Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-38884 | |
Entity Registrant Name | FRANKLIN FINANCIAL SERVICES CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-1440803 | |
Entity Address, Address Line One | 20 South Main Street | |
Entity Address, City or Town | Chambersburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17201-0819 | |
City Area Code | 717 | |
Local Phone Number | 264-6116 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | FRAF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,340,837 | |
Entity Central Index Key | 0000723646 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 12,848 | $ 15,336 |
Short-term interest-bearing deposits in other banks | 40,502 | 68,492 |
Total cash and cash equivalents | 53,350 | 83,828 |
Long-term interest-bearing deposits in other banks | 10,738 | 8,746 |
Debt securities available for sale, at fair value | 208,040 | 187,433 |
Equity securities | 313 | 440 |
Restricted stock | 465 | 465 |
Loans held for sale | 2,751 | 2,040 |
Loans | 936,386 | 934,575 |
Allowance for loan losses | (14,730) | (11,966) |
Net Loans | 921,656 | 922,609 |
Premises and equipment, net | 13,717 | 13,851 |
Right of use asset | 5,118 | 5,126 |
Bank owned life insurance | 20,955 | 23,748 |
Goodwill | 9,016 | 9,016 |
Other real estate owned | ||
Deferred tax asset, net | 3,570 | 4,003 |
Other assets | 12,437 | 7,852 |
Total assets | 1,262,126 | 1,269,157 |
Deposits | ||
Noninterest-bearing checking | 198,384 | 192,108 |
Money management, savings and interest checking | 835,208 | 843,936 |
Time | 83,841 | 89,348 |
Total deposits | 1,117,433 | 1,125,392 |
Lease liability | 5,159 | 5,161 |
Other liabilities | 10,529 | 11,076 |
Total liabilities | 1,133,121 | 1,141,629 |
Commitments and contingent liabilities | ||
Shareholders' equity | ||
Common stock, $1 par value per share,15,000,000 shares authorized with 4,710,822 shares issued and 4,337,520 shares outstanding at March 31, 2020 and 4,709,849 shares issued and 4,352,753 shares outstanding at December 31, 2019 | 4,711 | 4,710 |
Capital stock without par value, 5,000,000 shares authorized with no shares issued and outstanding | ||
Additional paid-in capital | 42,390 | 42,268 |
Retained earnings | 95,359 | 94,946 |
Accumulated other comprehensive loss | (4,360) | (5,986) |
Treasury stock, 373,302 shares at March 31, 2020 and 357,096 shares at December 31, 2019, at cost | (9,095) | (8,410) |
Total shareholders' equity | 129,005 | 127,528 |
Total liabilities and shareholders' equity | $ 1,262,126 | $ 1,269,157 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Common Stock, Shares, Issued | 4,710,822 | 4,709,849 |
Common Stock, Shares, Outstanding | 4,337,520 | 4,352,753 |
Capital stock, no par value | $ 0 | |
Capital Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Capital Stock, Shares, Issued | 0 | 0 |
Capital Stock, Shares, Outstanding | 0 | 0 |
Treasury Stock, Shares | 373,302 | 357,096 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | ||
Loans, including fees | $ 10,168 | $ 11,009 |
Interest and dividends on investments: | ||
Taxable interest | 1,062 | 540 |
Tax exempt interest | 171 | 338 |
Dividend income | 6 | 5 |
Deposits and obligations of other banks | 258 | 97 |
Total interest income | 11,665 | 11,989 |
Interest expense | ||
Deposits | 1,413 | 1,624 |
Short-term borrowings | 36 | |
Total interest expense | 1,413 | 1,660 |
Net interest income | 10,252 | 10,329 |
Provision for loan losses | 3,000 | 399 |
Net interest income after provision for loan losses | 7,252 | 9,930 |
Noninterest income | ||
Investment and trust services fees | 1,445 | 1,452 |
Loan service charges | 285 | 203 |
Deposit service charges and fees | 565 | 545 |
Other service charges and fees | 347 | 353 |
Debit card income | 418 | 402 |
Increase in cash surrender value of life insurance | 124 | 127 |
Life insurance gain | 812 | |
OTTI gains on securities | (76,500) | |
Net (losses)/gains on sales of debt securities | (10) | 24 |
Change in fair value of equity securities | (127) | 3 |
Other | 30 | 56 |
Total noninterest income | 3,889 | 3,165 |
Noninterest Expense | ||
Salaries and employee benefits | 5,535 | 5,442 |
Net occupancy | 830 | 856 |
Marketing and advertising | 455 | 402 |
Legal and professional | 395 | 430 |
Data processing | 806 | 705 |
Pennsylvania bank shares tax | 175 | 243 |
FDIC Insurance | 60 | |
FDIC Insurance | 65 | |
ATM/debit card processing | 264 | 258 |
Telecommunications | 105 | 105 |
Provision for credit losses on off-balance sheet exposures | 2,100 | |
Other | 903 | 906 |
Total noninterest expense | 9,528 | 9,412 |
Income before federal income taxes | 1,613 | 3,683 |
Federal income tax (benefit) expense | (106) | 446 |
Net income | $ 1,719 | $ 3,237 |
Per share | ||
Basic earnings per share | $ 0.40 | $ 0.73 |
Diluted earnings per share | $ 0.39 | $ 0.73 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 1,719 | $ 3,237 | |
Debt Securities: | |||
Unrealized gains arising during the period | 2,048 | 1,414 | |
Reclassification adjustment for losses (gains) included in net income | [1],[2] | 10 | (24) |
Net unrealized gains | 2,058 | 1,390 | |
Tax effect | (432) | (291) | |
Net of tax amount | 1,626 | 1,099 | |
Total other comprehensive income (loss) | 1,626 | 1,099 | |
Total Comprehensive Income | $ 3,345 | $ 4,336 | |
[1] | Net of the reclassification of $( 2 ) and $ 5 to Federal income tax (benefit) expense | ||
[2] | Reclassified to net gains on sales of debt securities |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Reclassification to Federal income tax expense (benefit) | $ (2) | $ 5 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2018 | $ 4,701 | $ 41,530 | $ 83,946 | $ (6,380) | $ (5,401) | $ 118,396 |
Net income (loss) | 3,237 | 3,237 | ||||
Other comprehensive income (loss) | 1,099 | 1,099 | ||||
Cash dividends declared | (1,192) | (1,192) | ||||
Acquisition of treasury stock | (560) | (560) | ||||
Treasury shares issued under dividend reinvestment plan | 2 | 3 | 5 | |||
Stock Compensation Plans: | ||||||
Treasury shares issued | 161 | 190 | 351 | |||
Common stock issued | 7 | 148 | 155 | |||
Balance at Mar. 31, 2019 | 4,708 | 41,841 | 85,991 | (5,281) | (5,768) | 121,491 |
Balance at Dec. 31, 2019 | 4,710 | 42,268 | 94,946 | (5,986) | (8,410) | 127,528 |
Net income (loss) | 1,719 | 1,719 | ||||
Other comprehensive income (loss) | 1,626 | 1,626 | ||||
Cash dividends declared | (1,306) | (1,306) | ||||
Acquisition of treasury stock | (1,172) | (1,172) | ||||
Treasury shares issued under dividend reinvestment plan | 75 | 485 | 560 | |||
Stock Compensation Plans: | ||||||
Treasury shares issued | 1 | 2 | 3 | |||
Common stock issued | 1 | 15 | 16 | |||
Compensation expense | 31 | 31 | ||||
Balance at Mar. 31, 2020 | $ 4,711 | $ 42,390 | $ 95,359 | $ (4,360) | $ (9,095) | $ 129,005 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | ||
Dividend declared per share | $ 0.30 | $ 0.27 |
Acquisition of treasury stock, shares | 36,401 | 15,163 |
Treasury shares issued under dividend reinvestment plan, shares | 20,124 | 10,150 |
Treasury shares issued, shares | 71 | 10,150 |
Common shares issued, shares | 973 | 6,982 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 1,719 | $ 3,237 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 331 | 338 |
Net amortization of loans and investment securities | 340 | 409 |
Provision for loan losses | 3,000 | 399 |
Decrease (increase) in fair value of equity securities | 127 | (3) |
Debt securities losses (gains), net | 10 | (24) |
Provision for credit losses on off-balance sheet exposures | 2,100 | |
Loans originated for sale | (9,223) | (6,467) |
Proceeds from sale of loans | 8,512 | 6,390 |
Increase in cash surrender value of life insurance | (124) | (127) |
Gains from claim on life insurance policy | (812) | |
Stock option compensation | 31 | |
Increase in other assets | (1,139) | (50) |
(Decrease) increase in other liabilities | (281) | 118 |
Net cash provided by operating activities | 2,491 | 4,220 |
Cash flows from investing activities | ||
Net increase in long-term interest-bearing deposits in other banks | (1,992) | |
Proceeds from sales and calls of investment securities available for sale | 165 | 3,876 |
Proceeds from maturities and pay-downs of securities available for sale | 10,941 | 6,084 |
Purchase of investment securities available for sale | (29,974) | (5,344) |
Net increase in loans | (2,077) | (7,245) |
Capital expenditures | (174) | (136) |
Net cash used in investing activities | (23,111) | (2,765) |
Cash flows from financing activities | ||
Net decrease in demand deposits, interest-bearing checking, and savings accounts | (2,452) | (33,621) |
Net (decrease) increase in time deposits | (5,507) | 27,483 |
Dividends paid | (1,306) | (1,192) |
Purchase of Treasury shares | (1,172) | (560) |
Cash received from option exercises | 19 | 160 |
Treasury shares issued under dividend reinvestment plan | 560 | 351 |
Net cash used in financing activities | (9,858) | (7,379) |
Decrease in cash and cash equivalents | (30,478) | (5,924) |
Cash and cash equivalents at the beginning of the period | 83,828 | 52,957 |
Cash and cash equivalents at the end of the period | 53,350 | 47,033 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the year for: Interest on deposits and other borrowed funds | 1,547 | 1,562 |
Noncash Activities: | ||
Lease liabilities arising from obtaining right-of-use assets | $ 105 | $ 22 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1. Basis of Presentation The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation), and its wholly owned subsidiaries, Farmers and Merchants Trust Company of Chambersburg (the Bank) and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank that has one wholly owned subsidiary, Franklin Financial Properties Corp. Franklin Financial Properties Corp. holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions and account balances have been eliminated. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows as of March 31, 2020, and for all other periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2019 Annual Report on Form 10-K. The consolidated results of operations for the three-month period ended March 31, 2020 are not necessarily indicative of the operating results for the full year. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks and cash items with original maturities less than 90 days. Earnings per share are computed based on the weighted average number of shares outstanding during each period end. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: For the Three Months Ended March 31, (Dollars and shares in thousands, except per share data) 2020 2019 Weighted average shares outstanding (basic) 4,347 4,412 Impact of common stock equivalents 14 21 Weighted average shares outstanding (diluted) 4,361 4,433 Anti-dilutive options excluded from calculation 50 — Net income $ 1,719 $ 3,237 Basic earnings per share $ 0.40 $ 0.73 Diluted earnings per share $ 0.39 $ 0.73 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements ASU 2017-04, Goodwill (Topic 350) Description This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this standard, goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under the current guidance. Early adoption is permitted for any impairment tests performed after January 1, 2017, applied prospectively. Effective Date January 1, 2020 Effect on the Consolidated Financial Statements The Corporation early adopted the ASU in the fourth quarter of 2018 with the completion of the 2018 impairment analysis. The ASU did not have a material effect on the consolidated financial statements. ASU 2018-14, Disclosure Framework (Topic 715): Changes to the Disclosure Requirements for Defined Benefit Plans Description This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. Effective Date January 1, 2020 Effect on the Consolidated Financial Statements The Corporation adopted the provisions of the ASU on January 1, 2020. As the ASU only revised disclosure requirements, it did not have a material effect on the consolidated financial statements. Recently issued but not yet effective accounting standards ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Description This standard requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements We have formed an implementation team led by the Corporation's Risk Management function. The team is reviewing the requirements of the ASU and evaluating methods and models for implementation. The new standard will result in earlier recognition of additions to the allowance for loan losses and possibly a larger allowance for loan loss balance with a corresponding increase in the provision for loan losses in results of operations; however, the Corporation is continuing to evaluate the impact of the pending adoption of the new standard on its consolidated financial statements. A third-party vendor has been selected to assist with the CECL calculations and the implementation process has started. The Corporation expects to be able to run the CECL model in test mode in 2020. ASU 2019-05, Financial Instruments - Credit Losses (Topic 326):Targeted Transition Relief Description This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13. On October 16,2019, FASB approved its August 2019 proposal to grant certain small public companies a delay in the effective date of ASU 2016-13. For the Corporation, the delay makes the ASU effective January 2023. Since the Corporation currently meets the SEC definition of a small reporting company, the delay will be application to the Corporation. Early adoption is permitted. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation will continue to review the ASU as part of its adoption of ASU 2016-13. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 3. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive losses, net of income tax effects, included in shareholders' equity are as follows: Unrealized Gains and Losses on Available-for-sale Defined Benefit (Dollars in thousands) Securities Pension Items Total March 31, 2020 Beginning Balance $ 185 $ ( 6,171 ) $ ( 5,986 ) Other comprehensive income before reclassification 1,618 — 1,618 Amounts reclassified from accumulated other comprehensive income 8 — 8 Current period other comprehensive income 1,626 — 1,626 Ending balance $ 1,811 $ ( 6,171 ) $ ( 4,360 ) March 31, 2019 Beginning Balance $ ( 870 ) $ ( 5,510 ) $ ( 6,380 ) Other comprehensive income before reclassification 1,117 — 1,117 Amounts reclassified from accumulated other comprehensive income ( 18 ) — ( 18 ) Current period other comprehensive income 1,099 — 1,099 Ending balance $ 229 $ ( 5,510 ) $ ( 5,281 ) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of March 31, 2020 and December 31, 2019 are as follows : (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair March 31, 2020 cost gains losses value U.S. Government and Agency securities $ 13,602 $ 57 $ ( 34 ) $ 13,625 Municipal securities 94,560 2,892 ( 242 ) 97,210 Trust preferred securities 4,102 — ( 556 ) 3,546 Agency mortgage-backed securities 68,970 1,638 ( 461 ) 70,147 Private-label mortgage-backed securities 316 11 ( 4 ) 323 Asset-backed securities 24,197 28 ( 1,036 ) 23,189 $ 205,747 $ 4,626 $ ( 2,333 ) $ 208,040 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2019 cost gains losses value U.S. Government and Agency securities $ 8,418 $ 30 $ ( 20 ) $ 8,428 Municipal securities 90,865 1,418 ( 997 ) 91,286 Trust preferred securities 4,097 — ( 130 ) 3,967 Agency mortgage-backed securities 58,503 435 ( 234 ) 58,704 Private-label mortgage-backed securities 398 31 — 429 Asset-backed securities 24,918 6 ( 305 ) 24,619 $ 187,199 $ 1,920 $ ( 1,686 ) $ 187,433 At March 31, 2020 and December 31, 2019, the fair value of AFS securities pledged to secure public funds and trust deposits totaled $ 98.0 million and $ 107.1 million, respectively. The amortized cost and estimated fair value of debt securities at March 31, 2020 , by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately. (Dollars in thousands) Amortized cost Fair value Due in one year or less $ 12,900 $ 12,978 Due after one year through five years 31,461 31,369 Due after five years through ten years 76,697 77,637 Due after ten years 15,403 15,586 136,461 137,570 Mortgage-backed securities 69,286 70,470 $ 205,747 $ 208,040 The composition of the net realized gains on AFS securities for the three months ended are as follows: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Proceeds $ 165 $ 3,876 Gross gains realized — 33 Gross losses realized ( 10 ) ( 9 ) Net gains (losses) realized $ ( 10 ) $ 24 Tax benefit (provision) on net (losses) gains realized $ 2 $ ( 5 ) Impairment : The AFS securities portfolio contained 105 securities with $ 76.5 million of temporarily impaired fair value and $ 2.3 million in unrealized losses at March 31, 2020. The total unrealized loss position has increased $ 647 thousand since year-end 2019. For securities with an unrealized loss, Management applies a systematic methodology in order to perform an assessment of the potential for other-than-temporary impairment. In the case of debt securities, investments considered for other-than-temporary impairment: (1) had a specified maturity or repricing date; (2) were generally expected to be redeemed at par, and (3) were expected to achieve a recovery in market value within a reasonable period of time. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. The impairment identified on debt securities and subject to assessment at March 31, 2020, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following table reflects temporary impairment in the AFS portfolio, aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of March 31, 2020 and December 31, 2019: March 31, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 6,681 $ ( 27 ) 8 $ 1,284 $ ( 7 ) 7 $ 7,965 $ ( 34 ) 15 Municipal securities 19,666 ( 235 ) 21 796 ( 7 ) 1 20,462 ( 242 ) 22 Trust preferred securities 840 ( 119 ) 1 2,706 ( 437 ) 4 3,546 ( 556 ) 5 Agency mortgage-backed securities 22,506 ( 459 ) 35 312 ( 2 ) 1 22,818 ( 461 ) 36 Private-label mortgage-backed securities 123 ( 4 ) 1 — — — 123 ( 4 ) 1 Asset-backed securities 15,252 ( 554 ) 16 6,300 ( 482 ) 10 21,552 ( 1,036 ) 26 Total temporarily impaired securities $ 65,068 $ ( 1,398 ) 82 $ 11,398 $ ( 935 ) 23 $ 76,466 $ ( 2,333 ) 105 December 31, 2019 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 2,559 $ ( 12 ) 6 $ 1,335 $ ( 8 ) 7 $ 3,894 $ ( 20 ) 13 Municipal securities 38,874 ( 966 ) 40 2,655 ( 31 ) 4 41,529 ( 997 ) 44 Trust preferred securities — — — 3,967 ( 130 ) 5 3,967 ( 130 ) 5 Agency mortgage-backed securities 21,185 ( 185 ) 32 6,555 ( 49 ) 22 27,740 ( 234 ) 54 Asset-backed securities 17,644 ( 128 ) 19 5,669 ( 177 ) 9 23,313 ( 305 ) 28 Total temporarily impaired securities $ 80,262 $ ( 1,291 ) 97 $ 20,181 $ ( 395 ) 47 $ 100,443 $ ( 1,686 ) 144 The following table represents the cumulative credit losses on AFS securities recognized in earnings for: Three Months Ended (Dollars in thousands) March 31, 2020 2019 Balance of cumulative credit-related OTTI at January 1 $ 272 $ 272 Additions for credit-related OTTI not previously recognized — — Additional increases for credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis — — Decreases for previously recognized credit-related OTTI because there was an intent to sell — — Reduction for increases in cash flows expected to be collected — — Balance of credit-related OTTI at March 31 $ 272 $ 272 Equity Securities at Fair Value The Corporation owns one equity investment. At March 31, 2020 and December 31, 2019, this investment was reported at fair value of $ 313 thousand and $ 440 thousand, respectively, with changes in value reported through income. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Loans [Abstract] | |
Loans | Note 5. Loans The Bank reports its loan portfolio based on the primary collateral of the loan. It further classifies these loans by the primary purpose, either consumer or commercial. The Bank’s residential real estate loans include long-term loans to individuals and businesses secured by mortgages on the borrower’s real property and include home equity loans. Construction loans are made to finance the purchase of land and the construction of residential and commercial buildings thereon and are secured by mortgages on real estate. Commercial real estate loans include construction, owner and non-owner occupied properties and farm real estate. Commercial loans are made to businesses of various sizes for a variety of purposes including property, plant and equipment, working capital and loans to government municipalities. Commercial lending is concentrated in the Bank’s primary market, but also includes purchased loan participations. Consumer loans are comprised of installment loans and unsecured personal lines of credit. Each class of loans involves a different kind of risk. However, risk factors such as changes in interest rates, general economic conditions and changes in collateral values are common across all classes. The risk of each loan class is presented below. Residential Real Estate 1-4 family The largest risk in residential real estate loans to retail customers is the borrower’s inability to repay the loan due to the loss of the primary source of income. The Bank attempts to mitigate this risk through prudent underwriting standards including employment history, current financial condition and credit history. These loans are generally owner occupied and serve as the borrower’s primary residence. Commercial purpose loans, secured by residential real estate, are usually dependent upon repayment from the rental income or other business purposes. These loans are generally non-owner occupied. In addition to the real estate collateral, these loans may have personal guarantees or UCC filings on other business assets. If a payment default occurs on a 1-4 family residential real estate loan, the collateral serves as a source of repayment, but may be subject to a change in value due to economic conditions. Residential Real Estate Construction This class includes loans to individuals for construction of a primary residence and to contractors and developers to improve real estate and construct residential properties. Construction loans to individuals generally bear the same risk as 1-4 family residential loans. Additional risks may include cost overruns, delays in construction or contractor problems. Loans to contractors and developers are primarily dependent on the sale of improved lots or finished homes for repayment. Risks associated with these loans include the borrower’s character and capacity to complete a development, the effect of economic conditions on the valuation of lots or homes, cost overruns, delays in construction or contractor problems. In addition to real estate collateral, these loans may have personal guarantees or UCC filings on other business assets, depending on the financial strength and experience of the developer. Real estate construction loans are monitored on a regular basis by either an independent third party or the responsible loan officer, depending on the size and complexity of the project. This monitoring process includes at a minimum, the submission of invoices or AIA documents detailing the cost incurred by the borrower, on-site inspections, and an authorizing signature for disbursement of funds. Commercial Real Estate Commercial real estate loans may be secured by various types of commercial property including retail space, office buildings, warehouses, hotels and motel, manufacturing facilities and, agricultural land. Commercial real estate loans present a higher level of risk than residential real estate loans. Repayment of these loans is normally dependent on cash-flow generated by the operation of a business that utilizes the real estate. The successful operation of the business, and therefore repayment ability, may be affected by general economic conditions outside of the control of the operator. On most commercial real estate loans ongoing monitoring of cash flow and other financial performance indictors is completed annually through financial statement analysis. In addition, the value of the collateral may be negatively affected by economic conditions and may be insufficient to repay the loan in the event of default. In the event of foreclosure, commercial real estate may be more difficult to liquidate than residential real estate. Commercial Commercial loans are made for various business purposes to finance equipment, inventory, accounts receivables, and operating liquidity. These loans are generally secured by business assets or equipment, non-real estate collateral and/or personal guarantees. Commercial loans present a higher level of credit risk than other loans because repayment ability is usually dependent on cash-flow from a business operation that can be affected by general economic conditions. On most Commercial loans ongoing monitoring of cash flow and other financial performance indictors at least annually through financial statement analysis. In the event of a default, collateral for these loans may be more difficult to liquidate, and the valuation of the collateral may decline more quickly than loans secured by other types of collateral. Loans to governmental municipalities are also included in the Commercial class. These loans generally have less risk than C&I loans due to the taxing authority of the municipality and its ability to assess fees on services. Consumer These loans are made for a variety of reasons to consumers and include term loans and personal lines-of credit. The loans may be secured or unsecured. Repayment is primarily dependent on the income of the borrower and to a lesser extent the sale of collateral. The underwriting of these loans is based on the consumer’s ability and willingness to repay and is determined by the borrower’s employment history, current financial condition and credit background. Collateral for these loans, if any, usually depreciates quickly and therefore, may not be adequate to repay the loan if it is repossessed. Therefore, the overall health of the economy, including unemployment rates and wages, will have an effect on the credit quality in this loan class. A summary of loans outstanding, by class, at the end of the reporting periods is as follows: March 31, December 31, (Dollars in thousands) 2020 2019 Residential Real Estate 1-4 Family Consumer first liens $ 82,719 $ 85,319 Commercial first lien 60,587 57,627 Total first liens 143,306 142,946 Consumer junior liens and lines of credit 45,269 42,715 Commercial junior liens and lines of credit 5,397 4,882 Total junior liens and lines of credit 50,666 47,597 Total residential real estate 1-4 family 193,972 190,543 Residential real estate - construction Consumer 4,523 4,107 Commercial 10,959 9,216 Total residential real estate construction 15,482 13,323 Commercial real estate 494,143 494,262 Commercial 226,128 230,007 Total commercial 720,271 724,269 Consumer 6,661 6,440 936,386 934,575 Less: Allowance for loan losses ( 14,730 ) ( 11,966 ) Net Loans $ 921,656 $ 922,609 Included in the loan balances are the following: Net unamortized deferred loan (fees) costs $ 397 $ 178 Loans pledged as collateral for borrowings and commitments from: FHLB $ 764,056 $ 764,340 Federal Reserve Bank 49,636 32,155 $ 813,692 $ 796,495 |
Loan Quality And Allowance For
Loan Quality And Allowance For Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Loan Quality And Allowance For Loan Losses [Abstract] | |
Loan Quality And Allowance For Loan Losses | Note 6. Loan Quality and Allowance for Loan Losses The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at December 31, 2019 $ 416 $ 119 $ 184 $ 6,022 $ 3,815 $ 84 $ 1,326 $ 11,966 Charge-offs — — — — ( 220 ) ( 30 ) — ( 250 ) Recoveries 3 — — — 5 6 — 14 Provision 144 59 82 1,582 886 38 209 3,000 ALL at March 31, 2020 $ 563 $ 178 $ 266 $ 7,604 $ 4,486 $ 98 $ 1,535 $ 14,730 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 Charge-offs ( 33 ) ( 1 ) ( 3 ) ( 63 ) ( 61 ) ( 26 ) — ( 187 ) Recoveries 1 — — 1 42 10 — 54 Provision 28 — 47 270 70 18 ( 34 ) 399 ALL at March 31, 2019 $ 487 $ 132 $ 152 $ 5,906 $ 4,562 $ 72 $ 1,370 $ 12,681 The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of March 31, 2020 and December 31, 2019: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total March 31, 2020 Loans evaluated for ALL: Individually $ 653 $ — $ 521 $ 10,795 $ — $ — $ — $ 11,969 Collectively 142,653 50,666 14,961 483,348 226,128 6,661 — 924,417 Total $ 143,306 $ 50,666 $ 15,482 $ 494,143 $ 226,128 $ 6,661 $ — $ 936,386 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 563 178 266 7,604 4,486 98 1,535 14,730 ALL at March 31, 2020 $ 563 $ 178 $ 266 $ 7,604 $ 4,486 $ 98 $ 1,535 $ 14,730 December 31, 2019 Loans evaluated for ALL: Individually $ 659 $ — $ 523 $ 10,994 $ — $ — $ — $ 12,176 Collectively 142,287 47,597 12,800 483,268 230,007 6,440 — 922,399 Total $ 142,946 $ 47,597 $ 13,323 $ 494,262 $ 230,007 $ 6,440 $ — $ 934,575 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 416 119 184 6,022 3,815 84 1,326 11,966 ALL at December 31, 2019 $ 416 $ 119 $ 184 $ 6,022 $ 3,815 $ 84 $ 1,326 $ 11,966 The following table shows additional information about those loans considered to be impaired at March 31, 2020 and December 31, 2019: Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related March 31, 2020 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 653 $ 653 $ — $ — $ — Junior liens and lines of credit — — — — — Total 653 653 — — — Residential real estate - construction 521 729 — — — Commercial real estate 10,795 11,909 — — — Commercial — — — — — Total $ 11,969 $ 13,291 $ — $ — $ — December 31, 2019 Residential Real Estate 1-4 Family First liens $ 659 $ 659 $ — $ — $ — Junior liens and lines of credit — — — — — Total 659 659 — — — Residential real estate - construction 523 729 — — — Commercial real estate 10,994 12,096 — — — Commercial — — — — — Total $ 12,176 $ 13,484 $ — $ — $ — The following table shows the average of impaired loans and related interest income for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 656 $ 10 Junior liens and lines of credit — — Total 656 10 Residential real estate - construction 521 — Commercial real estate 10,899 94 Commercial — — Total $ 12,076 $ 104 Three Months Ended March 31, 2019 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 893 $ 11 Junior liens and lines of credit 44 — Total 937 11 Residential real estate - construction 653 — Commercial real estate 13,494 102 Commercial 129 — Total $ 15,213 $ 113 The following table presents the aging of payments of the loan portfolio : (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans March 31, 2020 Residential Real Estate 1-4 Family First liens $ 142,621 $ 588 $ 55 $ 1 $ 644 $ 41 $ 143,306 Junior liens and lines of credit 50,581 40 — 31 71 14 50,666 Total 193,202 628 55 32 715 55 193,972 Residential real estate - construction 14,961 — — — — 521 15,482 Commercial real estate 490,468 110 643 — 753 2,922 494,143 Commercial 225,310 288 355 — 643 175 226,128 Consumer 6,625 30 6 — 36 — 6,661 Total $ 930,566 $ 1,056 $ 1,059 $ 32 $ 2,147 $ 3,673 $ 936,386 December 31, 2019 Residential Real Estate 1-4 Family First liens $ 141,843 $ 646 $ 358 $ 31 $ 1,035 $ 68 $ 142,946 Junior liens and lines of credit 47,420 70 30 46 146 31 47,597 Total 189,263 716 388 77 1,181 99 190,543 Residential real estate - construction 12,800 — — — — 523 13,323 Commercial real estate 490,114 813 326 — 1,139 3,009 494,262 Commercial 229,659 31 120 — 151 197 230,007 Consumer 6,397 25 18 — 43 — 6,440 Total $ 928,233 $ 1,585 $ 852 $ 77 $ 2,514 $ 3,828 $ 934,575 The following table reports the risk rating for those loans in the portfolio that are assigned an individual risk rating. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing, and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system. Pass OAEM Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total March 31, 2020 Residential Real Estate 1-4 Family First liens $ 143,264 $ — $ 42 $ — $ 143,306 Junior liens and lines of credit 50,621 — 45 — 50,666 Total 193,885 — 87 — 193,972 Residential real estate - construction 14,961 — 521 — 15,482 Commercial real estate 484,031 5,951 4,161 — 494,143 Commercial 225,737 — 391 — 226,128 Consumer 6,661 — — — 6,661 Total $ 925,275 $ 5,951 $ 5,160 $ — $ 936,386 December 31, 2019 Residential Real Estate 1-4 Family First liens $ 142,847 $ — $ 99 $ — $ 142,946 Junior liens and lines of credit 47,520 — 77 — 47,597 Total 190,367 — 176 — 190,543 Residential real estate - construction 12,800 — 523 — 13,323 Commercial real estate 483,878 5,875 4,509 — 494,262 Commercial 229,465 4 538 — 230,007 Consumer 6,440 — — — 6,440 Total $ 922,950 $ 5,879 $ 5,746 $ — $ 934,575 The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans as of: Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment March 31, 2020 Residential real estate - construction 1 443 $ 443 $ — — $ — Residential real estate 4 652 652 — — — Commercial real estate 11 9,220 8,244 976 — — Total 16 $ 10,315 $ 9,339 $ 976 — $ — December 31, 2019 Residential real estate - construction 1 $ 444 $ 444 $ — — $ — Residential real estate 4 659 659 — — — Commercial real estate 11 9,343 9,343 — — — Total 16 $ 10,446 $ 10,446 $ — — $ — * The performing status is determined by the loan’s compliance with the modified terms . There were no new TDR loans during 2020 or 2019 . Loans that have been modified on a good-faith basis in response to COVID-19 to borrowers who were classified as current prior to any relief are not TDRs as outlined in the March 22, 2020 Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus . Such short-term modifications (e.g., six months ) may include payment deferrals, fee waivers, extension of payment terms or other delays in payment that are insignificant. As of March 31, 2020, the Bank has granted approximately $ 30 million loan deferrals or modifications (approximately 3 % of gross loans). |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 7. Leases The Corporation leases various assets in the course of its operations that are subject to recognition on the balance sheet. The Corporation considers all of its leases to be operating leases and it has no finance leases. The leased assets are comprised of equipment, and buildings and land (collectively real estate). The equipment leases are shorter-term than the real estate leases, and generally have a fixed payment over a defined term without renewal options. Certain equipment leases have purchase options and it was determined the option was not reasonably certain to be exercised. The real estate leases are longer-term and may contain renewal options after the initial term, but none of the real estate leases contain a purchase option. The renewal options on real estate leases were reviewed and if it was determined the option was reasonably certain to be renewed, the option term was considered in the determination of the lease liability. There is only one real estate lease with a variable payment based on an index included in the lease liability. None of the leases contain any restrictive covenants and there are no significant leases that have not yet commenced. The discount rate used to determine the lease liability is based on the Bank’s fully secured borrowing rate from the Federal Home Loan Bank for a term similar to the lease term. Operating lease expense is included in net occupancy expense in the consolidated statements of income. Lease costs: The components of total lease cost were as follows: Three Months Ended Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 158 $ 188 Short-term lease cost 2 6 Variable lease cost 14 11 Total lease cost $ 174 $ 205 Supplemental Lease Information: Three Months Ended Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 152 123 Weighted-average remaining lease term (years) 12.8 13.7 Weighted-average discount rate 3.53 % 3.54 % Lease Obligations: Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2020 are as follows: (Dollars in thousands) 2020 $ 577 2021 556 2022 546 2023 552 2024 508 2025 and beyond 3,756 Undiscounted cash flow 6,495 Imputed Interest ( 1,336 ) Total lease liability $ 5,159 |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2020 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 8. Other Real Estate Owned Changes in other real estate owned were as follows: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of the period $ — $ 2,684 Additions — — Proceeds from dispositions — — Gains on sales, net — — Valuation adjustment — — Balance at the end of the period $ — $ 2,684 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivatives [Abstract] | |
Derivatives | Note 9. Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. The Corporation’s existing credit derivatives result from participations in interest rate swaps provided by external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain lenders which participate in loans. The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet. Fair Value of Derivative Instruments Derivative Liabilities (Dollars in thousands) March 31, 2020 March 31, 2019 Notional amount Balance Sheet Location Fair Value Notional amount Balance Sheet Location Fair Value Derivatives not designated as hedging instruments Other Contracts 6,967 Other Liabilities $ 55 — Other Liabilities $ — Total derivatives not designated as hedging instruments $ 55 $ — The table below presents the effect of the Corporation’s derivative financial instruments that are not designated as hedging instruments on the Income Statement. Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Financial Performance Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Three Months Ended March 31, 2020 March 31, 2019 Other Contracts Other income/(expense) $ ( 36 ) $ - As of March 31, 2020, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 55 thousand. |
Pension
Pension | 3 Months Ended |
Mar. 31, 2020 | |
Pension [Abstract] | |
Pension | Note 10. Pension The components of pension expense for the periods presented are as follows: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Components of net periodic cost: Service cost $ 83 $ 80 Interest cost 131 158 Expected return on plan assets ( 269 ) ( 270 ) Recognized net actuarial loss 226 152 Total pension expense $ 171 $ 120 The Bank expects its pension expense to increase to approximately $ 680 thousand in 2020 compared to $ 421 thousand in 2019, due primarily to increases in recognized net actuarial losses. The service cost component of pension expense is in the salaries and employee benefits line on the income statement. All other cost components are in the other expense line on the income statement. |
Fair Value Measurements And Fai
Fair Value Measurements And Fair Values Of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value Measurements And Fair Values Of Financial Instruments | Note 11. Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates maybe different than the amounts reported at each year-end. The Corporation uses the exit price notion to measure the fair value of financial instruments. FASB ASC Topic 820, “Financial Instruments”, requires disclosure of the fair value of financial assets and liabilities, including those financial assets and liabilities that are not measured and reported at fair value on a recurring and nonrecurring basis. The Corporation does not report any nonfinancial assets at fair value. FASB ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1 : Valuation is based on unadjusted, quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 : Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. There may be substantial differences in the assumptions used for securities within the same level. For example, prices for U.S. Agency securities have fewer assumptions and are closer to level 1 valuations than the private label mortgage backed securities that require more assumptions and are closer to level 3 valuations. Level 3 : Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Corporation’s assumptions regarding what market participants would assume when pricing a financial instrument. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information regarding the fair value of the Corporation’s financial instruments should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Corporation’s financial instruments measured at fair value on a recurring and nonrecurring basis. Equity Securities : Equity securities are valued using quoted market prices from nationally recognized markets (Level 1). Equity securities are measured at fair value on a recurring basis. Investment securities : Fair values of investment securities available-for-sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 2 investment securities are primarily comprised of debt securities issued by states and municipalities, corporations, mortgage-backed securities issued by government agencies, and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. Investment securities are measured at fair value on a recurring basis. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals conducted by an independent, licensed appraiser, less cost to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach (Level 2). If the appraiser makes an adjustment to account for differences between the comparable sales and income data available for similar loans, or if management adjusts the appraised value, then the fair value is considered Level 3. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. No partial charge-offs on impaired loans were taken in the first quarter of 2020. Impaired loans are measured at fair value on a nonrecurring basis. Recurring Fair Value Measurements For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2020 and December 31, 2019 are as follows: (Dollars in thousands) Fair Value at March 31, 2020 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 313 $ — $ — $ 313 Available for sale: U.S. Government and Agency securities — 13,625 — 13,625 Municipal securities — 97,210 — 97,210 Trust preferred securities — 3,546 — 3,546 Agency mortgage-backed securities — 70,147 — 70,147 Private-label mortgage-backed securities — 323 — 323 Asset-backed securities — 23,189 — 23,189 Total assets $ 313 $ 208,040 $ — $ 208,353 (Dollars in thousands) Fair Value at December 31, 2019 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 440 $ — $ — $ 440 Available for sale: U.S. Government and Agency securities — 8,428 — 8,428 Municipal securities — 91,286 — 91,286 Trust preferred securities — 3,967 — 3,967 Agency mortgage-backed securities — 58,704 — 58,704 Private-label mortgage-backed securities — 429 — 429 Asset-backed securities — 24,619 — 24,619 Total assets $ 440 $ 187,433 $ — $ 187,873 Nonrecurring Fair Value Measurements There were no assets measured at fair value on a nonrecurring basis as March 31, 2020 and the following table presents the fair value measurement by level within the fair value hierarchy used at December 31, 2019: (Dollars in Thousands) Fair Value at December 31, 2019 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ — $ — $ 1,080 $ 1,080 Total assets $ — $ — $ 1,080 $ 1,080 (1) Includes assets directly charged-down to fair value during the year-to-date period. The Corporation did no t record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis at March 31, 2020. For financial assets and liabilities measured at fair value on a recurring basis, there were no transfers of financial assets or liabilities between Level 1 and Level 2 during the period ending March 31, 2020. There were no assets measured at fair value on a nonrecurring basis at March 31, 2020 and the following table presents additional quantitative information about Level 3 assets measured at fair value on a nonrecurring basis at December 31, 2019: (Dollars in thousands) December 31, 2019 Fair Value Valuation Technique Unobservable Input Weighted Average Impaired loans $ 1,080 Appraisal Appraisal Adjustments 0 % - 100 % ( 48 %) (1) Includes assets directly charged-down to fair value during the year-to-date period. The carrying amounts and estimated fair value of financial instruments not carried at fair value are as follows: March 31, 2020 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 53,350 $ 53,350 $ 53,350 $ — $ — Long-term interest-bearing deposits in other banks 10,738 10,738 10,738 — — Loans held for sale 2,751 2,751 — 2,751 — Net loans 921,656 921,269 — — 921,269 Accrued interest receivable 3,789 3,789 — — 3,789 Financial liabilities: Deposits $ 1,117,433 $ 1,118,307 $ — $ 1,118,307 $ — Accrued interest payable 302 302 — 302 — December 31, 2019 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 83,828 $ 83,828 $ 83,828 $ — $ — Long-term interest-bearing deposits in other banks 8,746 8,746 8,746 — — Loans held for sale 2,040 2,040 — 2,040 — Net loans 922,609 918,640 — — 918,640 Accrued interest receivable 3,845 3,845 — — 3,845 Financial liabilities: Deposits $ 1,125,392 $ 1,125,877 $ — $ 1,125,877 $ — Accrued interest payable 436 436 — 436 — |
Capital Ratios
Capital Ratios | 3 Months Ended |
Mar. 31, 2020 | |
Capital Ratios [Abstract] | |
Capital Ratios | Note 12. Capital Ratios Capital adequacy is currently defined by regulatory agencies through the use of several minimum required ratios. The capital ratios to be considered “well capitalized” are: (1) Common Equity Tier 1 (CET1) of 6.5 %, (2) Tier 1 Leverage of 5 %, (3) Tier 1 Risk-Based Capital of 8 %, and (4) Total Risk-Based Capital of 10 %. In addition, a capital conservation buffer of 2.50 % is applicable to all of the capital ratios except for the Tier 1 Leverage ratio. The capital conservation buffer is equal to the lowest value of the three applicable capital ratios less the regulatory minimum for each respective capital measurement. The Bank’s capital conservation buffer at March 31, 2020 was 7.78 % (total risk-based capital 15.78 % less 8.00 %) compared to the 2020 regulatory buffer of 2.50 %. Compliance with the capital conservation buffer is required in order to avoid limitations to certain capital distributions and is in addition to the minimum required capital requirements. As of March 31, 2020, the Bank was “well capitalized”. In 2019, the Community Bank Leverage Ratio (CBLR) was approved by federal banking agencies as an optional capital measure available to Qualifying Community Banking Organizations (QCBO). If a bank qualifies as a QCBR and maintains a CBLR of 9 % or greater, the bank would be considered “well-capitalized” for regulatory capital purposes and exempt from complying with the risk-based capital rule described above. The CBLR rule took effect January 1, 2020 and banks desiring to opt-in can do so through an election in the first quarter 2020 regulatory filing. The Bank meets the criteria of a QCBR but did not opt-in to the CBLR. The Bank is participating in the Paycheck Protection Program (PPP) and the Paycheck Protection Program Liquidity Facility (PPPLF) to fund PPP Loans. In accordance with regulatory guidance, PPP loans pledged as collateral for PPPLF, and PPPLF advances, are excluded from leverage capital ratios. PPP loans will also carry a 0 % risk-weight for risk-based capital rules. The consolidated asset limit on small bank holding companies is $ 3 billion and a company with assets under that limit is not subject to the consolidated capital rules but may file reports that include capital amounts and ratios. The Corporation has elected to file those reports. The following table summarizes the regulatory capital requirements and results as of March 31, 2020 and December 31, 2019 for the Corporation and the Bank: Regulatory Ratios Adequately Well March 31, December 31, Capitalized Capitalized (Dollars in thousands) 2020 2019 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 14.73 % 14.82 % N/A N/A Farmers & Merchants Trust Company 14.52 % 14.62 % 4.500 % 6.50 % Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 14.73 % 14.82 % N/A N/A Farmers & Merchants Trust Company 14.52 % 14.62 % 6.000 % 8.00 % Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 15.99 % 16.08 % N/A N/A Farmers & Merchants Trust Company 15.78 % 15.87 % 8.000 % 10.00 % Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 9.85 % 9.72 % N/A N/A Farmers & Merchants Trust Company 9.71 % 9.59 % 4.000 % 5.00 % (1) Common equity Tier 1 capital/ total risk-weighted assets (2) Tier 1 capital / total risk-weighted assets (3) Total risk-based capital / total risk-weighted assets, (4) Tier 1 capital / average quarterly assets |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 13. Revenue Recognition All of the Corporation’s revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income as presented in our consolidated statements of income. Revenue generating activities that fall within the scope of ASC 606 are described as follows: Investment and Trust Service Fees - these represent fees from wealth management (assets under management), fees from the management and settlement of estates and commissions from the sale of investment and insurance products. Asset management fees are generally assessed based on a tiered fee schedule, based on the value of assets under management, and are recognized monthly when the service obligation is completed. Fees recognized were $ 1.3 million for the first quarter of 2020 and 2019. Fees for estate management services are based on the estimated fair value of the estate. These fees are generally recognized monthly over an 18 -month period that Management has determined to represent the average time to fulfill the performance obligations of the contract. Management has the discretion to adjust this time period as needed based upon the nature and complexity of an individual estate. Fees recognized were $ 33 thousand for the first quarter of 2020, compared to $ 70 thousand for the first quarter of 2019. Commissions from the sale of investment and insurance products are recognized upon the completion of the transaction. Commissions recognized were $ 74 thousand for the first quarter of 2020 and $ 68 thousand for 2019. Loan Service Charges – these represent fees on loans for services or charges that occur after the loan has been booked, for example, late payment fees. These also include fees for mortgages settled for third-party mortgage companies. All of these fees are transactional in nature and are recognized upon completion of the transaction which represents the performance obligation. Deposit Service Charges and Fees – these represent fees from deposit customers for transaction based, account maintenance, and overdraft services. Transaction based fees include, but are not limited to, stop payment fees and overdraft fees. These fees are recognized at the time of the transaction when the performance obligation has been fulfilled. Account maintenance fees and account analysis fee are earned over the course of a month, representing the period of the performance obligation, and are recognized monthly. Debit Card Income – this represents interchange fees from cardholder transactions conducted through the card payment network. Cardholders use the debit card to conduct point-of-sale transactions that produce interchange fees. The fees are transaction based and the fee is recognized with the processing of the transaction. These fees are reported net of cardholder rewards. Other Service Charges and Fees – these are comprised primarily of merchant card fees, credit card fees, ATM surcharges and interchange fees and wire transfer fees. Merchant card fees represent fees the Bank earns from a third party for enrolling a customer in the processor’s program. Credit card fees represent a fee earned by the Bank for a successful referral to a card-issuing company. ATM surcharges and interchange fees are the result of Bank customers conducting ATM transactions that generate fee income and are processed through multiple card networks. All of these fees are transaction based and are recognized at the time of the transaction. Gains/Losses on the Sale of Other Real Estate – these are recognized when control of the property transfers to the buyer. Increases in the cash surrender value of life insurance and security transactions are not within the scope of ASC 606. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into longer-term revenue contracts with customers, and therefore, does not experience significant contract balances. Contract Acquisition Costs The Corporation expenses all contract acquisition costs as costs are incurred. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 1 Note 14. Commitments and Contingencies In the normal course of business, the Bank is a party to financial instruments that are not reflected in the accompanying financial statements and are commonly referred to as off-balance-sheet instruments. These financial instruments are entered into primarily to meet the financing needs of the Bank’s customers and include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the consolidated balance sheet. The Corporation’s exposure to credit loss in the event of nonperformance by other parties to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contract or notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance-sheet instruments. The Bank had the following outstanding commitments for the periods presented: March 31, December 31, (Dollars in thousands) 2020 2019 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 241,341 $ 248,251 Consumer commitments to extend credit (secured) 58,712 56,898 Consumer commitments to extend credit (unsecured) 5,146 5,088 $ 305,199 $ 310,237 Standby letters of credit $ 24,199 $ 26,382 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 with the exception of home equity lines and personal lines of credit and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank, is based on Management’s credit evaluation of the counterparty. Collateral for most commercial commitments varies but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. Collateral for secured consumer commitments consists of liens on residential real estate. Standby letters of credit are instruments issued by the Bank, which guarantee the beneficiary payment by the Bank in the event of default by the Bank’s customer in the nonperformance of an obligation or service. Most standby letters of credit are extended for one-year periods. Generally, the credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral supporting those commitments for which collateral is deemed necessary primarily in the form of certificates of deposit and liens on real estate. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. As of June 30, 2018, the Bank established a $ 2.4 million allowance against letters of credit issued in connection with a commercial borrower that declared bankruptcy. In the first quarter of 2020, the Bank reversed $ 250 thousand of this reserve as one letter of credit was cancelled. At March 31, 2020 this reserve was $ 2.1 million. Except for the liability recorded for standby letters of credit, liabilities for credit loss associated with off-balance sheet commitments were not material at March 31, 2020 and December 31, 2019. Most of the Bank’s business activity is with customers located within its primary market and does not involve any significant concentrations of credit to any one entity or industry. Legal Proceedings The nature of the Corporation’s business generates a certain amount of litigation. We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable, and the amount of the loss can be reasonably estimated. When we are able to do so, we also determine estimates of possible losses, whether in excess of any accrued liability or where there is no accrued liability. These assessments are based on our analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties. As new information is obtained, we may change our assessments and, as a result, take or adjust the amounts of our accruals and change our estimates of possible losses or ranges of possible losses. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts that may be accrued or included in estimates of possible losses or ranges of possible losses may not represent the actual loss to the Corporation from any legal proceeding. Our exposure and ultimate losses may be higher, possibly significantly higher, than amounts we may accrue or amounts we may estimate. In management’s opinion, we do not anticipate, at the present time, that the ultimate aggregate liability, if any, arising out of all litigation to which the Corporation is a party at this time will have a material adverse effect on our financial position. We cannot now determine, however, whether or not any claim asserted against us will have a material adverse effect on our results of operations in any future reporting period, which will depend on, amount other things, the amount of loss resulting from the claim and the amount of income otherwise reported for the reporting period. Thus, at March 31, 2020, we are unable to provide an evaluation of the likelihood of an unfavorable outcome or an estimate of the amount or range of potential loss with respect to such other matters and, accordingly, have not yet established any specific accrual for such other matters. No material proceedings are pending or are known to be threatened or contemplated against us by governmental authorities. |
Risk Factors
Risk Factors | 3 Months Ended |
Mar. 31, 2020 | |
Risk Factors [Abstract] | |
Risk Factors | Note 15. Risk Factors In December 2019, a novel strain of coronavirus surfaced in Wuhan, China, and has spread around the world, with resulting business and social disruption. The coronavirus was declared a Pandemic by the World Health Organization on March 11, 2020. The operations and business results of the Corporation could be materially adversely affected. The ability of our customers to make payments on loans could be adversely impacted, resulting in elevated loan losses and an increase in the Corporation’s allowance for loan losses. Additionally, it is reasonably possible future evaluations of the carrying amount of goodwill could result in a conclusion that goodwill is impaired. The extent to which the coronavirus may impact business activity or investment results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions required to contain the coronavirus or treat its impact, among others. |
Reclassification
Reclassification | 3 Months Ended |
Mar. 31, 2020 | |
Reclassification [Abstract] | |
Reclassification | Note 16. Reclassification Certain prior period amounts may have been reclassified to conform to the current year presentation. Such reclassifications did not affect reported net income . |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Basis Of Presentation [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation), and its wholly owned subsidiaries, Farmers and Merchants Trust Company of Chambersburg (the Bank) and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank that has one wholly owned subsidiary, Franklin Financial Properties Corp. Franklin Financial Properties Corp. holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions and account balances have been eliminated. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows as of March 31, 2020, and for all other periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2019 Annual Report on Form 10-K. The consolidated results of operations for the three-month period ended March 31, 2020 are not necessarily indicative of the operating results for the full year. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks and cash items with original maturities less than 90 days. |
Earnings Per Share | Earnings per share are computed based on the weighted average number of shares outstanding during each period end. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: For the Three Months Ended March 31, (Dollars and shares in thousands, except per share data) 2020 2019 Weighted average shares outstanding (basic) 4,347 4,412 Impact of common stock equivalents 14 21 Weighted average shares outstanding (diluted) 4,361 4,433 Anti-dilutive options excluded from calculation 50 — Net income $ 1,719 $ 3,237 Basic earnings per share $ 0.40 $ 0.73 Diluted earnings per share $ 0.39 $ 0.73 |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Basis Of Presentation [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | For the Three Months Ended March 31, (Dollars and shares in thousands, except per share data) 2020 2019 Weighted average shares outstanding (basic) 4,347 4,412 Impact of common stock equivalents 14 21 Weighted average shares outstanding (diluted) 4,361 4,433 Anti-dilutive options excluded from calculation 50 — Net income $ 1,719 $ 3,237 Basic earnings per share $ 0.40 $ 0.73 Diluted earnings per share $ 0.39 $ 0.73 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | ASU 2017-04, Goodwill (Topic 350) Description This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this standard, goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under the current guidance. Early adoption is permitted for any impairment tests performed after January 1, 2017, applied prospectively. Effective Date January 1, 2020 Effect on the Consolidated Financial Statements The Corporation early adopted the ASU in the fourth quarter of 2018 with the completion of the 2018 impairment analysis. The ASU did not have a material effect on the consolidated financial statements. ASU 2018-14, Disclosure Framework (Topic 715): Changes to the Disclosure Requirements for Defined Benefit Plans Description This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. Effective Date January 1, 2020 Effect on the Consolidated Financial Statements The Corporation adopted the provisions of the ASU on January 1, 2020. As the ASU only revised disclosure requirements, it did not have a material effect on the consolidated financial statements. Recently issued but not yet effective accounting standards ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Description This standard requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements We have formed an implementation team led by the Corporation's Risk Management function. The team is reviewing the requirements of the ASU and evaluating methods and models for implementation. The new standard will result in earlier recognition of additions to the allowance for loan losses and possibly a larger allowance for loan loss balance with a corresponding increase in the provision for loan losses in results of operations; however, the Corporation is continuing to evaluate the impact of the pending adoption of the new standard on its consolidated financial statements. A third-party vendor has been selected to assist with the CECL calculations and the implementation process has started. The Corporation expects to be able to run the CECL model in test mode in 2020. ASU 2019-05, Financial Instruments - Credit Losses (Topic 326):Targeted Transition Relief Description This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13. On October 16,2019, FASB approved its August 2019 proposal to grant certain small public companies a delay in the effective date of ASU 2016-13. For the Corporation, the delay makes the ASU effective January 2023. Since the Corporation currently meets the SEC definition of a small reporting company, the delay will be application to the Corporation. Early adoption is permitted. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation will continue to review the ASU as part of its adoption of ASU 2016-13. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | Unrealized Gains and Losses on Available-for-sale Defined Benefit (Dollars in thousands) Securities Pension Items Total March 31, 2020 Beginning Balance $ 185 $ ( 6,171 ) $ ( 5,986 ) Other comprehensive income before reclassification 1,618 — 1,618 Amounts reclassified from accumulated other comprehensive income 8 — 8 Current period other comprehensive income 1,626 — 1,626 Ending balance $ 1,811 $ ( 6,171 ) $ ( 4,360 ) March 31, 2019 Beginning Balance $ ( 870 ) $ ( 5,510 ) $ ( 6,380 ) Other comprehensive income before reclassification 1,117 — 1,117 Amounts reclassified from accumulated other comprehensive income ( 18 ) — ( 18 ) Current period other comprehensive income 1,099 — 1,099 Ending balance $ 229 $ ( 5,510 ) $ ( 5,281 ) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Unrealized Gain (Loss) On Investments | (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair March 31, 2020 cost gains losses value U.S. Government and Agency securities $ 13,602 $ 57 $ ( 34 ) $ 13,625 Municipal securities 94,560 2,892 ( 242 ) 97,210 Trust preferred securities 4,102 — ( 556 ) 3,546 Agency mortgage-backed securities 68,970 1,638 ( 461 ) 70,147 Private-label mortgage-backed securities 316 11 ( 4 ) 323 Asset-backed securities 24,197 28 ( 1,036 ) 23,189 $ 205,747 $ 4,626 $ ( 2,333 ) $ 208,040 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2019 cost gains losses value U.S. Government and Agency securities $ 8,418 $ 30 $ ( 20 ) $ 8,428 Municipal securities 90,865 1,418 ( 997 ) 91,286 Trust preferred securities 4,097 — ( 130 ) 3,967 Agency mortgage-backed securities 58,503 435 ( 234 ) 58,704 Private-label mortgage-backed securities 398 31 — 429 Asset-backed securities 24,918 6 ( 305 ) 24,619 $ 187,199 $ 1,920 $ ( 1,686 ) $ 187,433 |
Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity | (Dollars in thousands) Amortized cost Fair value Due in one year or less $ 12,900 $ 12,978 Due after one year through five years 31,461 31,369 Due after five years through ten years 76,697 77,637 Due after ten years 15,403 15,586 136,461 137,570 Mortgage-backed securities 69,286 70,470 $ 205,747 $ 208,040 |
Composition Of Net Realized Securities Gains | For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Proceeds $ 165 $ 3,876 Gross gains realized — 33 Gross losses realized ( 10 ) ( 9 ) Net gains (losses) realized $ ( 10 ) $ 24 Tax benefit (provision) on net (losses) gains realized $ 2 $ ( 5 ) |
Schedule Of Unrealized Loss On Investments | March 31, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 6,681 $ ( 27 ) 8 $ 1,284 $ ( 7 ) 7 $ 7,965 $ ( 34 ) 15 Municipal securities 19,666 ( 235 ) 21 796 ( 7 ) 1 20,462 ( 242 ) 22 Trust preferred securities 840 ( 119 ) 1 2,706 ( 437 ) 4 3,546 ( 556 ) 5 Agency mortgage-backed securities 22,506 ( 459 ) 35 312 ( 2 ) 1 22,818 ( 461 ) 36 Private-label mortgage-backed securities 123 ( 4 ) 1 — — — 123 ( 4 ) 1 Asset-backed securities 15,252 ( 554 ) 16 6,300 ( 482 ) 10 21,552 ( 1,036 ) 26 Total temporarily impaired securities $ 65,068 $ ( 1,398 ) 82 $ 11,398 $ ( 935 ) 23 $ 76,466 $ ( 2,333 ) 105 December 31, 2019 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 2,559 $ ( 12 ) 6 $ 1,335 $ ( 8 ) 7 $ 3,894 $ ( 20 ) 13 Municipal securities 38,874 ( 966 ) 40 2,655 ( 31 ) 4 41,529 ( 997 ) 44 Trust preferred securities — — — 3,967 ( 130 ) 5 3,967 ( 130 ) 5 Agency mortgage-backed securities 21,185 ( 185 ) 32 6,555 ( 49 ) 22 27,740 ( 234 ) 54 Asset-backed securities 17,644 ( 128 ) 19 5,669 ( 177 ) 9 23,313 ( 305 ) 28 Total temporarily impaired securities $ 80,262 $ ( 1,291 ) 97 $ 20,181 $ ( 395 ) 47 $ 100,443 $ ( 1,686 ) 144 |
Other Than Temporary Impairment, Credit Losses Recognized In Earnings | Three Months Ended (Dollars in thousands) March 31, 2020 2019 Balance of cumulative credit-related OTTI at January 1 $ 272 $ 272 Additions for credit-related OTTI not previously recognized — — Additional increases for credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis — — Decreases for previously recognized credit-related OTTI because there was an intent to sell — — Reduction for increases in cash flows expected to be collected — — Balance of credit-related OTTI at March 31 $ 272 $ 272 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans [Abstract] | |
Schedule Of Loans Outstanding | March 31, December 31, (Dollars in thousands) 2020 2019 Residential Real Estate 1-4 Family Consumer first liens $ 82,719 $ 85,319 Commercial first lien 60,587 57,627 Total first liens 143,306 142,946 Consumer junior liens and lines of credit 45,269 42,715 Commercial junior liens and lines of credit 5,397 4,882 Total junior liens and lines of credit 50,666 47,597 Total residential real estate 1-4 family 193,972 190,543 Residential real estate - construction Consumer 4,523 4,107 Commercial 10,959 9,216 Total residential real estate construction 15,482 13,323 Commercial real estate 494,143 494,262 Commercial 226,128 230,007 Total commercial 720,271 724,269 Consumer 6,661 6,440 936,386 934,575 Less: Allowance for loan losses ( 14,730 ) ( 11,966 ) Net Loans $ 921,656 $ 922,609 Included in the loan balances are the following: Net unamortized deferred loan (fees) costs $ 397 $ 178 Loans pledged as collateral for borrowings and commitments from: FHLB $ 764,056 $ 764,340 Federal Reserve Bank 49,636 32,155 $ 813,692 $ 796,495 |
Loan Quality And Allowance Fo_2
Loan Quality And Allowance For Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loan Quality And Allowance For Loan Losses [Abstract] | |
Allowance For Loan Losses, By Loan Segment | The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at December 31, 2019 $ 416 $ 119 $ 184 $ 6,022 $ 3,815 $ 84 $ 1,326 $ 11,966 Charge-offs — — — — ( 220 ) ( 30 ) — ( 250 ) Recoveries 3 — — — 5 6 — 14 Provision 144 59 82 1,582 886 38 209 3,000 ALL at March 31, 2020 $ 563 $ 178 $ 266 $ 7,604 $ 4,486 $ 98 $ 1,535 $ 14,730 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 Charge-offs ( 33 ) ( 1 ) ( 3 ) ( 63 ) ( 61 ) ( 26 ) — ( 187 ) Recoveries 1 — — 1 42 10 — 54 Provision 28 — 47 270 70 18 ( 34 ) 399 ALL at March 31, 2019 $ 487 $ 132 $ 152 $ 5,906 $ 4,562 $ 72 $ 1,370 $ 12,681 The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of March 31, 2020 and December 31, 2019: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total March 31, 2020 Loans evaluated for ALL: Individually $ 653 $ — $ 521 $ 10,795 $ — $ — $ — $ 11,969 Collectively 142,653 50,666 14,961 483,348 226,128 6,661 — 924,417 Total $ 143,306 $ 50,666 $ 15,482 $ 494,143 $ 226,128 $ 6,661 $ — $ 936,386 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 563 178 266 7,604 4,486 98 1,535 14,730 ALL at March 31, 2020 $ 563 $ 178 $ 266 $ 7,604 $ 4,486 $ 98 $ 1,535 $ 14,730 December 31, 2019 Loans evaluated for ALL: Individually $ 659 $ — $ 523 $ 10,994 $ — $ — $ — $ 12,176 Collectively 142,287 47,597 12,800 483,268 230,007 6,440 — 922,399 Total $ 142,946 $ 47,597 $ 13,323 $ 494,262 $ 230,007 $ 6,440 $ — $ 934,575 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 416 119 184 6,022 3,815 84 1,326 11,966 ALL at December 31, 2019 $ 416 $ 119 $ 184 $ 6,022 $ 3,815 $ 84 $ 1,326 $ 11,966 |
Impaired Financing Receivables | The following table shows additional information about those loans considered to be impaired at March 31, 2020 and December 31, 2019: Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related March 31, 2020 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 653 $ 653 $ — $ — $ — Junior liens and lines of credit — — — — — Total 653 653 — — — Residential real estate - construction 521 729 — — — Commercial real estate 10,795 11,909 — — — Commercial — — — — — Total $ 11,969 $ 13,291 $ — $ — $ — December 31, 2019 Residential Real Estate 1-4 Family First liens $ 659 $ 659 $ — $ — $ — Junior liens and lines of credit — — — — — Total 659 659 — — — Residential real estate - construction 523 729 — — — Commercial real estate 10,994 12,096 — — — Commercial — — — — — Total $ 12,176 $ 13,484 $ — $ — $ — The following table shows the average of impaired loans and related interest income for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 656 $ 10 Junior liens and lines of credit — — Total 656 10 Residential real estate - construction 521 — Commercial real estate 10,899 94 Commercial — — Total $ 12,076 $ 104 Three Months Ended March 31, 2019 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 893 $ 11 Junior liens and lines of credit 44 — Total 937 11 Residential real estate - construction 653 — Commercial real estate 13,494 102 Commercial 129 — Total $ 15,213 $ 113 |
Aging Of Payments Of The Loan Portfolio | (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans March 31, 2020 Residential Real Estate 1-4 Family First liens $ 142,621 $ 588 $ 55 $ 1 $ 644 $ 41 $ 143,306 Junior liens and lines of credit 50,581 40 — 31 71 14 50,666 Total 193,202 628 55 32 715 55 193,972 Residential real estate - construction 14,961 — — — — 521 15,482 Commercial real estate 490,468 110 643 — 753 2,922 494,143 Commercial 225,310 288 355 — 643 175 226,128 Consumer 6,625 30 6 — 36 — 6,661 Total $ 930,566 $ 1,056 $ 1,059 $ 32 $ 2,147 $ 3,673 $ 936,386 December 31, 2019 Residential Real Estate 1-4 Family First liens $ 141,843 $ 646 $ 358 $ 31 $ 1,035 $ 68 $ 142,946 Junior liens and lines of credit 47,420 70 30 46 146 31 47,597 Total 189,263 716 388 77 1,181 99 190,543 Residential real estate - construction 12,800 — — — — 523 13,323 Commercial real estate 490,114 813 326 — 1,139 3,009 494,262 Commercial 229,659 31 120 — 151 197 230,007 Consumer 6,397 25 18 — 43 — 6,440 Total $ 928,233 $ 1,585 $ 852 $ 77 $ 2,514 $ 3,828 $ 934,575 |
Internal Credit Rating For The Loan Portfolio | Pass OAEM Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total March 31, 2020 Residential Real Estate 1-4 Family First liens $ 143,264 $ — $ 42 $ — $ 143,306 Junior liens and lines of credit 50,621 — 45 — 50,666 Total 193,885 — 87 — 193,972 Residential real estate - construction 14,961 — 521 — 15,482 Commercial real estate 484,031 5,951 4,161 — 494,143 Commercial 225,737 — 391 — 226,128 Consumer 6,661 — — — 6,661 Total $ 925,275 $ 5,951 $ 5,160 $ — $ 936,386 December 31, 2019 Residential Real Estate 1-4 Family First liens $ 142,847 $ — $ 99 $ — $ 142,946 Junior liens and lines of credit 47,520 — 77 — 47,597 Total 190,367 — 176 — 190,543 Residential real estate - construction 12,800 — 523 — 13,323 Commercial real estate 483,878 5,875 4,509 — 494,262 Commercial 229,465 4 538 — 230,007 Consumer 6,440 — — — 6,440 Total $ 922,950 $ 5,879 $ 5,746 $ — $ 934,575 |
Troubled Debt Restructuring Loans | Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment March 31, 2020 Residential real estate - construction 1 443 $ 443 $ — — $ — Residential real estate 4 652 652 — — — Commercial real estate 11 9,220 8,244 976 — — Total 16 $ 10,315 $ 9,339 $ 976 — $ — December 31, 2019 Residential real estate - construction 1 $ 444 $ 444 $ — — $ — Residential real estate 4 659 659 — — — Commercial real estate 11 9,343 9,343 — — — Total 16 $ 10,446 $ 10,446 $ — — $ — * The performing status is determined by the loan’s compliance with the modified terms . |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule Of Lease Costs | Three Months Ended Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 158 $ 188 Short-term lease cost 2 6 Variable lease cost 14 11 Total lease cost $ 174 $ 205 |
Schedule Of Measurement Of Lease Liabilities | Three Months Ended Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 152 123 Weighted-average remaining lease term (years) 12.8 13.7 Weighted-average discount rate 3.53 % 3.54 % |
Schedule Of Future Minimum Payments Operating Leases | (Dollars in thousands) 2020 $ 577 2021 556 2022 546 2023 552 2024 508 2025 and beyond 3,756 Undiscounted cash flow 6,495 Imputed Interest ( 1,336 ) Total lease liability $ 5,159 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Real Estate Owned [Abstract] | |
Summary Of Changes In Other Real Estate Owned | Three Months Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of the period $ — $ 2,684 Additions — — Proceeds from dispositions — — Gains on sales, net — — Valuation adjustment — — Balance at the end of the period $ — $ 2,684 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivatives [Abstract] | |
Schedule Of Fair Value Of Derivative Instruments | Fair Value of Derivative Instruments Derivative Liabilities (Dollars in thousands) March 31, 2020 March 31, 2019 Notional amount Balance Sheet Location Fair Value Notional amount Balance Sheet Location Fair Value Derivatives not designated as hedging instruments Other Contracts 6,967 Other Liabilities $ 55 — Other Liabilities $ — Total derivatives not designated as hedging instruments $ 55 $ — |
Schedule Of Effect Of Derivative Instruments On The Statement Of Income | Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Financial Performance Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Three Months Ended March 31, 2020 March 31, 2019 Other Contracts Other income/(expense) $ ( 36 ) $ - |
Pension (Tables)
Pension (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Pension [Abstract] | |
Schedule Of Net Periodic Pension Costs | Three Months Ended March 31, (Dollars in thousands) 2020 2019 Components of net periodic cost: Service cost $ 83 $ 80 Interest cost 131 158 Expected return on plan assets ( 269 ) ( 270 ) Recognized net actuarial loss 226 152 Total pension expense $ 171 $ 120 |
Fair Value Measurements And F_2
Fair Value Measurements And Fair Values Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | (Dollars in thousands) Fair Value at March 31, 2020 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 313 $ — $ — $ 313 Available for sale: U.S. Government and Agency securities — 13,625 — 13,625 Municipal securities — 97,210 — 97,210 Trust preferred securities — 3,546 — 3,546 Agency mortgage-backed securities — 70,147 — 70,147 Private-label mortgage-backed securities — 323 — 323 Asset-backed securities — 23,189 — 23,189 Total assets $ 313 $ 208,040 $ — $ 208,353 (Dollars in thousands) Fair Value at December 31, 2019 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 440 $ — $ — $ 440 Available for sale: U.S. Government and Agency securities — 8,428 — 8,428 Municipal securities — 91,286 — 91,286 Trust preferred securities — 3,967 — 3,967 Agency mortgage-backed securities — 58,704 — 58,704 Private-label mortgage-backed securities — 429 — 429 Asset-backed securities — 24,619 — 24,619 Total assets $ 440 $ 187,433 $ — $ 187,873 |
Schedule Of Fair Value On A Nonrecurring Basis | (Dollars in Thousands) Fair Value at December 31, 2019 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ — $ — $ 1,080 $ 1,080 Total assets $ — $ — $ 1,080 $ 1,080 (1) Includes assets directly charged-down to fair value during the year-to-date period. |
Fair Value Inputs, Assets, Quantitative Information | (Dollars in thousands) December 31, 2019 Fair Value Valuation Technique Unobservable Input Weighted Average Impaired loans $ 1,080 Appraisal Appraisal Adjustments 0 % - 100 % ( 48 %) (1) Includes assets directly charged-down to fair value during the year-to-date period. |
Fair Value, By Balance Sheet Grouping | March 31, 2020 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 53,350 $ 53,350 $ 53,350 $ — $ — Long-term interest-bearing deposits in other banks 10,738 10,738 10,738 — — Loans held for sale 2,751 2,751 — 2,751 — Net loans 921,656 921,269 — — 921,269 Accrued interest receivable 3,789 3,789 — — 3,789 Financial liabilities: Deposits $ 1,117,433 $ 1,118,307 $ — $ 1,118,307 $ — Accrued interest payable 302 302 — 302 — December 31, 2019 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 83,828 $ 83,828 $ 83,828 $ — $ — Long-term interest-bearing deposits in other banks 8,746 8,746 8,746 — — Loans held for sale 2,040 2,040 — 2,040 — Net loans 922,609 918,640 — — 918,640 Accrued interest receivable 3,845 3,845 — — 3,845 Financial liabilities: Deposits $ 1,125,392 $ 1,125,877 $ — $ 1,125,877 $ — Accrued interest payable 436 436 — 436 — |
Capital Ratios (Tables)
Capital Ratios (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Capital Ratios [Abstract] | |
Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements | Regulatory Ratios Adequately Well March 31, December 31, Capitalized Capitalized (Dollars in thousands) 2020 2019 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 14.73 % 14.82 % N/A N/A Farmers & Merchants Trust Company 14.52 % 14.62 % 4.500 % 6.50 % Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 14.73 % 14.82 % N/A N/A Farmers & Merchants Trust Company 14.52 % 14.62 % 6.000 % 8.00 % Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 15.99 % 16.08 % N/A N/A Farmers & Merchants Trust Company 15.78 % 15.87 % 8.000 % 10.00 % Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 9.85 % 9.72 % N/A N/A Farmers & Merchants Trust Company 9.71 % 9.59 % 4.000 % 5.00 % (1) Common equity Tier 1 capital/ total risk-weighted assets (2) Tier 1 capital / total risk-weighted assets (3) Total risk-based capital / total risk-weighted assets, (4) Tier 1 capital / average quarterly assets |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Outstanding Commitments | March 31, December 31, (Dollars in thousands) 2020 2019 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 241,341 $ 248,251 Consumer commitments to extend credit (secured) 58,712 56,898 Consumer commitments to extend credit (unsecured) 5,146 5,088 $ 305,199 $ 310,237 Standby letters of credit $ 24,199 $ 26,382 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basis Of Presentation [Abstract] | ||
Weighted average shares outstanding (basic) | 4,347 | 4,412 |
Impact of common stock equivalents | 14 | 21 |
Weighted average shares outstanding (diluted) | 4,361 | 4,433 |
Anti-dilutive options excluded from calculation | 50 | |
Net income | $ 1,719 | $ 3,237 |
Basic earnings per share | $ 0.40 | $ 0.73 |
Diluted earnings per share | $ 0.39 | $ 0.73 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Recent Accounting Pronouncements [Abstract] | ||
Right of use asset | $ 5,118 | $ 5,126 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 127,528 | $ 118,396 |
Balance | 129,005 | 121,491 |
Unrealized Gains And Losses On Available-for-sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 185 | (870) |
Other comprehensive income before reclassification | 1,618 | 1,117 |
Amounts reclassified from accumulated other comprehensive income | (8) | (18) |
Current period other comprehensive income | 1,626 | 1,099 |
Balance | 1,811 | 229 |
Defined Benefit Pension Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (6,171) | (5,510) |
Other comprehensive income before reclassification | ||
Amounts reclassified from accumulated other comprehensive income | ||
Current period other comprehensive income | ||
Balance | (6,171) | (5,510) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (5,986) | (6,380) |
Other comprehensive income before reclassification | 1,618 | 1,117 |
Amounts reclassified from accumulated other comprehensive income | (8) | (18) |
Current period other comprehensive income | 1,626 | 1,099 |
Balance | $ (4,360) | $ (5,281) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Investments [Abstract] | ||
Number of temporarily impaired securities | security | 105 | 144 |
Unrealized Losses | $ 2,333 | $ 1,686 |
Number of investments | security | 105 | |
Equity securities held | security | 1 | |
Securities pledged as collateral | $ 98,000 | 107,100 |
Unrealized Gain (Loss) on Securities | (2,300) | |
Gross Unrealized Gain (Loss) | 647 | |
Other-than-temporary-impairment charges | 76,500 | |
Restricted stock | 465 | 465 |
Equity securities | $ 313 | $ 440 |
Investments (Unrealized Gain (l
Investments (Unrealized Gain (loss) On Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 205,747 | |
Gross unrealized gains | 4,626 | |
Gross unrealized losses | (2,333) | |
Available for sale | 208,040 | |
Before Adoption Of ASU 2016-01 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 187,199 | |
Gross unrealized gains | 1,920 | |
Gross unrealized losses | (1,686) | |
Available for sale | 187,433 | |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 13,602 | 8,418 |
Gross unrealized gains | 57 | 30 |
Gross unrealized losses | (34) | (20) |
Available for sale | 13,625 | 8,428 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 94,560 | 90,865 |
Gross unrealized gains | 2,892 | 1,418 |
Gross unrealized losses | (242) | (997) |
Available for sale | 97,210 | 91,286 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 4,102 | 4,097 |
Gross unrealized losses | (556) | (130) |
Available for sale | 3,546 | 3,967 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 68,970 | 58,503 |
Gross unrealized gains | 1,638 | 435 |
Gross unrealized losses | (461) | (234) |
Available for sale | 70,147 | 58,704 |
Private-Label Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 316 | 398 |
Gross unrealized gains | 11 | 31 |
Gross unrealized losses | (4) | |
Available for sale | 323 | 429 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 24,197 | 24,918 |
Gross unrealized gains | 28 | 6 |
Gross unrealized losses | (1,036) | (305) |
Available for sale | $ 23,189 | $ 24,619 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Due in one year or less, Amortized cost | $ 12,900 | |
Due after one year through five years, Amortized cost | 31,461 | |
Due after five years through ten years, Amortized cost | 76,697 | |
Due after ten years, Amortized cost | 15,403 | |
Amortized Cost Contractual Maturities Subtotal | 136,461 | |
Mortgage-backed securities, Amortized cost | 69,286 | |
Available-for-sale Securities, Debt Maturities, Amortized cost | 205,747 | |
Due in one year or less, Fair value | 12,978 | |
Due after one year through five years, Fair value | 31,369 | |
Due after five years through ten years, Fair value | 77,637 | |
Due after ten years, Fair value | 15,586 | |
Fair Value Contractual Maturities Subtotal | 137,570 | |
Mortgage-backed securities, Fair value | 70,470 | |
Available-for-sale Securities, Debt Securities, Fair Value | $ 208,040 | $ 187,433 |
Investments (Composition Of Net
Investments (Composition Of Net Realized Securities Gains) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments [Abstract] | ||
Proceeds | $ 165 | $ 3,876 |
Gross gains realized | 33 | |
Gross losses realized | (10) | (9) |
Net gains realized | (10) | 24 |
Tax (provision) benefit on net gains (losses) realized | $ 2 | $ (5) |
Investments (Schedule Of Unreal
Investments (Schedule Of Unrealized Loss On Investments) (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 65,068 | $ 80,262 |
Less than 12 months: Unrealized Losses | $ (1,398) | $ (1,291) |
Less than 12 months: Count | security | 82 | 97 |
12 months or more: Fair Value | $ 11,398 | $ 20,181 |
12 months or more: Unrealized Losses | $ (935) | $ (395) |
12 months or more: Count | security | 23 | 47 |
Fair Value | $ 76,466 | $ 100,443 |
Unrealized Losses | $ (2,333) | $ (1,686) |
Count | security | 105 | 144 |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 6,681 | $ 2,559 |
Less than 12 months: Unrealized Losses | $ (27) | $ (12) |
Less than 12 months: Count | security | 8 | 6 |
12 months or more: Fair Value | $ 1,284 | $ 1,335 |
12 months or more: Unrealized Losses | $ (7) | $ (8) |
12 months or more: Count | security | 7 | 7 |
Fair Value | $ 7,965 | $ 3,894 |
Unrealized Losses | $ (34) | $ (20) |
Count | security | 15 | 13 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 19,666 | $ 38,874 |
Less than 12 months: Unrealized Losses | $ (235) | $ (966) |
Less than 12 months: Count | security | 21 | 40 |
12 months or more: Fair Value | $ 796 | $ 2,655 |
12 months or more: Unrealized Losses | $ (7) | $ (31) |
12 months or more: Count | security | 1 | 4 |
Fair Value | $ 20,462 | $ 41,529 |
Unrealized Losses | $ (242) | $ (997) |
Count | security | 22 | 44 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 840 | |
Less than 12 months: Unrealized Losses | $ (119) | |
Less than 12 months: Count | security | 1 | |
12 months or more: Fair Value | $ 2,706 | $ 3,967 |
12 months or more: Unrealized Losses | $ (437) | $ (130) |
12 months or more: Count | security | 4 | 5 |
Fair Value | $ 3,546 | $ 3,967 |
Unrealized Losses | $ (556) | $ (130) |
Count | security | 5 | 5 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 22,506 | $ 21,185 |
Less than 12 months: Unrealized Losses | $ (459) | $ (185) |
Less than 12 months: Count | security | 35 | 32 |
12 months or more: Fair Value | $ 312 | $ 6,555 |
12 months or more: Unrealized Losses | $ (2) | $ (49) |
12 months or more: Count | security | 1 | 22 |
Fair Value | $ 22,818 | $ 27,740 |
Unrealized Losses | $ (461) | $ (234) |
Count | security | 36 | 54 |
Private-Label Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 123 | |
Less than 12 months: Unrealized Losses | $ (4) | |
Less than 12 months: Count | security | 1 | |
Fair Value | $ 123 | |
Unrealized Losses | $ (4) | |
Count | security | 1 | |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 15,252 | $ 17,644 |
Less than 12 months: Unrealized Losses | $ (554) | $ (128) |
Less than 12 months: Count | security | 16 | 19 |
12 months or more: Fair Value | $ 6,300 | $ 5,669 |
12 months or more: Unrealized Losses | $ (482) | $ (177) |
12 months or more: Count | security | 10 | 9 |
Fair Value | $ 21,552 | $ 23,313 |
Unrealized Losses | $ (1,036) | $ (305) |
Count | security | 26 | 28 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairment, Credit Losses Recognized In Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments [Abstract] | ||
Balance of cumulative credit-related OTTI at January 1 | $ 272 | $ 272 |
Additions for credit-related OTTI not previously recognized | ||
Additional increases for credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis | ||
Decreases for previously recognized credit-related OTTI because there was an intent to sell | ||
Reduction for increases in cash flows expected to be collected | ||
Balance of credit-related OTTI at March 31 | $ 272 | $ 272 |
Loans (Schedule Of Loans Outsta
Loans (Schedule Of Loans Outstanding) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 936,386 | $ 934,575 |
Less: Allowance for loan losses | (14,730) | (11,966) |
Net Loans | 921,656 | 922,609 |
Net unamortized deferred loan (fees) costs | 397 | 178 |
Loans pledged as collateral for borrowings and commitments from: FHLB | 764,056 | 764,340 |
Loans pledged as collateral for borrowings and commitments from :Federal Reserve Bank | 49,636 | 32,155 |
Total | 813,692 | 796,495 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 193,972 | 190,543 |
Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,482 | 13,323 |
Less: Allowance for loan losses | (266) | (184) |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 494,143 | 494,262 |
Less: Allowance for loan losses | (7,604) | (6,022) |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 226,128 | 230,007 |
Less: Allowance for loan losses | (4,486) | (3,815) |
Total Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 720,271 | 724,269 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,661 | 6,440 |
Less: Allowance for loan losses | (98) | (84) |
Consumer First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 82,719 | 85,319 |
Consumer Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 45,269 | 42,715 |
Consumer [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,523 | 4,107 |
Commercial First Lien [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 60,587 | 57,627 |
Commercial Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,397 | 4,882 |
Commercial [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,959 | 9,216 |
First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 143,306 | 142,946 |
Less: Allowance for loan losses | (563) | (416) |
Junior Lines And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 50,666 | $ 47,597 |
Loan Quality And Allowance Fo_3
Loan Quality And Allowance For Loan Losses (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020item | Dec. 31, 2019item | Apr. 30, 2020USD ($) | |
New During Period, Number of Contracts | item | 0 | 0 | |
Short-term Modification Period | 6 months | ||
Subsequent Event [Member] | |||
Loan Deferral Or Modification, Granted, Amount | $ | $ 30 | ||
Loan Deferral Or Modification Granted, Percentage Of Gross Loans | 3.00% |
Loan Quality And Allowance Fo_4
Loan Quality And Allowance For Loan Losses (Allowance For Loan Losses, By Loan Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | $ 11,966 | $ 12,415 | |
Charge-offs | (250) | (187) | |
Recoveries | 14 | 54 | |
Provision | 3,000 | 399 | |
Allowance, Ending Balance | 14,730 | 12,681 | |
Loans evaluated for allowance individually | 11,969 | $ 12,176 | |
Loans evaluated for allowance collectively | 924,417 | 922,399 | |
Total Loans | 936,386 | 934,575 | |
Allowance established for loan evaluated collectively | 14,730 | 11,966 | |
Total Allowance | 14,730 | 11,966 | |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Loans | 193,972 | 190,543 | |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 184 | 108 | |
Charge-offs | (3) | ||
Provision | 82 | 47 | |
Allowance, Ending Balance | 266 | 152 | |
Loans evaluated for allowance individually | 521 | 523 | |
Loans evaluated for allowance collectively | 14,961 | 12,800 | |
Total Loans | 15,482 | 13,323 | |
Allowance established for loan evaluated collectively | 266 | 184 | |
Total Allowance | 266 | 184 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 6,022 | 5,698 | |
Charge-offs | (63) | ||
Recoveries | 1 | ||
Provision | 1,582 | 270 | |
Allowance, Ending Balance | 7,604 | 5,906 | |
Loans evaluated for allowance individually | 10,795 | 10,994 | |
Loans evaluated for allowance collectively | 483,348 | 483,268 | |
Total Loans | 494,143 | 494,262 | |
Allowance established for loan evaluated collectively | 7,604 | 6,022 | |
Total Allowance | 7,604 | 6,022 | |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 3,815 | 4,511 | |
Charge-offs | (220) | (61) | |
Recoveries | 5 | 42 | |
Provision | 886 | 70 | |
Allowance, Ending Balance | 4,486 | 4,562 | |
Loans evaluated for allowance collectively | 226,128 | 230,007 | |
Total Loans | 226,128 | 230,007 | |
Allowance established for loan evaluated collectively | 4,486 | 3,815 | |
Total Allowance | 4,486 | 3,815 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 84 | 70 | |
Charge-offs | (30) | (26) | |
Recoveries | 6 | 10 | |
Provision | 38 | 18 | |
Allowance, Ending Balance | 98 | 72 | |
Loans evaluated for allowance collectively | 6,661 | 6,440 | |
Total Loans | 6,661 | 6,440 | |
Allowance established for loan evaluated collectively | 98 | 84 | |
Total Allowance | 98 | 84 | |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 1,326 | 1,404 | |
Provision | 209 | (34) | |
Allowance, Ending Balance | 1,535 | 1,370 | |
Allowance established for loan evaluated collectively | 1,535 | 1,326 | |
Total Allowance | 1,535 | 1,326 | |
First Liens [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 416 | 491 | |
Charge-offs | (33) | ||
Recoveries | 3 | 1 | |
Provision | 144 | 28 | |
Allowance, Ending Balance | 563 | 487 | |
Loans evaluated for allowance individually | 653 | 659 | |
Loans evaluated for allowance collectively | 142,653 | 142,287 | |
Total Loans | 143,306 | 142,946 | |
Allowance established for loan evaluated collectively | 563 | 416 | |
Total Allowance | 563 | 416 | |
Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 119 | 133 | |
Charge-offs | (1) | ||
Provision | 59 | ||
Allowance, Ending Balance | 178 | $ 132 | |
Loans evaluated for allowance collectively | 50,666 | 47,597 | |
Total Loans | 50,666 | 47,597 | |
Allowance established for loan evaluated collectively | 178 | 119 | |
Total Allowance | $ 178 | $ 119 |
Loan Quality And Allowance Fo_5
Loan Quality And Allowance For Loan Losses (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | $ 11,969 | $ 12,176 | |
Unpaid Principal Balance With No Allowance | 13,291 | 13,484 | |
Average Recorded Investment | 12,076 | $ 15,213 | |
Interest Income Recognized | 104 | 113 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 653 | 659 | |
Unpaid Principal Balance With No Allowance | 653 | 659 | |
Average Recorded Investment | 656 | 937 | |
Interest Income Recognized | 10 | 11 | |
Residential Real Estate [Member] | First Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 653 | 659 | |
Unpaid Principal Balance With No Allowance | 653 | 659 | |
Average Recorded Investment | 656 | 893 | |
Interest Income Recognized | 10 | 11 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 44 | ||
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 521 | 523 | |
Unpaid Principal Balance With No Allowance | 729 | 729 | |
Average Recorded Investment | 521 | 653 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 10,795 | 10,994 | |
Unpaid Principal Balance With No Allowance | 11,909 | $ 12,096 | |
Average Recorded Investment | 10,899 | 13,494 | |
Interest Income Recognized | $ 94 | 102 | |
Commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 129 |
Loan Quality And Allowance Fo_6
Loan Quality And Allowance For Loan Losses (Aging Of Payments Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 930,566 | $ 928,233 |
Loans Past Due and Still Accruing | 2,147 | 2,514 |
Non-accrual loans | 3,673 | 3,828 |
Total Loans | 936,386 | 934,575 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 1,056 | 1,585 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 1,059 | 852 |
90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 32 | 77 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 193,202 | 189,263 |
Loans Past Due and Still Accruing | 715 | 1,181 |
Non-accrual loans | 55 | 99 |
Total Loans | 193,972 | 190,543 |
Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 628 | 716 |
Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 55 | 388 |
Residential Real Estate [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 32 | 77 |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 142,621 | 141,843 |
Loans Past Due and Still Accruing | 644 | 1,035 |
Non-accrual loans | 41 | 68 |
Total Loans | 143,306 | 142,946 |
Residential Real Estate [Member] | First Liens [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 588 | 646 |
Residential Real Estate [Member] | First Liens [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 55 | 358 |
Residential Real Estate [Member] | First Liens [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 1 | 31 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 50,581 | 47,420 |
Loans Past Due and Still Accruing | 71 | 146 |
Non-accrual loans | 14 | 31 |
Total Loans | 50,666 | 47,597 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 40 | 70 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 30 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 31 | 46 |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 14,961 | 12,800 |
Non-accrual loans | 521 | 523 |
Total Loans | 15,482 | 13,323 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 490,468 | 490,114 |
Loans Past Due and Still Accruing | 753 | 1,139 |
Non-accrual loans | 2,922 | 3,009 |
Total Loans | 494,143 | 494,262 |
Commercial Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 110 | 813 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 643 | 326 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 225,310 | 229,659 |
Loans Past Due and Still Accruing | 643 | 151 |
Non-accrual loans | 175 | 197 |
Total Loans | 226,128 | 230,007 |
Commercial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 288 | 31 |
Commercial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 355 | 120 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,625 | 6,397 |
Loans Past Due and Still Accruing | 36 | 43 |
Total Loans | 6,661 | 6,440 |
Consumer [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 30 | 25 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | $ 6 | $ 18 |
Loan Quality And Allowance Fo_7
Loan Quality And Allowance For Loan Losses (Internal Credit Rating For The Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 936,386 | $ 934,575 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 925,275 | 922,950 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 5,951 | 5,879 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 5,160 | 5,746 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 193,972 | 190,543 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 193,885 | 190,367 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 87 | 176 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 143,306 | 142,946 |
Residential Real Estate [Member] | First Liens [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 143,264 | 142,847 |
Residential Real Estate [Member] | First Liens [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 42 | 99 |
Residential Real Estate [Member] | First Liens [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 50,666 | 47,597 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 50,621 | 47,520 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 45 | 77 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 15,482 | 13,323 |
Residential Real Estate - Construction [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 14,961 | 12,800 |
Residential Real Estate - Construction [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 521 | 523 |
Residential Real Estate - Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 494,143 | 494,262 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 484,031 | 483,878 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 5,951 | 5,875 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4,161 | 4,509 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 226,128 | 230,007 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 225,737 | 229,465 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4 | |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 391 | 538 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 6,661 | 6,440 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 6,661 | 6,440 |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount |
Loan Quality And Allowance Fo_8
Loan Quality And Allowance For Loan Losses (Troubled Debt Restructuring Loans) (Details) $ in Thousands | Mar. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 16 | 16 | |
Troubled Debt Restructurings: Recorded Investment | $ 10,315 | $ 10,446 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | |||
Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | 9,339 | $ 10,446 |
Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 976 | |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 1 | 1 | |
Troubled Debt Restructurings: Recorded Investment | $ 443 | $ 444 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | |||
Residential Real Estate - Construction [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 443 | $ 444 |
Residential Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 4 | 4 | |
Troubled Debt Restructurings: Recorded Investment | $ 652 | $ 659 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | |||
Residential Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 652 | $ 659 |
Commercial Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 11 | 11 | |
Troubled Debt Restructurings: Recorded Investment | $ 9,220 | $ 9,343 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | |||
Commercial Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | 8,244 | $ 9,343 |
Commercial Real Estate [Member] | Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 976 | |
[1] | The performing status is determined by the loan’s compliance with the modified terms . |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right of use asset | $ 5,118 | $ 5,126 |
Lease liability | $ 5,159 | $ 5,161 |
Leases (Schedule Of Lease Costs
Leases (Schedule Of Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 158 | $ 188 |
Short-term lease cost | 2 | 6 |
Variable lease cost | 14 | 11 |
Total lease cost | $ 174 | $ 205 |
Leases (Schedule Of Measurement
Leases (Schedule Of Measurement Of Lease Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 152 | $ 123 |
Weighted-average remaining lease term (years) | 12 years 9 months 18 days | 13 years 8 months 12 days |
Weighted-average discount rate | 3.53% | 3.54% |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Payments Operating Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 577 | |
2021 | 556 | |
2022 | 546 | |
2023 | 552 | |
2024 | 508 | |
2025 and beyond | 3,756 | |
Undiscounted cash flow | 6,495 | |
Imputed Interest | (1,336) | |
Total lease liability | $ 5,159 | $ 5,161 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Real Estate Owned [Abstract] | ||
Balance at beginning of the period | $ 2,684 | |
Additions | ||
Proceeds from dispositions | ||
Gains on sales, net | ||
Valuation adjustment | ||
Balance at the end of the period | $ 2,684 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Derivatives [Abstract] | |
Derivative, net | $ 55 |
Derivatives (Schedule Of Fair V
Derivatives (Schedule Of Fair Value Of Derivative Instruments) (Details) - Not Designated as Hedging Instrument [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair Value | $ 55 |
Other Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 6,967 |
Fair Value | $ 55 |
Derivatives (Schedule Of Effect
Derivatives (Schedule Of Effect Of Derivative Instruments On The Statement Of Income) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Other Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ (36) |
Pension (Narrative) (Details)
Pension (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Pension [Abstract] | |||
Expected pension expense | $ 680 | ||
Pension expense | $ 171 | $ 120 | $ 421 |
Pension (Schedule Of Net Period
Pension (Schedule Of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Pension [Abstract] | |||
Service cost | $ 83 | $ 80 | |
Interest cost | 131 | 158 | |
Expected return on plan assets | (269) | (270) | |
Recognized net actuarial loss | 226 | 152 | |
Total pension expense | $ 171 | $ 120 | $ 421 |
Fair Value Measurements And F_3
Fair Value Measurements And Fair Values Of Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Total liabilities | $ 0 | |
Assets, Level 1 to Level 2 Transfers | 0 | |
Liabilities, Level 1 to Level 2 Transfers | 0 | |
Partial charge-offs on impaired loans | 0 | |
Fair Value, Nonrecurring [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 1,080,000 |
Fair Value Measurements And F_4
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 313 | $ 440 |
Available for sale | 208,040 | |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 208,353 | 187,873 |
Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 313 | 440 |
Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 208,040 | 187,433 |
Equity Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 313 | 440 |
Equity Securities [Member] | Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 313 | 440 |
U.S. Government And Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 13,625 | 8,428 |
U.S. Government And Agency Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 13,625 | 8,428 |
U.S. Government And Agency Securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 13,625 | 8,428 |
Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 97,210 | 91,286 |
Municipal Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 97,210 | 91,286 |
Municipal Securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 97,210 | 91,286 |
Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,546 | 3,967 |
Trust preferred securities | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,546 | 3,967 |
Trust preferred securities | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,546 | 3,967 |
Agency Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 70,147 | 58,704 |
Agency Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 70,147 | 58,704 |
Agency Mortgage-Backed Securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 70,147 | 58,704 |
Private-Label Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 323 | 429 |
Private-Label Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 323 | 429 |
Private-Label Mortgage-Backed Securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 323 | 429 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 23,189 | 24,619 |
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 23,189 | 24,619 |
Asset-Backed Securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | $ 23,189 | $ 24,619 |
Fair Value Measurements And F_5
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value On A Nonrecurring Basis) (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | $ 1,080,000 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,080,000 | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,080,000 | |
Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,080,000 |
Fair Value Measurements And F_6
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) - Impaired Loans [Member] - Significant Unobservable Inputs (Level 3) [Member] - Appraisal Adjustment [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 1,080 |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Quantitative Information Percentage | 0.00% |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Quantitative Information Percentage | 100.00% |
Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Quantitative Information Percentage | 48.00% |
Fair Value Measurements And F_7
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value, By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale, at fair value | $ 208,040 | |
Equity securities, at fair value | 313 | $ 440 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 53,350 | 83,828 |
Long-term interest-bearing deposits in other banks | 10,738 | 8,746 |
Loans held for sale | 2,751 | 2,040 |
Net loans | 921,656 | 922,609 |
Accrued interest receivable | 3,789 | 3,845 |
Deposits | 1,117,433 | 1,125,392 |
Accrued interest payable | 302 | 436 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 53,350 | 83,828 |
Long-term interest-bearing deposits in other banks | 10,738 | 8,746 |
Loans held for sale | 2,751 | 2,040 |
Net loans | 921,269 | 918,640 |
Accrued interest receivable | 3,789 | 3,845 |
Deposits | 1,118,307 | 1,125,877 |
Accrued interest payable | 302 | 436 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 53,350 | 83,828 |
Long-term interest-bearing deposits in other banks | 10,738 | 8,746 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for sale | 2,751 | 2,040 |
Deposits | 1,118,307 | 1,125,877 |
Accrued interest payable | 302 | 436 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loans | 921,269 | 918,640 |
Accrued interest receivable | $ 3,789 | 3,845 |
Before Adoption Of ASU 2016-01 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale, at fair value | $ 187,433 |
Capital Ratios (Narrative) (Det
Capital Ratios (Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk-based Capital Ratio: Ratio | 15.78% | |
Capital Ratios, Basel III, Capital Conservation Buffer, Year Three | 2.50% | |
Community Bank Leverage Ratio, Minimum | 9.00% | |
Paycheck Protection Program, Risk-Weight For Risk-Based Capital Rules | 0.00% | |
Consolidated asset limit on small bank holding companies | $ 3 | |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 14.52% | 14.62% |
Tier One Leverage Capital to Average Assets | 9.71% | 9.59% |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 6.50% | |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 8.00% | |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 5.00% | |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 10.00% | |
Capital ratios, capital conservation buffer | 7.78% | |
Total Risk-based Capital Ratio: Ratio | 15.78% | 15.87% |
Capital Ratios (Schedule Of The
Capital Ratios (Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements) (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk-based Capital Ratio: Ratio | 15.78% | |
Franklin Financial Services Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 14.73% | 14.82% |
Tier 1 Risk-based Capital Ratio: Ratio | 14.73% | 14.82% |
Total Risk-based Capital Ratio: Ratio | 15.99% | 16.08% |
Tier 1 Leverage Ratio: Ratio | 9.85% | 9.72% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 14.52% | 14.62% |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 4.50% | |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 6.50% | |
Tier 1 Risk-based Capital Ratio: Ratio | 14.52% | 14.62% |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 6.00% | |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 8.00% | |
Total Risk-based Capital Ratio: Ratio | 15.78% | 15.87% |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 8.00% | |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 10.00% | |
Tier 1 Leverage Ratio: Ratio | 9.71% | 9.59% |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | 4.00% | |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 5.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | $ 1,445 | $ 1,452 |
Estate management services Fees recognition period | 18 months | |
Asset Management Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | $ 1,300 | 1,300 |
Estate Management Services Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | 33 | 70 |
Commisions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | $ 74 | $ 68 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2020 |
Commitments And Contingencies [Abstract] | ||
Allowance against letters of credit | $ 2,400 | $ 2,100 |
Letters of credit cancelled | $ 250 |
Commitments And Contingencies_3
Commitments And Contingencies (Outstanding Commitments ) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commercial Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 241,341 | $ 248,251 |
Consumer Commitments To Extend Credit (Secured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 58,712 | 56,898 |
Consumer Commitments To Extend Credit (Unsecured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 5,146 | 5,088 |
Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 305,199 | 310,237 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 24,199 | $ 26,382 |