and $1,065,000 ; for the corresponding periods of 2017 such amounts were $328,000 and $939,000 , respectively. The below table compares gross interchange and debit card transaction fees net network costs for 2018 and 2017: Three Months Ended September 30, Nine months ended September 30, (In Thousands) 2018 2017 2018 2017 Debit card transaction fees $ 489 $ 514 $ 1,549 $ 1,449 Other processing service fees 69 57 197 179 Gross interchange and card based transaction fees 558 571 1,746 1,628 Network costs 199 243 681 689 Net interchange and card based transaction fees $ 359 $ 328 $ 1,065 $ 939 |
Reclassification of Comparative
Reclassification of Comparative Amounts | 9 Months Ended |
Sep. 30, 2018 | |
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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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”). The Company also owns a controlling interest in United Insurance Solutions, LLC. All significant inter-company balances and transactions have been eliminated in the consolidation. |
Tax Cuts and Jobs Act | Public law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), enacted on December 22, 2017, reduced the U.S. federal corporate tax rate from 34% to 21% effective January 1, 2018. Also on December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Act. SAB 118 provides a measurement period of up to one year from the enactment date to complete the accounting. Any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. Based on the information available and current interpretation of the rules, the Company estimated the impact of the reduction in the corporate tax rate and remeasurement of certain deferred tax assets and liabilities. |
Newly Adopted Accounting Pronouncements and 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. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Upon adoption on January 1, 2018, we have included the related new disclosure requirements in Note 13 . 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. Upon adoption on January 1, 2018, the Company made a one-time cumulative effect adjustment from accumulated other comprehensive income to retained earnings of $537,000 . The net effect was an increase to retained earnings. In August 2018, the Securities and Exchange Commission issued Final Rule Release No. 33-10532 - “Disclosure Update and Simplification.” The rule changes implemented by the Release amend, effective November 5, 2018, various SEC disclosure requirements that have been determined to be redundant, duplicative, overlapping, outdated, or superseded. The changes are generally expected to reduce or eliminate certain disclosures; however, the amendments did expand interim period disclosure requirements related to changes in shareholders' equity. The presentation of the Statement of Changes in Shareholders' Equity contained herein for the three and nine months ended September 30, 2018 includes the disclosures required by the Release. 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 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 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 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitte d. 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 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 corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) , which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10) , to clarify certain aspects of the guidance issued in ASU 2016-01. (1) An entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820, Fair Value Measurement , through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer. Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820. (2) Adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place. (3) Remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities. (4) When the fair value option is elected for a financial liability, the guidance in paragraph 825-10-45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15, Derivatives and Hedging-Embedded Derivatives , or 825-10, Financial Instruments-Overall . (5) Financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates. (6) The prospective transition approach for equity securities without a readily determinable fair value in the amendments in Update 2016-01 is meant only for instances in which the measurement alternative is applied. An insurance entity subject to the guidance in Topic 944, Financial Services- Insurance , should apply a prospective transition method when applying the amendments related to equity securities without readily determinable fair values. An insurance entity should apply the selected prospective transition method consistently to the entity’s entire population of equity securities for which the measurement alternative is elected. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. For all other entities, the effective date is the same as the effective date in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. 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 March 2018, the FASB issued ASU 2018-04, Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, ASU 2018-04 supersedes various SEC paragraphs and adds an SEC paragraph pursuant to the issuance of Staff Accounting Bulletin No. 117. In July 2018, the FASB issued ASU 2018-09, Codification Improvements , represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . This Update provides another transition method which allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Entities that elect this approach should report comparative periods in accordance with ASC 840, Leases . In addition, this Update provides a practical expedient under which lessors may elect, by class of underlying assets, to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (a) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (b) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with ASC 606, Revenue from Contracts with Customers . Otherwise, the entity should account for the combined component as an operating lease in accordance with ASC 842. If a lessor elects the practical expedient, certain disclosures are required. This Update is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. 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. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits (Topic 715-20). This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain (Loss) on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (2,057 ) $ (4,853 ) $ (6,910 ) $ (16 ) $ (4,233 ) $ (4,249 ) Other comprehensive (loss) gain before reclassifications (623 ) — (623 ) 287 — 287 Amounts reclassified from accumulated other comprehensive loss 17 33 50 (198 ) 30 (168 ) Net current-period other comprehensive (loss) income (606 ) 33 (573 ) 89 30 119 Ending balance $ (2,663 ) $ (4,820 ) $ (7,483 ) $ 73 $ (4,203 ) $ (4,130 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (In Thousands) Net Unrealized Loss on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain (Loss) on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ (54 ) $ (4,920 ) $ (4,974 ) $ (639 ) $ (4,289 ) $ (4,928 ) Other comprehensive (loss) gain before reclassifications (2,085 ) — (2,085 ) 1,033 — 1,033 Amounts reclassified from accumulated other comprehensive loss 13 100 113 (321 ) 86 (235 ) Net current-period other comprehensive (loss) income (2,072 ) 100 (1,972 ) 712 86 798 Reclassification from adoption of 2016-01 (537 ) — (537 ) — — — Ending balance $ (2,663 ) $ (4,820 ) $ (7,483 ) $ 73 $ (4,203 ) $ (4,130 ) |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | The reclassifications out of accumulated other comprehensive loss shown, net of tax and parenthesis indicating debits to net income, as of September 30, 2018 and 2017 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, 2018 Three Months Ended September 30, 2017 Net unrealized (loss) gain on available for sale securities $ (22 ) $ 302 Net securities (losses) gains, available for sale Income tax effect 5 (104 ) Income tax provision Total reclassifications for the period $ (17 ) $ 198 Net unrecognized pension costs $ (41 ) $ (45 ) Salaries and employee benefits Income tax effect 8 15 Income tax provision Total reclassifications for the period $ (33 ) $ (30 ) 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, 2018 Nine months ended September 30, 2017 Net unrealized (loss) gain on available for sale securities $ (17 ) $ 487 Net securities gains, available for sale Income tax effect 4 (166 ) Income tax provision Total reclassifications for the period $ (13 ) $ 321 Net unrecognized pension costs $ (125 ) $ (129 ) Salaries and employee benefits Income tax effect 25 43 Income tax provision Total reclassifications for the period $ (100 ) $ (86 ) |
Per Share Data (Tables)
Per Share Data (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Weighted average common shares issued 5,010,710 5,008,372 5,010,110 5,007,796 Weighted average treasury stock shares (320,150 ) (320,150 ) (320,150 ) (296,514 ) Weighted average common shares outstanding - basic and diluted 4,690,560 4,688,222 4,689,960 4,711,282 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains and losses, and fair values of equity and trading investment securities | The amortized cost, gross unrealized gains and losses, and fair values of our investment securities portfolio at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 6,475 $ 7 $ (255 ) $ 6,227 State and political securities 75,859 68 (1,264 ) 74,663 Other debt securities 49,942 2 (1,929 ) 48,015 Total debt securities $ 132,276 $ 77 $ (3,448 ) $ 128,905 Investment equity securities: Financial institution equity securities $ 328 $ 362 $ — $ 690 Other equity securities 1,300 — (88 ) 1,212 Investment equity securities $ 1,628 $ 362 $ (88 ) $ 1,902 Trading: Other equity securities $ 49 $ — $ (4 ) $ 45 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS): Mortgage-backed securities $ 4,273 $ 51 $ (111 ) $ 4,213 State and political securities 56,295 411 (198 ) 56,508 Other debt securities 48,806 180 (1,080 ) 47,906 Total debt securities $ 109,374 $ 642 $ (1,389 ) $ 108,627 Investment equity securities: Financial institution equity securities $ 537 $ 728 $ — $ 1,265 Other equity securities 1,300 — (49 ) 1,251 Investment equity securities $ 1,837 $ 728 $ (49 ) $ 2,516 Trading: Financial institution equity securities $ 20 $ — $ — $ 20 Other equity securities 192 2 (24 ) 170 Trading investment equity securities $ 212 $ 2 $ (24 ) $ 190 |
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 debt securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017 . September 30, 2018 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 $ 3,084 $ (42 ) $ 2,943 $ (213 ) $ 6,027 $ (255 ) State and political securities 47,314 (774 ) 11,311 (490 ) 58,625 (1,264 ) Other debt securities 18,225 (436 ) 27,779 (1,493 ) 46,004 (1,929 ) Total debt securities $ 68,623 $ (1,252 ) $ 42,033 $ (2,196 ) $ 110,656 $ (3,448 ) December 31, 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 $ 981 $ (12 ) $ 2,276 $ (99 ) $ 3,257 $ (111 ) State and political securities 15,691 (104 ) 3,018 (94 ) 18,709 (198 ) Other debt securities 7,512 (148 ) 28,517 (932 ) 36,029 (1,080 ) Total debt securities $ 24,184 $ (264 ) $ 33,811 $ (1,125 ) $ 57,995 $ (1,389 ) Other equity securities $ 1,251 $ (49 ) $ — $ — $ 1,251 $ (49 ) |
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, 2018 , 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 $ 3,972 $ 3,967 Due after one year to five years 45,584 44,327 Due after five years to ten years 64,109 62,345 Due after ten years 18,611 18,266 Total $ 132,276 $ 128,905 |
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) 2018 2017 2018 2017 Available for sale (AFS): Gross realized gains: Mortgage-backed securities $ 22 $ — $ 27 $ 69 State and political securities — 313 19 343 Other debt securities 3 5 3 5 Total gross realized gains $ 25 $ 318 $ 49 $ 417 Gross realized losses: State and political securities $ 47 $ 16 $ 56 $ 17 Other debt securities — — 10 51 Total gross realized losses $ 47 $ 16 $ 66 $ 68 Investment equity securities: Gross realized gains: Financial institution equity securities $ — $ — $ — $ 288 Gross realized losses: Other equity securities $ — $ — $ — $ 150 |
Schedule of unrealized and realized gains and losses recognized in net income | The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and nine months ended September 30, 2018 : (In Thousands) Three Months Ended September 30, 2018 Nine months ended September 30, 2018 Net gains (losses) recognized in equity securities during the period $ (16 ) $ (44 ) Less: Net gains (losses) realized on the sale of equity securities during the period 5 13 Unrealized gains (losses) recognized in equity securities held at reporting date $ (21 ) $ (57 ) Net gains and losses on trading account securities are as follows for the three and nine months ended September 30, 2018 : Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2018 2017 2018 2017 Net gains (losses) on sale transactions $ 9 $ (2 ) $ 17 $ 7 Net mark-to-market gains (losses) 5 (2 ) (5 ) (9 ) Net gain (loss) on trading account securities $ 14 $ (4 ) $ 12 $ (2 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 : September 30, 2018 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 185,951 $ 305 $ — $ 1,244 $ 187,500 Real estate mortgage: Residential 611,989 3,663 442 2,080 618,174 Commercial 365,334 2,427 — 4,815 372,576 Construction 39,831 149 12 — 39,992 Consumer automobile loans 123,943 499 58 88 124,588 Other consumer installment loans 25,012 511 — — 25,523 1,352,060 $ 7,554 $ 512 $ 8,227 1,368,353 Net deferred loan fees and discounts 752 752 Allowance for loan losses (13,343 ) (13,343 ) Loans, net $ 1,339,469 $ 1,355,762 December 31, 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 $ 178,022 $ 663 $ 86 $ 114 $ 178,885 Real estate mortgage: Residential 588,278 6,853 318 1,628 597,077 Commercial 325,148 1,823 80 4,968 332,019 Construction 31,547 116 20 — 31,683 Consumer automobile loans 79,595 87 — 32 79,714 Other consumer installment loans 26,740 202 5 17 26,964 1,229,330 $ 9,744 $ 509 $ 6,759 1,246,342 Net deferred loan fees and discounts 272 272 Allowance for loan losses (12,858 ) (12,858 ) Loans, net $ 1,216,744 $ 1,233,756 |
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, 2018 and 2017 : Three Months Ended September 30, 2018 2017 (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 $ 61 $ 51 $ 8 $ 2 Real estate mortgage: Residential 21 31 29 30 Commercial 33 4 90 23 Construction — — — — Consumer automobile loans — — — — Other consumer installment loans 2 1 1 1 $ 117 $ 87 $ 128 $ 56 Nine Months Ended September 30, 2018 2017 (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 $ 65 $ 52 $ 21 $ 8 Real estate mortgage: Residential 89 65 123 81 Commercial 171 43 322 42 Construction — — — — Consumer automobile loans — — — — Other consumer installment loans 3 2 3 2 $ 328 $ 162 $ 469 $ 133 |
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, 2018 and December 31, 2017 : September 30, 2018 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,028 $ 1,028 $ — Real estate mortgage: Residential 1,614 1,614 — Commercial 2,117 2,117 — Installment loans to individuals — — — 4,759 4,759 — With an allowance recorded: Commercial, financial, and agricultural 75 75 50 Real estate mortgage: Residential 1,698 1,747 121 Commercial 6,205 6,205 1,187 Installment loans to individuals 40 40 20 8,018 8,067 1,378 Total: Commercial, financial, and agricultural 1,103 1,103 50 Real estate mortgage: Residential 3,312 3,361 121 Commercial 8,322 8,322 1,187 Installment loans to individuals 40 40 20 $ 12,777 $ 12,826 $ 1,378 December 31, 2017 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,033 $ 1,033 $ — Real estate mortgage: Residential 1,428 1,428 — Commercial 1,465 1,465 — 3,926 3,926 — With an allowance recorded: Commercial, financial, and agricultural 235 235 96 Real estate mortgage: Residential 2,304 2,353 367 Commercial 7,981 8,031 1,721 10,520 10,619 2,184 Total: Commercial, financial, and agricultural 1,268 1,268 96 Real estate mortgage: Residential 3,732 3,781 367 Commercial 9,446 9,496 1,721 $ 14,446 $ 14,545 $ 2,184 |
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, 2018 and 2017 : Three Months Ended September 30, 2018 2017 (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 $ 1,154 $ 18 $ 51 $ 394 $ 17 $ 1 Real estate mortgage: Residential 3,703 40 31 3,199 12 34 Commercial 8,547 97 4 12,885 52 23 Construction — — — — — — Consumer automobile — — — — — — Other consumer installment loans 20 2 1 — — $ 13,404 $ 155 $ 87 $ 16,478 $ 81 $ 58 Nine Months Ended September 30, 2018 2017 (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 $ 1,206 $ 52 $ 52 $ 324 $ 24 $ 7 Real estate mortgage: Residential 3,901 107 65 3,212 48 80 Commercial 8,988 191 43 12,635 137 42 Construction — — — — — — Consumer automobile — — — — — — Other consumer installment loans 10 3 1 8 — 2 $ 14,095 $ 350 $ 161 $ 16,179 $ 209 $ 131 |
Schedule of loan modifications that are considered TDRs | Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2018 were as follows: Three Months Ended September 30, 2018 2017 (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 1 $ 1,028 $ 1,028 — $ — $ — Real estate mortgage: Residential — — — — $ — $ — Commercial — — — 2 375 375 1 $ 1,028 $ 1,028 2 $ 375 $ 375 Nine Months Ended September 30, 2018 2017 (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 1 $ 1,028 $ 1,028 — $ — $ — Real estate mortgage: Residential 3 169 169 — $ — $ — Commercial 1 106 106 2 375 375 5 $ 1,303 $ 1,303 2 $ 375 $ 375 |
Schedule of credit quality categories | The following table presents the credit quality categories identified above as of September 30, 2018 and December 31, 2017 : September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment loans (In Thousands) Residential Commercial Construction Totals Pass $ 178,507 $ 616,578 $ 352,676 $ 39,992 $ 124,588 $ 25,523 $ 1,337,864 Special Mention 7,766 345 10,247 — — — 18,358 Substandard 1,227 1,251 9,653 — — — 12,131 $ 187,500 $ 618,174 $ 372,576 $ 39,992 $ 124,588 $ 25,523 $ 1,368,353 December 31, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment loans (In Thousands) Residential Commercial Construction Totals Pass $ 175,603 $ 593,828 $ 311,209 $ 31,535 $ 79,714 $ 26,964 $ 1,218,853 Special Mention 738 1,043 7,337 — — — 9,118 Substandard 2,544 2,206 13,473 148 — — 18,371 $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 79,714 $ 26,964 $ 1,246,342 |
Schedule of activity in the allowance | Activity in the allowance is presented for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,055 $ 5,583 $ 3,814 $ 118 $ 1,069 $ 317 $ 1,078 $ 13,034 Charge-offs (6 ) (81 ) — — (31 ) (90 ) — (208 ) Recoveries 5 — — 2 9 21 — 37 Provision 187 (161 ) (370 ) 11 138 28 647 480 Ending Balance $ 1,241 $ 5,341 $ 3,444 $ 131 $ 1,185 $ 276 $ 1,725 $ 13,343 Three Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,731 $ 5,337 $ 3,727 $ 172 $ 349 $ 430 $ 1,363 $ 13,109 Charge-offs (68 ) (155 ) — — — (55 ) — (278 ) Recoveries 6 16 — 2 1 17 — 42 Provision (81 ) 232 300 (26 ) 100 44 (509 ) 60 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 450 $ 436 $ 854 $ 12,933 Nine Months Ended September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 804 $ 271 $ 495 $ 12,858 Charge-offs (42 ) (223 ) (55 ) — (83 ) (208 ) — (611 ) Recoveries 20 25 — 7 12 57 — 121 Provision 86 (140 ) (778 ) (31 ) 452 156 1,230 975 Ending Balance $ 1,241 $ 5,341 $ 3,444 $ 131 $ 1,185 $ 276 $ 1,725 $ 13,343 Nine Months Ended September 30, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer automobile Other consumer installment (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 143 $ 273 $ 390 $ 12,896 Charge-offs (81 ) (540 ) — — (17 ) (169 ) — (807 ) Recoveries 117 51 1 7 1 62 — 239 Provision (2 ) 536 (949 ) (37 ) 323 270 464 605 Ending Balance $ 1,588 $ 5,430 $ 4,027 $ 148 $ 450 $ 436 $ 854 $ 12,933 |
Schedule of concentration of loan | The Company has a concentration of the following to gross loans at September 30, 2018 and 2017 : September 30, 2018 2017 Owners of residential rental properties 14.72 % 15.34 % Owners of commercial rental properties 13.18 % 13.45 % |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment 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, 2018 and December 31, 2017 : September 30, 2018 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer Automobile Other consumer installment Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 50 $ 121 $ 1,187 $ — $ — $ 20 $ — $ 1,378 Collectively evaluated for impairment 1,191 5,220 2,257 131 1,185 256 1,725 11,965 Total ending allowance balance $ 1,241 $ 5,341 $ 3,444 $ 131 $ 1,185 $ 276 $ 1,725 $ 13,343 Loans: Individually evaluated for impairment $ 1,103 $ 3,312 $ 8,322 $ — $ — $ 40 $ 12,777 Collectively evaluated for impairment 186,397 614,862 364,254 39,992 124,588 25,483 1,355,576 Total ending loans balance $ 187,500 $ 618,174 $ 372,576 $ 39,992 $ 124,588 $ 25,523 $ 1,368,353 December 31, 2017 Commercial, Financial, and Agricultural Real Estate Mortgages Consumer Automobile Other consumer installment Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 96 $ 367 $ 1,721 $ — $ — $ — $ — $ 2,184 Collectively evaluated for impairment 1,081 5,312 2,556 155 804 271 495 10,674 Total ending allowance balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 804 $ 271 $ 495 $ 12,858 Loans: Individually evaluated for impairment $ 1,268 $ 3,732 $ 9,446 $ — $ — $ — $ 14,446 Collectively evaluated for impairment 177,617 593,345 322,573 31,683 79,714 26,964 1,231,896 Total ending loans balance $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 79,714 $ 26,964 $ 1,246,342 |
Net Periodic Benefit Cost-Def_2
Net Periodic Benefit Cost-Defined Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 , respectively: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2018 2017 2018 2017 Service cost $ — $ 41 $ — $ 124 Interest cost 177 188 530 566 Expected return on plan assets (272 ) (262 ) (820 ) (787 ) Amortization of net loss 41 45 125 129 Net periodic (benefit) cost $ (54 ) $ 12 $ (165 ) $ 32 |
Off Balance Sheet Risk (Tables)
Off Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 : (In Thousands) September 30, 2018 December 31, 2017 Commitments to extend credit $ 249,765 $ 264,982 Standby letters of credit 10,989 10,406 Credit exposure from the sale of assets with recourse 5,830 4,893 $ 266,584 $ 280,281 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , 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, 2018 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 6,227 $ — $ 6,227 State and political securities — 74,663 — 74,663 Other debt securities — 48,015 — 48,015 Investment equity securities: Financial institution equity securities 690 — — 690 Other equity securities 1,212 — — 1,212 Investment securities, trading: Other equity securities 45 — — 45 December 31, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 4,213 $ — $ 4,213 State and political securities — 56,508 — 56,508 Other debt securities — 47,906 — 47,906 Financial institution equity securities 1,265 — — 1,265 Other equity securities 1,251 — — 1,251 Investment securities, trading: Other equity securities 190 — — 190 |
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, 2018 and December 31, 2017 , 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, 2018 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 11,399 $ 11,399 Other real estate owned — — 705 705 December 31, 2017 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 12,262 $ 12,262 Other real estate owned — — 143 143 |
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, 2018 and December 31, 2017 : September 30, 2018 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 6,387 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (8)% 5,012 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 705 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, 2017 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 6,583 Discounted cash flow Temporary reduction in payment amount 3 to (70)% (4)% 5,679 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (17)% Other real estate owned $ 143 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 Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial instruments | The fair values of the Company’s financial instruments not recorded at fair value on a recurring or nonrecurring basis are as follows at September 30, 2018 and December 31, 2017 : Carrying Fair Fair Value Measurements at September 30, 2018 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents (1) $ 72,347 $ 72,347 $ 72,347 $ — $ — Restricted investment in bank stock 17,834 17,834 — 17,834 — Loans held for sale (1) 3,727 3,727 3,727 — — Loans, net 1,355,762 1,353,088 — — 1,353,088 Bank-owned life insurance (1) 28,472 28,472 28,472 — — Accrued interest receivable (1) 5,353 5,353 5,353 — — Financial liabilities: Interest-bearing deposits $ 897,366 $ 863,487 $ 597,024 $ — $ 266,463 Noninterest-bearing deposits (1) 313,111 313,111 313,111 — — Short-term borrowings (1) 164,465 164,465 164,465 — — Long-term borrowings 138,970 137,028 — — 137,028 Accrued interest payable (1) 1,051 1,051 1,051 — — (1) The financial instrument is carried at cost at September 30, 2018 , which approximate the fair value of the instruments Carrying Fair Fair Value Measurements at December 31, 2017 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 27,243 $ 27,243 $ 27,243 $ — $ — Investment securities: Available for sale 111,143 111,143 2,516 108,627 — Trading 190 190 190 — — Restricted investment in bank stock 13,332 13,332 — 13,332 — Loans held for sale 1,196 1,196 1,196 — — Loans, net 1,233,756 1,264,584 — — 1,264,584 Bank-owned life insurance 27,982 27,982 27,982 — — Accrued interest receivable 4,321 4,321 4,321 — — Financial liabilities: Interest-bearing deposits $ 843,004 $ 838,441 $ 611,187 $ — $ 227,254 Noninterest-bearing deposits 303,316 303,316 303,316 — — Short-term borrowings 100,748 100,748 100,748 — — Long-term borrowings 70,970 70,280 — — 70,280 Accrued interest payable 502 502 502 — — (1) The financial instrument is carried at cost at September 30, 2018 , which approximate the fair value of the instruments |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity is presented below: September 30, 2018 September 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 93,500 $ 43.59 26,500 $ 42.03 Granted 174,700 45.87 70,000 44.21 Exercised — — — — Forfeited (4,500 ) 42.76 (1,500 ) 42.03 Expired — — — — Outstanding, end of period 263,700 $ 45.11 95,000 $ 43.64 Exercisable, end of period — $ — — $ — Stock Options Granted Date Shares Forfeited Outstanding Strike Price Vesting Period Expiration August 24, 2018 50,200 — 50,200 $ 46.00 3 years 10 years August 24, 2018 99,500 — 99,500 46.00 5 years 10 years January 5, 2018 12,500 — 12,500 45.11 3 years 10 years January 5, 2018 12,500 — 12,500 45.11 5 years 10 years March 24, 2017 46,250 (4,500 ) 41,750 44.21 3 years 10 years March 24, 2017 23,750 — 23,750 44.21 5 years 10 years August 27, 2015 38,750 (15,250 ) 23,500 42.03 5 years 10 years |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Gross Interchange and Debit Card Transaction Fees Net Network Costs | The below table compares gross interchange and debit card transaction fees net network costs for 2018 and 2017: Three Months Ended September 30, Nine months ended September 30, (In Thousands) 2018 2017 2018 2017 Debit card transaction fees $ 489 $ 514 $ 1,549 $ 1,449 Other processing service fees 69 57 197 179 Gross interchange and card based transaction fees 558 571 1,746 1,628 Network costs 199 243 681 689 Net interchange and card based transaction fees $ 359 $ 328 $ 1,065 $ 939 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax expense related to remeasurement of deferred tax balance | $ 2,700 | |
Increase to retained earnings | 63,364 | $ 67,802 |
Accounting Standards Update 2016-01 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase to retained earnings | 537 | |
Decrease to accumulated other comprehensive income | $ 537 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | $ 138,192 | |||
Other comprehensive (loss) gain before reclassifications | $ (623) | $ 287 | (2,085) | $ 1,033 |
Amounts reclassified from accumulated other comprehensive loss | 50 | (168) | 113 | (235) |
Reclassification from adoption of 2016-01 | 0 | |||
Total other comprehensive (loss) income | (573) | 119 | (1,972) | 798 |
Ending balance | 140,538 | 140,538 | ||
Net Unrealized Gain (Loss) on Available for Sale Securities | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | (2,057) | (16) | (54) | (639) |
Other comprehensive (loss) gain before reclassifications | (623) | 287 | (2,085) | 1,033 |
Amounts reclassified from accumulated other comprehensive loss | 17 | (198) | 13 | (321) |
Total other comprehensive (loss) income | (606) | 89 | (2,072) | 712 |
Ending balance | (2,663) | 73 | (2,663) | 73 |
Defined Benefit Plan | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | (4,853) | (4,233) | (4,920) | (4,289) |
Other comprehensive (loss) gain before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 33 | 30 | 100 | 86 |
Total other comprehensive (loss) income | 33 | 30 | 100 | 86 |
Ending balance | (4,820) | (4,203) | (4,820) | (4,203) |
AOCI Attributable to Parent | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Beginning balance | (6,910) | (4,249) | (4,974) | (4,928) |
Reclassification from adoption of 2016-01 | (537) | |||
Total other comprehensive (loss) income | (573) | 119 | (1,972) | 798 |
Ending balance | $ (7,483) | $ (4,130) | (7,483) | (4,130) |
Accounting Standards Update 2016-01 | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Reclassification from adoption of 2016-01 | (537) | 0 | ||
Accounting Standards Update 2016-01 | Net Unrealized Gain (Loss) on Available for Sale Securities | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Reclassification from adoption of 2016-01 | (537) | 0 | ||
Accounting Standards Update 2016-01 | Defined Benefit Plan | ||||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||||
Reclassification from adoption of 2016-01 | $ 0 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassifications out of accumulated other comprehensive income | ||||
Net securities (losses) gains, available for sale | $ (22) | $ 302 | $ (17) | $ 487 |
Income tax provision | (857) | (1,282) | (2,179) | (3,491) |
Salaries and employee benefits | (5,420) | (4,738) | (15,387) | (14,116) |
CONSOLIDATED NET INCOME | 3,826 | 3,284 | 10,514 | 9,057 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Net Unrealized Gain (Loss) on Available for Sale Securities | ||||
Reclassifications out of accumulated other comprehensive income | ||||
Net securities (losses) gains, available for sale | (22) | 302 | (17) | 487 |
Income tax provision | 5 | (104) | 4 | (166) |
CONSOLIDATED NET INCOME | (17) | 198 | (13) | 321 |
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 | 8 | 15 | 25 | 43 |
Salaries and employee benefits | (41) | (45) | (125) | (129) |
CONSOLIDATED NET INCOME | $ (33) | $ (30) | $ (100) | $ (86) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018 | |
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 - Narrative (Det
Per Share Data - Narrative (Details) - $ / shares | 9 Months Ended | ||||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | 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) | 263,700 | 93,500 | 95,000 | 26,500 | 23,500 |
Outstanding, weighted average exercise price (in dollars per share) | $ 45.11 | $ 43.59 | $ 43.64 | $ 42.03 | |
Share price (in dollars per share) | $ 43.84 | $ 43.53 |
Per Share Data - Composition of
Per Share Data - Composition of Weighted Average Common Shares Used in Earnings per Share Computation (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares issued (in shares) | 5,010,710 | 5,008,372 | 5,010,110 | 5,007,796 |
Weighted average treasury stock shares (in shares) | (320,150) | (320,150) | (320,150) | (296,514) |
Weighted average common shares outstanding - basic and diluted (in shares) | 4,690,560 | 4,688,222 | 4,689,960 | 4,711,282 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available for sale (AFS) | ||
Amortized cost - total | $ 132,276 | |
Available for sale | 128,905 | $ 108,627 |
Investment equity securities | ||
Amortized cost | 1,628 | 1,837 |
Gross unrealized gains | 362 | 728 |
Gross unrealized losses | (88) | (49) |
Fair value | 1,902 | 2,516 |
Mortgage-backed securities | ||
Available for sale (AFS) | ||
Amortized cost - total | 6,475 | 4,273 |
Gross unrealized gains | 7 | 51 |
Gross unrealized losses | (255) | (111) |
Available for sale | 6,227 | 4,213 |
State and political securities | ||
Available for sale (AFS) | ||
Amortized cost - total | 75,859 | 56,295 |
Gross unrealized gains | 68 | 411 |
Gross unrealized losses | (1,264) | (198) |
Available for sale | 74,663 | 56,508 |
Other debt securities | ||
Available for sale (AFS) | ||
Amortized cost - total | 49,942 | 48,806 |
Gross unrealized gains | 2 | 180 |
Gross unrealized losses | (1,929) | (1,080) |
Available for sale | 48,015 | 47,906 |
Debt securities | ||
Available for sale (AFS) | ||
Amortized cost - total | 132,276 | 109,374 |
Gross unrealized gains | 77 | 642 |
Gross unrealized losses | (3,448) | (1,389) |
Available for sale | 128,905 | 108,627 |
Financial institution equity securities | ||
Investment equity securities | ||
Amortized cost | 328 | 537 |
Gross unrealized gains | 362 | 728 |
Gross unrealized losses | 0 | 0 |
Fair value | 690 | 1,265 |
Trading | ||
Amortized cost | 20 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 20 | |
Other equity securities | ||
Investment equity securities | ||
Amortized cost | 1,300 | 1,300 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (88) | (49) |
Fair value | 1,212 | 1,251 |
Trading | ||
Amortized cost | 49 | 192 |
Gross unrealized gains | 0 | 2 |
Gross unrealized losses | (4) | (24) |
Fair value | $ 45 | 170 |
Trading investment equity securities | ||
Trading | ||
Amortized cost | 212 | |
Gross unrealized gains | 2 | |
Gross unrealized losses | (24) | |
Fair value | $ 190 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Total net trading gains | $ 14,000 | $ (4,000) | $ 12,000 | $ (2,000) | |
Available for sale securities in unrealized loss, positions number of positions, less than twelve months | security | 71 | 71 | |||
Available for sale securities in unrealized loss, positions number of positions, greater than twelve months | security | 42 | 42 | |||
Proceeds from sales of available for sale securities | $ 10,450,000 | 6,478,000 | $ 14,528,000 | 15,443,000 | |
Impairment charges | 0 | $ 0 | 0 | $ 0 | |
Investment equity securities, at fair value | 1,902,000 | 1,902,000 | $ 2,516,000 | ||
Unrealized gains (losses) recognized in equity securities held at reporting date | (21,000) | (57,000) | |||
Net unrealized gains recognized in ACOI | 679,000 | ||||
Collateral Pledged | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities, carrying value | $ 80,035,000 | $ 80,035,000 | $ 90,286,000 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Mortgage-backed securities | ||
Investment securities | ||
Fair value, less than twelve months | $ 3,084 | $ 981 |
Gross unrealized losses, less than twelve months | (42) | (12) |
Fair value, twelve months or greater | 2,943 | 2,276 |
Gross unrealized losses, twelve months or greater | (213) | (99) |
Fair value, total | 6,027 | 3,257 |
Gross unrealized losses, total | (255) | (111) |
State and political securities | ||
Investment securities | ||
Fair value, less than twelve months | 47,314 | 15,691 |
Gross unrealized losses, less than twelve months | (774) | (104) |
Fair value, twelve months or greater | 11,311 | 3,018 |
Gross unrealized losses, twelve months or greater | (490) | (94) |
Fair value, total | 58,625 | 18,709 |
Gross unrealized losses, total | (1,264) | (198) |
Other debt securities | ||
Investment securities | ||
Fair value, less than twelve months | 18,225 | 7,512 |
Gross unrealized losses, less than twelve months | (436) | (148) |
Fair value, twelve months or greater | 27,779 | 28,517 |
Gross unrealized losses, twelve months or greater | (1,493) | (932) |
Fair value, total | 46,004 | 36,029 |
Gross unrealized losses, total | (1,929) | (1,080) |
Debt securities | ||
Investment securities | ||
Fair value, less than twelve months | 68,623 | 24,184 |
Gross unrealized losses, less than twelve months | (1,252) | (264) |
Fair value, twelve months or greater | 42,033 | 33,811 |
Gross unrealized losses, twelve months or greater | (2,196) | (1,125) |
Fair value, total | 110,656 | 57,995 |
Gross unrealized losses, total | $ (3,448) | (1,389) |
Other equity securities | ||
Investment securities | ||
Fair value, less than twelve months | 1,251 | |
Gross unrealized losses, less than twelve months | (49) | |
Fair value, twelve months or greater | 0 | |
Gross unrealized losses, twelve months or greater | 0 | |
Fair value, total | 1,251 | |
Gross unrealized losses, total | $ (49) |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value of Debt Securities (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Amortized Cost | |
Amortized cost - due in one year or less | $ 3,972 |
Amortized cost - due after one year to five years | 45,584 |
Amortized cost - due after five years to ten years | 64,109 |
Amortized cost - due after ten years | 18,611 |
Amortized cost - total | 132,276 |
Fair Value | |
Fair value - due in one year or less | 3,967 |
Fair value - due after one year to five years | 44,327 |
Fair value - due after five years to ten years | 62,345 |
Fair value - due after ten years | 18,266 |
Fair value - total | $ 128,905 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Available for sale (AFS) | ||||
Available-for-sale securities, gross realized gains | $ 25 | $ 318 | $ 49 | $ 417 |
Available-for-sale securities, gross realized losses | 47 | 16 | 66 | 68 |
Mortgage-backed securities | ||||
Available for sale (AFS) | ||||
Available-for-sale securities, gross realized gains | 22 | 0 | 27 | 69 |
State and political securities | ||||
Available for sale (AFS) | ||||
Available-for-sale securities, gross realized gains | 0 | 313 | 19 | 343 |
Available-for-sale securities, gross realized losses | 47 | 16 | 56 | 17 |
Other debt securities | ||||
Available for sale (AFS) | ||||
Available-for-sale securities, gross realized gains | 3 | 5 | 3 | 5 |
Available-for-sale securities, gross realized losses | 0 | 0 | 10 | 51 |
Financial institution equity securities | ||||
Investment Equity Securities | ||||
Investment equity securities, gross realized gain | 0 | 0 | 0 | 288 |
Other equity securities | ||||
Investment Equity Securities | ||||
Investment equity securities, gross realized loss | $ 0 | $ 0 | $ 0 | $ 150 |
Investment Securities - Unreali
Investment Securities - Unrealized and Realized Gains and Losses Recognized in Net Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Net gains (losses) recognized in equity securities during the period | $ (16,000) | $ 0 | $ (44,000) | $ 0 |
Less: Net gains (losses) realized on the sale of equity securities during the period | 5,000 | 13,000 | ||
Unrealized gains (losses) recognized in equity securities held at reporting date | (21,000) | (57,000) | ||
Debt Securities, Trading, Gain (Loss) [Abstract] | ||||
Net gains (losses) on sale transactions | 9,000 | (2,000) | 17,000 | 7,000 |
Net mark-to-market gains (losses) | 5,000 | (2,000) | (5,000) | (9,000) |
Net gain (loss) on trading account securities | $ 14,000 | $ (4,000) | $ 12,000 | $ (2,000) |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)categorycomponentclasscontract | Sep. 30, 2017contract | Sep. 30, 2018USD ($)categorycomponentclasscontract | Sep. 30, 2017contract | Dec. 31, 2017USD ($) | |
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 | $ 0 | $ 0 | |||
Reasonable period to classify from troubled debt restructuring non performing loans to performing loans (in months) | 6 months | ||||
Loan modifications, number of contracts | contract | 1 | 2 | 5 | 2 | |
Number of contracts | contract | 1 | ||||
Recorded investment | $ 9,558,000 | $ 9,558,000 | $ 9,048,000 | ||
Real estate acquired through foreclosure | 705,000 | 705,000 | 143,000 | ||
Mortgage loans in process of foreclosure, amount | $ 223,000 | $ 223,000 | $ 378,000 | ||
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 | ||||
Real estate mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of categories in which real estate loans segmented | category | 3 | ||||
Real estate mortgage | Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan modifications, number of contracts | contract | 0 | 0 | 3 | 0 | |
Defaulted loan, recorded investment | $ 3,000 |
Loans - Aging Categories of Loa
Loans - Aging Categories of Loans by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Aging categories of loans by segment | ||||||
Current | $ 1,352,060 | $ 1,229,330 | ||||
Past due 30 to 89 days | 7,554 | 9,744 | ||||
Past due 90 days or more & still accruing | 512 | 509 | ||||
Non-accrual | 8,227 | 6,759 | ||||
Total | 1,368,353 | 1,246,342 | ||||
Net deferred loan fees and discounts | 752 | 272 | ||||
Allowance for loan losses | (13,343) | $ (13,034) | (12,858) | $ (12,933) | $ (13,109) | $ (12,896) |
Current loans, net | 1,339,469 | 1,216,744 | ||||
Loans, net | 1,355,762 | 1,233,756 | ||||
Commercial, financial, and agricultural | ||||||
Aging categories of loans by segment | ||||||
Current | 185,951 | 178,022 | ||||
Past due 30 to 89 days | 305 | 663 | ||||
Past due 90 days or more & still accruing | 0 | 86 | ||||
Non-accrual | 1,244 | 114 | ||||
Total | 187,500 | 178,885 | ||||
Allowance for loan losses | (1,241) | (1,055) | (1,177) | (1,588) | (1,731) | (1,554) |
Real estate mortgage | Residential | ||||||
Aging categories of loans by segment | ||||||
Current | 611,989 | 588,278 | ||||
Past due 30 to 89 days | 3,663 | 6,853 | ||||
Past due 90 days or more & still accruing | 442 | 318 | ||||
Non-accrual | 2,080 | 1,628 | ||||
Total | 618,174 | 597,077 | ||||
Allowance for loan losses | (5,341) | (5,583) | (5,679) | (5,430) | (5,337) | (5,383) |
Real estate mortgage | Commercial | ||||||
Aging categories of loans by segment | ||||||
Current | 365,334 | 325,148 | ||||
Past due 30 to 89 days | 2,427 | 1,823 | ||||
Past due 90 days or more & still accruing | 0 | 80 | ||||
Non-accrual | 4,815 | 4,968 | ||||
Total | 372,576 | 332,019 | ||||
Allowance for loan losses | (3,444) | (3,814) | (4,277) | (4,027) | (3,727) | (4,975) |
Real estate mortgage | Construction | ||||||
Aging categories of loans by segment | ||||||
Current | 39,831 | 31,547 | ||||
Past due 30 to 89 days | 149 | 116 | ||||
Past due 90 days or more & still accruing | 12 | 20 | ||||
Non-accrual | 0 | 0 | ||||
Total | 39,992 | 31,683 | ||||
Allowance for loan losses | (131) | (118) | (155) | (148) | (172) | (178) |
Consumer automobile loans | ||||||
Aging categories of loans by segment | ||||||
Current | 123,943 | 79,595 | ||||
Past due 30 to 89 days | 499 | 87 | ||||
Past due 90 days or more & still accruing | 58 | 0 | ||||
Non-accrual | 88 | 32 | ||||
Total | 124,588 | 79,714 | ||||
Allowance for loan losses | (1,185) | (1,069) | (804) | (450) | (349) | (143) |
Other consumer installment loans | ||||||
Aging categories of loans by segment | ||||||
Current | 25,012 | 26,740 | ||||
Past due 30 to 89 days | 511 | 202 | ||||
Past due 90 days or more & still accruing | 0 | 5 | ||||
Non-accrual | 0 | 17 | ||||
Total | 25,523 | 26,964 | ||||
Allowance for loan losses | $ (276) | $ (317) | $ (271) | $ (436) | $ (430) | $ (273) |
Loans - Interest Income (Detail
Loans - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | $ 117 | $ 128 | $ 328 | $ 469 |
Interest Income Recorded on a Cash Basis | 87 | 56 | 162 | 133 |
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 | 61 | 8 | 65 | 21 |
Interest Income Recorded on a Cash Basis | 51 | 2 | 52 | 8 |
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 | 21 | 29 | 89 | 123 |
Interest Income Recorded on a Cash Basis | 31 | 30 | 65 | 81 |
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 | 33 | 90 | 171 | 322 |
Interest Income Recorded on a Cash Basis | 4 | 23 | 43 | 42 |
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 | 0 |
Interest Income Recorded on a Cash Basis | 0 | 0 | 0 | 0 |
Consumer automobile loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 0 | 0 | 0 | 0 |
Interest Income Recorded on a Cash Basis | 0 | 0 | 0 | 0 |
Other consumer installment loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 2 | 1 | 3 | 3 |
Interest Income Recorded on a Cash Basis | $ 1 | $ 1 | $ 2 | $ 2 |
Loans - Recorded Investment, Un
Loans - Recorded Investment, Unpaid Principal Balance, Related Allowance of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Credit Quality and Related Allowance for Loan Losses | ||
Recorded investment, with no related allowance recorded | $ 4,759 | $ 3,926 |
Recorded investment, with an allowance recorded | 8,018 | 10,520 |
Recorded investment | 12,777 | 14,446 |
Unpaid principal balance, with no related allowance recorded | 4,759 | 3,926 |
Unpaid principal balance, with an allowance recorded | 8,067 | 10,619 |
Unpaid principal balance | 12,826 | 14,545 |
Related allowance | 1,378 | 2,184 |
Commercial, financial, and agricultural | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded investment, with no related allowance recorded | 1,028 | 1,033 |
Recorded investment, with an allowance recorded | 75 | 235 |
Recorded investment | 1,103 | 1,268 |
Unpaid principal balance, with no related allowance recorded | 1,028 | 1,033 |
Unpaid principal balance, with an allowance recorded | 75 | 235 |
Unpaid principal balance | 1,103 | 1,268 |
Related allowance | 50 | 96 |
Real estate mortgage | Residential | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded investment, with no related allowance recorded | 1,614 | 1,428 |
Recorded investment, with an allowance recorded | 1,698 | 2,304 |
Recorded investment | 3,312 | 3,732 |
Unpaid principal balance, with no related allowance recorded | 1,614 | 1,428 |
Unpaid principal balance, with an allowance recorded | 1,747 | 2,353 |
Unpaid principal balance | 3,361 | 3,781 |
Related allowance | 121 | 367 |
Real estate mortgage | Commercial | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded investment, with no related allowance recorded | 2,117 | 1,465 |
Recorded investment, with an allowance recorded | 6,205 | 7,981 |
Recorded investment | 8,322 | 9,446 |
Unpaid principal balance, with no related allowance recorded | 2,117 | 1,465 |
Unpaid principal balance, with an allowance recorded | 6,205 | 8,031 |
Unpaid principal balance | 8,322 | 9,496 |
Related allowance | 1,187 | $ 1,721 |
Real estate mortgage | Installment Loans to Individuals | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded investment, with no related allowance recorded | 0 | |
Recorded investment, with an allowance recorded | 40 | |
Recorded investment | 40 | |
Unpaid principal balance, with no related allowance recorded | 0 | |
Unpaid principal balance, with an allowance recorded | 40 | |
Unpaid principal balance | 40 | |
Related allowance | $ 20 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | $ 13,404 | $ 16,478 | $ 14,095 | $ 16,179 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 155 | 81 | 350 | 209 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 87 | 58 | 161 | 131 |
Commercial, financial, and agricultural | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 1,154 | 394 | 1,206 | 324 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 18 | 17 | 52 | 24 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 51 | 1 | 52 | 7 |
Real estate mortgage | Residential | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 3,703 | 3,199 | 3,901 | 3,212 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 40 | 12 | 107 | 48 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 31 | 34 | 65 | 80 |
Real estate mortgage | Commercial | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 8,547 | 12,885 | 8,988 | 12,635 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 97 | 52 | 191 | 137 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 4 | 23 | 43 | 42 |
Real estate mortgage | Construction | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 0 | 0 | 0 | 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 | 0 | 0 |
Consumer automobile loans | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 0 | 0 | 0 | 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 | 0 | 0 |
Other consumer installment loans | ||||
Credit Quality and Related Allowance for Loan Losses | ||||
Average Investment in Impaired Loans | 20 | 0 | 10 | 8 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 2 | 0 | 3 | 0 |
Interest Income Recognized on a Cash Basis on Impaired Loans | $ 1 | $ 1 | $ 2 |
Loans - Loan Modifications (Det
Loans - Loan Modifications (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 1 | 2 | 5 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 1,028 | $ 375 | $ 1,303 | $ 375 |
Post-Modification Outstanding Recorded Investment | $ 1,028 | $ 375 | $ 1,303 | $ 375 |
Commercial, financial, and agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 1,028 | $ 0 | $ 1,028 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 1,028 | $ 0 | $ 1,028 | $ 0 |
Real estate mortgage | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 3 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 169 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 169 | $ 0 |
Real estate mortgage | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 2 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 375 | $ 106 | $ 375 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 375 | $ 106 | $ 375 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Credit quality categories | ||
Total | $ 1,368,353 | $ 1,246,342 |
Pass | ||
Credit quality categories | ||
Total | 1,337,864 | 1,218,853 |
Special Mention | ||
Credit quality categories | ||
Total | 18,358 | 9,118 |
Substandard | ||
Credit quality categories | ||
Total | 12,131 | 18,371 |
Commercial, financial, and agricultural | ||
Credit quality categories | ||
Total | 187,500 | 178,885 |
Commercial, financial, and agricultural | Pass | ||
Credit quality categories | ||
Total | 178,507 | 175,603 |
Commercial, financial, and agricultural | Special Mention | ||
Credit quality categories | ||
Total | 7,766 | 738 |
Commercial, financial, and agricultural | Substandard | ||
Credit quality categories | ||
Total | 1,227 | 2,544 |
Consumer automobile loans | ||
Credit quality categories | ||
Total | 124,588 | 79,714 |
Consumer automobile loans | Pass | ||
Credit quality categories | ||
Total | 124,588 | 79,714 |
Consumer automobile loans | Special Mention | ||
Credit quality categories | ||
Total | 0 | 0 |
Consumer automobile loans | Substandard | ||
Credit quality categories | ||
Total | 0 | 0 |
Other consumer installment loans | ||
Credit quality categories | ||
Total | 25,523 | 26,964 |
Other consumer installment loans | Pass | ||
Credit quality categories | ||
Total | 25,523 | 26,964 |
Other consumer installment loans | Special Mention | ||
Credit quality categories | ||
Total | 0 | 0 |
Other consumer installment loans | Substandard | ||
Credit quality categories | ||
Total | 0 | 0 |
Residential | Real estate mortgage | ||
Credit quality categories | ||
Total | 618,174 | 597,077 |
Residential | Real estate mortgage | Pass | ||
Credit quality categories | ||
Total | 616,578 | 593,828 |
Residential | Real estate mortgage | Special Mention | ||
Credit quality categories | ||
Total | 345 | 1,043 |
Residential | Real estate mortgage | Substandard | ||
Credit quality categories | ||
Total | 1,251 | 2,206 |
Commercial | Real estate mortgage | ||
Credit quality categories | ||
Total | 372,576 | 332,019 |
Commercial | Real estate mortgage | Pass | ||
Credit quality categories | ||
Total | 352,676 | 311,209 |
Commercial | Real estate mortgage | Special Mention | ||
Credit quality categories | ||
Total | 10,247 | 7,337 |
Commercial | Real estate mortgage | Substandard | ||
Credit quality categories | ||
Total | 9,653 | 13,473 |
Construction | Real estate mortgage | ||
Credit quality categories | ||
Total | 39,992 | 31,683 |
Construction | Real estate mortgage | Pass | ||
Credit quality categories | ||
Total | 39,992 | 31,535 |
Construction | Real estate mortgage | Special Mention | ||
Credit quality categories | ||
Total | 0 | 0 |
Construction | Real estate mortgage | Substandard | ||
Credit quality categories | ||
Total | $ 0 | $ 148 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Loan Losses: | ||||
Beginning Balance | $ 13,034 | $ 13,109 | $ 12,858 | $ 12,896 |
Charge-offs | (208) | (278) | (611) | (807) |
Recoveries | 37 | 42 | 121 | 239 |
Provision for loan losses | 480 | 60 | 975 | 605 |
Ending Balance | 13,343 | 12,933 | 13,343 | 12,933 |
Commercial, financial, and agricultural | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 1,055 | 1,731 | 1,177 | 1,554 |
Charge-offs | (6) | (68) | (42) | (81) |
Recoveries | 5 | 6 | 20 | 117 |
Provision for loan losses | 187 | (81) | 86 | (2) |
Ending Balance | 1,241 | 1,588 | 1,241 | 1,588 |
Real estate mortgage | Residential | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 5,583 | 5,337 | 5,679 | 5,383 |
Charge-offs | (81) | (155) | (223) | (540) |
Recoveries | 0 | 16 | 25 | 51 |
Provision for loan losses | (161) | 232 | (140) | 536 |
Ending Balance | 5,341 | 5,430 | 5,341 | 5,430 |
Real estate mortgage | Commercial | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 3,814 | 3,727 | 4,277 | 4,975 |
Charge-offs | 0 | 0 | (55) | 0 |
Recoveries | 0 | 0 | 0 | 1 |
Provision for loan losses | (370) | 300 | (778) | (949) |
Ending Balance | 3,444 | 4,027 | 3,444 | 4,027 |
Real estate mortgage | Construction | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 118 | 172 | 155 | 178 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 2 | 2 | 7 | 7 |
Provision for loan losses | 11 | (26) | (31) | (37) |
Ending Balance | 131 | 148 | 131 | 148 |
Consumer automobile loans | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 1,069 | 349 | 804 | 143 |
Charge-offs | (31) | 0 | (83) | (17) |
Recoveries | 9 | 1 | 12 | 1 |
Provision for loan losses | 138 | 100 | 452 | 323 |
Ending Balance | 1,185 | 450 | 1,185 | 450 |
Other consumer installment loans | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 317 | 430 | 271 | 273 |
Charge-offs | (90) | (55) | (208) | (169) |
Recoveries | 21 | 17 | 57 | 62 |
Provision for loan losses | 28 | 44 | 156 | 270 |
Ending Balance | 276 | 436 | 276 | 436 |
Unallocated | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 1,078 | 1,363 | 495 | 390 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | 647 | (509) | 1,230 | 464 |
Ending Balance | $ 1,725 | $ 854 | $ 1,725 | $ 854 |
Loans - Schedule of Concentrati
Loans - Schedule of Concentration Risk (Details) - Owners of rental properties - Financing receivable | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Residential | ||
Concentration Risk [Line Items] | ||
Concentration of loans (as a percent) | 14.72% | 15.34% |
Commercial | ||
Concentration Risk [Line Items] | ||
Concentration of loans (as a percent) | 13.18% | 13.45% |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | $ 1,378 | $ 2,184 | ||||
Collectively evaluated for impairment | 11,965 | 10,674 | ||||
Total ending allowance balance | 13,343 | $ 13,034 | 12,858 | $ 12,933 | $ 13,109 | $ 12,896 |
Loans: | ||||||
Individually evaluated for impairment | 12,777 | 14,446 | ||||
Collectively evaluated for impairment | 1,355,576 | 1,231,896 | ||||
Total | 1,368,353 | 1,246,342 | ||||
Commercial, financial, and agricultural | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 50 | 96 | ||||
Collectively evaluated for impairment | 1,191 | 1,081 | ||||
Total ending allowance balance | 1,241 | 1,055 | 1,177 | 1,588 | 1,731 | 1,554 |
Loans: | ||||||
Individually evaluated for impairment | 1,103 | 1,268 | ||||
Collectively evaluated for impairment | 186,397 | 177,617 | ||||
Total | 187,500 | 178,885 | ||||
Real estate mortgage | Residential | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 121 | 367 | ||||
Collectively evaluated for impairment | 5,220 | 5,312 | ||||
Total ending allowance balance | 5,341 | 5,583 | 5,679 | 5,430 | 5,337 | 5,383 |
Loans: | ||||||
Individually evaluated for impairment | 3,312 | 3,732 | ||||
Collectively evaluated for impairment | 614,862 | 593,345 | ||||
Total | 618,174 | 597,077 | ||||
Real estate mortgage | Commercial | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 1,187 | 1,721 | ||||
Collectively evaluated for impairment | 2,257 | 2,556 | ||||
Total ending allowance balance | 3,444 | 3,814 | 4,277 | 4,027 | 3,727 | 4,975 |
Loans: | ||||||
Individually evaluated for impairment | 8,322 | 9,446 | ||||
Collectively evaluated for impairment | 364,254 | 322,573 | ||||
Total | 372,576 | 332,019 | ||||
Real estate mortgage | Construction | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 131 | 155 | ||||
Total ending allowance balance | 131 | 118 | 155 | 148 | 172 | 178 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 39,992 | 31,683 | ||||
Total | 39,992 | 31,683 | ||||
Consumer automobile loans | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,185 | 804 | ||||
Total ending allowance balance | 1,185 | 1,069 | 804 | 450 | 349 | 143 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 124,588 | 79,714 | ||||
Total | 124,588 | 79,714 | ||||
Other consumer installment loans | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 20 | 0 | ||||
Collectively evaluated for impairment | 256 | 271 | ||||
Total ending allowance balance | 276 | 317 | 271 | 436 | 430 | 273 |
Loans: | ||||||
Individually evaluated for impairment | 40 | 0 | ||||
Collectively evaluated for impairment | 25,483 | 26,964 | ||||
Total | 25,523 | 26,964 | ||||
Unallocated | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,725 | 495 | ||||
Total ending allowance balance | $ 1,725 | $ 1,078 | $ 495 | $ 854 | $ 1,363 | $ 390 |
Net Periodic Benefit Cost-Def_3
Net Periodic Benefit Cost-Defined Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Net periodic benefit cost of the domestic non-contributory defined benefit plan | |||||
Service cost | $ 0 | $ 41,000 | $ 0 | $ 124,000 | |
Interest cost | 177,000 | 188,000 | 530,000 | 566,000 | |
Expected return on plan assets | (272,000) | (262,000) | (820,000) | (787,000) | |
Amortization of net loss | 41,000 | 45,000 | 125,000 | 129,000 | |
Net periodic (benefit) cost | (54,000) | $ 12,000 | (165,000) | $ 32,000 | |
Expected contribution to Pension Plan (minimum) | $ 500,000 | ||||
Employer contributions made to the defined benefit plan | 500,000 | ||||
Anticipated additional contributions anticipated during the remainder of the year (at least) | $ 250,000 | $ 250,000 |
Employee Stock Purchase Plan (D
Employee Stock Purchase Plan (Details) - Employee Stock - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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) | 1,725 | 1,617 |
Off Balance Sheet Risk (Details
Off Balance Sheet Risk (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 266,584 | $ 280,281 |
Commitments to extend credit | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | 249,765 | 264,982 |
Standby letters of credit | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 10,989 | 10,406 |
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 | $ 5,830 | $ 4,893 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Assets (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | $ 45 | $ 190 |
Level I | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 45 | 190 |
Level II | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Level III | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Mortgage-backed securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 6,227 | 4,213 |
Available-for-sale Securities | State and political securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 74,663 | 56,508 |
Available-for-sale Securities | Other debt securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 48,015 | 47,906 |
Available-for-sale Securities | Financial institution equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 690 | 1,265 |
Available-for-sale Securities | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 1,212 | 1,251 |
Available-for-sale Securities | Level I | Mortgage-backed securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level I | State and political securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level I | Other debt securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level I | Financial institution equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 690 | 1,265 |
Available-for-sale Securities | Level I | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 1,212 | 1,251 |
Available-for-sale Securities | Level II | Mortgage-backed securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 6,227 | 4,213 |
Available-for-sale Securities | Level II | State and political securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 74,663 | 56,508 |
Available-for-sale Securities | Level II | Other debt securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 48,015 | 47,906 |
Available-for-sale Securities | Level II | Financial institution equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level II | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level III | Mortgage-backed securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level III | State and political securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level III | Other debt securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level III | Financial institution equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Available-for-sale Securities | Level III | Other equity securities | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | $ 0 | $ 0 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Assets (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired loans | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | $ 11,399 | $ 12,262 |
Impaired loans | Level I | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Impaired loans | Level II | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Impaired loans | Level III | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 11,399 | 12,262 |
Other real estate owned | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 705 | 143 |
Other real estate owned | Level I | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value Measurements [Abstract] | ||
Total assets, fair value | $ 705 | $ 143 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs (Details) - Nonrecurring $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Level III | Measurement Input, Default Rate | Discounted cash flow | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Loans impaired, measurement input | 0 | |
Level III | Measurement Input, Temporary Reduction In Payment | Discounted cash flow | Minimum | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Impaired loans, measurement input percentage | 0 | 0.03 |
Level III | Measurement Input, Temporary Reduction In Payment | Discounted cash flow | Maximum | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Impaired loans, measurement input percentage | (0.70) | (0.70) |
Level III | Measurement Input, Temporary Reduction In Payment | Discounted cash flow | Weighted Average | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Impaired loans, measurement input percentage | (0.08) | (0.04) |
Level III | Measurement Input, Appraised Value | Appraisal of collateral | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Other real estate owned, measurement input percentage | (0.20) | (0.20) |
Level III | Measurement Input, Appraised Value | Appraisal of collateral | Minimum | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Impaired loans, measurement input percentage | 0 | 0 |
Level III | Measurement Input, Appraised Value | Appraisal of collateral | Maximum | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Impaired loans, measurement input percentage | (0.20) | (0.20) |
Level III | Measurement Input, Appraised Value | Appraisal of collateral | Weighted Average | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Impaired loans, measurement input percentage | (0.15) | (0.17) |
Other real estate owned, measurement input percentage | (0.20) | (0.20) |
Impaired loans | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | $ 11,399 | $ 12,262 |
Impaired loans | Level III | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | 11,399 | 12,262 |
Impaired loans | Level III | Discounted cash flow | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | 6,387 | 6,583 |
Impaired loans | Level III | Appraisal of collateral | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | 5,012 | 5,679 |
Other real estate owned | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | 705 | 143 |
Other real estate owned | Level III | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | 705 | 143 |
Other real estate owned | Level III | Appraisal of collateral | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ||
Total assets, fair value | $ 705 | $ 143 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment securities: | ||
Available for sale | $ 128,905 | $ 108,627 |
Trading | 45 | 190 |
Restricted investment in bank stock, at fair value | 17,834 | 13,332 |
Bank-owned life insurance | 28,472 | 27,982 |
Accrued interest receivable | 5,353 | 4,321 |
Financial liabilities: | ||
Interest-bearing deposits | 897,366 | 843,004 |
Noninterest-bearing deposits | 313,111 | 303,316 |
Level I | ||
Financial assets: | ||
Cash and cash equivalents | 72,347 | 27,243 |
Investment securities: | ||
Available for sale | 2,516 | |
Trading | 190 | |
Restricted investment in bank stock, at fair value | 0 | 0 |
Loans held for sale | 3,727 | 1,196 |
Loans, net | 0 | 0 |
Bank-owned life insurance | 28,472 | 27,982 |
Accrued interest receivable | 5,353 | 4,321 |
Financial liabilities: | ||
Interest-bearing deposits | 597,024 | 611,187 |
Noninterest-bearing deposits | 313,111 | 303,316 |
Short-term borrowings | 164,465 | 100,748 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 1,051 | 502 |
Level II | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
Available for sale | 108,627 | |
Trading | 0 | |
Restricted investment in bank stock, at fair value | 17,834 | 13,332 |
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 | |
Trading | 0 | |
Restricted investment in bank stock, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 1,353,088 | 1,264,584 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Interest-bearing deposits | 266,463 | 227,254 |
Noninterest-bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 137,028 | 70,280 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 72,347 | 27,243 |
Investment securities: | ||
Available for sale | 111,143 | |
Trading | 190 | |
Restricted investment in bank stock, at fair value | 17,834 | 13,332 |
Loans held for sale | 3,727 | 1,196 |
Loans, net | 1,355,762 | 1,233,756 |
Bank-owned life insurance | 28,472 | 27,982 |
Accrued interest receivable | 5,353 | 4,321 |
Financial liabilities: | ||
Interest-bearing deposits | 897,366 | 843,004 |
Noninterest-bearing deposits | 313,111 | 303,316 |
Short-term borrowings | 164,465 | 100,748 |
Long-term borrowings | 138,970 | 70,970 |
Accrued interest payable | 1,051 | 502 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 72,347 | 27,243 |
Investment securities: | ||
Available for sale | 111,143 | |
Trading | 190 | |
Restricted investment in bank stock, at fair value | 17,834 | 13,332 |
Loans held for sale | 3,727 | 1,196 |
Loans, net | 1,353,088 | 1,264,584 |
Bank-owned life insurance | 28,472 | 27,982 |
Accrued interest receivable | 5,353 | 4,321 |
Financial liabilities: | ||
Interest-bearing deposits | 863,487 | 838,441 |
Noninterest-bearing deposits | 313,111 | 303,316 |
Short-term borrowings | 164,465 | 100,748 |
Long-term borrowings | 137,028 | 70,280 |
Accrued interest payable | $ 1,051 | $ 502 |
Stock Options - Narrative (Deta
Stock Options - Narrative (Details) - USD ($) | Aug. 24, 2018 | Jan. 05, 2018 | Mar. 24, 2017 | Aug. 27, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Employee Stock Purchase Plan | ||||||||||
Options, outstanding (in shares) | 23,500 | 263,700 | 95,000 | 263,700 | 95,000 | 93,500 | 26,500 | |||
Granted (in shares) | 149,700 | 25,000 | 38,750 | 174,700 | 70,000 | |||||
Granted (in dollars per share) | $ 46 | $ 45.11 | $ 42.03 | $ 45.87 | $ 44.21 | |||||
Expiration (in years) | 10 years | 10 years | ||||||||
Exercisable period (in years) | 5 years | |||||||||
Employee Stock Option | ||||||||||
Employee Stock Purchase Plan | ||||||||||
Compensation expense | $ 333,000 | $ 7,000 | $ 345,000 | $ 14,000 | ||||||
Number of exercisable options (in shares) | 0 | 0 | ||||||||
Weighted average remaining contractual term (in years) | 8 years 11 months 19 days | |||||||||
Fair value of options granted | $ 2,800,000 | $ 2,048,000 | ||||||||
Fair value of options granted (in dollars per share) | $ 18.70 | $ 11.72 | ||||||||
Unrecognized compensation cost for non-vested shares | $ 1,806,000 | $ 1,806,000 | ||||||||
Period for recognition (in years) | 3 years 10 months 28 days | |||||||||
Tranche One | ||||||||||
Employee Stock Purchase Plan | ||||||||||
Options, outstanding (in shares) | 50,200 | 12,500 | 41,750 | |||||||
Granted (in shares) | 50,200 | 12,500 | 46,250 | 62,700 | ||||||
Granted (in dollars per share) | $ 46 | $ 45.11 | $ 44.21 | |||||||
Expiration (in years) | 10 years | 10 years | 10 years | |||||||
Exercisable period (in years) | 3 years | 3 years | 3 years | |||||||
Tranche One | Employee Stock Option | ||||||||||
Employee Stock Purchase Plan | ||||||||||
Exercisable period (in years) | 3 years | |||||||||
Tranche Two | ||||||||||
Employee Stock Purchase Plan | ||||||||||
Options, outstanding (in shares) | 99,500 | 12,500 | 23,750 | |||||||
Granted (in shares) | 99,500 | 12,500 | 23,750 | 112,000 | ||||||
Granted (in dollars per share) | $ 46 | $ 45.11 | $ 44.21 | |||||||
Expiration (in years) | 10 years | 10 years | 10 years | |||||||
Exercisable period (in years) | 5 years | 5 years | 5 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 | Aug. 24, 2018 | Jan. 05, 2018 | Mar. 24, 2017 | Aug. 27, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Employee Stock Purchase Plan | ||||||||
Shares (in shares) | 149,700 | 25,000 | 38,750 | 174,700 | 70,000 | |||
Forfeited (in shares) | (15,250) | (4,500) | (1,500) | |||||
Outstanding (in shares) | 23,500 | 263,700 | 95,000 | 93,500 | 26,500 | |||
Strike price (in dollars per share) | $ 46 | $ 45.11 | $ 42.03 | $ 45.87 | $ 44.21 | |||
Vesting period (in years) | 5 years | |||||||
Expiration (in years) | 10 years | 10 years | ||||||
Tranche One | ||||||||
Employee Stock Purchase Plan | ||||||||
Shares (in shares) | 50,200 | 12,500 | 46,250 | 62,700 | ||||
Forfeited (in shares) | 0 | 0 | (4,500) | |||||
Outstanding (in shares) | 50,200 | 12,500 | 41,750 | |||||
Strike price (in dollars per share) | $ 46 | $ 45.11 | $ 44.21 | |||||
Vesting period (in years) | 3 years | 3 years | 3 years | |||||
Expiration (in years) | 10 years | 10 years | 10 years | |||||
Tranche Two | ||||||||
Employee Stock Purchase Plan | ||||||||
Shares (in shares) | 99,500 | 12,500 | 23,750 | 112,000 | ||||
Forfeited (in shares) | 0 | 0 | 0 | |||||
Outstanding (in shares) | 99,500 | 12,500 | 23,750 | |||||
Strike price (in dollars per share) | $ 46 | $ 45.11 | $ 44.21 | |||||
Vesting period (in years) | 5 years | 5 years | 5 years | |||||
Expiration (in years) | 10 years | 10 years | 10 years |
Stock Options - Schedule of Opt
Stock Options - Schedule of Options Outstanding (Details) - $ / shares | Aug. 24, 2018 | Jan. 05, 2018 | Aug. 27, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Options, Outstanding | |||||||
Outstanding, beginning of year (in shares) | 93,500 | 26,500 | |||||
Granted (in shares) | 149,700 | 25,000 | 38,750 | 174,700 | 70,000 | ||
Exercised (in shares) | 0 | 0 | |||||
Forfeited (in shares) | (15,250) | (4,500) | (1,500) | ||||
Expired (in shares) | 0 | 0 | |||||
Outstanding, end of period (in shares) | 23,500 | 263,700 | 95,000 | ||||
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) | $ 45.11 | $ 43.64 | $ 43.59 | $ 42.03 | |||
Granted (in dollars per share) | $ 46 | $ 45.11 | $ 42.03 | 45.87 | 44.21 | ||
Exercised (in dollars per share) | 0 | 0 | |||||
Forfeited (in dollars per share) | 42.76 | 42.03 | |||||
Expired (in dollars per share) | $ 0 | $ 0 | |||||
Exercisable, end of period (in shares) | 0 | 0 | |||||
Exercisable, end of period (in dollars per share) | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Debit card fees | $ 359 | $ 328 | $ 1,065 | $ 939 |
Debit card transaction fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Debit card fees | 489 | 514 | 1,549 | 1,449 |
Other processing service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Debit card fees | 69 | 57 | 197 | 179 |
Gross interchange and card based transaction fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Debit card fees | 558 | 571 | 1,746 | 1,628 |
Cost of Goods and Services Sold | $ 199 | $ 243 | $ 681 | $ 689 |
Reclassification of Comparati_2
Reclassification of Comparative Amounts (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Reclassification of Comparative Amounts | |
Effect of reclassification adjustment on net income or shareholders' equity | $ 0 |