Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Arrow Financial Corporation | |
Entity Central Index Key | 717,538 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 14,015,969 | |
Entity Well-known Seasoned Filer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
ASSETS | |||
Cash and Due From Banks | $ 38,552 | $ 42,562 | $ 39,105 |
Interest-Bearing Deposits at Banks | 22,189 | 30,276 | 26,972 |
Investment Securities: | |||
Available-for-Sale | 325,387 | 300,200 | 327,392 |
Held-to-Maturity (Approximate Fair Value of $292,605 at June 30, 2018; $335,901 at December 31, 2017; and $350,355 at June 30, 2017) | 297,885 | 335,907 | 348,018 |
Equity Securities | 1,802 | 0 | 0 |
Other Investments | 11,089 | 9,949 | 11,035 |
Loans | 2,057,862 | 1,950,770 | 1,878,632 |
Allowance for Loan Losses | (19,640) | (18,586) | (17,442) |
Net Loans | 2,038,222 | 1,932,184 | 1,861,190 |
Premises and Equipment, Net | 28,104 | 27,619 | 26,565 |
Goodwill | 21,873 | 21,873 | 21,873 |
Other Intangible Assets, Net | 2,060 | 2,289 | 2,482 |
Other Assets | 58,008 | 57,606 | 57,089 |
Total Assets | 2,845,171 | 2,760,465 | 2,721,721 |
LIABILITIES | |||
Noninterest-Bearing Deposits | 467,048 | 441,945 | 433,480 |
Interest-Bearing Checking Accounts | 861,959 | 907,315 | 905,624 |
Savings Deposits | 735,217 | 694,573 | 679,320 |
Time Deposits over $250,000 | 70,950 | 38,147 | 33,630 |
Other Time Deposits | 169,607 | 163,136 | 167,984 |
Total Deposits | 2,304,781 | 2,245,116 | 2,220,038 |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 64,966 | 40,892 | |
Federal Home Loan Bank Overnight Advances | 105,000 | 122,000 | |
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | |
Other Liabilities | 19,654 | 20,780 | 23,039 |
Total Liabilities | 2,585,683 | 2,510,862 | 2,480,969 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized | 0 | 0 | 0 |
Common Stock, $1 Par Value; 20,000,000 Shares Authorized (18,481,301 Shares Issued at June 30, 2018; 18,481,301 at December 31, 2017 and 17,943,201 at June 30, 2017) | 18,481 | 18,481 | 17,943 |
Additional Paid-in Capital | 292,020 | 290,219 | 272,187 |
Retained Earnings | 40,326 | 28,818 | 35,739 |
Unallocated ESOP Shares (9,643 Shares at June 30, 2018; 9,643 Shares at December 31, 2017 and 19,466 Shares at June 30, 2017) | (200) | (200) | (400) |
Accumulated Other Comprehensive Loss | (11,804) | (8,514) | (6,200) |
Treasury Stock, at Cost (4,467,909 Shares at June 30, 2018; 4,541,524 Shares at December 31, 2017 and 4,428,713 Shares at June 30, 2017) | (79,335) | (79,201) | (78,517) |
Total Stockholders’ Equity | 259,488 | 249,603 | 240,752 |
Total Liabilities and Stockholders’ Equity | $ 2,845,171 | $ 2,760,465 | $ 2,721,721 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | |||
Held-to-Maturity Securities, at Fair Value | $ 292,605 | $ 335,901 | $ 350,355 |
Preferred Stock, par value, in dollars per share | $ 5 | $ 5 | $ 5 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Common Stock, par value, in dollars per share | $ 1 | $ 1 | $ 1 |
Common Stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common Stock, shares issued | 18,481,301 | 18,481,301 | 17,943,201 |
Unallocated ESOP Shares, in shares | 9,643 | 9,643 | 19,466 |
Treasury Stock, in shares | 4,467,909 | 4,541,524 | 4,428,713 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||||
INTEREST AND DIVIDEND INCOME | |||||||||
Interest and Fees on Loans | $ 19,909 | $ 17,295 | $ 38,767 | $ 33,697 | |||||
Interest on Deposits at Banks | 158 | 78 | 292 | 138 | |||||
Interest and Dividends on Investment Securities: | |||||||||
Fully Taxable | 2,048 | 2,013 | 3,941 | 4,003 | |||||
Exempt from Federal Taxes | 1,475 | 1,540 | 3,008 | 3,085 | |||||
Total Interest and Dividend Income | 23,590 | 20,926 | 46,008 | 40,923 | |||||
INTEREST EXPENSE | |||||||||
Interest-Bearing Checking Accounts | 388 | 381 | 775 | 712 | |||||
Savings Deposits | 711 | 316 | 1,233 | 607 | |||||
Time Deposits over $250,000 | 328 | 66 | 532 | 121 | |||||
Other Time Deposits | 282 | 233 | 541 | 461 | |||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 16 | 9 | 32 | 16 | |||||
Federal Home Loan Bank Advances | 656 | 506 | 1,070 | 951 | |||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 247 | 188 | 461 | 367 | |||||
Total Interest Expense | 2,628 | 1,699 | 4,644 | 3,235 | |||||
NET INTEREST INCOME | 20,962 | 19,227 | 41,364 | 37,688 | |||||
Provision for Loan Losses | 629 | 422 | 1,375 | 780 | |||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 20,333 | 18,805 | 39,989 | 36,908 | |||||
NONINTEREST INCOME | |||||||||
Income From Fiduciary Activities | 2,647 | 2,150 | 4,844 | 4,168 | |||||
Fees for Other Services to Customers | 2,570 | 2,413 | 4,950 | 4,670 | |||||
Insurance Commissions | 2,192 | 2,115 | 4,095 | 4,313 | |||||
Net Gain on Equity Securities | 223 | 0 | 241 | 0 | |||||
Net Gain on Sales of Loans | 23 | 204 | 61 | 250 | |||||
Other Operating Income | 256 | 175 | 609 | 351 | |||||
Total Noninterest Income | 7,911 | 7,057 | 14,800 | 13,752 | |||||
NONINTEREST EXPENSE | |||||||||
Salaries and Employee Benefits | 9,812 | 9,211 | 19,181 | 18,358 | |||||
Occupancy Expenses, Net | 2,420 | 2,494 | 4,961 | 5,038 | |||||
FDIC Assessments | 223 | 228 | 440 | 454 | |||||
Other Operating Expense | 3,737 | 3,704 | 7,566 | 7,262 | |||||
Total Noninterest Expense | 16,192 | 15,637 | 32,148 | 31,112 | |||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 12,052 | 10,225 | 22,641 | 19,548 | |||||
Provision for Income Taxes | 2,322 | 3,017 | 4,380 | 5,709 | |||||
NET INCOME | $ 9,730 | $ 7,208 | $ 18,261 | $ 13,839 | |||||
Average Shares Outstanding: | |||||||||
Basic, in shares | 13,975 | [1] | 13,890 | [2] | 13,955 | [1] | 13,889 | [2] | |
Diluted, in shares | [2] | 14,058 | 13,975 | 14,038 | 13,989 | ||||
Per Common Share: | |||||||||
Basic Earnings, in dollars per share | $ 0.70 | $ 0.52 | $ 1.31 | [1] | $ 1 | [2] | |||
Diluted Earnings, in dollars per share | $ 0.69 | $ 0.52 | $ 1.30 | [1] | $ 0.99 | [2] | |||
[1] | Cash dividends paid per share have been adjusted for the September 28, 2017 3% stock dividend. | ||||||||
[2] | Share and Per Share Amounts have been restated for the September 28, 2017 3% stock dividend. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 9,730 | $ 7,208 | $ 18,261 | $ 13,839 |
Other Comprehensive Income, Net of Tax: | ||||
Net Unrealized Securities Holding Gains (Losses) Arising During the Period | (635) | 409 | (3,120) | 456 |
Amortization of Net Retirement Plan Actuarial Loss | 75 | 72 | 121 | 181 |
Accretion of Net Retirement Plan Prior Service Credit | 41 | (1) | 40 | (3) |
Other Comprehensive Income (Loss) | (519) | 480 | (2,959) | 634 |
Comprehensive Income | $ 9,211 | $ 7,688 | $ 15,302 | $ 14,473 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Shares | Accumu-lated Other Com- prehensive Loss | Treasury Stock | |
Stockholders' Equity, Beginning Balance at Dec. 31, 2016 | $ 232,852 | $ 17,943 | $ 270,880 | $ 28,644 | $ (400) | $ (6,834) | $ (77,381) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 13,839 | 13,839 | ||||||
Other Comprehensive Income (Loss) | 634 | 634 | ||||||
Cash Dividends Paid | [1] | (6,744) | (6,744) | |||||
Stock Options Exercised, Net | 701 | 322 | 379 | |||||
Shares Issued Under the Directors' Stock Plan | 127 | 84 | 43 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 242 | 160 | 82 | |||||
Shares Issued for Dividend Reinvestment Plans | 845 | 569 | 276 | |||||
Stock-Based Compensation Expense | 172 | 172 | ||||||
Purchases of Treasury Stock | (1,916) | (1,916) | ||||||
Stockholders' Equity, Ending Balance at Jun. 30, 2017 | 240,752 | 17,943 | 272,187 | 35,739 | (400) | (6,200) | (78,517) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Impact of change in accounting policy | 0 | (331) | ||||||
Impact of change in accounting policy | Accounting Standards Update 2014-09 | (102) | (102) | ||||||
Impact of change in accounting policy | Accounting Standards Update 2016-01 | 331 | (331) | ||||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2017 | 249,603 | 18,481 | 290,219 | 28,818 | (200) | (8,514) | (79,201) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 18,261 | 18,261 | ||||||
Other Comprehensive Income (Loss) | (2,959) | (2,959) | ||||||
Cash Dividends Paid | (6,982) | (6,982) | ||||||
Stock Options Exercised, Net | 1,692 | 804 | 888 | |||||
Shares Issued Under the Directors' Stock Plan | 103 | 72 | 31 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 252 | 167 | 85 | |||||
Shares Issued for Dividend Reinvestment Plans | 856 | 580 | 276 | |||||
Stock-Based Compensation Expense | 178 | 178 | ||||||
Purchases of Treasury Stock | (1,414) | (1,414) | ||||||
Stockholders' Equity, Ending Balance at Jun. 30, 2018 | $ 259,488 | $ 18,481 | $ 292,020 | $ 40,326 | $ (200) | $ (11,804) | $ (79,335) | |
[1] | Cash dividends paid per share have been adjusted for the September 28, 2017 3% stock dividend. |
Consolidated Statements of Cha7
Consolidated Statements of Changes In Stockholders' Equity Parenthetical - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends Paid, per Share, in dollars per share | $ 0.50 | $ 0.485 |
Exercised, in shares | 79,001 | 33,062 |
Shares Issued Under Directors Stock Plan, in shares | 2,705 | 3,927 |
Shares Issued Under Employee Stock Purchase Plan, in shares | 7,613 | 7,300 |
Shares Issued for Dividend Reinvestment Plans - Shares | 24,305 | 24,999 |
Purchase of Treasury Stock, in shares | 40,009 | 56,908 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 18,261 | $ 13,839 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Loan Losses | 1,375 | 780 |
Depreciation and Amortization | 2,408 | 2,988 |
Net Gain on Equity Securities | (241) | 0 |
Loans Originated and Held-for-Sale | (2,354) | (7,646) |
Proceeds from the Sale of Loans Held-for-Sale | 2,198 | 8,118 |
Net Gain on the Sale of Loans | (61) | (250) |
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 117 | 122 |
Contributions to Retirement Benefit Plans | (352) | (459) |
Deferred Income Tax Benefit | (261) | (94) |
Shares Issued Under the Directors’ Stock Plan | 103 | 127 |
Stock-Based Compensation Expense | 178 | 172 |
Tax Benefit from Exercise of Stock Options | 160 | 112 |
Net (Increase) Decrease in Other Assets | 186 | (559) |
Net Increase (Decrease) in Other Liabilities | (673) | 1,378 |
Net Cash Provided By Operating Activities | 21,044 | 18,628 |
Cash Flows from Investing Activities: | ||
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 25,035 | 31,867 |
Purchases of Securities Available-for-Sale | (56,598) | (12,324) |
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 39,616 | 30,262 |
Purchases of Securities Held-to-Maturity | (2,105) | (33,435) |
Net Increase in Loans | (107,598) | (126,524) |
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 644 | 539 |
Purchase of Premises and Equipment | (1,395) | (867) |
Proceeds from the Sale of a Subsidiary, Net | 49 | 23 |
Net Increase in Other Investments | (1,140) | (123) |
Net Cash Used By Investing Activities | (103,492) | (110,582) |
Cash Flows from Financing Activities: | ||
Net Increase in Deposits | 59,665 | 103,492 |
Net Increase (Decrease) in Short-Term Federal Home Loan Bank Borrowings | 31,000 | (1,000) |
Net Increase (Decrease) in Short-Term Borrowings | (4,718) | 5,056 |
Repayments of Federal Home Loan Bank Term Advances | (10,000) | 0 |
Purchase of Treasury Stock | (1,414) | (1,916) |
Stock Options Exercised, Net | 1,692 | 701 |
Shares Issued Under the Employee Stock Purchase Plan | 252 | 242 |
Shares Issued for Dividend Reinvestment Plans | 856 | 845 |
Cash Dividends Paid | (6,982) | (6,744) |
Net Cash Provided By Financing Activities | 70,351 | 100,676 |
Net (Decrease) Increase in Cash and Cash Equivalents | (12,097) | 8,722 |
Cash and Cash Equivalents at Beginning of Period | 57,355 | |
Cash and Cash Equivalents at End of Period | 60,741 | 66,077 |
Supplemental Disclosures to Statements of Cash Flow Information: | ||
Interest on Deposits and Borrowings | 4,530 | 3,225 |
Income Taxes | 5,294 | 5,629 |
Non-cash Investing and Financing Activity: | ||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | $ 402 | $ 588 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES In the opinion of the management of Arrow Financial Corporation (Arrow, the Company, we, or us), the accompanying unaudited interim consolidated financial statements contain all of the adjustments necessary to present fairly the financial position as of June 30, 2018 , December 31, 2017 and June 30, 2017 ; the results of operations for the three- and six-month periods ended June 30, 2018 and 2017 ; the consolidated statements of comprehensive income for the three- and six-month periods ended June 30, 2018 and 2017 ; the changes in stockholders' equity for the six -month periods ended June 30, 2018 and 2017 ; and the cash flows for the six -month periods ended June 30, 2018 and 2017 . All such adjustments are of a normal recurring nature. Management’s Use of Estimates -The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, goodwill impairment, pension and other postretirement liabilities and an analysis of a need for a valuation allowance for deferred tax assets. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term is the allowance for loan losses. In connection with the determination of the allowance for loan losses, management obtains appraisals for properties. The allowance for loan losses is management’s best estimate of probable loan losses incurred as of the balance sheet date. While management uses available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions. The unaudited interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements of Arrow for the year ended December 31, 2017 , included in Arrow's Annual Report on Form 10-K for the year ended December 31, 2017 . Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in the first six months of 2018: ASU 2014-09 "Revenue from Contracts With Customers (Topic 606)" was adopted as of January 1, 2018. For additional information, see Revenue Recognition under Significant Policy Update in this Note. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" (Subtopic 825-10) significantly changed the income statement impact of equity investments. For Arrow, the standard became effective for the first quarter of 2018, and requires that equity investments be measured at fair value, with changes in fair value recognized in net income. The cumulative effect of the January 1, 2018 adoption was an increase to retained earnings of $331 thousand with a corresponding decrease to Accumulated Other Comprehensive Loss. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. ASU 2016-01 also emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans as part of adopting this standard. See Note 9 to our unaudited interim consolidated financial statements entitled Fair Value of Financial Instruments. ASU 2016-15 "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments" will reduce existing diversity in practice with respect to eight specific cash flow issues. Arrow adopted this ASU in the first quarter of 2018. ASU 2017-01 "Business Combinations" (Topic 805) defines when a set of assets and activities constitutes a business for the purposes of determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update allow for a business to consist of inputs, processes, and the ability to create output. For Arrow, the standard became effective in the first quarter of 2018. This update had no effect on our accounting for acquisitions and dispositions of businesses. ASU 2017-07 "Compensation-Retirement Benefits" (Topic 715) improves the presentation of net periodic pension cost and net periodic post-retirement benefit cost by requiring that an employer disaggregate the service cost component from the other components of net benefit cost. For Arrow, the standard became effective in the first quarter of 2018. In accordance with the practical expedient adoption method, for all periods presented Arrow used the amounts disclosed in the retirement plans footnote for the prior period retrospective reclassification of the non-service cost components out of salaries and benefits and into other operating expenses. The adoption of this change in accounting for pension costs did not have a material impact on our financial position or the results of operations. ASU 2017-09 "Compensation-Stock Compensation" (Topic 718) provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance highlights the requirements for applying modification accounting and the exception criteria relating to changes in share-based payment terms. For Arrow, the standard became effective in the first quarter of 2018. The adoption of this change in accounting for share-based payment awards did not have a material impact on our financial position or the results of operations in periods subsequent to its adoption. The following accounting standards have been issued and will become effective for the Company at a future date: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. For a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option or not exercise an option to terminate the lease. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. ASU 2018-01 was issued to address concerns about the cost and complexity of complying with the transition provisions of ASU 2018-01. Early adoption is permitted in any interim or annual period. For Arrow, the standard becomes effective in the first quarter of 2019. The Company is in the process of reviewing its existing lease portfolios, including service contracts for embedded leases to evaluate the impact of this standard on its consolidated financial statements and the impact on regulatory capital. The Company does not expect that this new accounting standard will have a material impact on it's financial position or the results of operations in periods subsequent to its adoption. As of June 30, 2018, there were less than $2.2 million in minimum lease payments for existing operating leases of branch and insurance locations with varying expiration dates from 2018 to 2031. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" (Topic 326) which will change the way financial entities measure expected credit losses for financial assets, primarily loans. Under this ASU, the "incurred loss" model will be replaced with an "expected loss" model which will recognize losses over the life of the instrument and requires consideration of a broader range of reasonable and supportable information. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under this ASU, the amount of the credit loss is carried as a valuation allowance and can be reversed. The standard also requires expanded credit quality disclosures. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company plans on adopting the standard in the first quarter of 2020, in order to maximize the accumulation of data needed to calculate the new CECL methodologies. The ASU describes several acceptable methodologies for calculating expected losses on a loan or a pool of loans and requires additional disclosures. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. The FASB’s Transition Research Group for credit losses still has several outstanding unresolved questions, some of which may have a significant impact on CECL calculations. The Company is in the process of assessing the impact of this new accounting standard as required changes to its credit loss estimation process and models are being evaluated. This will likely have the effect of reducing shareholders' equity, but the Company expects to remain a well-capitalized financial institution under current regulatory calculations. In January 2017, the FASB issued ASU 2017-04 "Intangibles-Goodwill and Other" (Topic 350) simplifies the procedures for evaluating impairment of goodwill. Prior to the adoption of this standard, entities were required to perform procedures to determine the fair value of the underlying assets and liabilities for determining the fair value of assets and liabilities in a business combination. This additional step to impairment testing has been eliminated. Under this ASU, entities will perform goodwill impairment testing by comparing the fair value of a reporting unit to its carrying value. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted. This amendment will not affect our assessment of goodwill impairment since we currently perform the analysis of comparing carrying value to fair value of our reporting units that have goodwill and we have not had to perform a Step 2 Impairment Test to date. In March 2017, the FASB issued ASU 2017-08 "Receivables-Nonrefundable Fees and Other Costs" amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard becomes effective in the first quarter of 2019. We do not expect that the adoption of this change in accounting for certain callable debt securities will have a material impact on our financial position or the results of operations in periods subsequent to its adoption Significant Accounting Policy Update: Revenue Recognition - Accounting Standard Codification ("ASC") Topic 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services as performance obligations are satisfied. The Company adopted ASC Topic 606 as of January 1, 2018 using the modified retrospective approach, and have identified the recognition of revenue related to specific types of fiduciary activities and specific types of revenue from insurance commissions to be in the scope of this guidance. Regarding fiduciary activities, under prior GAAP, revenue was recognized from settling client estates over the time period the work was performed. With the adoption of Topic 606, revenue is recognized when the performance obligation is completed, which is when the settlement of the client estate is closed. The impact of this change in revenue recognition was not material to our consolidated financial statements. Regarding revenue from property and casualty insurance policies in which the revenue is recorded when the client elected to pay pay premiums in installments, under prior GAAP, revenue was recognized when the client premiums were billed. With the adoption of Topic 606, revenue is required to be recognized when the performance obligation is substantially completed, i.e., when the insurance policy is issued. The impact of recognizing total policy commission revenue versus our current practice of recognizing revenue when the client is billed is not material on our consolidated financial statements. The adoption of Topic 606 related to the previously described fiduciary activity and insurance commission required a cumulative effect adjustment as of January 1, 2018 to decrease retained earnings by $102 thousand . The majority of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities which are presented in our consolidated income statements as components of net interest income. The following is a description of principal activities from which the Company generates its revenue from noninterest income sources that are within the scope of ASC Topic 606: Income from Fiduciary Activities: represents revenue derived mainly through the management of client investments which is based on the market value of these assets and the fee schedule contained in the applicable account management agreement. Since the revenue is mainly based on the market value of assets, this amount can be volatile as financial markets increase and decrease based on various economic factors. The terms of the account management agreements generally specify that the performance obligations are completed each quarter. Accordingly, we mainly recognize revenue from fiduciary activities on a quarterly basis. Fees for Other Services to Customers: represents general service fees for monthly deposit account maintenance and account activity plus fees from other deposit-based services. Revenue is recognized when the performance obligation is completed, which is generally on a monthly basis for account maintenance services, or upon the completion of a deposit-related transaction. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Insurance Commissions: represents commissions and fees paid by insurance carriers for both property and casualty insurance policies, and for services performed for employment benefits clients. Revenue from our property and casualty business is recognized when our performance obligation is satisfied, which is generally the effective date of the bound coverage since there are no significant performance obligations remaining. Revenue from our employment benefit brokerage business is recognized when our benefit servicing performance obligations are satisfied, generally on a monthly basis. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (In Thousands) Management determines the appropriate classification of securities at the time of purchase. Securities reported as held-to-maturity are those debt securities which Arrow has both the positive intent and ability to hold to maturity and are stated at amortized cost. Securities available-for-sale are reported at fair value, with unrealized gains and losses reported in accumulated other comprehensive income or loss, net of taxes. Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. The following table is the schedule of Available-For-Sale Securities at June 30, 2018 , December 31, 2017 and June 30, 2017 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities June 30, 2018 Available-For-Sale Securities, at Amortized Cost $ 60,199 $ 3,377 $ 267,113 $ 1,000 $ — $ 331,689 Available-For-Sale Securities, at Fair Value 59,615 3,383 261,589 800 — 325,387 Gross Unrealized Gains — 6 332 — — 338 Gross Unrealized Losses 584 — 5,856 200 — 6,640 Available-For-Sale Securities, Pledged as Collateral 282,481 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 42,683 $ 2,124 $ 1,447 $ — $ 46,254 From 1 - 5 Years 17,516 773 135,939 — 154,228 From 5 - 10 Years — — 79,608 — 79,608 Over 10 Years — 480 50,119 1,000 51,599 Maturities of Debt Securities, at Fair Value: Within One Year $ 42,396 $ 2,125 $ 1,458 $ — $ 45,979 From 1 - 5 Years 17,219 778 131,431 — 149,428 From 5 - 10 Years — — 78,552 — 78,552 Over 10 Years — 480 50,148 800 51,428 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 17,218 $ 1,797 $ 144,265 $ — $ — $ 163,280 12 Months or Longer 42,397 — 72,209 800 — 115,406 Total $ 59,615 $ 1,797 $ 216,474 $ 800 $ — $ 278,686 Number of Securities in a Continuous Loss Position 14 6 79 1 — 100 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 297 $ — $ 2,409 $ — $ — $ 2,706 12 Months or Longer 287 — 3,447 200 — 3,934 Total $ 584 $ — $ 5,856 $ 200 $ — $ 6,640 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,199 US Agency Obligations, 59,615 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities US Government Agency Securities, at Amortized Cost $ 68,030 US Government Agency Securities, at Fair Value 68,083 Government Sponsored Entity Securities, at Amortized Cost 199,083 Government Sponsored Entity 193,506 December 31, 2017 Available-For-Sale Securities, at Amortized Cost $ 60,328 $ 10,351 $ 229,077 $ 1,000 $ 1,120 $ 301,876 Available-For-Sale Securities, at Fair Value 59,894 10,349 227,596 800 1,561 300,200 Gross Unrealized Gains — 9 485 — 441 935 Gross Unrealized Losses 434 11 1,966 200 — 2,611 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 183,052 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 20,348 $ 8,498 $ 70,930 $ — $ — $ 99,776 12 Months or Longer 39,546 — 80,759 800 — 121,105 Total $ 59,894 $ 8,498 $ 151,689 $ 800 $ — $ 220,881 Number of Securities in a Continuous Loss Position 14 36 55 1 — 106 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 172 $ 11 $ 363 $ — $ — $ 546 12 Months or Longer 262 — 1,603 200 — 2,065 Total $ 434 $ 11 $ 1,966 $ 200 $ — $ 2,611 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,328 US Agency Obligations, 59,894 US Government Agency Securities, at Amortized Cost $ 40,832 US Government Agency Securities, at Fair Value 40,832 Government Sponsored Entity Securities, at Amortized Cost 188,245 Government Sponsored Entity 186,764 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities June 30, 2017 Available-For-Sale Securities, at Amortized Cost $ 146,914 $ 15,410 $ 161,324 $ 2,500 $ 1,120 $ 327,268 Available-For-Sale Securities, at Fair Value 147,085 15,441 161,077 2,299 1,490 327,392 Gross Unrealized Gains 252 31 964 — 370 1,617 Gross Unrealized Losses 81 — 1,211 201 — 1,493 Available-For-Sale Securities, Pledged as Collateral 267,912 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 49,176 $ 543 $ 97,870 $ 1,499 $ — $ 149,088 12 Months or Longer — — — 800 — 800 Total $ 49,176 $ 543 $ 97,870 $ 2,299 $ — $ 149,888 Number of Securities in a Continuous Loss Position 13 2 34 3 — 52 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 81 $ — $ 1,211 $ 1 $ — $ 1,293 12 Months or Longer — — — 200 — 200 Total $ 81 $ — $ 1,211 $ 201 $ — $ 1,493 Disaggregated Details: US Treasury Obligations, $ 54,597 US Treasury Obligations, $ 54,676 US Agency Obligations, $ 92,317 US Agency Obligations, 92,409 US Government Agency Securities, at Amortized Cost $ 3,740 US Government Agency Securities, at Fair Value 3,756 Government Sponsored Entity Securities, at Amortized Cost 157,584 Government Sponsored Entity 157,321 The following table is the schedule of Held-To-Maturity Securities at June 30, 2018 , December 31, 2017 and June 30, 2017 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities June 30, 2018 Held-To-Maturity Securities, at Amortized Cost $ 244,016 $ 53,869 $ — $ 297,885 Held-To-Maturity Securities, at Fair Value 239,841 52,764 — 292,605 Gross Unrealized Gains 497 — — 497 Gross Unrealized Losses 4,672 1,105 — 5,777 Held-To-Maturity Securities, Pledged as Collateral 278,627 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 26,037 $ — $ — $ 26,037 From 1 - 5 Years 91,235 46,134 — 137,369 From 5 - 10 Years 124,073 7,735 — 131,808 Over 10 Years 2,671 — — 2,671 Maturities of Debt Securities, at Fair Value: Within One Year $ 26,092 $ — $ — $ 26,092 From 1 - 5 Years 90,877 45,207 — 136,084 From 5 - 10 Years 120,206 7,556 — 127,762 Over 10 Years 2,667 — — 2,667 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 68,612 $ 49,977 $ — $ 118,589 12 Months or Longer 90,948 2,787 — 93,735 Total $ 159,560 $ 52,764 $ — $ 212,324 Number of Securities in a Continuous Loss Position 465 47 — 512 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 633 $ 1,021 $ — $ 1,654 12 Months or Longer 4,039 84 — 4,123 Total $ 4,672 $ 1,105 $ — $ 5,777 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,265 US Government Agency Securities, at Fair Value 2,346 Government Sponsored Entity Securities, at Amortized Cost 50,604 Government Sponsored Entity 50,418 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities December 31, 2017 Held-To-Maturity Securities, at Amortized Cost $ 275,530 $ 60,377 $ — $ 335,907 Held-To-Maturity Securities, at Fair Value 275,353 60,548 — 335,901 Gross Unrealized Gains 1,691 269 — 1,960 Gross Unrealized Losses 1,868 98 — 1,966 Held-To-Maturity Securities, Pledged as Collateral 318,622 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 55,648 $ 13,764 $ — $ 69,412 12 Months or Longer 65,152 3,257 — 68,409 Total $ 120,800 $ 17,021 $ — $ 137,821 Number of Securities in a Continuous Loss Position 352 14 — 366 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 442 $ 56 $ — $ 498 12 Months or Longer 1,425 43 — 1,468 Total $ 1,867 $ 99 $ — $ 1,966 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,680 US Government Agency Securities, at Fair Value 2,661 Government Sponsored Entity Securities, at Amortized Cost 57,697 Government Sponsored Entity 57,887 June 30, 2017 Held-To-Maturity Securities, at Amortized Cost $ 280,485 $ 67,533 $ — $ 348,018 Held-To-Maturity Securities, at Fair Value 282,157 68,198 — 350,355 Gross Unrealized Gains 3,208 677 — 3,885 Gross Unrealized Losses 1,536 12 — 1,548 Held-To-Maturity Securities, Pledged as Collateral 327,820 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 93,046 $ 4,338 $ — $ 97,384 12 Months or Longer 403 — — 403 Total $ 93,449 $ 4,338 $ — $ 97,787 Number of Securities in a Continuous Loss Position 263 9 — 272 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,534 $ 12 $ — $ 1,546 12 Months or Longer 2 — — 2 Total $ 1,536 $ 12 $ — $ 1,548 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities June 30, 2017 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,106 US Government Agency Securities, at Fair Value 3,121 Government Sponsored Entity Securities, at Amortized Cost 64,427 Government Sponsored Entity 65,077 In the tables above, maturities of mortgage-backed securities are included based on their expected average lives. Actual maturities will differ from the table above because issuers may have the right to call or prepay obligations with, or without, prepayment penalties. Securities in a continuous loss position, in the tables above for June 30, 2018 , December 31, 2017 and June 30, 2017 , do not reflect any deterioration of the credit worthiness of the issuing entities. The state and municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. Obligations issued by school districts are supported by state aid. An in-house credit analysis is performed for municipal securities based upon data that has been submitted by the issuers to the New York State Comptroller. That analysis reflects satisfactory credit worthiness of the municipalities. Subsequent to June 30, 2018 , and through the date of the filing of this Quarterly Report on Form 10-Q Arrow held no securities with significant credit deterioration. The unrealized losses on temporarily impaired securities are primarily the result of changes in interest rates for fixed rate securities where the interest rate received is less than the current rate available for new offerings of similar securities, changes in market spreads as a result of shifts in supply and demand, and/or changes in the level of prepayments for mortgage related securities. Because we do not currently intend to sell any temporarily impaired securities, and because it is not more likely-than-not that we would be required to sell the securities prior to recovery, the impairment is considered temporary. The following table is the schedule of Equity Securities at June 30, 2018 . Upon the adoption of ASU 2016-01 effective January 1, 2018, Equity Securities are not included in Securities Available-For-Sale since unrealized gains and losses are now recorded in the Consolidated Statements of Income. Prior to January 1, 2018, Equity Securities were included in Securities Available-For-Sale. Equity Securities June 30, 2018 Equity Securities, at Fair Value $ 1,802 The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three- and six-month periods ended June 30, 2018 : Three months ended June 30, 2018 Six months ended June 30, 2018 Net Gain on Equity Securities $ 223 $ 241 Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period — — Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date $ 223 $ 241 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | LOANS (In Thousands) Loan Categories and Past Due Loans The following table presents loan balances outstanding as of June 30, 2018 , December 31, 2017 and June 30, 2017 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers an amortizing loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $544 , $327 and $261 as of June 30, 2018 , December 31, 2017 and June 30, 2017 , respectively, are included in the residential real estate balances for current loans. Commercial Commercial Real Estate Consumer Residential Total June 30, 2018 Loans Past Due 30-59 Days $ 3 $ — $ 4,769 $ 2,004 $ 6,776 Loans Past Due 60-89 Days 15 — 720 273 1,008 Loans Past Due 90 or more Days 28 963 231 771 1,993 Total Loans Past Due 46 963 5,720 3,048 9,777 Current Loans 118,835 463,430 656,188 809,632 2,048,085 Total Loans $ 118,881 $ 464,393 $ 661,908 $ 812,680 $ 2,057,862 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 28 $ 142 $ 170 Nonaccrual Loans 633 963 459 1,825 3,880 December 31, 2017 Loans Past Due 30-59 Days $ 139 $ — $ 5,891 $ 2,094 $ 8,124 Loans Past Due 60-89 Days 19 — 1,215 509 1,743 Loans Past Due 90 or more Days 99 807 513 1,422 2,841 Total Loans Past Due 257 807 7,619 4,025 12,708 Current Loans 128,992 443,441 595,208 770,421 1,938,062 Total Loans $ 129,249 $ 444,248 $ 602,827 $ 774,446 $ 1,950,770 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 6 $ 313 $ 319 Nonaccrual Loans $ 588 $ 1,530 $ 653 $ 2,755 5,526 June 30, 2017 Loans Past Due 30-59 Days $ 138 $ — $ 4,123 $ 122 $ 4,383 Loans Past Due 60-89 Days 40 865 1,265 2,591 4,761 Loans Past Due 90 or more Days 249 357 391 2,115 3,112 Total Loans Past Due 427 1,222 5,779 4,828 12,256 Current Loans 125,832 440,587 572,975 726,982 1,866,376 Total Loans $ 126,259 $ 441,809 $ 578,754 $ 731,810 $ 1,878,632 Loans 90 or More Days Past Due and Still Accruing Interest $ 120 $ 357 $ 75 $ 1,269 $ 1,821 Nonaccrual Loans $ 653 $ 1,343 $ 419 $ 2,807 5,222 The Company disaggregates its loan portfolio into the following four categories: Commercial - The Company offers a variety of loan options to meet the specific needs of commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. These loans carry a higher risk than commercial real estate loans due to the nature of the underlying collateral, which can be business assets such as equipment and accounts receivable and generally have a lower liquidation value than real estate. In the event of default by the borrower, the Company may be required to liquidate collateral at deeply discounted values. To reduce the risk, management usually obtains personal guarantees of the borrowers. Commercial Real Estate - The Company offers commercial real estate loans to finance real estate purchases, refinancings, expansions and improvements to commercial properties. Commercial real estate loans are made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are secured by first liens on the real estate, which may include apartments, commercial structures, housing businesses, healthcare facilities, and both owner- and non-owner-occupied facilities. These loans are typically less risky than commercial loans, since they are secured by real estate and buildings, and are generally originated in amounts of no more than 80% of the appraised value of the property. However, the Company also offers commercial construction and land development loans to finance projects, primarily within the communities that we serve. Many projects will ultimately be used by the borrowers' businesses, while others are developed for resale. These real estate loans are also secured by first liens on the real estate, which may include apartments, commercial structures, housing business, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is enhanced risk during the construction period, since the loan is secured by an incomplete project. Consumer Loans - The Company offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, the Company also offers personal lines of credit and overdraft protection. Several loans are unsecured, which carry a higher risk of loss. Also included in this category are automobile loans. The Company primarily finances the purchases of automobiles indirectly through dealer relationships located throughout upstate New York and Vermont. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from three to seven years. Indirect consumer loans are underwritten on a secured basis using the underlying collateral being financed. Residential - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. The Company originates adjustable-rate and fixed-rate one-to-four-family residential real estate loans for the construction, purchase or refinancing of an existing mortgage. These loans are collateralized primarily by owner-occupied properties generally located in the Company’s market area. Loans on one-to-four-family residential real estate are generally originated in amounts of no more than 80% of the purchase price or appraised value (whichever is lower), or have private mortgage insurance. The Company’s underwriting analysis for residential mortgage loans typically includes credit verification, independent appraisals, and a review of the borrower’s financial condition. Mortgage title insurance and hazard insurance are normally required. It is the Company's general practice to underwrite residential real estate loans to secondary market standards. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. In addition, the Company offers fixed home equity loans as well as home equity lines of credit to consumers to finance home improvements, debt consolidation, education and other uses. The Company's policy allows for a maximum loan to value ratio of 80%, although periodically higher advances are allowed. The Company originates home equity lines of credit and second mortgage loans (loans secured by a second junior lien position on one-to-four-family residential real estate). Risk is generally reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate. Allowance for Loan Losses The following table presents a roll-forward of the allowance for loan losses and other information pertaining to the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: March 31, 2018 $ 1,119 $ 5,412 $ 8,019 $ 4,507 $ 19,057 Charge-offs — — (248 ) (16 ) (264 ) Recoveries — 3 215 — 218 Provision (175 ) 423 351 30 629 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 March 31, 2017 $ 939 $ 5,449 $ 6,702 $ 4,126 $ 17,216 Charge-offs (23 ) — (277 ) (5 ) (305 ) Recoveries 5 — 104 — 109 Provision 4 (466 ) 776 108 422 June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ 17,442 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: December 31, 2017 $ 1,873 $ 4,504 $ 7,604 $ 4,605 $ 18,586 Charge-offs (16 ) — (595 ) (23 ) (634 ) Recoveries — 12 301 — 313 Provision (913 ) 1,322 1,027 (61 ) 1,375 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 December 31, 2016 $ 1,017 $ 5,677 $ 6,120 $ 4,198 $ 17,012 Charge-offs (39 ) — (530 ) (6 ) (575 ) Recoveries 12 — 213 — 225 Provision (65 ) (694 ) 1,502 37 780 June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ 17,442 June 30, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 88 $ 44 $ — $ 53 $ 185 Allowance for loan losses - Loans Collectively Evaluated for Impairment 856 5,794 8,337 4,468 19,455 Ending Loan Balance - Individually Evaluated for Impairment 489 813 110 1,080 2,492 Ending Loan Balance - Collectively Evaluated for Impairment $ 118,392 $ 463,580 $ 661,798 $ 811,600 $ 2,055,370 December 31, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 94 $ 2 $ — $ 10 $ 106 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,779 4,502 7,604 4,595 18,480 Ending Loan Balance - Individually Evaluated for Impairment 489 1,537 95 1,562 3,683 Ending Loan Balance - Collectively Evaluated for Impairment $ 128,760 $ 442,711 $ 602,732 $ 772,884 $ 1,947,087 June 30, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 112 $ — $ — $ 34 $ 146 Allowance for loan losses - Loans Collectively Evaluated for Impairment 813 4,983 7,305 4,195 17,296 Ending Loan Balance - Individually Evaluated for Impairment 503 1,178 88 1,090 2,859 Ending Loan Balance - Collectively Evaluated for Impairment $ 125,756 $ 440,631 $ 578,666 $ 730,720 $ 1,875,773 Through the provision for loan losses, an allowance for loan losses is maintained that reflects the best estimate of the inherent risk of loss in the Company’s loan portfolio as of the balance sheet date. Additions are made to the allowance for loan losses through a periodic provision for loan losses. Actual loan losses are charged against the allowance for loan losses when loans are deemed uncollectible and recoveries of amounts previously charged off are recorded as credits to the allowance for loan losses. Loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with certain criticized and classified commercial-related relationships. In addition, the Company's independent internal loan review department performs periodic reviews of the credit quality indicators on individual loans in the commercial loan portfolio. A two-step process is utilized to determine the provision for loan losses and the amount of the allowance for loan losses. The Company performs an evaluation of impaired loans on a quarterly basis. Impaired loans are generally nonaccrual loans over $250 thousand and all troubled debt restructured loans. These impaired loans are generally considered to be collateral dependent with the specific reserve, if any, determined based on the value of the collateral less estimated costs to sell. The remainder of the portfolio is evaluated on a pooled basis, as described below. For each homogeneous loan pool, the Company estimates a total loss factor based on the historical net loss rates adjusted for applicable qualitative factors. The total loss factors assigned to each loan category are updated on a quarterly basis. For the commercial and commercial real estate categories, the loan categories are further segregated by credit risk profile (pools of loans graded pass, special mention and accruing substandard). Additional description of the credit risk classifications is detailed in the Credit Quality Indicators section of this note. The annualized historical net loss rate is determined for each loan category using a trailing three-year net charge-off average. While historical net loss experience provides a reasonable starting point for analysis, historical net losses, or even recent trends in net losses, do not by themselves form a sufficient basis to determine the appropriate level of the allowance for loan losses. Therefore, the Company also considers and adjusts historical net loss factors for qualitative factors that impact the inherent risk of loss associated with the loan categories within the total loan portfolio. These include: • Changes in the volume and severity of past due, nonaccrual and adversely classified loans • Changes in the nature and volume of the portfolio and in the terms of loans • Changes in the value of the underlying collateral for collateral dependent loans • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses • Changes in the quality of the loan review system • Changes in the experience, ability, and depth of lending management and other relevant staff • Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio • The existence and effect of any concentrations of credit, and changes in the level of such concentrations • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio or pool Credit Quality Indicators The following table presents the credit quality indicators by loan category at June 30, 2018 , December 31, 2017 and June 30, 2017 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total June 30, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 110,911 $ 436,670 $ — $ — $ 547,581 Special Mention 5,948 — — — 5,948 Substandard 2,023 26,915 — — 28,938 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 661,449 $ 810,855 $ 1,472,304 Nonperforming — — 459 1,825 2,284 December 31, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 124,961 $ 417,362 $ — $ — $ 542,323 Special Mention 1,341 177 — — 1,518 Substandard 2,947 25,902 — — 28,849 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 602,168 $ 771,584 $ 1,373,752 Nonperforming — — 659 3,068 3,727 June 30, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 120,388 $ 412,423 $ — $ — $ 532,811 Special Mention 1,269 1,414 — — 2,683 Substandard 4,602 27,973 — — 32,575 Doubtful — — — — — Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 578,317 $ 727,733 $ 1,306,050 Nonperforming — — 437 4,076 4,513 For the purposes of the table above, nonperforming consumer and residential loans are those loans on nonaccrual status or are 90 days or more past due and still accruing interest. For the allowance calculation, we use an internally developed system of five credit quality indicators to rate the credit worthiness of each commercial loan defined as follows: 1) Satisfactory - "Satisfactory" borrowers have acceptable financial condition with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt. Borrowers have satisfactory repayment histories and primary and secondary sources of repayment can be clearly identified; 2) Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. "Special mention" assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Loans which might be assigned this credit quality indicator include loans to borrowers with deteriorating financial strength and/or earnings record and loans with potential for problems due to weakening economic or market conditions; 3) Substandard - Loans classified as “substandard” are inadequately protected by the current sound net worth or paying capacity of the borrower or the collateral pledged, if any. Loans in this category have well defined weaknesses that jeopardize the repayment. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. “Substandard” loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard; 4) Doubtful - Loans classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values highly questionable and improbable. Although possibility of loss is extremely high, classification of these loans as “loss” has been deferred due to specific pending factors or events which may strengthen the value (i.e. possibility of additional collateral, injection of capital, collateral liquidation, debt restructure, economic recovery, etc). Loans classified as “doubtful” need to be placed on non-accrual; and 5) Loss - Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. As of the date of the balance sheet, all loans in this category have been charged-off to the allowance for loan losses. Commercial loans are generally evaluated on an annual basis depending on the size and complexity of the loan relationship, unless the credit related quality indicator falls to a level of "special mention" or below, when the loan is evaluated quarterly. The credit quality indicator is one of the factors used in assessing the level of inherent risk of loss in our commercial related loan portfolios. Impaired Loans The following table presents information on impaired loans based on whether the impaired loan has a recorded related allowance or has no recorded related allowance: Impaired Loans Commercial Commercial Real Estate Consumer Residential Total June 30, 2018 Recorded Investment: With No Related Allowance $ — $ 7 $ 110 $ 784 $ 901 With a Related Allowance 479 790 — 351 1,620 Unpaid Principal Balance: With No Related Allowance — 7 110 797 914 With a Related Allowance 489 806 — 283 1,578 December 31, 2017 Recorded Investment: With No Related Allowance $ — $ 781 $ 94 $ 1,269 $ 2,144 With a Related Allowance 485 725 — 333 1,543 Unpaid Principal Balance: With No Related Allowance — 816 95 1,274 2,185 With a Related Allowance 489 721 — 288 1,498 June 30, 2017 Recorded Investment: With No Related Allowance $ — $ 1,178 $ 88 $ 802 $ 2,068 With a Related Allowance 503 — — 288 791 Unpaid Principal Balance: With No Related Allowance — 1,178 88 802 $ 2,068 With a Related Allowance 503 — — 288 791 For the Quarter Ended: June 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 8 $ 100 $ 1,030 $ 1,138 With a Related Allowance 481 787 — 354 1,622 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — June 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 1,031 $ 88 $ 804 $ 1,923 With a Related Allowance 252 — — 288 540 Interest Income Recognized: With No Related Allowance — — 2 4 6 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — Impaired Loans Commercial Commercial Real Estate Consumer Residential Total For the Year-To-Date Period Ended: June 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 394 $ 102 $ 1,027 $ 1,523 With a Related Allowance 482 758 — 342 1,582 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — 24 24 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — June 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 1,034 $ 90 $ 950 $ 2,074 With a Related Allowance 252 — — 144 396 Interest Income Recognized: With No Related Allowance — — 3 4 7 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — At June 30, 2018 , December 31, 2017 and June 30, 2017 , all impaired loans were considered to be collateral dependent and were therefore evaluated for impairment based on the fair value of collateral less estimated cost to sell. Interest income recognized in the table above, represents income earned after the loans became impaired and includes restructured loans in compliance with their modified terms and nonaccrual loans where we have recognized interest income on a cash basis. Loans Modified in Trouble Debt Restructurings The following table presents information on loans modified in trouble debt restructurings during the periods indicated. Loans Modified in Trouble Debt Restructurings During the Period Commercial Commercial Real Estate Consumer Residential Total For the Quarter Ended: June 30, 2018 Number of Loans — — 3 — 3 Pre-Modification Outstanding Recorded Investment $ — $ — $ 26 $ — $ 26 Post-Modification Outstanding Recorded Investment — — 26 — 26 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2017 Number of Loans 1 — 2 — 3 Pre-Modification Outstanding Recorded Investment $ 503 $ — $ 10 $ — $ 513 Post-Modification Outstanding Recorded Investment 503 — 10 — 513 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: June 30, 2018 Number of Loans — — 4 — 4 Pre-Modification Outstanding Recorded Investment $ — $ — $ 28 $ — $ 28 Post-Modification Outstanding Recorded Investment — — 28 — 28 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2017 Number of Loans 1 — 4 — 5 Pre-Modification Outstanding Recorded Investment $ 503 $ — $ 26 $ — $ 529 Post-Modification Outstanding Recorded Investment 503 — 26 — 529 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — In general, loans requiring modification are restructured to accommodate the projected cash-flows of the borrower. Such modifications may involve a reduction of the interest rate, a significant deferral of payments or forgiveness of a portion of the outstanding principal balance. As indicated in the table above, no loans modified during the preceding twelve months subsequently defaulted as of June 30, 2018 . |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES (In Thousands) The following table presents the notional amount and fair value of Arrow's off-balance sheet commitments to extend credit and commitments under standby letters of credit as of June 30, 2018 , December 31, 2017 and June 30, 2017 : Commitments to Extend Credit and Letters of Credit June 30, 2018 December 31, 2017 June 30, 2017 Notional Amount: Commitments to Extend Credit $ 324,173 $ 315,256 $ 290,818 Standby Letters of Credit 3,941 3,526 3,373 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 11 23 25 Arrow is 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 include commitments to extend credit and standby letters of credit. Commitments to extend credit include home equity lines of credit, commitments for residential and commercial construction loans and other personal and commercial lines of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement Arrow has in particular classes of financial instruments. Arrow's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. Arrow uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Arrow evaluates each customer's creditworthiness on a case-by-case basis. Home equity lines of credit are secured by residential real estate. Construction commitments are secured by underlying real estate. For other lines of credit, the amount of collateral obtained, if deemed necessary by Arrow upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Most of the commitments are variable rate instruments. Arrow does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit. Arrow has issued conditional commitments in the form of standby letters of credit to guarantee payment on behalf of a customer and guarantee the performance of a customer to a third party. Standby letters of credit generally arise in connection with lending relationships. The credit risk involved in issuing these instruments is essentially the same as that involved in extending loans to customers. Contingent obligations under standby letters of credit at June 30, 2018 , December 31, 2017 and June 30, 2017 represent the maximum potential future payments Arrow could be required to make. Typically, these instruments have terms of 12 months or less and expire unused; therefore, the total amounts do not necessarily represent future cash requirements. Each customer is evaluated individually for creditworthiness under the same underwriting standards used for commitments to extend credit and on-balance sheet instruments. Company policies governing loan collateral apply to standby letters of credit at the time of credit extension. Loan-to-value ratios generally range from 50% for movable assets, such as inventory, to 100% for liquid assets, such as bank CD's. Fees for standby letters of credit typically range from 1% to 3% of the notional amount. Fees are collected upfront and are amortized over the life of the commitment. The carrying amount and fair values of Arrow's standby letters of credit at June 30, 2018 , December 31, 2017 and June 30, 2017 , were insignificant. The fair value of standby letters of credit is based on the fees currently charged for similar agreements or the cost to terminate the arrangement with the counterparties. The fair value of commitments to extend credit is determined by estimating the fees to enter into similar agreements, taking into account the remaining terms and present creditworthiness of the counterparties, and for fixed rate loan commitments, the difference between the current and committed interest rates. Arrow provides several types of commercial lines of credit and standby letters of credit to its commercial customers. The pricing of these services is not isolated, as Arrow considers the customer's complete deposit and borrowing relationship in pricing individual products and services. The commitments to extend credit also include commitments under home equity lines of credit, for which Arrow charges no fee. The carrying value and fair value of commitments to extend credit are not material and Arrow does not expect to incur any material loss as a result of these commitments. In the normal course of business, Arrow and its subsidiary banks become involved in a variety of routine legal proceedings. At present, there are no legal proceedings pending or threatened, which in the opinion of management and counsel, would result in a material loss to Arrow. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME (In Thousands) The following table presents the components of other comprehensive income for the three- and six-month periods ended June 30, 2018 and 2017 : Schedule of Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2018 Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period (853 ) $ 218 (635 ) (4,185 ) $ 1,065 (3,120 ) Amortization of Net Retirement Plan Actuarial Loss 103 (28 ) 75 163 (42 ) 121 Accretion of Net Retirement Plan Prior Service Credit 55 (14 ) 41 54 (14 ) 40 Other Comprehensive Loss $ (695 ) $ 176 $ (519 ) $ (3,968 ) $ 1,009 $ (2,959 ) 2017 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 666 $ (257 ) 409 743 $ (287 ) 456 Amortization of Net Retirement Plan Actuarial Loss 181 (109 ) 72 359 (178 ) 181 Accretion of Net Retirement Plan Prior Service Credit (3 ) 2 (1 ) (6 ) 3 (3 ) Other Comprehensive Income $ 844 $ (364 ) $ 480 $ 1,096 $ (462 ) $ 634 The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Defined Benefit Plan Items Gains and Losses on Net Prior Available-for- Net Gain Service Sale Securities (Loss) (Cost ) Credit Total For the Quarter-To-Date periods ended: March 31, 2018 $ (4,066 ) $ (6,334 ) $ (885 ) $ (11,285 ) Other comprehensive income or loss before reclassifications (635 ) — — (635 ) Amounts reclassified from accumulated other comprehensive income 75 41 116 Net current-period other comprehensive income (loss) (635 ) 75 41 (519 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) March 31, 2017 $ (335 ) $ (5,628 ) $ (717 ) $ (6,680 ) Other comprehensive income or loss before reclassifications 409 — — 409 Amounts reclassified from accumulated other comprehensive income — 72 (1 ) 71 Net current-period other comprehensive income (loss) 409 72 (1 ) 480 June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) For the Year-To-Date periods ended: December 31, 2017 $ (1,250 ) $ (6,380 ) $ (884 ) $ (8,514 ) Other comprehensive income or loss before reclassifications (3,120 ) — — (3,120 ) Amounts reclassified from accumulated other comprehensive income — 121 40 161 Net current-period other comprehensive income (3,120 ) 121 40 (2,959 ) Amounts reclassified from accumulated other comprehensive income $ (331 ) $ (331 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) December 31, 2016 $ (382 ) $ (5,737 ) $ (715 ) $ (6,834 ) Other comprehensive income or loss before reclassifications 456 — — 456 Amounts reclassified from accumulated other comprehensive income — 181 (3 ) 178 Net current-period other comprehensive income 456 181 (3 ) 634 June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) (1) All amounts are net of tax. The following table presents the reclassifications out of accumulated other comprehensive income: Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented For the Quarter-to-date periods ended: June 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (55 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (103 ) (1) Salaries and Employee Benefits (158 ) Total before Tax 42 Provision for Income Taxes $ (116 ) Net of Tax Total reclassifications for the period $ (116 ) Net of Tax June 30, 2017 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (1) Salaries and Employee Benefits Actuarial gains/(losses) (181 ) (1) Salaries and Employee Benefits (178 ) Total before Tax 107 Provision for Income Taxes $ (71 ) Net of Tax Total reclassifications for the period $ (71 ) Net of Tax For the Year-to-date periods ended: June 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (54 ) (2) Salaries and Employee Benefits Actuarial gains/(losses) (163 ) (2) Salaries and Employee Benefits (217 ) Total before Tax 56 Provision for Income Taxes $ (161 ) Net of Tax Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented Total reclassifications for the period $ (161 ) Net of Tax June 30, 2017 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs 6 (2) Salaries and Employee Benefits Actuarial gains/(losses) $ (359 ) (2) Salaries and Employee Benefits (353 ) Total before Tax 175 Provision for Income Taxes $ (178 ) Net of Tax Total reclassifications for the period $ (178 ) Net of Tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION (Dollars In Thousands, Except Share and Per Share Amounts) Arrow has established three stock-based compensation plans: an Incentive and Non-qualified Stock Option Plan (Long Term Incentive Plan), an Employee Stock Purchase Plan (ESPP) and an Employee Stock Ownership Plan (ESOP). All share and per share data have been adjusted for the September 28, 2017 3 % stock dividend. Long Term Incentive Plan The Long Term Incentive Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, performance units and performance shares. The Compensation Committee of the Board of Directors administers the Long Term Incentive Plan. Stock Options - Options may be granted at a price no less than the greater of the par value or fair market value of such shares on the date on which such option is granted, and generally expire ten years from the date of grant. The options usually vest over a four -year period. The following table presents the roll forward of stock options issued pursuant to the Long Term Incentive Plan by Shares and Weighted Average Exercise Prices. Roll-Forward of Shares Outstanding: Outstanding at January 1, 2018 346,155 Granted 55,188 Exercised (79,001 ) Forfeited (6,321 ) Outstanding at June 30, 2018 316,021 Exercisable at Period-End 198,544 Vested and Expected to Vest 117,477 Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: Outstanding at January 1, 2018 $ 24.12 Granted 30.85 Exercised 21.41 Forfeited 29.94 Outstanding at June 30, 2018 25.85 Exercisable at Period-End 23.06 Vested and Expected to Vest 30.55 Schedule of Other Long Term Incentive Plan Information Grants Issued During 2018 - Weighted Average Information: Fair Value $ 5.76 Fair Value Assumptions: Dividend Yield 2.98 % Expected Volatility 21.55 % Risk Free Interest Rate 2.68 % Expected Lives (in years) 6.98 Restricted Stock Units - The Company grants restricted stock units which gives the recipient the right to receive shares of Company stock upon vesting. The fair value of each restricted stock unit is the market value of Company stock on the date of grant. 100% of the restricted stock unit awards vest three years from the grant date. Once vested, the restricted stock units become vested units. Unvested restricted stock unit awards will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions. The following table presents the roll forward of restricted stock units by units and weighted average grant-date fair value. Roll-Forward of Restricted Stock Units Non-vested at January 1, 2018 — Granted 3,279 Vested — Canceled — Non-vested at June 30, 2018 3,279 Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value: Non-vested at January 1, 2018 $ — Granted 33.55 Vested — Canceled — Non-vested at June 30, 2018 33.55 The following table presents information on the amounts expensed for the periods ended June 30, 2018 and 2017 : Share-Based Compensation Expense For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Share-Based Compensation Expense $ 89 $ 89 $ 178 $ 172 Employee Stock Purchase Plan Arrow sponsors an ESPP under which employees purchase Arrow's common stock at a 5% discount below market price. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan. Employee Stock Ownership Plan Arrow maintains an ESOP. Substantially all employees of Arrow and its subsidiaries are eligible to participate upon satisfaction of applicable service requirements. The ESOP borrowed funds from one of Arrow’s subsidiary banks to purchase outstanding shares of Arrow’s common stock. The notes require annual payments of principal and interest through 2018. As the debt is repaid, shares are released from collateral based on the proportion of debt paid to total debt outstanding for the year and allocated to active employees. In addition, the Company makes additional cash contributions to the Plan each year. Shares pledged as collateral are reported as unallocated ESOP shares in stockholders' equity. As shares are released from collateral, Arrow reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings per share computations. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Retirement Plans | RETIREMENT PLANS (Dollars in Thousands) Arrow sponsors qualified and nonqualified defined benefit pension plans and other postretirement benefit plans for its employees. Arrow maintains a non-contributory pension plan, which covers substantially all employees. Effective December 1, 2002, all active participants in the qualified defined benefit pension plan were given a one-time irrevocable election to continue participating in the traditional plan design, for which benefits were based on years of service and the participant’s final compensation (as defined), or to begin participating in the new cash balance plan design. All employees who participate in the plan after December 1, 2002 automatically participate in the cash balance plan design. The interest credits under the cash balance plan are based on the 30-year U.S. Treasury rate in effect for November of the prior year. The service credits under the cash balance plan are equal to 6.0% of eligible salaries for employees who become participants on or after January 1, 2003. For employees in the plan prior to January 1, 2003, the service credits are scaled based on the age of the participant, and range from 6.0% to 12.0% . The funding policy is to contribute up to the maximum amount that can be deducted for federal income tax purposes and to make all payments required under ERISA. Arrow also maintains a supplemental non-qualified unfunded retirement plan to provide eligible employees of Arrow and its subsidiaries with benefits in excess of qualified plan limits imposed by federal tax law. Arrow has multiple non-pension postretirement benefit plans. The health care, dental and life insurance plans are contributory, with participants’ contributions adjusted annually. Arrow’s policy is to fund the cost of postretirement benefits based on the current cost of the underlying policies. However, the health care plan provision for automatic increases of Company contributions each year is based on the increase in inflation and is limited to a maximum of 5% . As of December 31, 2017, Arrow utilized the mortality assumption from the RP-2014 Mortality Table for annuitants and non-annuitants but updated the projected generational mortality improvements by using Scale MP-2017. The revised assumption resulted in a decrease in the Company's pension and postretirement liabilities. The following tables provide the components of net periodic benefit costs for the three and six-month periods ended June 30, 2018 and 2017 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended June 30, 2018: Service Cost 1 $ 431 $ 196 $ 35 Interest Cost 2 274 54 68 Expected Return on Plan Assets 2 (896 ) — — Amortization of Prior Service (Credit) Cost 2 (13 ) 15 53 Amortization of Net Loss 2 64 33 6 Net Periodic (Benefit) Cost $ (140 ) $ 298 $ 162 Plan Contributions During the Period $ — $ 117 $ 102 For the Three Months Ended June 30, 2017: Service Cost 1 $ 350 $ 10 $ 37 Interest Cost 2 373 59 63 Expected Return on Plan Assets 2 (800 ) — — Amortization of Prior Service (Credit) Cost 2 (14 ) 14 (3 ) Amortization of Net Loss 2 148 33 — Net Periodic (Benefit) Cost $ 57 $ 116 $ 97 Plan Contributions During the Period $ — $ 116 $ 177 Net Periodic Benefit Cost For the Six Months Ended June 30, 2018: Service Cost 1 $ 779 $ 207 $ 68 Interest Cost 2 799 104 167 Expected Return on Plan Assets 2 (1,681 ) — — Amortization of Prior Service (Credit) Cost 2 (25 ) 29 50 Amortization of Net Loss 2 97 66 — Net Periodic (Benefit) Cost $ (31 ) $ 406 $ 285 Plan Contributions During the Period $ — $ 233 $ 119 Estimated Future Contributions in the Current Fiscal Year $ — $ — $ — For the Six Months Ended June 30, 2017: Service Cost 1 $ 700 $ 20 $ 74 Interest Cost 2 723 109 149 Expected Return on Plan Assets 2 (1,600 ) — — Amortization of Prior Service (Credit) Cost 2 (28 ) 28 (6 ) Amortization of Net Loss 2 296 63 — Net Periodic (Benefit) Cost $ 91 $ 220 $ 217 Plan Contributions During the Period $ — $ 229 $ 230 Footnotes: 1. Included in Salaries and Employee Benefits on the Consolidated Statements of Income 2. Included in Other Operating Expense on the Consolidated Statements of Income We are not required to make a contribution to the qualified pension plan in 2018 , and currently, we do not expect to make additional contributions in 2018 . Arrow makes contributions to its other post-retirement benefit plans in an amount equal to benefit payments for the year. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE (In Thousands, Except Per Share Amounts) The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per common share (“EPS”) for periods ended June 30, 2018 and 2017 . All share and per share amounts have been adjusted for the September 28, 2017 3% stock dividend. Earnings Per Share Quarterly Period Ended: Year-to-Date Period Ended: June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Earnings Per Share - Basic: Net Income $ 9,730 $ 7,208 $ 18,261 $ 13,839 Weighted Average Shares - Basic 13,975 13,890 13,955 13,889 Earnings Per Share - Basic $ 0.70 $ 0.52 $ 1.31 $ 1.00 Earnings Per Share - Diluted: Net Income $ 9,730 $ 7,208 $ 18,261 $ 13,839 Weighted Average Shares - Basic 13,975 13,890 13,955 13,889 Dilutive Average Shares Attributable to Stock Options 83 85 83 100 Weighted Average Shares - Diluted 14,058 13,975 14,038 13,989 Earnings Per Share - Diluted $ 0.69 $ 0.52 $ 1.30 $ 0.99 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS (In Thousands) FASB ASC Subtopic 820-10 defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. We do not have any nonfinancial assets or liabilities measured at fair value on a recurring basis. The only assets or liabilities that Arrow measured at fair value on a recurring basis at June 30, 2018 were securities available-for-sale and equity securities and for December 31, 2017 and June 30, 2017 securities available-for-sale. Arrow held no securities or liabilities for trading on such dates. The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Life-to-Date Gains (Losses) Fair Value of Assets and Liabilities Measured on a Recurring Basis: June 30, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,615 $ 59,615 $ — $ — State and Municipal Obligations 3,383 — 3,383 — Mortgage-Backed Securities 261,589 — 261,589 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 325,387 59,615 265,772 — Equity Securities 1,802 — 1,802 — Total Securities Measured on a Recurring Basis $ 327,189 $ 59,615 $ 267,574 $ — December 31, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,894 $ 59,894 $ — $ — State and Municipal Obligations 10,349 — 10,349 — Mortgage-Backed Securities 227,596 — 227,596 — Corporate and Other Debt Securities 800 — 800 — Equity Securities 1,561 — 1,561 — Total Securities Available-for Sale $ 300,200 $ 59,894 $ 240,306 $ — June 30, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 147,085 $ 54,676 $ 92,409 $ — State and Municipal Obligations 15,441 — 15,441 — Mortgage-Backed Securities 161,077 — 161,077 — Corporate and Other Debt Securities 2,299 — 2,299 — Equity Securities 1,490 — 1,490 — Total Securities Available-for Sale $ 327,392 $ 54,676 $ 272,716 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: June 30, 2018 Collateral Dependent Impaired Loans $ 747 $ — $ — $ 747 $ (58 ) Other Real Estate Owned and Repossessed Assets, Net 1,487 — — 1,487 (654 ) December 31, 2017 Collateral Dependent Impaired Loans $ — $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net $ 1,847 $ — — 1,847 $ (569 ) June 30, 2017 Collateral Dependent Impaired Loans $ 791 $ — $ — $ 791 $ (146 ) Other Real Estate Owned and Repossessed Assets, Net 1,613 — — 1,613 (584 ) We determine the fair value of financial instruments under the following hierarchy: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). There were no transfers between Levels 1, 2 and 3 for the three months ended June 30, 2018 , December 31, 2017 and June 30, 2017 . Fair Value Methodology for Assets and Liabilities Measured on a Recurring Basis The fair value of Level 1 securities available-for-sale are based on unadjusted, quoted market prices from exchanges in active markets. The fair value of Level 2 securities available-for-sale are based on an independent bond and equity pricing service for identical assets or significantly similar securities and an independent equity pricing service for equity securities not actively traded. The pricing services use a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Fair Value Methodology for Assets and Liabilities Measured on a Nonrecurring Basis The fair value of collateral dependent impaired loans and other real estate owned was based on third-party appraisals less estimated cost to sell. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Other assets which might have been included in this table include mortgage servicing rights, goodwill and other intangible assets. Arrow evaluates each of these assets for impairment on an annual basis, with no impairment recognized for these assets at June 30, 2018 , December 31, 2017 and June 30, 2017 . Fair Value Methodology for Financial Instruments Not Measured on a Recurring or Nonrecurring Basis The fair value for securities held-to-maturity is determined utilizing an independent bond pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" requires that, effective for the first quarter of 2018, the fair value for loans must be disclosed using the "exit price" notion which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for loans are calculated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial real estate, residential mortgage, indirect auto and other consumer loans. Each loan category is further segmented into fixed and adjustable interest rate terms and by performing and nonperforming categories. The fair value of performing loans is calculated by determining the estimated future cash flow, which is the contractual cash flow adjusted for estimated prepayments. The discount rate is determined by starting with current market yields, and first adjusting for a liquidity premium. This premium is separately determined for residential real estate loans vs. other loans. Then a credit loss component is determined utilizing the credit loss assumptions used in the allowance for loan and lease loss model. Finally, a discount spread is applied separately for consumer loans vs. commercial loans based on market information and utilization of the Swap Curve. Fair value for nonperforming loans is generally 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 discount rates are judgmentally determined using available market information and specific borrower information. The fair value of time deposits is based on the discounted value of contractual cash flows, except that the fair value is limited to the extent that the customer could redeem the certificate after imposition of a premature withdrawal penalty. The discount rates are estimated using the Federal Home Loan Bank of New York ("FHLBNY") yield curve, which is considered representative of Arrow’s time deposit rates. The fair value of all other deposits is equal to the carrying value. The fair value of FHLBNY advances is estimated based on the discounted value of contractual cash flows. The discount rate is estimated using current rates on FHLBNY advances with similar maturities and call features. The book value of the outstanding trust preferred securities (Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts) are considered to approximate fair value since the interest rates are variable (indexed to LIBOR) and Arrow is well-capitalized. Fair Value by Balance Sheet Grouping The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Book Value Fair Value Level 1 Level 2 Level 3 June 30, 2018 Cash and Cash Equivalents $ 60,741 $ 60,741 $ 60,741 $ — $ — Securities Available-for-Sale 325,387 325,387 59,615 265,772 — Securities Held-to-Maturity 297,885 292,605 — 292,605 — Equity Securities 1,802 1,802 — 1,802 — Federal Home Loan Bank and Federal Reserve Bank Stock 11,089 11,089 — 11,089 — Net Loans 2,038,222 1,971,756 — — 1,971,756 Accrued Interest Receivable 6,729 6,729 — 6,729 — Deposits 2,304,781 2,295,796 — 2,295,796 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 60,248 60,248 — 60,248 — Federal Home Loan Bank Overnight Advances 136,000 136,000 — 136,000 — Federal Home Loan Bank Term Advances 45,000 44,495 — 44,495 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 540 540 — 540 — December 31, 2017 Cash and Cash Equivalents $ 72,838 $ 72,838 $ 72,838 $ — $ — Securities Available-for-Sale 300,200 300,200 59,894 240,306 — Securities Held-to-Maturity 335,907 335,901 — 335,901 — Federal Home Loan Bank and Federal Reserve Bank Stock 9,949 9,949 — 9,949 — Net Loans 1,932,184 1,901,046 — — 1,901,046 Accrued Interest Receivable 6,753 6,753 — 6,753 — Deposits 2,245,116 2,236,548 — 2,236,548 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 64,966 64,966 — 64,966 — Federal Home Loan Bank Overnight Advances 105,000 105,000 — 105,000 — Federal Home Loan Bank Term Advances 55,000 54,781 — 54,781 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 410 410 — 410 — June 30, 2017 Cash and Cash Equivalents $ 66,077 $ 66,077 $ 66,077 $ — $ — Securities Available-for-Sale 327,392 327,392 54,676 272,716 — Securities Held-to-Maturity 348,018 350,355 — 350,355 — Federal Home Loan Bank and Federal Reserve Bank Stock 11,035 11,035 — 11,035 — Net Loans 1,861,190 1,844,301 — — 1,844,301 Accrued Interest Receivable 6,563 6,563 — 6,563 — Deposits 2,220,038 2,212,256 — 2,212,256 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 40,892 40,892 — 40,892 — Federal Home Loan Bank Overnight Advances 122,000 122,000 — 122,000 — Federal Home Loan Bank Term Advances 55,000 55,448 — 55,448 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 252 252 — 252 — |
Accounting Policies Significant
Accounting Policies Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Management's Use of Estimates | Management’s Use of Estimates -The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, goodwill impairment, pension and other postretirement liabilities and an analysis of a need for a valuation allowance for deferred tax assets. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term is the allowance for loan losses. In connection with the determination of the allowance for loan losses, management obtains appraisals for properties. The allowance for loan losses is management’s best estimate of probable loan losses incurred as of the balance sheet date. While management uses available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in the first six months of 2018: ASU 2014-09 "Revenue from Contracts With Customers (Topic 606)" was adopted as of January 1, 2018. For additional information, see Revenue Recognition under Significant Policy Update in this Note. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" (Subtopic 825-10) significantly changed the income statement impact of equity investments. For Arrow, the standard became effective for the first quarter of 2018, and requires that equity investments be measured at fair value, with changes in fair value recognized in net income. The cumulative effect of the January 1, 2018 adoption was an increase to retained earnings of $331 thousand with a corresponding decrease to Accumulated Other Comprehensive Loss. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. ASU 2016-01 also emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans as part of adopting this standard. See Note 9 to our unaudited interim consolidated financial statements entitled Fair Value of Financial Instruments. ASU 2016-15 "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments" will reduce existing diversity in practice with respect to eight specific cash flow issues. Arrow adopted this ASU in the first quarter of 2018. ASU 2017-01 "Business Combinations" (Topic 805) defines when a set of assets and activities constitutes a business for the purposes of determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update allow for a business to consist of inputs, processes, and the ability to create output. For Arrow, the standard became effective in the first quarter of 2018. This update had no effect on our accounting for acquisitions and dispositions of businesses. ASU 2017-07 "Compensation-Retirement Benefits" (Topic 715) improves the presentation of net periodic pension cost and net periodic post-retirement benefit cost by requiring that an employer disaggregate the service cost component from the other components of net benefit cost. For Arrow, the standard became effective in the first quarter of 2018. In accordance with the practical expedient adoption method, for all periods presented Arrow used the amounts disclosed in the retirement plans footnote for the prior period retrospective reclassification of the non-service cost components out of salaries and benefits and into other operating expenses. The adoption of this change in accounting for pension costs did not have a material impact on our financial position or the results of operations. ASU 2017-09 "Compensation-Stock Compensation" (Topic 718) provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance highlights the requirements for applying modification accounting and the exception criteria relating to changes in share-based payment terms. For Arrow, the standard became effective in the first quarter of 2018. The adoption of this change in accounting for share-based payment awards did not have a material impact on our financial position or the results of operations in periods subsequent to its adoption. The following accounting standards have been issued and will become effective for the Company at a future date: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. For a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option or not exercise an option to terminate the lease. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. ASU 2018-01 was issued to address concerns about the cost and complexity of complying with the transition provisions of ASU 2018-01. Early adoption is permitted in any interim or annual period. For Arrow, the standard becomes effective in the first quarter of 2019. The Company is in the process of reviewing its existing lease portfolios, including service contracts for embedded leases to evaluate the impact of this standard on its consolidated financial statements and the impact on regulatory capital. The Company does not expect that this new accounting standard will have a material impact on it's financial position or the results of operations in periods subsequent to its adoption. As of June 30, 2018, there were less than $2.2 million in minimum lease payments for existing operating leases of branch and insurance locations with varying expiration dates from 2018 to 2031. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" (Topic 326) which will change the way financial entities measure expected credit losses for financial assets, primarily loans. Under this ASU, the "incurred loss" model will be replaced with an "expected loss" model which will recognize losses over the life of the instrument and requires consideration of a broader range of reasonable and supportable information. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under this ASU, the amount of the credit loss is carried as a valuation allowance and can be reversed. The standard also requires expanded credit quality disclosures. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company plans on adopting the standard in the first quarter of 2020, in order to maximize the accumulation of data needed to calculate the new CECL methodologies. The ASU describes several acceptable methodologies for calculating expected losses on a loan or a pool of loans and requires additional disclosures. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. The FASB’s Transition Research Group for credit losses still has several outstanding unresolved questions, some of which may have a significant impact on CECL calculations. The Company is in the process of assessing the impact of this new accounting standard as required changes to its credit loss estimation process and models are being evaluated. This will likely have the effect of reducing shareholders' equity, but the Company expects to remain a well-capitalized financial institution under current regulatory calculations. In January 2017, the FASB issued ASU 2017-04 "Intangibles-Goodwill and Other" (Topic 350) simplifies the procedures for evaluating impairment of goodwill. Prior to the adoption of this standard, entities were required to perform procedures to determine the fair value of the underlying assets and liabilities for determining the fair value of assets and liabilities in a business combination. This additional step to impairment testing has been eliminated. Under this ASU, entities will perform goodwill impairment testing by comparing the fair value of a reporting unit to its carrying value. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted. This amendment will not affect our assessment of goodwill impairment since we currently perform the analysis of comparing carrying value to fair value of our reporting units that have goodwill and we have not had to perform a Step 2 Impairment Test to date. In March 2017, the FASB issued ASU 2017-08 "Receivables-Nonrefundable Fees and Other Costs" amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard becomes effective in the first quarter of 2019. We do not expect that the adoption of this change in accounting for certain callable debt securities will have a material impact on our financial position or the results of operations in periods subsequent to its adoption Significant Accounting Policy Update: Revenue Recognition - Accounting Standard Codification ("ASC") Topic 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services as performance obligations are satisfied. The Company adopted ASC Topic 606 as of January 1, 2018 using the modified retrospective approach, and have identified the recognition of revenue related to specific types of fiduciary activities and specific types of revenue from insurance commissions to be in the scope of this guidance. Regarding fiduciary activities, under prior GAAP, revenue was recognized from settling client estates over the time period the work was performed. With the adoption of Topic 606, revenue is recognized when the performance obligation is completed, which is when the settlement of the client estate is closed. The impact of this change in revenue recognition was not material to our consolidated financial statements. Regarding revenue from property and casualty insurance policies in which the revenue is recorded when the client elected to pay pay premiums in installments, under prior GAAP, revenue was recognized when the client premiums were billed. With the adoption of Topic 606, revenue is required to be recognized when the performance obligation is substantially completed, i.e., when the insurance policy is issued. The impact of recognizing total policy commission revenue versus our current practice of recognizing revenue when the client is billed is not material on our consolidated financial statements. The adoption of Topic 606 related to the previously described fiduciary activity and insurance commission required a cumulative effect adjustment as of January 1, 2018 to decrease retained earnings by $102 thousand . The majority of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities which are presented in our consolidated income statements as components of net interest income. The following is a description of principal activities from which the Company generates its revenue from noninterest income sources that are within the scope of ASC Topic 606: Income from Fiduciary Activities: represents revenue derived mainly through the management of client investments which is based on the market value of these assets and the fee schedule contained in the applicable account management agreement. Since the revenue is mainly based on the market value of assets, this amount can be volatile as financial markets increase and decrease based on various economic factors. The terms of the account management agreements generally specify that the performance obligations are completed each quarter. Accordingly, we mainly recognize revenue from fiduciary activities on a quarterly basis. Fees for Other Services to Customers: represents general service fees for monthly deposit account maintenance and account activity plus fees from other deposit-based services. Revenue is recognized when the performance obligation is completed, which is generally on a monthly basis for account maintenance services, or upon the completion of a deposit-related transaction. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Insurance Commissions: represents commissions and fees paid by insurance carriers for both property and casualty insurance policies, and for services performed for employment benefits clients. Revenue from our property and casualty business is recognized when our performance obligation is satisfied, which is generally the effective date of the bound coverage since there are no significant performance obligations remaining. Revenue from our employment benefit brokerage business is recognized when our benefit servicing performance obligations are satisfied, generally on a monthly basis. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Securities | The following table is the schedule of Available-For-Sale Securities at June 30, 2018 , December 31, 2017 and June 30, 2017 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities June 30, 2018 Available-For-Sale Securities, at Amortized Cost $ 60,199 $ 3,377 $ 267,113 $ 1,000 $ — $ 331,689 Available-For-Sale Securities, at Fair Value 59,615 3,383 261,589 800 — 325,387 Gross Unrealized Gains — 6 332 — — 338 Gross Unrealized Losses 584 — 5,856 200 — 6,640 Available-For-Sale Securities, Pledged as Collateral 282,481 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 42,683 $ 2,124 $ 1,447 $ — $ 46,254 From 1 - 5 Years 17,516 773 135,939 — 154,228 From 5 - 10 Years — — 79,608 — 79,608 Over 10 Years — 480 50,119 1,000 51,599 Maturities of Debt Securities, at Fair Value: Within One Year $ 42,396 $ 2,125 $ 1,458 $ — $ 45,979 From 1 - 5 Years 17,219 778 131,431 — 149,428 From 5 - 10 Years — — 78,552 — 78,552 Over 10 Years — 480 50,148 800 51,428 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 17,218 $ 1,797 $ 144,265 $ — $ — $ 163,280 12 Months or Longer 42,397 — 72,209 800 — 115,406 Total $ 59,615 $ 1,797 $ 216,474 $ 800 $ — $ 278,686 Number of Securities in a Continuous Loss Position 14 6 79 1 — 100 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 297 $ — $ 2,409 $ — $ — $ 2,706 12 Months or Longer 287 — 3,447 200 — 3,934 Total $ 584 $ — $ 5,856 $ 200 $ — $ 6,640 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,199 US Agency Obligations, 59,615 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities US Government Agency Securities, at Amortized Cost $ 68,030 US Government Agency Securities, at Fair Value 68,083 Government Sponsored Entity Securities, at Amortized Cost 199,083 Government Sponsored Entity 193,506 December 31, 2017 Available-For-Sale Securities, at Amortized Cost $ 60,328 $ 10,351 $ 229,077 $ 1,000 $ 1,120 $ 301,876 Available-For-Sale Securities, at Fair Value 59,894 10,349 227,596 800 1,561 300,200 Gross Unrealized Gains — 9 485 — 441 935 Gross Unrealized Losses 434 11 1,966 200 — 2,611 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 183,052 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 20,348 $ 8,498 $ 70,930 $ — $ — $ 99,776 12 Months or Longer 39,546 — 80,759 800 — 121,105 Total $ 59,894 $ 8,498 $ 151,689 $ 800 $ — $ 220,881 Number of Securities in a Continuous Loss Position 14 36 55 1 — 106 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 172 $ 11 $ 363 $ — $ — $ 546 12 Months or Longer 262 — 1,603 200 — 2,065 Total $ 434 $ 11 $ 1,966 $ 200 $ — $ 2,611 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,328 US Agency Obligations, 59,894 US Government Agency Securities, at Amortized Cost $ 40,832 US Government Agency Securities, at Fair Value 40,832 Government Sponsored Entity Securities, at Amortized Cost 188,245 Government Sponsored Entity 186,764 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities June 30, 2017 Available-For-Sale Securities, at Amortized Cost $ 146,914 $ 15,410 $ 161,324 $ 2,500 $ 1,120 $ 327,268 Available-For-Sale Securities, at Fair Value 147,085 15,441 161,077 2,299 1,490 327,392 Gross Unrealized Gains 252 31 964 — 370 1,617 Gross Unrealized Losses 81 — 1,211 201 — 1,493 Available-For-Sale Securities, Pledged as Collateral 267,912 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 49,176 $ 543 $ 97,870 $ 1,499 $ — $ 149,088 12 Months or Longer — — — 800 — 800 Total $ 49,176 $ 543 $ 97,870 $ 2,299 $ — $ 149,888 Number of Securities in a Continuous Loss Position 13 2 34 3 — 52 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 81 $ — $ 1,211 $ 1 $ — $ 1,293 12 Months or Longer — — — 200 — 200 Total $ 81 $ — $ 1,211 $ 201 $ — $ 1,493 Disaggregated Details: US Treasury Obligations, $ 54,597 US Treasury Obligations, $ 54,676 US Agency Obligations, $ 92,317 US Agency Obligations, 92,409 US Government Agency Securities, at Amortized Cost $ 3,740 US Government Agency Securities, at Fair Value 3,756 Government Sponsored Entity Securities, at Amortized Cost 157,584 Government Sponsored Entity 157,321 |
Held-To-Maturity Securities | The following table is the schedule of Held-To-Maturity Securities at June 30, 2018 , December 31, 2017 and June 30, 2017 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities June 30, 2018 Held-To-Maturity Securities, at Amortized Cost $ 244,016 $ 53,869 $ — $ 297,885 Held-To-Maturity Securities, at Fair Value 239,841 52,764 — 292,605 Gross Unrealized Gains 497 — — 497 Gross Unrealized Losses 4,672 1,105 — 5,777 Held-To-Maturity Securities, Pledged as Collateral 278,627 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 26,037 $ — $ — $ 26,037 From 1 - 5 Years 91,235 46,134 — 137,369 From 5 - 10 Years 124,073 7,735 — 131,808 Over 10 Years 2,671 — — 2,671 Maturities of Debt Securities, at Fair Value: Within One Year $ 26,092 $ — $ — $ 26,092 From 1 - 5 Years 90,877 45,207 — 136,084 From 5 - 10 Years 120,206 7,556 — 127,762 Over 10 Years 2,667 — — 2,667 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 68,612 $ 49,977 $ — $ 118,589 12 Months or Longer 90,948 2,787 — 93,735 Total $ 159,560 $ 52,764 $ — $ 212,324 Number of Securities in a Continuous Loss Position 465 47 — 512 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 633 $ 1,021 $ — $ 1,654 12 Months or Longer 4,039 84 — 4,123 Total $ 4,672 $ 1,105 $ — $ 5,777 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,265 US Government Agency Securities, at Fair Value 2,346 Government Sponsored Entity Securities, at Amortized Cost 50,604 Government Sponsored Entity 50,418 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities December 31, 2017 Held-To-Maturity Securities, at Amortized Cost $ 275,530 $ 60,377 $ — $ 335,907 Held-To-Maturity Securities, at Fair Value 275,353 60,548 — 335,901 Gross Unrealized Gains 1,691 269 — 1,960 Gross Unrealized Losses 1,868 98 — 1,966 Held-To-Maturity Securities, Pledged as Collateral 318,622 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 55,648 $ 13,764 $ — $ 69,412 12 Months or Longer 65,152 3,257 — 68,409 Total $ 120,800 $ 17,021 $ — $ 137,821 Number of Securities in a Continuous Loss Position 352 14 — 366 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 442 $ 56 $ — $ 498 12 Months or Longer 1,425 43 — 1,468 Total $ 1,867 $ 99 $ — $ 1,966 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,680 US Government Agency Securities, at Fair Value 2,661 Government Sponsored Entity Securities, at Amortized Cost 57,697 Government Sponsored Entity 57,887 June 30, 2017 Held-To-Maturity Securities, at Amortized Cost $ 280,485 $ 67,533 $ — $ 348,018 Held-To-Maturity Securities, at Fair Value 282,157 68,198 — 350,355 Gross Unrealized Gains 3,208 677 — 3,885 Gross Unrealized Losses 1,536 12 — 1,548 Held-To-Maturity Securities, Pledged as Collateral 327,820 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 93,046 $ 4,338 $ — $ 97,384 12 Months or Longer 403 — — 403 Total $ 93,449 $ 4,338 $ — $ 97,787 Number of Securities in a Continuous Loss Position 263 9 — 272 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,534 $ 12 $ — $ 1,546 12 Months or Longer 2 — — 2 Total $ 1,536 $ 12 $ — $ 1,548 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities June 30, 2017 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,106 US Government Agency Securities, at Fair Value 3,121 Government Sponsored Entity Securities, at Amortized Cost 64,427 Government Sponsored Entity 65,077 |
Debt Securities, Trading, and Equity Securities, FV-NI | The following table is the schedule of Equity Securities at June 30, 2018 . Upon the adoption of ASU 2016-01 effective January 1, 2018, Equity Securities are not included in Securities Available-For-Sale since unrealized gains and losses are now recorded in the Consolidated Statements of Income. Prior to January 1, 2018, Equity Securities were included in Securities Available-For-Sale. Equity Securities June 30, 2018 Equity Securities, at Fair Value $ 1,802 |
Unrealized Gain (Loss) on Investments | The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three- and six-month periods ended June 30, 2018 : Three months ended June 30, 2018 Six months ended June 30, 2018 Net Gain on Equity Securities $ 223 $ 241 Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period — — Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date $ 223 $ 241 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Past Due Financing Receivables | The following table presents loan balances outstanding as of June 30, 2018 , December 31, 2017 and June 30, 2017 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers an amortizing loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $544 , $327 and $261 as of June 30, 2018 , December 31, 2017 and June 30, 2017 , respectively, are included in the residential real estate balances for current loans. Commercial Commercial Real Estate Consumer Residential Total June 30, 2018 Loans Past Due 30-59 Days $ 3 $ — $ 4,769 $ 2,004 $ 6,776 Loans Past Due 60-89 Days 15 — 720 273 1,008 Loans Past Due 90 or more Days 28 963 231 771 1,993 Total Loans Past Due 46 963 5,720 3,048 9,777 Current Loans 118,835 463,430 656,188 809,632 2,048,085 Total Loans $ 118,881 $ 464,393 $ 661,908 $ 812,680 $ 2,057,862 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 28 $ 142 $ 170 Nonaccrual Loans 633 963 459 1,825 3,880 December 31, 2017 Loans Past Due 30-59 Days $ 139 $ — $ 5,891 $ 2,094 $ 8,124 Loans Past Due 60-89 Days 19 — 1,215 509 1,743 Loans Past Due 90 or more Days 99 807 513 1,422 2,841 Total Loans Past Due 257 807 7,619 4,025 12,708 Current Loans 128,992 443,441 595,208 770,421 1,938,062 Total Loans $ 129,249 $ 444,248 $ 602,827 $ 774,446 $ 1,950,770 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 6 $ 313 $ 319 Nonaccrual Loans $ 588 $ 1,530 $ 653 $ 2,755 5,526 June 30, 2017 Loans Past Due 30-59 Days $ 138 $ — $ 4,123 $ 122 $ 4,383 Loans Past Due 60-89 Days 40 865 1,265 2,591 4,761 Loans Past Due 90 or more Days 249 357 391 2,115 3,112 Total Loans Past Due 427 1,222 5,779 4,828 12,256 Current Loans 125,832 440,587 572,975 726,982 1,866,376 Total Loans $ 126,259 $ 441,809 $ 578,754 $ 731,810 $ 1,878,632 Loans 90 or More Days Past Due and Still Accruing Interest $ 120 $ 357 $ 75 $ 1,269 $ 1,821 Nonaccrual Loans $ 653 $ 1,343 $ 419 $ 2,807 5,222 |
Allowance for Credit Losses on Financing Receivables | The following table presents a roll-forward of the allowance for loan losses and other information pertaining to the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: March 31, 2018 $ 1,119 $ 5,412 $ 8,019 $ 4,507 $ 19,057 Charge-offs — — (248 ) (16 ) (264 ) Recoveries — 3 215 — 218 Provision (175 ) 423 351 30 629 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 March 31, 2017 $ 939 $ 5,449 $ 6,702 $ 4,126 $ 17,216 Charge-offs (23 ) — (277 ) (5 ) (305 ) Recoveries 5 — 104 — 109 Provision 4 (466 ) 776 108 422 June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ 17,442 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: December 31, 2017 $ 1,873 $ 4,504 $ 7,604 $ 4,605 $ 18,586 Charge-offs (16 ) — (595 ) (23 ) (634 ) Recoveries — 12 301 — 313 Provision (913 ) 1,322 1,027 (61 ) 1,375 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 December 31, 2016 $ 1,017 $ 5,677 $ 6,120 $ 4,198 $ 17,012 Charge-offs (39 ) — (530 ) (6 ) (575 ) Recoveries 12 — 213 — 225 Provision (65 ) (694 ) 1,502 37 780 June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ 17,442 June 30, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 88 $ 44 $ — $ 53 $ 185 Allowance for loan losses - Loans Collectively Evaluated for Impairment 856 5,794 8,337 4,468 19,455 Ending Loan Balance - Individually Evaluated for Impairment 489 813 110 1,080 2,492 Ending Loan Balance - Collectively Evaluated for Impairment $ 118,392 $ 463,580 $ 661,798 $ 811,600 $ 2,055,370 December 31, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 94 $ 2 $ — $ 10 $ 106 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,779 4,502 7,604 4,595 18,480 Ending Loan Balance - Individually Evaluated for Impairment 489 1,537 95 1,562 3,683 Ending Loan Balance - Collectively Evaluated for Impairment $ 128,760 $ 442,711 $ 602,732 $ 772,884 $ 1,947,087 June 30, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 112 $ — $ — $ 34 $ 146 Allowance for loan losses - Loans Collectively Evaluated for Impairment 813 4,983 7,305 4,195 17,296 Ending Loan Balance - Individually Evaluated for Impairment 503 1,178 88 1,090 2,859 Ending Loan Balance - Collectively Evaluated for Impairment $ 125,756 $ 440,631 $ 578,666 $ 730,720 $ 1,875,773 |
Financing Receivable Credit Quality Indicators | The following table presents the credit quality indicators by loan category at June 30, 2018 , December 31, 2017 and June 30, 2017 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total June 30, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 110,911 $ 436,670 $ — $ — $ 547,581 Special Mention 5,948 — — — 5,948 Substandard 2,023 26,915 — — 28,938 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 661,449 $ 810,855 $ 1,472,304 Nonperforming — — 459 1,825 2,284 December 31, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 124,961 $ 417,362 $ — $ — $ 542,323 Special Mention 1,341 177 — — 1,518 Substandard 2,947 25,902 — — 28,849 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 602,168 $ 771,584 $ 1,373,752 Nonperforming — — 659 3,068 3,727 June 30, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 120,388 $ 412,423 $ — $ — $ 532,811 Special Mention 1,269 1,414 — — 2,683 Substandard 4,602 27,973 — — 32,575 Doubtful — — — — — Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 578,317 $ 727,733 $ 1,306,050 Nonperforming — — 437 4,076 4,513 |
Impaired Financing Receivables | The following table presents information on impaired loans based on whether the impaired loan has a recorded related allowance or has no recorded related allowance: Impaired Loans Commercial Commercial Real Estate Consumer Residential Total June 30, 2018 Recorded Investment: With No Related Allowance $ — $ 7 $ 110 $ 784 $ 901 With a Related Allowance 479 790 — 351 1,620 Unpaid Principal Balance: With No Related Allowance — 7 110 797 914 With a Related Allowance 489 806 — 283 1,578 December 31, 2017 Recorded Investment: With No Related Allowance $ — $ 781 $ 94 $ 1,269 $ 2,144 With a Related Allowance 485 725 — 333 1,543 Unpaid Principal Balance: With No Related Allowance — 816 95 1,274 2,185 With a Related Allowance 489 721 — 288 1,498 June 30, 2017 Recorded Investment: With No Related Allowance $ — $ 1,178 $ 88 $ 802 $ 2,068 With a Related Allowance 503 — — 288 791 Unpaid Principal Balance: With No Related Allowance — 1,178 88 802 $ 2,068 With a Related Allowance 503 — — 288 791 For the Quarter Ended: June 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 8 $ 100 $ 1,030 $ 1,138 With a Related Allowance 481 787 — 354 1,622 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — June 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 1,031 $ 88 $ 804 $ 1,923 With a Related Allowance 252 — — 288 540 Interest Income Recognized: With No Related Allowance — — 2 4 6 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — Impaired Loans Commercial Commercial Real Estate Consumer Residential Total For the Year-To-Date Period Ended: June 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 394 $ 102 $ 1,027 $ 1,523 With a Related Allowance 482 758 — 342 1,582 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — 24 24 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — June 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 1,034 $ 90 $ 950 $ 2,074 With a Related Allowance 252 — — 144 396 Interest Income Recognized: With No Related Allowance — — 3 4 7 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — |
Troubled Debt Restructurings on Financing Receivables | The following table presents information on loans modified in trouble debt restructurings during the periods indicated. Loans Modified in Trouble Debt Restructurings During the Period Commercial Commercial Real Estate Consumer Residential Total For the Quarter Ended: June 30, 2018 Number of Loans — — 3 — 3 Pre-Modification Outstanding Recorded Investment $ — $ — $ 26 $ — $ 26 Post-Modification Outstanding Recorded Investment — — 26 — 26 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2017 Number of Loans 1 — 2 — 3 Pre-Modification Outstanding Recorded Investment $ 503 $ — $ 10 $ — $ 513 Post-Modification Outstanding Recorded Investment 503 — 10 — 513 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: June 30, 2018 Number of Loans — — 4 — 4 Pre-Modification Outstanding Recorded Investment $ — $ — $ 28 $ — $ 28 Post-Modification Outstanding Recorded Investment — — 28 — 28 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2017 Number of Loans 1 — 4 — 5 Pre-Modification Outstanding Recorded Investment $ 503 $ — $ 26 $ — $ 529 Post-Modification Outstanding Recorded Investment 503 — 26 — 529 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the notional amount and fair value of Arrow's off-balance sheet commitments to extend credit and commitments under standby letters of credit as of June 30, 2018 , December 31, 2017 and June 30, 2017 : Commitments to Extend Credit and Letters of Credit June 30, 2018 December 31, 2017 June 30, 2017 Notional Amount: Commitments to Extend Credit $ 324,173 $ 315,256 $ 290,818 Standby Letters of Credit 3,941 3,526 3,373 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 11 23 25 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income | The following table presents the components of other comprehensive income for the three- and six-month periods ended June 30, 2018 and 2017 : Schedule of Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2018 Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period (853 ) $ 218 (635 ) (4,185 ) $ 1,065 (3,120 ) Amortization of Net Retirement Plan Actuarial Loss 103 (28 ) 75 163 (42 ) 121 Accretion of Net Retirement Plan Prior Service Credit 55 (14 ) 41 54 (14 ) 40 Other Comprehensive Loss $ (695 ) $ 176 $ (519 ) $ (3,968 ) $ 1,009 $ (2,959 ) 2017 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 666 $ (257 ) 409 743 $ (287 ) 456 Amortization of Net Retirement Plan Actuarial Loss 181 (109 ) 72 359 (178 ) 181 Accretion of Net Retirement Plan Prior Service Credit (3 ) 2 (1 ) (6 ) 3 (3 ) Other Comprehensive Income $ 844 $ (364 ) $ 480 $ 1,096 $ (462 ) $ 634 |
Changes in Accumulated Other Comprehensive Income By Component | The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Defined Benefit Plan Items Gains and Losses on Net Prior Available-for- Net Gain Service Sale Securities (Loss) (Cost ) Credit Total For the Quarter-To-Date periods ended: March 31, 2018 $ (4,066 ) $ (6,334 ) $ (885 ) $ (11,285 ) Other comprehensive income or loss before reclassifications (635 ) — — (635 ) Amounts reclassified from accumulated other comprehensive income 75 41 116 Net current-period other comprehensive income (loss) (635 ) 75 41 (519 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) March 31, 2017 $ (335 ) $ (5,628 ) $ (717 ) $ (6,680 ) Other comprehensive income or loss before reclassifications 409 — — 409 Amounts reclassified from accumulated other comprehensive income — 72 (1 ) 71 Net current-period other comprehensive income (loss) 409 72 (1 ) 480 June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) For the Year-To-Date periods ended: December 31, 2017 $ (1,250 ) $ (6,380 ) $ (884 ) $ (8,514 ) Other comprehensive income or loss before reclassifications (3,120 ) — — (3,120 ) Amounts reclassified from accumulated other comprehensive income — 121 40 161 Net current-period other comprehensive income (3,120 ) 121 40 (2,959 ) Amounts reclassified from accumulated other comprehensive income $ (331 ) $ (331 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) December 31, 2016 $ (382 ) $ (5,737 ) $ (715 ) $ (6,834 ) Other comprehensive income or loss before reclassifications 456 — — 456 Amounts reclassified from accumulated other comprehensive income — 181 (3 ) 178 Net current-period other comprehensive income 456 181 (3 ) 634 June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) (1) All amounts are net of tax. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income: Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented For the Quarter-to-date periods ended: June 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (55 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (103 ) (1) Salaries and Employee Benefits (158 ) Total before Tax 42 Provision for Income Taxes $ (116 ) Net of Tax Total reclassifications for the period $ (116 ) Net of Tax June 30, 2017 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (1) Salaries and Employee Benefits Actuarial gains/(losses) (181 ) (1) Salaries and Employee Benefits (178 ) Total before Tax 107 Provision for Income Taxes $ (71 ) Net of Tax Total reclassifications for the period $ (71 ) Net of Tax For the Year-to-date periods ended: June 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (54 ) (2) Salaries and Employee Benefits Actuarial gains/(losses) (163 ) (2) Salaries and Employee Benefits (217 ) Total before Tax 56 Provision for Income Taxes $ (161 ) Net of Tax Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented Total reclassifications for the period $ (161 ) Net of Tax June 30, 2017 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs 6 (2) Salaries and Employee Benefits Actuarial gains/(losses) $ (359 ) (2) Salaries and Employee Benefits (353 ) Total before Tax 175 Provision for Income Taxes $ (178 ) Net of Tax Total reclassifications for the period $ (178 ) Net of Tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table presents the roll forward of restricted stock units by units and weighted average grant-date fair value. Roll-Forward of Restricted Stock Units Non-vested at January 1, 2018 — Granted 3,279 Vested — Canceled — Non-vested at June 30, 2018 3,279 Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value: Non-vested at January 1, 2018 $ — Granted 33.55 Vested — Canceled — Non-vested at June 30, 2018 33.55 The following table presents the roll forward of stock options issued pursuant to the Long Term Incentive Plan by Shares and Weighted Average Exercise Prices. Roll-Forward of Shares Outstanding: Outstanding at January 1, 2018 346,155 Granted 55,188 Exercised (79,001 ) Forfeited (6,321 ) Outstanding at June 30, 2018 316,021 Exercisable at Period-End 198,544 Vested and Expected to Vest 117,477 Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: Outstanding at January 1, 2018 $ 24.12 Granted 30.85 Exercised 21.41 Forfeited 29.94 Outstanding at June 30, 2018 25.85 Exercisable at Period-End 23.06 Vested and Expected to Vest 30.55 Schedule of Other Long Term Incentive Plan Information Grants Issued During 2018 - Weighted Average Information: Fair Value $ 5.76 Fair Value Assumptions: Dividend Yield 2.98 % Expected Volatility 21.55 % Risk Free Interest Rate 2.68 % Expected Lives (in years) 6.98 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents information on the amounts expensed for the periods ended June 30, 2018 and 2017 : Share-Based Compensation Expense For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Share-Based Compensation Expense $ 89 $ 89 $ 178 $ 172 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables provide the components of net periodic benefit costs for the three and six-month periods ended June 30, 2018 and 2017 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended June 30, 2018: Service Cost 1 $ 431 $ 196 $ 35 Interest Cost 2 274 54 68 Expected Return on Plan Assets 2 (896 ) — — Amortization of Prior Service (Credit) Cost 2 (13 ) 15 53 Amortization of Net Loss 2 64 33 6 Net Periodic (Benefit) Cost $ (140 ) $ 298 $ 162 Plan Contributions During the Period $ — $ 117 $ 102 For the Three Months Ended June 30, 2017: Service Cost 1 $ 350 $ 10 $ 37 Interest Cost 2 373 59 63 Expected Return on Plan Assets 2 (800 ) — — Amortization of Prior Service (Credit) Cost 2 (14 ) 14 (3 ) Amortization of Net Loss 2 148 33 — Net Periodic (Benefit) Cost $ 57 $ 116 $ 97 Plan Contributions During the Period $ — $ 116 $ 177 Net Periodic Benefit Cost For the Six Months Ended June 30, 2018: Service Cost 1 $ 779 $ 207 $ 68 Interest Cost 2 799 104 167 Expected Return on Plan Assets 2 (1,681 ) — — Amortization of Prior Service (Credit) Cost 2 (25 ) 29 50 Amortization of Net Loss 2 97 66 — Net Periodic (Benefit) Cost $ (31 ) $ 406 $ 285 Plan Contributions During the Period $ — $ 233 $ 119 Estimated Future Contributions in the Current Fiscal Year $ — $ — $ — For the Six Months Ended June 30, 2017: Service Cost 1 $ 700 $ 20 $ 74 Interest Cost 2 723 109 149 Expected Return on Plan Assets 2 (1,600 ) — — Amortization of Prior Service (Credit) Cost 2 (28 ) 28 (6 ) Amortization of Net Loss 2 296 63 — Net Periodic (Benefit) Cost $ 91 $ 220 $ 217 Plan Contributions During the Period $ — $ 229 $ 230 Footnotes: 1. Included in Salaries and Employee Benefits on the Consolidated Statements of Income 2. Included in Other Operating Expense on the Consolidated Statements of Income |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per common share (“EPS”) for periods ended June 30, 2018 and 2017 . All share and per share amounts have been adjusted for the September 28, 2017 3% stock dividend. Earnings Per Share Quarterly Period Ended: Year-to-Date Period Ended: June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Earnings Per Share - Basic: Net Income $ 9,730 $ 7,208 $ 18,261 $ 13,839 Weighted Average Shares - Basic 13,975 13,890 13,955 13,889 Earnings Per Share - Basic $ 0.70 $ 0.52 $ 1.31 $ 1.00 Earnings Per Share - Diluted: Net Income $ 9,730 $ 7,208 $ 18,261 $ 13,839 Weighted Average Shares - Basic 13,975 13,890 13,955 13,889 Dilutive Average Shares Attributable to Stock Options 83 85 83 100 Weighted Average Shares - Diluted 14,058 13,975 14,038 13,989 Earnings Per Share - Diluted $ 0.69 $ 0.52 $ 1.30 $ 0.99 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Life-to-Date Gains (Losses) Fair Value of Assets and Liabilities Measured on a Recurring Basis: June 30, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,615 $ 59,615 $ — $ — State and Municipal Obligations 3,383 — 3,383 — Mortgage-Backed Securities 261,589 — 261,589 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 325,387 59,615 265,772 — Equity Securities 1,802 — 1,802 — Total Securities Measured on a Recurring Basis $ 327,189 $ 59,615 $ 267,574 $ — December 31, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,894 $ 59,894 $ — $ — State and Municipal Obligations 10,349 — 10,349 — Mortgage-Backed Securities 227,596 — 227,596 — Corporate and Other Debt Securities 800 — 800 — Equity Securities 1,561 — 1,561 — Total Securities Available-for Sale $ 300,200 $ 59,894 $ 240,306 $ — June 30, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 147,085 $ 54,676 $ 92,409 $ — State and Municipal Obligations 15,441 — 15,441 — Mortgage-Backed Securities 161,077 — 161,077 — Corporate and Other Debt Securities 2,299 — 2,299 — Equity Securities 1,490 — 1,490 — Total Securities Available-for Sale $ 327,392 $ 54,676 $ 272,716 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: June 30, 2018 Collateral Dependent Impaired Loans $ 747 $ — $ — $ 747 $ (58 ) Other Real Estate Owned and Repossessed Assets, Net 1,487 — — 1,487 (654 ) December 31, 2017 Collateral Dependent Impaired Loans $ — $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net $ 1,847 $ — — 1,847 $ (569 ) June 30, 2017 Collateral Dependent Impaired Loans $ 791 $ — $ — $ 791 $ (146 ) Other Real Estate Owned and Repossessed Assets, Net 1,613 — — 1,613 (584 ) |
Fair Value, by Balance Sheet Grouping | The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Book Value Fair Value Level 1 Level 2 Level 3 June 30, 2018 Cash and Cash Equivalents $ 60,741 $ 60,741 $ 60,741 $ — $ — Securities Available-for-Sale 325,387 325,387 59,615 265,772 — Securities Held-to-Maturity 297,885 292,605 — 292,605 — Equity Securities 1,802 1,802 — 1,802 — Federal Home Loan Bank and Federal Reserve Bank Stock 11,089 11,089 — 11,089 — Net Loans 2,038,222 1,971,756 — — 1,971,756 Accrued Interest Receivable 6,729 6,729 — 6,729 — Deposits 2,304,781 2,295,796 — 2,295,796 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 60,248 60,248 — 60,248 — Federal Home Loan Bank Overnight Advances 136,000 136,000 — 136,000 — Federal Home Loan Bank Term Advances 45,000 44,495 — 44,495 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 540 540 — 540 — December 31, 2017 Cash and Cash Equivalents $ 72,838 $ 72,838 $ 72,838 $ — $ — Securities Available-for-Sale 300,200 300,200 59,894 240,306 — Securities Held-to-Maturity 335,907 335,901 — 335,901 — Federal Home Loan Bank and Federal Reserve Bank Stock 9,949 9,949 — 9,949 — Net Loans 1,932,184 1,901,046 — — 1,901,046 Accrued Interest Receivable 6,753 6,753 — 6,753 — Deposits 2,245,116 2,236,548 — 2,236,548 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 64,966 64,966 — 64,966 — Federal Home Loan Bank Overnight Advances 105,000 105,000 — 105,000 — Federal Home Loan Bank Term Advances 55,000 54,781 — 54,781 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 410 410 — 410 — June 30, 2017 Cash and Cash Equivalents $ 66,077 $ 66,077 $ 66,077 $ — $ — Securities Available-for-Sale 327,392 327,392 54,676 272,716 — Securities Held-to-Maturity 348,018 350,355 — 350,355 — Federal Home Loan Bank and Federal Reserve Bank Stock 11,035 11,035 — 11,035 — Net Loans 1,861,190 1,844,301 — — 1,844,301 Accrued Interest Receivable 6,563 6,563 — 6,563 — Deposits 2,220,038 2,212,256 — 2,212,256 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 40,892 40,892 — 40,892 — Federal Home Loan Bank Overnight Advances 122,000 122,000 — 122,000 — Federal Home Loan Bank Term Advances 55,000 55,448 — 55,448 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 252 252 — 252 — |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | $ 0 | |
Operating leases (less than) | $ 2,200 | |
Accounting Standards Update 2014-09 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | $ (102) |
Investment Securities Available
Investment Securities Available for Sale (Details) $ in Thousands | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | $ 331,689 | ||
Available-For-Sale Securities, at Amortized Cost | $ 301,876 | $ 327,268 | |
Securities Available-for-Sale | 300,200 | 327,392 | |
Available-for-Sale | 325,387 | 300,200 | 327,392 |
Gross Unrealized Gains | 338 | ||
Gross Unrealized Gains | 935 | 1,617 | |
Gross Unrealized Losses | 6,640 | ||
Gross Unrealized Losses | 2,611 | 1,493 | |
Available-For-Sale Securities, Pledged as Collateral | 282,481 | 183,052 | 267,912 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 46,254 | ||
From 1 - 5 Years | 154,228 | ||
From 5 - 10 Years | 79,608 | ||
Over 10 Years | 51,599 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 45,979 | ||
From 1 - 5 Years | 149,428 | ||
From 5 - 10 Years | 78,552 | ||
Over 10 Years | 51,428 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 163,280 | 99,776 | 149,088 |
12 Months or Longer | 115,406 | 121,105 | 800 |
Total | $ 278,686 | $ 220,881 | $ 149,888 |
Number of Securities in a Continuous Loss Position | 100 | 106 | 52 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 2,706 | $ 546 | $ 1,293 |
12 Months or Longer | 3,934 | 2,065 | 200 |
Total | 6,640 | 2,611 | 1,493 |
U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 60,199 | ||
Available-For-Sale Securities, at Amortized Cost | 60,328 | 146,914 | |
Securities Available-for-Sale | 59,894 | 147,085 | |
Available-for-Sale | 59,615 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Gains | 0 | 252 | |
Gross Unrealized Losses | 584 | ||
Gross Unrealized Losses | 434 | 81 | |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 42,683 | ||
From 1 - 5 Years | 17,516 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 42,396 | ||
From 1 - 5 Years | 17,219 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 17,218 | 20,348 | 49,176 |
12 Months or Longer | 42,397 | 39,546 | 0 |
Total | $ 59,615 | $ 59,894 | $ 49,176 |
Number of Securities in a Continuous Loss Position | 14 | 14 | 13 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 297 | $ 172 | $ 81 |
12 Months or Longer | 287 | 262 | 0 |
Total | 584 | 434 | 81 |
State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 3,377 | ||
Available-For-Sale Securities, at Amortized Cost | 10,351 | 15,410 | |
Securities Available-for-Sale | 10,349 | 15,441 | |
Available-for-Sale | 3,383 | ||
Gross Unrealized Gains | 6 | ||
Gross Unrealized Gains | 9 | 31 | |
Gross Unrealized Losses | 0 | ||
Gross Unrealized Losses | 11 | 0 | |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 2,124 | ||
From 1 - 5 Years | 773 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 480 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 2,125 | ||
From 1 - 5 Years | 778 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 480 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 1,797 | 8,498 | 543 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 1,797 | $ 8,498 | $ 543 |
Number of Securities in a Continuous Loss Position | 6 | 36 | 2 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 11 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 11 | 0 |
Mortgage-Backed Securities - Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 267,113 | ||
Available-For-Sale Securities, at Amortized Cost | 229,077 | 161,324 | |
Securities Available-for-Sale | 227,596 | 161,077 | |
Available-for-Sale | 261,589 | ||
Gross Unrealized Gains | 332 | ||
Gross Unrealized Gains | 485 | 964 | |
Gross Unrealized Losses | 5,856 | ||
Gross Unrealized Losses | 1,966 | 1,211 | |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 1,447 | ||
From 1 - 5 Years | 135,939 | ||
From 5 - 10 Years | 79,608 | ||
Over 10 Years | 50,119 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 1,458 | ||
From 1 - 5 Years | 131,431 | ||
From 5 - 10 Years | 78,552 | ||
Over 10 Years | 50,148 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 144,265 | 70,930 | 97,870 |
12 Months or Longer | 72,209 | 80,759 | 0 |
Total | $ 216,474 | $ 151,689 | $ 97,870 |
Number of Securities in a Continuous Loss Position | 79 | 55 | 34 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 2,409 | $ 363 | $ 1,211 |
12 Months or Longer | 3,447 | 1,603 | 0 |
Total | 5,856 | 1,966 | 1,211 |
Corporate and Other Debt Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 1,000 | ||
Available-For-Sale Securities, at Amortized Cost | 1,000 | 2,500 | |
Securities Available-for-Sale | 800 | 2,299 | |
Available-for-Sale | 800 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 200 | ||
Gross Unrealized Losses | 200 | 201 | |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 1,000 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 800 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 1,499 |
12 Months or Longer | 800 | 800 | 800 |
Total | $ 800 | $ 800 | $ 2,299 |
Number of Securities in a Continuous Loss Position | 1 | 1 | 3 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 1 |
12 Months or Longer | 200 | 200 | 200 |
Total | 200 | 200 | 201 |
Mutual Funds and Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 1,120 | 1,120 | |
Securities Available-for-Sale | 1,561 | 1,490 | |
Gross Unrealized Gains | 441 | 370 | |
Gross Unrealized Losses | 0 | 0 | |
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | |
12 Months or Longer | 0 | 0 | |
Total | $ 0 | $ 0 | |
Number of Securities in a Continuous Loss Position | 0 | 0 | |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | |
12 Months or Longer | 0 | 0 | |
Total | 0 | 0 | |
US Treasury Securities | U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 0 | ||
Available-For-Sale Securities, at Amortized Cost | 0 | 54,597 | |
Securities Available-for-Sale | 0 | ||
Available-for-Sale | 0 | 54,676 | |
Agency Securities | U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 60,199 | ||
Available-For-Sale Securities, at Amortized Cost | 60,328 | 92,317 | |
Securities Available-for-Sale | 59,894 | ||
Available-for-Sale | 59,615 | 92,409 | |
Agency Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 68,030 | ||
Available-For-Sale Securities, at Amortized Cost | 40,832 | 3,740 | |
Securities Available-for-Sale | 40,832 | ||
Available-for-Sale | 68,083 | 3,756 | |
US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities Available-for-Sale | 186,764 | ||
Available-for-Sale | 193,506 | 157,321 | |
US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | US Government-sponsored Enterprises Debt Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | $ 199,083 | ||
Available-For-Sale Securities, at Amortized Cost | $ 188,245 | $ 157,584 |
Investment Securities Held to M
Investment Securities Held to Maturity (Details) $ in Thousands | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | $ 301,876 | $ 327,268 | |
Equity Securities | $ 1,802 | 0 | 0 |
Gross Unrealized Gains | 935 | 1,617 | |
Held-to-Maturity at Amortized Cost | 297,885 | 335,907 | 348,018 |
Held-To-Maturity Securities, at Fair Value | 292,605 | 335,901 | 350,355 |
Gross Unrealized Gains | 497 | 1,960 | 3,885 |
Gross Unrealized Losses | 5,777 | 1,966 | 1,548 |
Held-To-Maturity Securities, Pledged as Collateral | 278,627 | 318,622 | 327,820 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 26,037 | ||
From 1 - 5 Years | 137,369 | ||
From 5 - 10 Years | 131,808 | ||
Over 10 Years | 2,671 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 26,092 | ||
From 1 - 5 Years | 136,084 | ||
From 5 - 10 Years | 127,762 | ||
Over 10 Years | 2,667 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 118,589 | 69,412 | 97,384 |
12 Months or Longer | 93,735 | 68,409 | 403 |
Total | $ 212,324 | $ 137,821 | $ 97,787 |
Number of Securities in a Continuous Loss Position | 512 | 366 | 272 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,654 | $ 498 | $ 1,546 |
12 Months or Longer | 4,123 | 1,468 | 2 |
Total | 5,777 | 1,966 | 1,548 |
State and Municipal Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 10,351 | 15,410 | |
Gross Unrealized Gains | 9 | 31 | |
Held-to-Maturity at Amortized Cost | 244,016 | 275,530 | 280,485 |
Held-To-Maturity Securities, at Fair Value | 239,841 | 275,353 | 282,157 |
Gross Unrealized Gains | 497 | 1,691 | 3,208 |
Gross Unrealized Losses | 4,672 | 1,868 | 1,536 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 26,037 | ||
From 1 - 5 Years | 91,235 | ||
From 5 - 10 Years | 124,073 | ||
Over 10 Years | 2,671 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 26,092 | ||
From 1 - 5 Years | 90,877 | ||
From 5 - 10 Years | 120,206 | ||
Over 10 Years | 2,667 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 68,612 | 55,648 | 93,046 |
12 Months or Longer | 90,948 | 65,152 | 403 |
Total | $ 159,560 | $ 120,800 | $ 93,449 |
Number of Securities in a Continuous Loss Position | 465 | 352 | 263 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 633 | $ 442 | $ 1,534 |
12 Months or Longer | 4,039 | 1,425 | 2 |
Total | 4,672 | 1,867 | 1,536 |
Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 229,077 | 161,324 | |
Gross Unrealized Gains | 485 | 964 | |
Held-to-Maturity at Amortized Cost | 53,869 | 60,377 | 67,533 |
Held-To-Maturity Securities, at Fair Value | 52,764 | 60,548 | 68,198 |
Gross Unrealized Gains | 0 | 269 | 677 |
Gross Unrealized Losses | 1,105 | 98 | 12 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 46,134 | ||
From 5 - 10 Years | 7,735 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 45,207 | ||
From 5 - 10 Years | 7,556 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 49,977 | 13,764 | 4,338 |
12 Months or Longer | 2,787 | 3,257 | 0 |
Total | $ 52,764 | $ 17,021 | $ 4,338 |
Number of Securities in a Continuous Loss Position | 47 | 14 | 9 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,021 | $ 56 | $ 12 |
12 Months or Longer | 84 | 43 | 0 |
Total | 1,105 | 99 | 12 |
Mortgage-Backed Securities - Residential | Agency Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 3,265 | 2,680 | 3,106 |
Mortgage-Backed Securities - Residential | US Government-sponsored Enterprises Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 50,604 | 57,697 | 64,427 |
Corporate and Other Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 1,000 | 2,500 | |
Gross Unrealized Gains | 0 | 0 | |
Held-to-Maturity at Amortized Cost | 0 | 0 | 0 |
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | 0 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Equity Securities | 1,802 | ||
Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | US Government-sponsored Enterprises Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | 50,418 | 57,887 | 65,077 |
Agency Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 40,832 | 3,740 | |
Agency Securities | Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | $ 2,346 | $ 2,661 | $ 3,121 |
Investment Securities Unrealize
Investment Securities Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net Gain on Equity Securities | $ 223 | $ 0 | $ 241 | $ 0 |
Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period | 0 | 0 | ||
Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date | $ 223 | $ 241 |
Loans Supplemental Loan Informa
Loans Supplemental Loan Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |||
Loans Held-for-sale | $ 544 | $ 327 | $ 261 |
Credit Card Receivable | Consumer Portfolio Segment | Minimum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 1 year | ||
Credit Card Receivable | Consumer Portfolio Segment | Maximum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 5 years | ||
Automobile Loan | Consumer Portfolio Segment | Minimum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 3 years | ||
Automobile Loan | Consumer Portfolio Segment | Maximum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 7 years |
Loans Loan Categories and Past
Loans Loan Categories and Past Due Loans(Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 9,777 | $ 12,708 | $ 12,256 |
Current Loans | 2,048,085 | 1,938,062 | 1,866,376 |
Total Loans | 2,057,862 | 1,950,770 | 1,878,632 |
Loans 90 or More Days Past Due and Still Accruing Interest | 170 | 319 | 1,821 |
Nonaccrual Loans | 3,880 | 5,526 | 5,222 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 6,776 | 8,124 | 4,383 |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,008 | 1,743 | 4,761 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,993 | 2,841 | 3,112 |
Commercial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 46 | 257 | 427 |
Current Loans | 118,835 | 128,992 | 125,832 |
Total Loans | 118,881 | 129,249 | 126,259 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 120 |
Nonaccrual Loans | 633 | 588 | 653 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 3 | 139 | 138 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 15 | 19 | 40 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 28 | 99 | 249 |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 963 | 807 | 1,222 |
Current Loans | 463,430 | 443,441 | 440,587 |
Total Loans | 464,393 | 444,248 | 441,809 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 357 |
Nonaccrual Loans | 963 | 1,530 | 1,343 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 0 | 865 |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 963 | 807 | 357 |
Consumer Loans Financing | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 5,720 | 7,619 | 5,779 |
Current Loans | 656,188 | 595,208 | 572,975 |
Total Loans | 661,908 | 602,827 | 578,754 |
Loans 90 or More Days Past Due and Still Accruing Interest | 28 | 6 | 75 |
Nonaccrual Loans | 459 | 653 | 419 |
Consumer Loans Financing | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 4,769 | 5,891 | 4,123 |
Consumer Loans Financing | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 720 | 1,215 | 1,265 |
Consumer Loans Financing | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 231 | 513 | 391 |
Residential | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 3,048 | 4,025 | 4,828 |
Current Loans | 809,632 | 770,421 | 726,982 |
Total Loans | 812,680 | 774,446 | 731,810 |
Loans 90 or More Days Past Due and Still Accruing Interest | 142 | 313 | 1,269 |
Nonaccrual Loans | 1,825 | 2,755 | 2,807 |
Residential | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 2,004 | 2,094 | 122 |
Residential | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 273 | 509 | 2,591 |
Residential | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 771 | $ 1,422 | $ 2,115 |
Loans Allowance for Loan Losses
Loans Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | $ 19,057 | $ 17,216 | $ 18,586 | $ 17,012 | |
Charge-offs | (264) | (305) | (634) | (575) | |
Recoveries | 218 | 109 | 313 | 225 | |
Provision | 629 | 422 | 1,375 | 780 | |
Allowance for Loan Losses, Ending Balance | 19,640 | 17,442 | 19,640 | 17,442 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 185 | 146 | 185 | 146 | $ 106 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 19,455 | 17,296 | 19,455 | 17,296 | 18,480 |
Ending Loan Balance - Individually Evaluated for Impairment | 2,492 | 2,859 | 2,492 | 2,859 | 3,683 |
Ending Loan Balance - Collectively Evaluated for Impairment | 2,055,370 | 1,875,773 | 2,055,370 | 1,875,773 | 1,947,087 |
Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 1,119 | 939 | 1,873 | 1,017 | |
Charge-offs | 0 | (23) | (16) | (39) | |
Recoveries | 0 | 5 | 0 | 12 | |
Provision | (175) | 4 | (913) | (65) | |
Allowance for Loan Losses, Ending Balance | 944 | 925 | 944 | 925 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 88 | 112 | 88 | 112 | 94 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 856 | 813 | 856 | 813 | 1,779 |
Ending Loan Balance - Individually Evaluated for Impairment | 489 | 503 | 489 | 503 | 489 |
Ending Loan Balance - Collectively Evaluated for Impairment | 118,392 | 125,756 | 118,392 | 125,756 | 128,760 |
Commercial Real Estate Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 5,412 | 5,449 | 4,504 | 5,677 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 3 | 0 | 12 | 0 | |
Provision | 423 | (466) | 1,322 | (694) | |
Allowance for Loan Losses, Ending Balance | 5,838 | 4,983 | 5,838 | 4,983 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 44 | 0 | 44 | 0 | 2 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 5,794 | 4,983 | 5,794 | 4,983 | 4,502 |
Ending Loan Balance - Individually Evaluated for Impairment | 813 | 1,178 | 813 | 1,178 | 1,537 |
Ending Loan Balance - Collectively Evaluated for Impairment | 463,580 | 440,631 | 463,580 | 440,631 | 442,711 |
Consumer Loans Financing | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 8,019 | 6,702 | 7,604 | 6,120 | |
Charge-offs | (248) | (277) | (595) | (530) | |
Recoveries | 215 | 104 | 301 | 213 | |
Provision | 351 | 776 | 1,027 | 1,502 | |
Allowance for Loan Losses, Ending Balance | 8,337 | 7,305 | 8,337 | 7,305 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 8,337 | 7,305 | 8,337 | 7,305 | 7,604 |
Ending Loan Balance - Individually Evaluated for Impairment | 110 | 88 | 110 | 88 | 95 |
Ending Loan Balance - Collectively Evaluated for Impairment | 661,798 | 578,666 | 661,798 | 578,666 | 602,732 |
Residential | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 4,507 | 4,126 | 4,605 | 4,198 | |
Charge-offs | (16) | (5) | (23) | (6) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 30 | 108 | (61) | 37 | |
Allowance for Loan Losses, Ending Balance | 4,521 | 4,229 | 4,521 | 4,229 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 53 | 34 | 53 | 34 | 10 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 4,468 | 4,195 | 4,468 | 4,195 | 4,595 |
Ending Loan Balance - Individually Evaluated for Impairment | 1,080 | 1,090 | 1,080 | 1,090 | 1,562 |
Ending Loan Balance - Collectively Evaluated for Impairment | $ 811,600 | $ 730,720 | $ 811,600 | $ 730,720 | $ 772,884 |
Loans Credit Quality Indicators
Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | $ 547,581 | $ 542,323 | $ 532,811 |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 5,948 | 1,518 | 2,683 |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 28,938 | 28,849 | 32,575 |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 807 | 807 | 0 |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 1,472,304 | 1,373,752 | 1,306,050 |
Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 2,284 | 3,727 | 4,513 |
Commercial | Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 110,911 | 124,961 | 120,388 |
Commercial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 5,948 | 1,341 | 1,269 |
Commercial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 2,023 | 2,947 | 4,602 |
Commercial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 436,670 | 417,362 | 412,423 |
Commercial Real Estate Portfolio Segment | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 0 | 177 | 1,414 |
Commercial Real Estate Portfolio Segment | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 26,915 | 25,902 | 27,973 |
Commercial Real Estate Portfolio Segment | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 807 | 807 | 0 |
Consumer Loans Financing | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 661,449 | 602,168 | 578,317 |
Consumer Loans Financing | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 459 | 659 | 437 |
Residential | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 810,855 | 771,584 | 727,733 |
Residential | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | $ 1,825 | $ 3,068 | $ 4,076 |
Loans Impaired Loans (Details)
Loans Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Recorded Investment: | |||||
With No Related Allowance | $ 901 | $ 2,068 | $ 901 | $ 2,068 | $ 2,144 |
With a Related Allowance | 1,620 | 791 | 1,620 | 791 | 1,543 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 914 | 2,068 | 914 | 2,068 | 2,185 |
With a Related Allowance | 1,578 | 791 | 1,578 | 791 | 1,498 |
Average Recorded Balance: | |||||
With No Related Allowance | 1,138 | 1,923 | 1,523 | 2,074 | |
With a Related Allowance | 1,622 | 540 | 1,582 | 396 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 6 | 0 | 7 | |
With a Related Allowance | 0 | 0 | 24 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Commercial | |||||
Recorded Investment: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | 0 |
With a Related Allowance | 479 | 503 | 479 | 503 | 485 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | 0 |
With a Related Allowance | 489 | 503 | 489 | 503 | 489 |
Average Recorded Balance: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 481 | 252 | 482 | 252 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Commercial Real Estate Portfolio Segment | |||||
Recorded Investment: | |||||
With No Related Allowance | 7 | 1,178 | 7 | 1,178 | 781 |
With a Related Allowance | 790 | 0 | 790 | 0 | 725 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 7 | 1,178 | 7 | 1,178 | 816 |
With a Related Allowance | 806 | 0 | 806 | 0 | 721 |
Average Recorded Balance: | |||||
With No Related Allowance | 8 | 1,031 | 394 | 1,034 | |
With a Related Allowance | 787 | 0 | 758 | 0 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment | |||||
Recorded Investment: | |||||
With No Related Allowance | 110 | 88 | 110 | 88 | 94 |
With a Related Allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 110 | 88 | 110 | 88 | 95 |
With a Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 100 | 88 | 102 | 90 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 2 | 0 | 3 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Residential | |||||
Recorded Investment: | |||||
With No Related Allowance | 784 | 802 | 784 | 802 | 1,269 |
With a Related Allowance | 351 | 288 | 351 | 288 | 333 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 797 | 802 | 797 | 802 | 1,274 |
With a Related Allowance | 283 | 288 | 283 | 288 | $ 288 |
Average Recorded Balance: | |||||
With No Related Allowance | 1,030 | 804 | 1,027 | 950 | |
With a Related Allowance | 354 | 288 | 342 | 144 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 4 | 0 | 4 | |
With a Related Allowance | 0 | 0 | 24 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Loans Modified in Trouble
Loans Loans Modified in Trouble Debt Restructurings (Details) - Entity Loan Modification Program - Payment Deferral $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 3 | 3 | 4 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 26 | $ 513 | $ 28 | $ 529 |
Post-Modification Outstanding Recorded Investment | $ 26 | $ 513 | $ 28 | $ 529 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 1 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 503 | $ 0 | $ 503 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 503 | $ 0 | $ 503 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans Financing | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 3 | 2 | 4 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 26 | $ 10 | $ 28 | $ 26 |
Post-Modification Outstanding Recorded Investment | $ 26 | $ 10 | $ 28 | $ 26 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Commitments to Extend Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | $ 324,173 | $ 315,256 | $ 290,818 |
Fair Value | 0 | 0 | 0 |
Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | 3,941 | 3,526 | 3,373 |
Fair Value | $ 11 | $ 23 | $ 25 |
Minimum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loan commitments, fixed fee percent | 1.00% | ||
Maximum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loan commitments, fixed fee percent | 3.00% |
Comprehensive Income Other Comp
Comprehensive Income Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Schedule of Comprehensive Income [Line Items] | ||||||
Other Comprehensive Income, before Tax | $ (695) | $ 844 | $ (3,968) | $ 1,096 | ||
Other Comprehensive Income, Tax | 176 | (364) | 1,009 | (462) | ||
Net current-period other comprehensive income (loss) | (519) | 480 | (2,959) | 634 | ||
Unrealized Gains and Losses on Available for Sale Securities | ||||||
Schedule of Comprehensive Income [Line Items] | ||||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period Before Tax | (853) | 666 | (4,185) | 743 | ||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period, Tax | 218 | (257) | 1,065 | (287) | ||
Other comprehensive income or loss before reclassifications | (635) | 409 | [1] | (3,120) | 456 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | 0 | [1] | 0 | 0 | |
Net current-period other comprehensive income (loss) | (635) | [1] | 409 | [1] | (3,120) | 456 |
Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||||||
Schedule of Comprehensive Income [Line Items] | ||||||
Other comprehensive income or loss before reclassifications | 0 | [1] | 0 | [1] | 0 | 0 |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 103 | 181 | 163 | 359 | ||
Reclassification from Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | (28) | (109) | (42) | (178) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 75 | [1] | 72 | [1] | 121 | 181 |
Net current-period other comprehensive income (loss) | 75 | [1] | 72 | [1] | 121 | 181 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service | ||||||
Schedule of Comprehensive Income [Line Items] | ||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 55 | (3) | 54 | (6) | ||
Reclassification from Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | (14) | 2 | (14) | 3 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 41 | $ (1) | $ 40 | $ (3) | ||
[1] | All amounts are net of tax. |
Comprehensive Income Changes in
Comprehensive Income Changes in Accumulated Other Comprehensive Income By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Net current-period other comprehensive income (loss) | $ (519) | $ 480 | $ (2,959) | $ 634 | ||||
Amounts reclassified from accumulated other comprehensive income | $ 0 | |||||||
Unrealized Gains and Losses on Available for Sale Securities | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Stockholders' Equity, Period Start | (4,066) | [1] | (335) | [1] | (1,250) | (382) | ||
Other comprehensive income or loss before reclassifications | (635) | 409 | [1] | (3,120) | 456 | |||
Amounts reclassified from accumulated other comprehensive income | [1] | 0 | [1] | 0 | 0 | |||
Net current-period other comprehensive income (loss) | (635) | [1] | 409 | [1] | (3,120) | 456 | ||
Amounts reclassified from accumulated other comprehensive income | (331) | |||||||
Stockholders' Equity, Period End | [1] | (4,701) | 74 | (4,701) | 74 | |||
Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Stockholders' Equity, Period Start | (6,334) | [1] | (5,628) | [1] | (6,380) | (5,737) | ||
Other comprehensive income or loss before reclassifications | 0 | [1] | 0 | [1] | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 75 | [1] | 72 | [1] | 121 | 181 | ||
Net current-period other comprehensive income (loss) | 75 | [1] | 72 | [1] | 121 | 181 | ||
Stockholders' Equity, Period End | [1] | (6,259) | (5,556) | (6,259) | (5,556) | |||
Accretion of Net Retirement Plan Prior Service (Cost) Credit | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Stockholders' Equity, Period Start | (885) | [1] | (717) | [1] | (884) | (715) | ||
Other comprehensive income or loss before reclassifications | 0 | [1] | 0 | [1] | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 41 | [1] | (1) | [1] | 40 | (3) | ||
Net current-period other comprehensive income (loss) | 41 | [1] | (1) | [1] | 40 | (3) | ||
Stockholders' Equity, Period End | [1] | (844) | (718) | (844) | (718) | |||
Accumu-lated Other Com- prehensive Loss | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Stockholders' Equity, Period Start | (11,285) | [1] | (6,680) | [1] | (8,514) | (6,834) | ||
Other comprehensive income or loss before reclassifications | (635) | [1] | 409 | [1] | (3,120) | 456 | ||
Amounts reclassified from accumulated other comprehensive income | 116 | [1] | 71 | [1] | 161 | 178 | ||
Net current-period other comprehensive income (loss) | (519) | [1] | 480 | [1] | (2,959) | 634 | ||
Amounts reclassified from accumulated other comprehensive income | $ (331) | |||||||
Stockholders' Equity, Period End | [1] | $ (11,804) | $ (6,200) | $ (11,804) | $ (6,200) | |||
[1] | All amounts are net of tax. |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for Income Taxes | $ 2,322 | $ 3,017 | $ 4,380 | $ 5,709 |
Net Income | (116) | (71) | (161) | (178) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Total before tax | 0 | 0 | 0 | 0 |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
Net Income | 0 | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Accretion of Net Retirement Plan Prior Service (Cost) Credit | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Nonoperating Income (Expense) | (55) | 3 | (54) | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Nonoperating Income (Expense) | (103) | (181) | (163) | (359) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (158) | (178) | (217) | (353) |
Provision for Income Taxes | 42 | 107 | 56 | 175 |
Net Income | $ (116) | $ (71) | $ (161) | $ (178) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 6 Months Ended | |
Jun. 30, 2018plan$ / sharesshares | Sep. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of plans | plan | 3 | |
Stock dividend, percent | 3.00% | |
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: | ||
Fair Value, in dollars per share | $ 5.76 | |
Dividend Yield | 2.98% | |
Expected Volatility | 21.55% | |
Risk Free Interest Rate | 2.68% | |
Expected Lives, in years | 6 years 11 months 23 days | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period (in years) | 10 years | |
Award vesting period (in years) | 4 years | |
Roll-Forward of Shares Outstanding: | ||
Outstanding, Beginning of Period, in shares | shares | 346,155 | |
Granted, in shares | shares | 55,188 | |
Exercised, in shares | shares | (79,001) | |
Forfeited, in shares | shares | (6,321) | |
Outstanding, End of Period, in shares | shares | 316,021 | |
Exercisable at Period End, in shares | shares | 198,544 | |
Vested and Expected to Vest, in shares | shares | 117,477 | |
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: | ||
Outstanding at Beginning of Period, in dollars per share | $ 24.12 | |
Granted, in dollars per share | 30.85 | |
Exercised, in dollars per share | 21.41 | |
Forfeited, in dollars per share | 29.94 | |
Outstanding, End of Period, in dollars per share | 25.85 | |
Exercisable at Period End, in dollars per share | 23.06 | |
Vested and Expected to Vest, in dollars per share | $ 30.55 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSU) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Roll-Forward of Restricted Stock Units | |
Balance at Beginning of Period, in units | shares | 0 |
Granted, in units | shares | 3,279 |
Vested, in units | shares | 0 |
Canceled, in units | shares | 0 |
Balance at End of Period, in units | shares | 3,279 |
Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value: | |
Outstanding at Beginning of period, in dollars per unit | $ / shares | $ 0 |
Granted, in dollars per unit | $ / shares | 33.55 |
Vested, in dollars per unit | $ / shares | 0 |
Canceled, in dollars per unit | $ / shares | 0 |
Outstanding at End of period, in dollars per unit | $ / shares | $ 33.55 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-Based Compensation Expense | $ 89 | $ 89 | $ 178 | $ 172 |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount from market price, percent | 5.00% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Periodic Benefit Cost [Line Items] | ||||
Employer matching contribution, Percentage | 5.00% | |||
Employees' Pension Plan | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | $ 431 | $ 350 | $ 779 | $ 700 |
Interest Cost | 274 | 373 | 799 | 723 |
Expected Return on Plan Assets | (896) | (800) | (1,681) | (1,600) |
Amortization of Prior Service (Credit) Cost | (13) | (14) | (25) | (28) |
Amortization of Net Loss | 64 | 148 | 97 | 296 |
Net Periodic (Benefit) Cost | (140) | 57 | (31) | 91 |
Plan Contributions During the Period | 0 | 0 | 0 | 0 |
Estimated Future Contributions in the Current Fiscal Year | 0 | 0 | ||
Select Executive Retirement Plan | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | 196 | 10 | 207 | 20 |
Interest Cost | 54 | 59 | 104 | 109 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service (Credit) Cost | 15 | 14 | 29 | 28 |
Amortization of Net Loss | 33 | 33 | 66 | 63 |
Net Periodic (Benefit) Cost | 298 | 116 | 406 | 220 |
Plan Contributions During the Period | 117 | 116 | 233 | 229 |
Estimated Future Contributions in the Current Fiscal Year | 0 | 0 | ||
Post-Retirement Benefit Plans | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | 35 | 37 | 68 | 74 |
Interest Cost | 68 | 63 | 167 | 149 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service (Credit) Cost | 53 | (3) | 50 | (6) |
Amortization of Net Loss | 6 | 0 | 0 | 0 |
Net Periodic (Benefit) Cost | 162 | 97 | 285 | 217 |
Plan Contributions During the Period | 102 | $ 177 | 119 | $ 230 |
Estimated Future Contributions in the Current Fiscal Year | $ 0 | $ 0 | ||
On Or Subsequent to January 1, 2003 | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service credits, percent of eligible salaries | 6.00% | |||
Minimum | Prior to January 1, 2003 | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service credits, percent of eligible salaries | 6.00% | |||
Maximum | Prior to January 1, 2003 | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service credits, percent of eligible salaries | 12.00% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 28, 2017 | ||||||
Earnings Per Share [Abstract] | ||||||||||
Stock dividend, percent | 3.00% | |||||||||
Net Income | $ 9,730 | $ 7,208 | $ 18,261 | $ 13,839 | ||||||
Weighted Average Shares- Basic, in shares | 13,975 | [1] | 13,890 | [2] | 13,955 | [1] | 13,889 | [2] | ||
Earnings Per Share- Basic, in dollars per share | $ 0.70 | $ 0.52 | $ 1.31 | [1] | $ 1 | [2] | ||||
Dilutive Average Shares Attributable to Stock Options | 83 | 85 | 83 | 100 | ||||||
Weighted Average Shares- Diluted, in shares | [2] | 14,058 | 13,975 | 14,038 | 13,989 | |||||
Earnings Per Share- Diluted, in dollars per share | $ 0.69 | $ 0.52 | $ 1.30 | [1] | $ 0.99 | [2] | ||||
[1] | Cash dividends paid per share have been adjusted for the September 28, 2017 3% stock dividend. | |||||||||
[2] | Share and Per Share Amounts have been restated for the September 28, 2017 3% stock dividend. |
Fair Value of Financial Instr46
Fair Value of Financial Instruments Fair Value - Recurring and Nonrecurring (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | $ 325,387,000 | $ 300,200,000 | $ 327,392,000 |
Equity Securities | 1,802,000 | 0 | 0 |
Securities Available-for-Sale | 300,200,000 | 327,392,000 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 325,387,000 | ||
Equity Securities | 1,802,000 | ||
Total Securities Measured on a Recurring Basis | 327,189,000 | ||
Securities Available-for-Sale | 300,200,000 | 327,392,000 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 59,615,000 | ||
Equity Securities | 0 | ||
Total Securities Measured on a Recurring Basis | 59,615,000 | ||
Securities Available-for-Sale | 59,894,000 | 54,676,000 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 265,772,000 | ||
Equity Securities | 1,802,000 | ||
Total Securities Measured on a Recurring Basis | 267,574,000 | ||
Securities Available-for-Sale | 240,306,000 | 272,716,000 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Equity Securities | 0 | ||
Total Securities Measured on a Recurring Basis | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Gain (Loss) on Collateral Dependent Impaired Loans | 0 | ||
Other Real Estate and Repossessed Assets, Net | 1,487,000 | 1,847,000 | 1,613,000 |
Gain (Loss) Other Real Estate and Repossessed Assets, Net | (654,000) | (569,000) | (584,000) |
Fair Value, Measurements, Nonrecurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Other Real Estate and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Other Real Estate and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Other Real Estate and Repossessed Assets, Net | 1,487,000 | 1,847,000 | 1,613,000 |
U.S. Agency Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 59,615,000 | ||
Securities Available-for-Sale | 59,894,000 | 147,085,000 | |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 59,615,000 | ||
Securities Available-for-Sale | 59,894,000 | 147,085,000 | |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 59,615,000 | ||
Securities Available-for-Sale | 59,894,000 | 54,676,000 | |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 92,409,000 | |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
State and Municipal Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 3,383,000 | ||
Securities Available-for-Sale | 10,349,000 | 15,441,000 | |
State and Municipal Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 3,383,000 | ||
Securities Available-for-Sale | 10,349,000 | 15,441,000 | |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 3,383,000 | ||
Securities Available-for-Sale | 10,349,000 | 15,441,000 | |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 261,589,000 | ||
Securities Available-for-Sale | 227,596,000 | 161,077,000 | |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 261,589,000 | ||
Securities Available-for-Sale | 227,596,000 | 161,077,000 | |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Corporate and Other Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 800,000 | ||
Securities Available-for-Sale | 800,000 | 2,299,000 | |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 800,000 | ||
Securities Available-for-Sale | 800,000 | 2,299,000 | |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 800,000 | ||
Securities Available-for-Sale | 800,000 | 2,299,000 | |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Mutual Funds and Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities Available-for-Sale | 1,561,000 | 1,490,000 | |
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 1,490,000 | ||
Securities Available-for-Sale | 1,561,000 | ||
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 0 | ||
Securities Available-for-Sale | 0 | ||
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 1,490,000 | ||
Securities Available-for-Sale | 1,561,000 | ||
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 0 | ||
Securities Available-for-Sale | $ 0 | ||
Collateral Pledged | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 747,000 | 791,000 | |
Gain (Loss) on Collateral Dependent Impaired Loans | (58,000) | (146,000) | |
Collateral Pledged | Fair Value, Measurements, Nonrecurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | |
Collateral Pledged | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | |
Collateral Pledged | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | $ 747,000 | $ 791,000 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | $ 60,741 | $ 66,077 | $ 57,355 | |
Available-for-Sale | 325,387 | $ 300,200 | 327,392 | |
Securities Available-for-Sale | 300,200 | 327,392 | ||
Held-to-Maturity at Amortized Cost | 297,885 | 335,907 | 348,018 | |
Held-To-Maturity Securities, at Fair Value | 292,605 | 335,901 | 350,355 | |
Equity Securities | 1,802 | 0 | 0 | |
Net Loans | 2,038,222 | 1,932,184 | 1,861,190 | |
Deposits | 2,304,781 | 2,245,116 | 2,220,038 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 64,966 | 40,892 | ||
Federal Home Loan Bank Overnight Advances | 105,000 | 122,000 | ||
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | ||
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 60,741 | 72,838 | 66,077 | |
Available-for-Sale | 325,387 | |||
Securities Available-for-Sale | 300,200 | 327,392 | ||
Held-to-Maturity at Amortized Cost | 297,885 | 335,907 | 348,018 | |
Equity Securities | 1,802 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock | 11,089 | 9,949 | 11,035 | |
Net Loans | 2,038,222 | 1,932,184 | 1,861,190 | |
Accrued Interest Receivable | 6,729 | 6,753 | 6,563 | |
Deposits | 2,304,781 | 2,245,116 | 2,220,038 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 60,248 | 64,966 | 40,892 | |
Federal Home Loan Bank Overnight Advances | 136,000 | 105,000 | 122,000 | |
Federal Home Loan Bank Term Advances | 45,000 | 55,000 | 55,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 540 | 410 | 252 | |
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 60,741 | 72,838 | 66,077 | |
Available-for-Sale | 325,387 | |||
Securities Available-for-Sale | 300,200 | 327,392 | ||
Held-To-Maturity Securities, at Fair Value | 292,605 | 335,901 | 350,355 | |
Equity Securities | 1,802 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 11,089 | 9,949 | 11,035 | |
Net Loans, at Fair Value | 1,971,756 | 1,901,046 | 1,844,301 | |
Accrued Interest Receivable, Fair Value Disclosure | 6,729 | 6,753 | 6,563 | |
Deposits, at Fair Value | 2,295,796 | 2,236,548 | 2,212,256 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 60,248 | 64,966 | 40,892 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 136,000 | 105,000 | 122,000 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 44,495 | 54,781 | 55,448 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 540 | 410 | 252 | |
Quoted Prices In Active Markets for Indentical Assets (Level 1) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 60,741 | 72,838 | 66,077 | |
Available-for-Sale | 59,615 | |||
Securities Available-for-Sale | 59,894 | 54,676 | ||
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans, at Fair Value | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 0 | 0 | 0 | |
Deposits, at Fair Value | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 0 | 0 | 0 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Payable, Fair Value Disclosure | 0 | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | |
Available-for-Sale | 265,772 | |||
Securities Available-for-Sale | 240,306 | 272,716 | ||
Held-To-Maturity Securities, at Fair Value | 292,605 | 335,901 | 350,355 | |
Equity Securities | 1,802 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 11,089 | 9,949 | 11,035 | |
Net Loans, at Fair Value | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 6,729 | 6,753 | 6,563 | |
Deposits, at Fair Value | 2,295,796 | 2,236,548 | 2,212,256 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 60,248 | 64,966 | 40,892 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 136,000 | 105,000 | 122,000 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 44,495 | 54,781 | 55,448 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 540 | 410 | 252 | |
Significant Unobservable Inputs (Level 3) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | |
Available-for-Sale | 0 | |||
Securities Available-for-Sale | 0 | 0 | ||
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans, at Fair Value | 1,971,756 | 1,901,046 | 1,844,301 | |
Accrued Interest Receivable, Fair Value Disclosure | 0 | 0 | 0 | |
Deposits, at Fair Value | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 0 | 0 | 0 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Payable, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |