Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Document Period End Date | Dec. 31, 2015 | ||
Entity Registrant Name | FIRST UNITED CORP/MD/ | ||
Entity Central Index Key | 763,907 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | func | ||
Entity Common Stock, Shares Outstanding | 6,254,620 | ||
Entity Public Float | $ 49,657,427 | ||
Amendment Description | This Amendment No. 1 on Form 10-K/A to the Annual Report of First United Corporation on Form 10-K for the year ended December 31, 2015, which was initially filed with the Securities and Exchange Commission (the "SEC) on March 9, 2016 (the "Original Report"), is being filed to restate First United Corporation's audited consolidated financial statements for the year ended December 31, 2015 contained therein and to make related revisions to certain other items of the Original Report. Specifically, Items 6, 7, 8 and 9A of Part II of the Original Report have been amended to correct the application of generally accepted accounting principles to the transfer of eight trust preferred securities from First United Bank & Trust to First United Corporation during the quarter ended December 31, 2015. The effects of the restatement are discussed in Note 2 to the restated audited consolidated financial statements included in Item 8 of Part II hereof. Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by First United Corporation's principal executive officer and principal accounting officer are filed or furnished with this Amendment No. 1 as Exhibits 31.1, 31.2, 32.1 and 32.2, so Item 15 of Part IV of the Original Report has also been amended. Except as expressly provided above, this Amendment No. 1 on Form 10-K/A speaks as of the date of the Original Report and First United Corporation has not updated the disclosures contained in any item thereof to speak as of a later date. All information contained in this Amendment No. 1 on Form 10-K/A is subject to updating and supplementing as provided in First United Corporation's reports filed with the SEC subsequent to the date on which the Original Report was filed. |
Consolidated Statement of Finan
Consolidated Statement of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 50,188 | $ 27,554 |
Interest bearing deposits in banks | 1,953 | 7,897 |
Cash and cash equivalents | 52,141 | 35,451 |
Investment securities - available-for-sale (at fair value) | 170,232 | 221,117 |
Investment securities - held to maturity (fair value of $106,742 at December 31, 2015 and $110,771 at December 31, 2014, respectively) | 105,560 | 109,449 |
Restricted investment in bank stock, at cost | 5,904 | 7,524 |
Loans | 879,023 | 839,991 |
Allowance for loan losses | (11,922) | (12,065) |
Net loans | 867,101 | 827,926 |
Premises and equipment, net | 25,198 | 25,629 |
Goodwill | 11,004 | 11,004 |
Bank owned life insurance | 40,150 | 33,504 |
Deferred tax assets | 19,790 | 25,907 |
Other real estate owned | 6,883 | 12,932 |
Accrued interest receivable and other assets | 19,495 | 21,853 |
Total Assets | 1,323,458 | 1,332,296 |
Liabilities: | ||
Non-interest bearing deposits | 204,569 | 201,188 |
Interest bearing deposits | 794,225 | 780,135 |
Total deposits | 998,794 | 981,323 |
Short-term borrowings | 35,828 | 39,801 |
Long-term borrowings | 147,537 | 182,606 |
Accrued interest payable and other liabilities | 20,528 | 19,567 |
Total Liabilities | 1,202,687 | 1,223,297 |
Shareholders' Equity: | ||
Preferred stock - no par value; Authorized 2,000 shares of which 30 shares of Series A, $1,000 per share liquidation preference, 5% cumulative increasing to 9% cumulative on February 15, 2014, were issued and outstanding on December 31, 2015 and 2014 | 30,000 | 30,000 |
Common Stock - par value $.01 per share; Authorized 25,000 shares; issued and outstanding 6,255 shares at December 31, 2015 and 6,228 shares at December 31, 2014 | 63 | 62 |
Surplus | 21,986 | 21,795 |
Retained earnings | 87,666 | 77,375 |
Accumulated other comprehensive loss | (18,944) | (20,233) |
Total Shareholders' Equity | 120,771 | 108,999 |
Total Liabilities and Shareholders' Equity | $ 1,323,458 | $ 1,332,296 |
Consolidated Statement of Fina3
Consolidated Statement of Financial Condition (parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Held-to-maturity Securities, Fair Value | $ 106,742 | $ 110,771 |
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares, Issued | 6,255,000 | 6,228,000 |
Common Stock, Shares, Outstanding | 6,255,000 | 6,228,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 30,000 | 30,000 |
Preferred Stock, Shares Outstanding | 30,000 | 30,000 |
Preferred stock, dividend rate, percentage | 9.00% | 5.00% |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest on investment securities | ||
Interest and fees on loans | $ 37,165 | $ 37,486 |
Interest on investment securities: Taxable | 6,248 | 6,981 |
Interest on investment securities: Exempt from federal income tax | 1,264 | 1,542 |
Total investment income | 7,512 | 8,523 |
Other | 355 | 377 |
Total interest income | 45,032 | 46,386 |
Interest expense | ||
Interest on deposits | 3,905 | 4,603 |
Interest on short-term borrowings | 58 | 63 |
Interest on long-term borrowings | 5,444 | 6,204 |
Total interest expense | 9,407 | 10,870 |
Net interest income | 35,625 | 35,516 |
Provision for loan losses | 1,054 | 2,513 |
Net interest income after provision for loan losses | 34,571 | 33,003 |
Other operating income | ||
Net (losses)/gains - other | 1,016 | 1,053 |
Total net gains | 1,016 | 1,053 |
Service charges | 2,995 | 2,933 |
Trust department | 5,641 | 5,343 |
Debit card income | 2,300 | 2,034 |
Bank owned life insurance | 1,146 | 1,392 |
Brokerage commissions | 887 | 800 |
Other income - recovery | 11,572 | 0 |
Other | 451 | 405 |
Total other income | 24,992 | 12,907 |
Total other operating income | 26,008 | 13,960 |
Other operating expenses | ||
Salaries and employee benefits | 20,912 | 19,518 |
FDIC premiums | 1,870 | 1,842 |
Equipment | 2,544 | 2,508 |
Occupancy | 2,479 | 2,468 |
Data processing | 3,429 | 3,198 |
Professional services | 1,674 | 1,287 |
Other real estate owned expenses | 1,899 | 2,318 |
Contract labor | 607 | 669 |
Line rentals | 633 | 656 |
Other | 5,068 | 5,631 |
Total other operating expenses | 41,115 | 40,095 |
Income before income tax expense | 19,464 | 6,868 |
Provision for income tax expense | 6,473 | 1,271 |
Net Income | 12,991 | 5,597 |
Accumulated preferred stock dividends and discount accretion | (2,700) | (2,601) |
Net Income Available to Common Shareholders | $ 10,291 | $ 2,996 |
Basic and diluted net income per common share | $ 1.65 | $ 0.48 |
Weighted average number of basic and diluted shares outstanding | 6,248,830 | 6,222,440 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income/(Loss) [Abstract] | ||
Net Income | $ 12,991 | $ 5,597 |
Other comprehensive income/(loss), net of tax and reclassification adjustments: | ||
Net unrealized gains on investments with OTTI | 1,737 | 3,944 |
Net unrealized gains on all other AFS securities | 531 | 8,737 |
Net realized gains/(losses) on HTM securities | 284 | (2,255) |
Net unrealized gains on cash flow hedges | 80 | 155 |
Net unrealized losses on pension plan liability | (1,271) | (6,304) |
Net unrealized losses on SERP liability | (72) | (297) |
Other comprehensive income, net of tax | 1,289 | 3,980 |
Comprehensive Income | $ 14,280 | $ 9,577 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2013 | $ 29,994 | $ 62 | $ 21,661 | $ 74,379 | $ (24,213) | $ 101,883 |
Net income | 5,597 | 5,597 | ||||
Other comprehensive income/(loss) | 3,980 | 3,980 | ||||
Stock based compensation | 134 | 134 | ||||
Preferred stock discount accretion | 6 | (6) | 0 | |||
Preferred stock dividends paid | (2,595) | (2,595) | ||||
Balance at Dec. 31, 2014 | 30,000 | 62 | 21,795 | 77,375 | (20,233) | 108,999 |
Net income | 12,991 | 12,991 | ||||
Other comprehensive income/(loss) | 1,289 | 1,289 | ||||
Stock based compensation | 1 | 191 | 192 | |||
Preferred stock dividends paid | (2,700) | (2,700) | ||||
Balance at Dec. 31, 2015 | $ 30,000 | $ 63 | $ 21,986 | $ 87,666 | $ (18,944) | $ 120,771 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | ||
Net Income | $ 12,991 | $ 5,597 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,054 | 2,513 |
Depreciation | 1,768 | 1,938 |
Stock compensation | 191 | 134 |
(Gain)/loss on sales of other real estate owned | (753) | 944 |
Write-downs of other real estate owned | 1,997 | 920 |
Gain on loan sales | (57) | (52) |
Loss on disposal of fixed assets | 3 | 58 |
Net (gain)/loss on sales of investment securities - available-for-sale | (962) | 41 |
Gain on sales of investment securities - held for trading | 0 | (1,100) |
Amortization of deferred loan fees | (554) | (525) |
Decrease (increase) in accrued interest receivable and other assets | 4,223 | 6,993 |
Deferred tax expense | 3,855 | 636 |
Decrease in accrued interest payable and other liabilities | (1,143) | (13,066) |
Earnings on bank owned life insurance | (1,146) | (1,392) |
Net cash provided by operating activities | 22,199 | 3,887 |
Investing activities | ||
Proceeds from maturities/calls of investment securities available-for-sale | 42,020 | 125,720 |
Proceeds from maturities/calls of investment securities held-to-maturity | 7,525 | 4,927 |
Proceeds from sales of investment securities available-for-sale | 60,598 | 56,838 |
Proceeds from sales of investment securities held for trading | 0 | 1,100 |
Purchases of investment securities available-for-sale | (47,640) | (153,924) |
Purchases of investment securities held-to-maturity | (3,709) | (6,575) |
Proceeds from sales of other real estate owned | 6,190 | 6,291 |
Proceeds from loan sales | 6,433 | 5,946 |
Proceeds from disposal of fixed assets | 31 | 0 |
Purchase of BOLI policy | (5,500) | 0 |
Proceeds from BOLI death benefit | 0 | 844 |
Net decrease in FHLB stock | 1,620 | 389 |
Net increase in loans | (47,436) | (43,218) |
Purchases of premises and equipment | (1,371) | (720) |
Net cash provided by/(used in) investing activities | 18,761 | (2,382) |
Financing activities | ||
Net increase in deposits | 17,471 | 3,920 |
Preferred stock dividends paid | (2,700) | (9,096) |
Common Stock grants | 1 | 0 |
Net decrease in short-term borrowings | (3,973) | (3,875) |
Payments on long-term borrowings | (35,069) | (66) |
Net cash used in financing activities | (24,270) | (9,117) |
Increase/(decrease) in cash and cash equivalents | 16,690 | (7,612) |
Cash and cash equivalents at beginning of the year | 35,451 | 43,063 |
Cash and cash equivalents at end of period | 52,141 | 35,451 |
Supplemental information | ||
Interest paid | 9,811 | 17,635 |
Taxes paid | 125 | 0 |
Non-cash investing activities: | ||
Transfers from loans to other real estate owned | 1,385 | 4,056 |
Transfers from securities available for sale to held-to-maturity | 0 | 103,934 |
Available-for-sale Securities [Member] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of investment securities discounts and premiums | 659 | 215 |
Held-to-maturity Securities [Member] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of investment securities discounts and premiums | $ 73 | $ 33 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Business First United Corporation is a Maryland corporation chartered in 1985 and a bank holding company registered under the federal Bank Holding Company Act of 1956, as amended. First United Corporation’s primary business is serving as the parent company of First United Bank & Trust, a Maryland trust company (the “Bank”), First United Statutory Trust I (“Trust I”) and First United Statutory Trust II (“Trust II”), both Connecticut statutory business trusts, and First United Statutory Trust III, a Delaware statutory business trust (“Trust III” and together with Trust I and Trust II, the “Trusts”). The Trusts were formed for the purpose of selling trust preferred securities that qualified as Tier 1 capital. First United Corporation is also the parent company of First United Insurance Group, LLC, an inactive Maryland limited liability company that engaged in the general insurance agency business. The Bank has three wholly-owned subsidiaries: OakFirst Loan Center, Inc., a West Virginia finance company; OakFirst Loan Center, LLC, a Maryland finance company (collectively, the “OakFirst Loan Centers”); and First OREO Trust, a Maryland statutory trust formed for the purposes of servicing and disposing of the real estate that the Bank acquires through foreclosure or by deed in lieu of foreclosure. The Bank also owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland (“Liberty Mews”). First United Corporation and its subsidiaries operate principally in four counties in Western Maryland and three counties in West Virginia. As used in these Notes, the terms “the Corporation”, “we”, “us”, and “our” mean First United Corporation and, unless the context clearly suggests otherwise, its consolidated subsidiaries. Basis of Presentation The accompanying consolidated financial statements of the Corporation have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) that require management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities at the date of the financial statements as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the assessment of other-than-temporary impairment (“OTTI”) pertaining to investment securities, potential impairment of goodwill, and the valuation of deferred tax assets. For purposes of comparability, certain prior period amounts have been reclassified to conform to the 2015 presentation. Such reclassifications had no impact on net income or equity . The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of December 31, 2015 for items that should potentially be recognized or disclosed in these financial statements as prescribed by ASC Topic 855, Subsequent Events . Principles of Consolidation The consolidated financial statements of the Corporation include the accounts of First United Corporation, the Bank, OakFirst Loan Center, Inc., OakFirst Loan Center, LLC and First OREO Trust. All significant inter-company accounts and transactions have been eliminated. First United Corporation determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) in accordance with GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. The Corporation consolidates voting interest entities in which it has 100%, or at least a majority, of the voting interest. As defined in applicable accounting standards, a VIE is an entity that either (i) does not have equity investors with voting rights or (ii) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A controlling financial interest in an entity exists when an enterprise has a variable interest, or a combination of variable interests that will absorb a majority of an entity’s expected losses, receive a majority of an entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Corporation accounts for its investment in Liberty Mews, utilizing the effective yield method under guidance that applies specifically to investments in limited partnerships that operate qualified affordable housing projects. Under the effective yield method, the investor recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the investor. The effective yield is the internal rate of return on the investment, based on the cost of the investment and the guaranteed tax credits allocated to the investor. The tax credit allocated, net of the amortization of the investment in the limited partnership, is recognized in the income statement as a component of income taxes attributable to continuing operations. Significant Concentrations of Credit Risk Most of the Corporation’s relationships are with customers located in Western Maryland and Northeastern West Virginia. At December 31, 2015, approximately 13% , or $ 110.0 million, of total loans were secured by real estate acquisition, construction and development projects, with $ 106. 0 million performing according to their contractual terms and $ 4 .0 million considered to be impaired based on management’s concerns about the borrowers’ ability to comply with present repayment terms. Of the $4.0 million in impaired loans, $ 3 .0 million were classified as troubled debt restructurings (“TDRs”) performing in accordance with their modified terms, and $ 1. 0 million were classified as non-performing loans at December 31, 2015. Additionally, loans collateralized by commercial rental properties represent 15% of the total loan portfolio as of December 31, 2015. Note 7 discusses the types of securities in which the Corporation invests and Note 8 discusses the Corporation’s lending activities. Investments The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities . Securities bought and held principally for the purpose of selling them in the near term are classified as trading account securities and reported at fair value with unrealized gains and losses included in net gains/losses in other operating income. Securities purchased with the intent and ability to hold the securities to maturity are classified as held-to-maturity securities and are recorded at amortized cost. All other investment securities are classified as available-for-sale. These securities are held for an indefinite period of time and may be sold in response to changing market and interest rate conditions or for liquidity purposes as part of our overall asset/liability management strategy. Available-for-sale securities are reported at market value, with unrealized gains and losses excluded from earnings and reported as a separate component of other comprehensive income included in consolidated statement of comprehensive income, net of applicable income taxes. The amortized cost of debt securities is adjusted for the amortization of premiums to the first call date, if applicable, or to maturity, and for the accretion of discounts to maturity, or, in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from investments. Interest and dividends are included in interest income from investments. Gains and losses on the sale of securities are recorded using the specific identification method. Restricted Investment in Bank Stock Restricted stock, which represents required investments in the common stock of the Federal Home Loan Bank (“FHLB”) of Atlanta, Atlantic Community Bankers Bank (“ACBB”) and Community Bankers Bank (“CBB”), is carried at cost and is considered a long-term investment . Management evaluates the restricted stock for impairment in accordance with ASC Industry Topic 942, Financial Services – Depository and Lending , ( 942-325-35). Management’s evaluation of potential impairment is based on its a ssessment of the ultimate recoverability of the cost of the restricted stock rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability is influenced by criteria such as (i) the significance of the decline in net assets of the issuing bank as compared to the capital stock amount for that bank and the length of time this situation has persisted, (ii) commitments by the issuing bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of that bank, and (iii) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuing bank. Management has evaluated the restricted stock for impairment and believes that no impairment charge is necessary as of December 31, 2015 or 2014. The Corporation recognizes dividends on a cash basis. For the years ended December 31, 2015 and December 31, 2014, dividends of $302,227 and $ 2 90, 677 , respectively, were recorded in income. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or full repayment by the borro wer are reported at their unpaid principal balance outstanding, adjusted for any deferred fees or costs pertaining to origination. Loans that management has the intent to sell are reported at the lower of cost or fair value determined on an individual basis. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The commercial real estate (“CRE”) loan segment is further disaggregated into two classes. Non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, generally have a greater risk profile than all other CRE loans, which include loans secured by farmland, multifamily structures and owner-occupied commercial structures. The acquisition and development (“A&D”) loan segment is further disaggregated into two classes. One-to-four family residential construction loans are generally made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. All other A&D loans are generally made to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures. These loans have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the A&D loan. The commercial and industrial (“C&I”) loan segment consists of loans made for the purpose of financing the activities of commercial customers. The residential mortgage loan segment is further disaggregated into two classes: amortizing term loans, which are primarily first liens, and home equity lines of credit, which are generally second liens. The consumer loan segment consists primarily of installment loans (direct and indirect) and overdraft lines of credit connected with customer deposit accounts. Interest and Fees on Loans Interest on loans (other than those on non-accrual status) is recognized based upon the principal amount outstanding. Loan fees in excess of the costs incurred to originate the loan are recognized as income over the life of the loan utilizing either the interest method or the straight-line method, depending on the type of loan. Generally, fees on loans with a specified maturity date, such as residential mortgages, are recognized using the interest method. Loan fees for lines of credit are recognized using the straight-line method. A loan is considered to be past due when a payment has not been received for 30 days past its contractual due date. For all loan segments, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. All non-accrual loans are considered to be impaired. Interest payments received on non-accrual loans are applied as a reduction of the loan principal balance. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Generally, consumer installment loans are not placed on non-accrual status, but are charged off after they are 120 days contractually past due. Loans other than consumer loans are charged-off based on an evaluation of the facts and circumstances of each individual loan. Allowance for Loan Losses An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Corporation’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35, Receivables-Overall-Subsequent Measurement , for loans individually evaluated for impairment and ASC Subtopic 450-20, Contingencies - Loss Contingencies , for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Corporation maintains an ALL on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is determined utilizing a methodology that is similar to that used to determine the ALL, modified to take into account the probability of a draw down on the commitment. This allowance is reported as a liability on the balance sheet within accrued interest payable and other liabilities. The balance in the liability account was $65,332 at December 31, 2015 and $51,950 at December 31, 2014. Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost, less accumulated depreciation. The provision for depreciation for financial reporting has been made by using the straight-line method based on the estimated useful lives of the assets, which range from 18 to 32 years for buildings and three to 20 years for furniture and equipment. Accelerated depreciation methods are used for income tax purposes. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired in business combinations. In accordance with ASC Topic 350, Intangibles - Goodwill and Other , goodwill is not amortized but is subject to an annual impairment test. Bank-Owned Life Insurance (“BOLI”) BOLI policies are recorded at their cash surrender values. Changes in the cash surrender values are recorded as other operating income. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less the cost to sell at the date of foreclosure, with any losses charged to the ALL, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Changes in the valuation allowance, sales gains and losses, and revenue and expenses from holding and operating properties are all included in net expenses from other real estate owned (“OREO”). Income Taxes First United Corporation and its subsidiaries file a consolidated federal income tax return. Income taxes are accounted for using the asset and liability method. Under the asset and liability method, the deferred tax liability or asset is determined based on the difference between the financial statement and tax bases of assets and liabilities (temporary differences ) and is measured at the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is determined by the change in the net liability or asset for deferred taxes adjusted for changes in any deferred tax asset valuation allowance. ASC Topic 740, Taxes, provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We have not identified any income tax uncertainties. State corporate income tax returns are filed annually. Federal and state returns may be selected for examination by the Internal Revenue Service and the states where we file, subject to statutes of limitations. At any given point in time, the Corporation may have several years of filed tax returns that may be selected for examination or review by taxing authorities. Interest and penalties on income taxes are recognized as a component of income tax expense. Defined Benefit Plans The d efined benefit pension plan and supplemental executive retirement plan are accounted for in accordance with ASC Topic 715, Compensation – Retirement Benefits . Under the provisions of Topic 715, the defined benefit pension plan and the supplemental executive retirement plan are recognized as liabilities in the Consolidated Statement of Financial Condition, and unrecognized net actuarial losses, prior service costs and a net transition asset are recognized as a separate component of other comprehensive loss, net of tax. Actuarial gains and losses in excess of 10 percent of the greater of plan assets or the pension benefit obligation are amortized over a blend of future service of active employees and life expectancy of inactive participants. Refer to Note 1 9 for a further discussion of the pension plan and supplemental executive retirement plan obligations. Statement of Cash Flows Cash and cash equivalents are defined as cash and due from banks and interest bearing deposits in banks in the Consolidated Statement of Cash Flows. Trust Assets and Income Assets held in an agency or fiduciary capacity are not the Bank’s assets and, accordingly, are not included in the Consolidated Statement of Financial Condition. Income from the Bank’s trust department represents fees charged to customers and is recorded on an accrual basis. Business Segments The Corporation operates in one segment, community banking, as defined by ASC Topic 280, Segment Reporting . The Corporation in its entirety is managed and evaluated on an ongoing basis by First United Corporation’s Board of Directors and executive management, with no division or subsidiary receiving separate analysis regarding performance or resource allocation. Equity Compensation Plan At the 2007 Annual Meeting of Shareholders, First United Corporation’s shareholders approved the First United Corporation Omnibus Equity Compensation Plan (the “Omnibus Plan”), which authorizes the issuance of up to 185,000 shares of common stock pursuant to the grant of stock options, stock appreciation rights, stock awards, stock units, performance units, dividend equivalents, and other stock-based awards to employees or directors. On June 18, 2008, the Board of Directors of First United Corporation adopted a Long-Term Incentive Program (the “LTIP”). This program was adopted as a sub-plan of the Omnibus Plan to reward participants for increasing shareholder value, align executive interests with those of shareholders, and serve as a retention tool for key executives. Under the LTIP, participants are granted shares of restricted common stock of First United Corporation. The amount of an award is based on a specified percentage of the participant’s salary as of the date of grant. These shares will vest if the Corporation meets or exceeds certain performance thresholds. The Corporation applies the provisions of ASC Topic 718, Compensation - Stock Compensation , in measuring and disclosing stock compensation cost. The measurement objective in ASC Paragraph 718-10-30-6 requires public companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The cost is recognized in expense over the period in which an employee is required to provide service in exchange for the award (the vesting period). Stock-based awards were made to non-employee directors in May 2015 pursuant to First United Corporation’s director compensation policy. Beginning May 2014, each director receives an annual retainer of 1,000 shares of First United Corporation common stock, plus $10,000 , all or some of which may be paid, at the director’s election, in cash or additional shares of common stock. Prior to May 2014, directors received shares of common stock valued at $5,000 plus $10,000 in cash or additional shares of common stock. In 2014 and 2015, a total of 17,779 and 16,022 , respectively, fully-vested shares of common stock were issued to directors, which had a fair market value of $8.78 and $8.96 per share, respectively. Director stock compensation expense was $134,060 for the year ended December 31, 2014 and $147,738 for the year ended December 31, 2015. In January 2015, a one-time stock grant was awarded to one executive officer in the amount of 4,845 shares at a fair market value of $8.63 . In February 2015, a one-time stock grant was awarded to one executive officer in the amount of 5,387 shares at a fair market value of $8.76 . These shares have a two -year vesting period. Executive stock compensation expense was $43,475 for the year ended December 31, 2015. Executive stock compensation expense remaining at December 31, 2015 was $45,527 . Stock Repurchases Under the Maryland General Corporation Law, shares of capital stock that are repurchased are cancelled and treated as authorized but unissued shares. When a share of capital stock is repurchased, the payment of the repurchase price reduces stated capital by the par value of that share (currently, $0.01 for common stock and $0.00 for preferred stock), and any excess over par value reduces capital surplus. There were no stock repurchases in 2015 and 2014. Adoption of New Accounting Standards and Effects of New Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) . ASU 2016-02 is intended to improve financial reporting about leasing transactions by requiring organizations that lease assets – referred to as “lessees” – to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. The amendments will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 applies to all public business entities for annual and interim periods after December 15, 2018, and for all other entities for annual periods beginning after December 15, 2019 and interim periods beginning after December 15, 2020 with early adoption permitted. The Corporation is evaluating the provisions of ASU 2016-02, but believes that its adoption will not have a material impact on the Corporation’s financial condition or results of operations. In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Overall (Subtopic 825-10). The update requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The update also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the update eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement for to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measure at amortized cost on the balance sheet for public entities. For public business entities, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within the annual period, and for all other entities, effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019. Early application is permitted. The Corporation is evaluating the provisions of ASU 2016-01, but believes that its adoption will not have a material impact on the Corporation’s financial condition or results of operations. In November 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 874): Balance Sheet Classification of Deferred Taxes . ASU 2015-17 eliminates the guidance in Topic 740, Income Taxes, that required an entity to separate deferred tax liabilities and assets between current and noncurrent amounts in a classified balance sheet. The amendments require that all deferred tax liabilities and assets of the same tax jurisdiction or a tax filing group, as well as any related valuation allowance, be offset and presented as a single noncurrent amount in a classified balance sheet. Prior U.S. GAAP required that in a classified balance sheet, deferred tax liabilities and assets be separated into a current and a noncurrent amounts on the basis of the classification of the related asset or liability. If deferred tax liabilities and assets did not relate to a specific asset or liability, such as a carryforward, they were classified according to the expected reversal date of the temporary difference. ASU 2015-17 applies to all public business entities for annual and interim periods beginning after December 15, 2016, and for all other entities for annual periods beginning after December 15, 2017 and for interim periods beginning after December 15, 2018. T he Corporation is evaluating the provisions of ASU 2015-17, but believes that its adoption will not have a material impact on the Corporation ’s financial condition or results of operations. In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . ASU 2015-02 changes the consolidation analysis for all reporting entities. The changes primarily affect the consolidation of limited partnerships and their equivalents (e.g., limited liability companies), as well as structured vehicles such as collateralized debt obligations. The ASU simplifies U.S. GAAP by eliminating entity specific consolidation guidance for limited partnerships. It also revises other aspects of the consolidation analysis, including how kick-out rights, fee arrangements and related parties are assessed. The amendments rescind the indefinite deferral of FASB Statement 167 for certain investment funds and replace it with a permanent scope exception for money market funds. The ASU applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Corporation is evaluating the provisions of ASU 2015-02, but believes that its adoption will not have a material impact on the Corporation ’s financial condition or results of operations. In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items . ASU 2015-01 eliminates the requirement in Subtopic 225-20 to consider whether an underlying event or transaction is extraordinary and if so to separately present the item in the income statement net of tax, after income from continuing operations. Items that are either unusual in nature or infrequently occurring will continue to be reported as a separate component of income from continuing operations. Alternatively, these amounts may still be disclosed in the notes to the financial statements. The same requirement has been expanded to include items that are both unusual and infrequent, (i.e., they should be separately presented as a component of income from continuing operations or disclosed in the footnotes). The ASU applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, and the Corporation adopted ASU 2015-01 effective January 1, 2015, which had no material impact on the Corporation’s financial condition or results of operations. In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure, an amendment of ASC Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors . ASU 2014-14 specifies that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the loan has a government guarantee that is not separable from the loan before foreclosure; and at the time of foreclosure, the creditor has the intent to convey the real estate to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the amount of the claim, which must be a fixed amount determined on the basis of the fair value of the real estate. On January 1, 2015, the Corporation adopted the amendments in ASU 2014-14 using the prospective transition method, with no material impact on the Corporation ’s financial condition or results of operations. In June 2014, the FASB issued ASU 2014-11, Repurchase-to Maturity Transactions, Repurchase Financings, and Disclosures, an amendment of ASC Topic 860, Transfers and Servicing. The amendments in ASU 2014-11 require repurchase-to-maturity transactions to be accounted for as secured borrowing transactions on the balance sheet, rather than sales; and for repurchase financing arrangements, require separate accounting for a transfer of a financial asset executed contemporaneously with (or in contemplation of) a repurchase agreement with the same counterparty, which also will generally result in secured borrowing accounting for the repurchase agreement. The ASU also introduces new disclosures to increase transparency about the types of collateral pledged for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings, and requires a transferor to disclose information about transactions accounted for as a sale in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets through an agreement with the transferee. On January 1, 2015, the Corporation adopted the amendments in ASU 2014-11, with no material impact on the Corporation ’s financial condition or results of operations. The disclosures required by the ASU are found in Note 1 3 . In May 2014, the F |
Correction of Error in Comparat
Correction of Error in Comparative Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Correction of Error in Comparative Financial Statements [Abstract] | |
Correction of Error in Comparative Financial Statements | 2. Correction of Error in Comparative Financial Statements Subsequent to the issuance of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company identified errors in its historical financial statements, including for the year ended December 31, 2015. Accordingly, Item 8 of Part II of this Amendment No. 1 on Form 10-K/A includes audited consolidated financial statements for the year ended December 31, 2015 that have been restated to correct the manner in which the Corporation originally accounted for the Bank’s transfer of eight pooled trust preferred securities to the Corporation in the fourth quarter of 2015. The audited consolidated financial statements for the year ended December 31, 2015 that were included in the Corporation’s Annual Report on Form 10-K for the year then ended (the “Original Financial Statements”) reflected a realized loss of $3.5 million related to the transfer, or $2.1 million net of tax, in the quarter ended December 31, 2015. The Corporation originally concluded, applying the accounting guidance found in ASC Topic 845, Nonmonetary Transactions, that the transfer was a nonreciprocal transfer from an entity (the Bank) to its owner (the Corporation) of nonmonetary assets that should be accounted for using the fair values of the transferred securities, resulting in a loss at the Bank in an amount equal to the difference between the carrying amounts of the securities and the fair values of the securities. After further consideration and review of relevant accounting guidance, including ASC Subtopic 805-50, Transactions Between Entities Under Common Control, the Corporation has now concluded that on a consolidated basis the loss should not have been realized and these securities should have been recorded at their carrying amounts in the accounts of the transferring entity (the Bank) at the date of transfer. The correction requires the loss to be carried as an unrealized loss within Accumulated Other Comprehensive Loss, with the primary effect being that the amount reported as Net Income Before Income Taxes increased to $19. 4 million from $15.9 million and Net Income Available to Common Shareholders for the year ended December 31, 2015 has increased to $10. 3 million from the $8. 2 million reported in the Consolidated Statement of Income that was included in the Original Financial Statements (the “Original Income Statement”). The correction also changed the amount reported under “Other Income - Net (losses)/gains” in the Original Income Statement from a loss of $2.5 million to a gain of $1.0 million. This resulted in the “Net Income Available to Common Shareholders - Basic and diluted net income per common share” in the Original Income Statement has increased from $1.31 to $1.65 . Total Shareholders’ Equity at December 31, 2015, as reported in the Consolidated Statement of Financial Condition included in the Original Financial Statements, remains unchanged, as the correction resulted in a shift between Retained Earnings and Accumulated Other Comprehensive Loss. Finally, the amortized cost basis of the collateralized debt obligations increased from $25.8 million to $29.3 million. More detailed information regarding the correction is provided below. In addition to the restatement of the Company’s consolidated financial statements, certain information within the following notes to the consolidated financial statements has been restated to reflect the corrections or errors discussed above as well as other related changes and/or add disclosure language as appropriate. Note 3. Earnings Per Common Share Note 4. Net Gains Note 5. Regulatory Capital Requirements Note 7. Investment Securities Note 17. Accumulated Other Comprehensive Loss Note 18. Income Taxes Note 25. Fair Value of Financial Instruments Note 28. Parent Company Only Financial Statements Effects of the Restatement: The following tables summarize the effect of the restatement on certain key items of the Original Financial Statements: December 31, 2015 December 31, 2015 As Restated Original Change Item 6: Selected Financial Data Net Gains- Other $1,016 $(2,505) $3,521 Income Before Taxes 19,464 15,943 3,521 Income Tax expense/(benefit) 6,473 5,067 1,406 Net Income 12,991 10,876 2,115 Net Income available to common shareholders 10,291 8,176 2,115 Basic & Diluted Net Income per common share 1.65 1.31 0.34 Return on Average Assets 0.98% 0.82% 0.16 Return on Average Equity 11.40% 9.54% 1.86 Total Risk-based Capital Ratio 17.21% 17.37% (0.16) Tier I Capital to Risk Weighted Assets 15.24% 15.31% (0.07) Tier I Capital to Average Assets 11.64% 11.51% 0.13 Common Equity Tier I to Risk Weighted Assets 9.99% 9.92% 0.07 Item 8: Financial Statement- Balance Sheet Retained Earnings $87,666 $85,551 $2,115 Accumulated Other Comprehensive Loss (18,944) (16,829) (2,115) Item 8: Financial Statement - Income Statement Net gains $1,016 $(2,505) $3,521 Total Other Operating Income 26,008 22,487 3,521 Income before taxes 19,464 15,943 3,521 Provision for income taxes 6,473 5,067 1,406 Net Income 12,991 10,876 2,115 Net Income Available to Common Shareholders 10,291 8,176 2,115 Basic & Diluted Net Income per common share 1.65 1.31 0.34 Item 8: Financial Statement - Comprehensive Income Net Income $12,991 $10,876 $2,115 Net Unrealized gains on investments with OTTI 1,737 3,213 (1,476) Net Unrealized gains on all other AFS securities 531 1,170 (639) Other Comprehensive Income 1,289 3,404 (2,115) Item 8: Financial Statement - Changes in Shareholders Equity Net Income - Retained Earnings $12,991 $10,876 $2,115 Net Income - Total Shareholders Equity 12,991 10,876 2,115 Other Comprehensive Income - AOCL 1,289 3,404 (2,115) Other Comprehensive Income - Total Shareholders Equity 1,289 3,404 (2,115) Retained Earnings - Balance at December 31, 2015 87,666 85,551 2,115 December 31, 2015 December 31, 2015 As Restated Original Change Item 8: Financial Statement - Cash Flows Net Income $12,991 $10,876 $2,115 Net (gain)/loss on investments - available for sale (962) 2,559 (3,521) Change in other assets 4,223 2,817 1,406 |
Earnings Per Common Share - (As
Earnings Per Common Share - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Common Share - (As Restated) [Abstract] | |
Earnings Per Common Share - (As Restated) | 3 . Earnings Per Common Share – (As Restated) Basic earnings per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents. Diluted earnings per share is derived by dividing net income available to common shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents. There were no common stock equivalents at December 31, 2015 or December 31, 2014. The following table sets forth the calculation of basic and diluted earnings per common share for the years ended December 31, 2015 and 2014: 2015 2014 (in thousands, except for per share amount) Income Average Shares Per Share Amount Income Average Shares Per Share Amount Basic and Diluted Earnings Per Share: Net income $ 12,991 $ 5,597 Preferred stock dividends paid (2,700) (2,595) Discount accretion on preferred stock 0 (6) Net income available to common shareholders $ 10,291 6,249 $ 1.65 $ 2,996 6,222 $ 0.48 |
Net Gains - (As Restated)
Net Gains - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Net Gains - (As Restated) [Abstract] | |
Net Gains - (As Restated) | 4 . Net Gains – (As Restated) The following table summarizes the (loss)/gain activity for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Net (losses)/gains – other: Available-for-sale securities: Realized gains $ 1,609 $ 427 Realized losses (647) (468) Held-for-trading securities: Realized gains 0 1,100 Gain on sale of consumer loans 57 52 Loss on disposal of fixed assets (3) (58) Net (losses)/gains – other $ 1,016 $ 1,053 Net (losses)/gains $ 1,016 $ 1,053 1. |
Regulatory Capital Requirements
Regulatory Capital Requirements - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements - (As Restated) [Abstract] | |
Regulatory Capital Requirements - (As Restated) | 5 . Regulatory Capital Requirements – (As Restated) We require capital to fund loans, satisfy our obligations under the Bank’s letters of credit, meet the deposit withdrawal demands of the Bank’s customers, and satisfy our other monetary obligations. To the extent that deposits are not adequate to fund our capital requirements, we can rely on a number of funding sources, including an unsecured Fed Funds lines of credit with upstream correspondent banks; secured advances with the FHLB of Atlanta, which are collateralized by eligible one to four family residential mortgage loans, home equity lines of credit, commercial real estate loans, and various securities. Cash may also be pledged as collateral. In addition, First United Corporation has a secured line of credit with the Fed Discount Window for use in borrowing funds up to 90 days, using municipal securities as collateral; brokered deposits, including CDs and money market funds; and One Way Buy CDARS/ ICS funding, which is a form of brokered deposits that has become a viable supplement to brokered deposits obtained directly. At December 31, 2015, the Bank had $70.0 million available through unsecured lines of credit with correspondent banks, $17.2 million through a secured line of credit with the Fed Discount Window and approximately $ 104.2 million at the FHLB . Management is not aware of any demands, commitments, events or uncertainties that are likely to materially affect our ability to meet our future capital requirements. Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets) Consolidated $ 173,124 17.21% $ 79,276 8.00% $ 99,095 10.00% First United Bank & Trust 149,775 16.29% 73,714 8.00% 92,143 10.00% Tier 1 Capital (to risk-weighted assets) Consolidated 153,283 15.24% 59,457 6.00% 79,276 8.00% First United Bank & Trust 138,243 15.03% 55,286 6.00% 73,714 8.00% Common Equity Tier 1 Capital (to risk-weighted assets) Consolidated 100,485 9.99% 44,593 4.50% 64,412 6.50% First United Bank & Trust 138,243 15.03% 41,464 4.50% 59,893 6.50% Tier 1 Capital (to average assets) Consolidated 153,283 11.64% 52,833 4.00% 66,041 5.00% First United Bank & Trust 138,243 10.53% 52,346 4.00% 65,432 5.00% Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2014 Total Capital (to risk-weighted assets) Consolidated $ 161,377 15.40% $ 83,851 8.00% $ 104,813 10.00% First United Bank & Trust 162,550 15.60% 83,379 8.00% 104,224 10.00% Tier 1 Capital (to risk-weighted assets) Consolidated 149,130 14.23% 41,925 4.00% 62,888 6.00% First United Bank & Trust 150,433 14.43% 41,689 4.00% 62,534 6.00% Tier 1 Capital (to average assets) Consolidated 149,130 11.29% 52,846 4.00% 66,057 5.00% First United Bank & Trust 150,433 11.43% 52,642 4.00% 65,803 5.00% As of December 31, 2014 and 2015, the most recent notifications from the regulators categorized First United Corporation and the Bank as “well capitalized” under the regulatory framework for prompt corrective action. On a consolidated basis, all capital ratios increased at December 31, 2015 when compared to December 31, 2014. The consolidated total risk-based capital ratios include $40.3 million of First United Corporation’s junior subordinated debentures (“TPS Debentures”) which qualified as Tier 1 capital at December 31, 2015 under guidance issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). At the Bank level, the ratios increased from December 31, 2014 to December 31, 2015 primarily due to the increase in earnings in 2015. As of December 31, 2015, we were in compliance with the requirements as set forth in the final rules. First United Corporation’s Board of Directors suspended the payment of dividends on the common stock in December 2010 when it approved the above-mentioned deferral of dividends on the Series A Preferred Stock, and this suspension remains in effect. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 6 . Cash and Cash Equivalents Cash and due from banks, which represents vault cash in the retail offices and invested cash balances at the Federal Reserve, is carried at fair value. (in thousands) December 31, 2015 December 31, 2014 Cash and due from banks, weighted average interest rate of 0.12% (at December 31, 2015) $ 50,188 $ 27,554 Interest bearing deposits in banks, which represent funds invested at a correspondent bank, are carried at fair value and, as of December 31, 2015 and 2014, consisted of daily funds invested at the FHLB of Atlanta, First Tennessee Bank (“FTN”), and M&T Bank (“M&T”). (in thousands) December 31, 2015 December 31, 2014 FHLB daily investments, interest rate of 0.25% (at December 31, 2015) $ 742 $ 983 FTN daily investments, interest rate of 0.20% (at December 31, 2015) 200 850 M&T daily investments, interest rate of 0.15% (at December 31, 2015) 1,011 6,064 $ 1,953 $ 7,897 |
Investment Securities - (As Res
Investment Securities - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities - (As Restated) [Abstract] | |
Investment Securities - (As Restated) | 7 . Investment Securities – (As Restated) The following table shows a comparison of amortized cost and fair values of investment securities at December 31, 2015 as restated and December 31, 2015 and 2014: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCL December 31, 2015 Available for Sale: U.S. government agencies $ 34,079 $ 14 $ 129 $ 33,964 $ 0 Residential mortgage-backed agencies 14,285 105 220 14,170 0 Commercial mortgage-backed agencies 43,780 52 196 43,636 0 Collateralized mortgage obligations 9,690 43 123 9,610 0 Obligations of states and political subdivisions 45,949 915 223 46,641 0 Collateralized debt obligations 29,287 0 7,076 22,211 (4,320) Total available for sale $ 177,070 $ 1,129 $ 7,967 $ 170,232 $ (4,320) Held to Maturity: U.S. government agencies $ 24,704 $ 634 $ 0 $ 25,338 $ 0 Residential mortgage-backed agencies 53,734 276 98 53,912 0 Commercial mortgage-backed agencies 18,078 171 17 18,232 0 Collateralized mortgage obligations 6,419 0 122 6,297 0 Obligations of states and political subdivisions 2,625 338 0 2,963 0 Total held to maturity $ 105,560 $ 1,419 $ 237 $ 106,742 $ 0 December 31, 2014 Available for Sale: U.S. treasuries $ 29,607 $ 0 $ 11 $ 29,596 $ 0 U.S. government agencies 39,077 117 253 38,941 0 Residential mortgage-backed agencies 45,175 510 412 45,273 0 Commercial mortgage-backed agencies 26,007 53 103 25,957 0 Collateralized mortgage obligations 8,611 96 0 8,707 0 Obligations of states and political subdivisions 46,151 1,413 260 47,304 0 Collateralized debt obligations 37,117 1,155 12,933 25,339 6,143 Total available for sale $ 231,745 3,344 13,972 221,117 6,143 Held to Maturity: U.S. government agencies $ 24,520 $ 514 $ 0 $ 25,034 $ 0 Residential mortgage-backed agencies 58,400 613 5 59,008 0 Commercial mortgage-backed agencies 16,425 312 0 16,737 0 Collateralized mortgage obligations 7,379 5 0 7,384 0 Obligations of states and political subdivisions 2,725 0 117 2,608 0 Total held to maturity $ 109,449 $ 1,444 $ 122 $ 110,771 $ 0 Proceeds from sales of available-for-sale securities and the realized gains and losses for the years ended December 31, 2015 and 2014 are as follows: (in thousands) 2015 2014 Proceeds $ 60,598 $ 56,838 Realized gains 1,609 427 Realized losses 647 468 The following table shows the Corporation’s securities with gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized position, at December 31, 2015 and 2014: Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015 Available for Sale: U.S. government agencies $ 23,929 $ 129 $ 0 $ 0 Residential mortgage-backed agencies 0 0 8,051 220 Commercial mortgage-backed agencies 25,858 196 0 0 Collateralized mortgage obligations 5,299 123 0 0 Obligations of states and political subdivisions 11,537 104 4,048 119 Collateralized debt obligations 0 0 22,211 7,076 Total available for sale $ 66,623 $ 552 $ 34,310 $ 7,415 Held to Maturity: U.S. government agencies $ 0 $ 0 $ 0 $ 0 Residential mortgage-backed agencies 11,085 98 0 0 Commercial mortgage-backed agencies 9518 17 0 0 Collateralized mortgage obligations 6297 122 0 0 Obligations of states and political subdivisions 0 0 0 0 Total held to maturity $ 26,900 $ 237 $ 0 $ 0 December 31, 2014 Available for Sale: U.S. treasuries $ 27,096 $ 11 $ 0 $ 0 U.S. government agencies 0 0 18,819 253 Residential mortgage-backed agencies 0 0 17,918 412 Commercial mortgage-backed agencies 12,298 97 973 6 Collateralized mortgage obligations 0 0 0 0 Obligations of states and political subdivisions 0 0 8,981 260 Collateralized debt obligations 0 0 20,290 12,933 Total available for sale $ 39,394 $ 108 $ 66,981 $ 13,864 Held to Maturity: U.S. government agencies $ 0 $ 0 $ 0 $ 0 Residential mortgage-backed agencies 3,850 5 0 0 Commercial mortgage-backed agencies 0 0 0 0 Collateralized mortgage obligations 0 0 0 0 Obligations of states and political subdivisions 0 0 2,608 117 Total held to maturity $ 3,850 $ 5 $ 2,608 $ 117 Management systematically evaluates securities for impairment on a quarterly basis. Based upon application of accounting guidance for subsequent measurement in ASC Topic 320 (ASC Section 320-10-35), management assesses whether (i) the Corporation has the intent to sell a security being evaluated and (ii) it is more likely than not that the Corporation will be required to sell the security prior to its anticipated recovery. If neither applies, then declines in the fair values of securities below their cost that are considered other-than-temporary declines are split into two components. The first is the loss attributable to declining credit quality. Credit losses are recognized in earnings as realized losses in the period in which the impairment determination is made. The second component consists of all other losses, which are recognized in other comprehensive loss. In estimating OTTI losses, management considers (a) the length of time and the extent to which the fair value has been less than cost, (b) adverse conditions specifically related to the security, an industry, or a geographic area, (c) the historic and implied volatility of the fair value of the security, (d) changes in the rating of the security by a rating agency, (e) recoveries or additional declines in fair value subsequent to the balance sheet date, (f) failure of the issuer of the security to make scheduled interest or principal payments, and (g) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future. Management also monitors cash flow projections for securities that are considered beneficial interests under the guidance of ASC Subtopic 325-40, Investments – Other – Beneficial Interests in Securitized Financial Assets , (ASC Section 325-40-35). Management believes that the valuation of certain securities is a critical accounting policy that requires significant estimates in preparation of its consolidated financial statements. Management utilizes an independent third party to prepare both the impairment valuations and fair value determinations for its collateralized debt obligation (“CDO“) portfolio consisting of pooled trust preferred securities. Based on management’s review of the third party evaluations, management believes that there were no material differences in the valuations between December 31, 2015 and December 31, 2014. U.S. Government Agencies – Available for Sale – There were four U.S. government agencies in an unrealized loss position for less than 12 months as of December 31, 2015. There were no U.S. government agencies in an unrealized loss position for 12 months or more. The securities are of the highest investment grade and the Corporation does not intend to sell them, and it is not more likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. Residential Mortgage-Backed Agencies – Available for Sale - There were no residential mortgage-backed agencies in an unrealized loss position for less than 12 months as of December 31, 2015. There was one residential mortgage-backed agency security in an unrealized loss position for 12 months or more. The security is of the highest investment grade and the Corporation does not intend to sell it, and it is not more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. Commercial Mortgage-Backed Agencies – Available for Sale – There were six commercial mortgage-backed agencies in an unrealized loss position for less than 12 months as of December 31, 2015. The securities are of the highest investment grade and the Corporation does not intend to sell them, and it is not more likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. There were no commercial mortgage-backed agency securities in an unrealized loss position for 12 months or more. Collateralized Mortgage Obligations – Available for Sale – There was one collateralized mortgage obligation in an unrealized loss position for less than 12 months as of December 31, 2015. The security is of the highest investment grade and the Corporation does not intend to sell it, and it is not more likely than not that the Corporation will be required to sell it before recovery of its amortized cost basis, which may be at maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. There were no collateralized mortgage obligations in an unrealized loss position for 12 months or more. Obligations of State and Political Subdivisions – Available for Sale – There were five obligations of state and political subdivisions that have been in an unrealized loss position for less than 12 months at December 31, 2015. There was one security that has been in an unrealized loss position for 12 months or more. These investments are of investment grade as determined by the major rating agencies and management reviews the ratings of the underlying issuers and performs an in-depth credit analysis on the securities. Management believes that this portfolio is well-diversified throughout the United States, and all bonds continue to perform according to their contractual terms. The Corporation does not intend to sell these investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. Collateralized Debt Obligations – Available for Sale - The $7.1 million in unrealized losses greater than 12 months at December 31, 2015 relates to twelve pooled trust preferred securities that are included in the CDO portfolio. See Note 25 for a discussion of the methodology used by management to determine the fair values of these securities. Based upon a review of credit quality and the cash flow tests performed by the independent third party, management determined that there were no securities that had credit-related non-cash OTTI charges during 2015. The unrealized losses on the remaining securities in the portfolio are primarily attributable to continued depression in market interest rates, marketability, liquidity and the current economic environment. U.S. Government Agencies – Held to Maturity – There were no U.S. government agencies in an unrealized loss position as of December 31, 2015. Residential Mortgage-Backed Agencies – Held to Maturity - Nine residential mortgage-backed agencies have been in an unrealized loss position for less than 12 months as of December 31, 2015. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. There were no residential mortgage-backed agencies in an unrealized loss position for 12 months or more. Commercial Mortgage-Backed Agencies – Held to Maturity – There was one commercial mortgage-backed agency in an unrealized loss position for less than 12 months as of December 31, 2015. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. There were no commercial mortgage-backed agencies in an unrealized loss position for 12 months or more. Collateralized Mortgage Obligations – Held to Maturity – There was one collateralized mortgage obligations in an unrealized loss position for less than 12 months as of December 31, 2015. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. There were no collateralized mortgage obligations in an unrealized loss position for 12 months or more. Obligations of State and Political Subdivisions – Held to Maturity – There were no obligations of state and political subdivisions in the Held to Maturity portfolio as of December 31, 2015 in a loss position. Due to the duration and significant market value decline in the pooled trust preferred securities held in our portfolio, we performed more extensive testing on these securities for purposes of evaluating whether or not an OTTI has occurred. The market for these securities as of December 31, 2015 is not active and markets for similar securities are also not active. The inactivity was evidenced in 2008 first by a significant widening of the bid-ask spread in the brokered markets in which these securities trade and then by a significant decrease in the volume of trades relative to historical levels. The new issue market is also inactive, as no new CDOs have been issued since 2007. There are currently very few market participants who are willing to transact for these securities. The market values for these securities, or any securities other than those issued or guaranteed by the Treasury, are very depressed relative to historical levels. Therefore, in the current market, a low market price for a particular bond may only provide evidence of stress in the credit markets in general rather than being an indicator of credit problems with a particular issue. Given the conditions in the current debt markets and the continued absence of observable transactions in the secondary and new issue markets, management has determined that (i) the few observable transactions and market quotations that are available are not reliable for the purpose of obtaining fair value at December 31, 2015, (ii) an income valuation approach technique (i.e. present value) that maximizes the use of relevant observable inputs and minimizes the use of observable inputs will be equally or more representative of fair value than a market approach, and (iii) the CDO segment is appropriately classified within Level 3 of the valuation hierarchy because management determined that significant adjustments were required to determine fair value at the measurement date. Management utilizes an independent third party to assist the Corporation with both the evaluations of OTTI and the fair value determinations for our CDO portfolio. Management believes that there were no material differences in the impairment evaluations and pricing between December 31, 2014 and December 31, 2015. The approach of the third party to determine fair value involved several steps, including detailed credit and structural evaluation of each piece of collateral in each bond, default, recovery and prepayment/amortization probabilities for each piece of collateral in the bond, and discounted cash flow modeling. The discount rate methodology used by the third party combines a baseline current market yield for comparable corporate and structured credit products with adjustments based on evaluations of the differences found in structure and risks associated with actual and projected credit performance of each CDO being valued. Currently, there is an active and liquid trading market only for stand-alone trust preferred securities. Therefore, adjustments to the baseline discount rate are also made to reflect the additional leverage found in structured instruments. On December 10, 2013, to implement Section 619 of the Dodd-Frank Act, the Treasury, the federal banking regulators including FDIC, and the Securities and Exchange Commission (the “SEC”) adopted the Volcker Rule. The Volcker Rule prohibits a banking institution from acquiring or retaining an “ownership interest” in a “covered fund”. A “covered fund” is (a) an entity that would be an investment company under the Investment Company Act of 1940, as amended, but for the exemptions contained in Section 3(c)(1) or Section 3(c)(7) of that Act, (b) a commodity pool with certain characteristics, and/or (c) a non-US entity with certain characteristics that is sponsored or owned by a banking entity located or organized in the US. The term “ownership interest” is defined as “any equity, partnership, or other similar interest.” On January 14, 2014, the federal banking agencies adopted a final interim rule that exempts CDOs from the scope of the Volcker Rule if they were issued in offerings in which, among other things, the proceeds were used primarily to purchase securities issued by depository institutions and their affiliates. In connection with that final interim rule, the agencies published a non-exclusive list of exempt offerings. Of the 12 CDOs held by the Bank, 10 were issued in exempt offerings. The two remaining CDOs are collateralized primarily by securities issued by insurance companies and are not included in the agencies’ list of exempt offerings, which fact required management to make a determination as to whether the CDOs constituted an “ownership interest” in a “covered fund”, such that the Bank would be required to dispose of them pursuant to the Volcker Rule. To make this determination, management conducted a thorough review of the Indentures that govern the CDOs and the other offering materials used by the issuers to offer and sell the CDOs. The Volcker Rule defines an “ownership interest” as an equity, partnership or other similar interest. The CDOs are debt securities (promissory notes) issued by corporations that call for regularly-scheduled payments of principal and interest, with interest calculated either at a fixed-rate or at a rate that is tied to LIBOR. Accordingly, none of the CDOs represent an equity or partnership interest in the issuers. In their adopting rule release, the agencies stated that debt securities evidencing “typical extensions of credit” – those that “provide for payment of stated principal and interest calculated at a fixed rate or at a floating rate based on an index or interbank rate” – do not generally meet the definition of “other similar interest”. To be considered an “other similar interest”, a debt security must exhibit one or more of seven specified characteristics identified in the Volcker Rule on a current, future, or contingent basis. Based on its review, management concluded that the two CDOs evidences “typical extensions of credit” and do not exhibit any of these seven characteristics. Accordingly, management concluded that the two CDOs constitutes an “ownership interest” as defined by the Volcker Rule and that, therefore, as of December 31, 2015, the Corporation has the current intent and ability to hold these CDOs until maturity. During the first quarter of 2014 and following the promulgation of the Volcker Rule, the fair value of the CDO portfolio improved significantly. The improvement was due to several factors including improved financial condition of the issuers, improved cash flows and a lower discount rate. As the issuers resumed payments of previously deferred interest during the quarter, cash flow projections for the securities increased. In addition, the discount rate utilized in the cash flow models was reduced as the base line current market yield for comparable corporate and structured products improved and the projected credit performance of the CDOs improved with favorable market conditions. The resulting increase in cash flow projections over the remaining life of the securities yielded a higher fair market value. The following table presents a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses which have been recognized in earnings for the trust preferred securities in the CDO portfolio held and not intended to be sold for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Balance of credit-related OTTI at January 1 $ 12,583 $ 13,422 Decreases for previously recognized credit-related OTTI because there was an intent to sell (10,029) (165) Additions for decreases in cash flows expected to be collected 602 0 Reduction for increases in cash flows expected to be collected (23) (674) Balance of credit-related OTTI at December 31 $ 3,133 $ 12,583 The amortized cost and estimated fair value of securities by contractual maturity at December 31, 2015 are shown in the following table. Actual maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties . (in thousands) Amortized Cost Fair Value Contractual Maturity Available for sale: Due in one year or less $ 0 $ 0 Due after one year through five years 37,577 37,593 Due after five years through ten years 16,147 16,676 Due after ten years 55,591 48,547 109,315 102,816 Residential mortgage-backed agencies 14,285 14,170 Commercial mortgage-backed agencies 43,780 43,636 Collateralized mortgage obligations 9,690 9,610 Total available for sale $ 177,070 $ 170,232 Held to Maturity: Due after five years through ten years $ 15,604 $ 16,116 Due after ten years 11,725 12,185 27,329 28,301 Residential mortgage-backed agencies 53,734 53,912 Commercial mortgage-backed agencies 18,078 18,232 Collateralized mortgage obligations 6,419 6,297 Total held to maturity $ 105,560 $ 106,742 At December 31, 2015 and 2014, investment securities with a value of $ 140.0 million and $ 192.0 million, respectively, were pledged as permitted or required to secure public deposits, for securities sold under agreements to repurchase as required or permitted by law and as collateral for borrowing capacity . |
Loans and Related Allowance for
Loans and Related Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Loans and Related Allowance for Loan Losses | 8 . Loans and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio as of December 31, 2015 and December 31, 2014: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Total December 31, 2015 Individually evaluated for impairment $ 14,646 $ 4,496 $ 1,076 $ 4,590 $ 0 $ 24,808 Collectively evaluated for impairment $ 265,859 $ 106,490 $ 72,777 $ 384,149 $ 24,940 $ 854,215 Total loans $ 280,505 $ 110,986 $ 73,853 $ 388,739 $ 24,940 $ 879,023 December 31, 2014 Individually evaluated for impairment $ 11,949 $ 6,553 $ 1,861 $ 4,418 $ 0 $ 24,781 Collectively evaluated for impairment $ 244,115 $ 92,748 $ 91,394 $ 363,223 $ 23,730 $ 815,210 Total loans $ 256,064 $ 99,301 $ 93,255 $ 367,641 $ 23,730 $ 839,991 The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The CRE loan segment is further disaggregated into two classes. Non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, generally have a greater risk profile than all other CRE loans, which include loans secured by farmland, multifamily structures and owner-occupied commercial structures. The A&D loan segment is further disaggregated into two classes. One-to-four family residential construction loans are generally made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. All other A&D loans are generally made to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures. These loans have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the A&D loan. The C&I loan segment consists of loans made for the purpose of financing the activities of commercial customers. The residential mortgage loan segment is further disaggregated into two classes: amortizing term loans, which are primarily first liens, and home equity lines of credit, which are generally second liens. The consumer loan segment consists primarily of installment loans (direct and indirect) and overdraft lines of credit connected with customer deposit accounts. In the ordinary course of business, executive officers and directors of the Corporation, including their families and companies in which certain directors are principal owners, were loan customers of the Bank. Pursuant to the Bank’s lending policies, such loans were made on the same terms, including collateral, as those prevailing at the time for comparable transactions with persons who are not related to the Corporation and do not involve more than the normal risk of collectability. Changes in the dollar amount of loans outstanding to officers, directors and their associates were as follows for the year ended December 31: (in thousands) 2015 Balance at January 1 $ 9,207 Loans or advances 3,589 Repayments (1,403) Balance at December 31 $ 11,393 Management uses a 10-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Only the portion of a specific allocation of the allowance for loan losses that management believes is associated with a pending event that could trigger loss in the short term is classified in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. It is possible for a loan to be classified as Substandard in the internal risk rating system, but not considered impaired under GAAP, due to the broader reach of “well-defined weaknesses” in the application of the Substandard definition. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in the commercial segments at origination and on an ongoing basis. The Bank’s experienced Credit Quality and Loan Review Department performs an annual review of all commercial relationships of $500,000 or greater. Confirmation of the appropriate risk grade is included as part of the review process on an ongoing basis. The Credit Quality and Loan Review Department continually reviews and assesses loans within the portfolio. In addition, the Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews commercial relationships greater than $1,000,000 and/or criticized non-consumer loans greater than $500,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard. There were no loans classified as Doubtful within the internal risk rating system as of December 31, 2015 and 2014: (in thousands) Pass Special Mention Substandard Total December 31, 2015 Commercial real estate Non owner-occupied $ 140,378 $ 11,574 $ 7,378 $ 159,330 All other CRE 103,811 1,184 16,180 121,175 Acquisition and development 1-4 family residential construction 15,011 0 700 15,711 All other A&D 89,963 74 5,238 95,275 Commercial and industrial 69,420 1,212 3,221 73,853 Residential mortgage Residential mortgage - term 300,558 167 10,744 311,469 Residential mortgage – home equity 75,491 0 1,779 77,270 Consumer 24,881 0 59 24,940 Total $ 819,513 $ 14,211 $ 45,299 $ 879,023 December 31, 2014 Commercial real estate Non owner-occupied $ 115,276 $ 10,884 $ 11,273 $ 137,433 All other CRE 90,740 8,618 19,273 118,631 Acquisition and development 1-4 family residential construction 12,920 0 790 13,710 All other A&D 72,323 1,356 11,912 85,591 Commercial and industrial 88,579 884 3,792 93,255 Residential mortgage Residential mortgage - term 280,113 379 10,934 291,426 Residential mortgage – home equity 74,698 90 1,427 76,215 Consumer 23,658 0 72 23,730 Total $ 758,307 $ 22,211 $ 59,473 $ 839,991 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan is considered to be past due when a payment has not been received for 30 days past its contractual due date. For all loan segments, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. All non-accrual loans are considered to be impaired. Interest payments received on non-accrual loans are applied as a reduction of the loan principal balance. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans as of December 31, 2015 and December 31, 2014: (in thousands) Current 30-59 Day Past Due 60-89 Days Past Due 90 Days+ Past Due Total Past Due and still accruing Non-Accrual Total Loans December 31, 2015 Commercial real estate Non owner-occupied $ 157,217 $ 634 $ 171 $ 0 $ 805 $ 1,308 $ 159,330 All other CRE 110,022 1,179 0 0 1,179 9,974 121,175 Acquisition and development 1-4 family residential construction 15,711 0 0 0 0 0 15,711 All other A&D 92,867 417 174 0 591 1,817 95,275 Commercial and industrial 73,619 13 36 0 49 185 73,853 Residential mortgage Residential mortgage - term 298,391 8,084 2,149 907 11,140 1,938 311,469 Residential mortgage – home equity 76,195 505 203 91 799 276 77,270 Consumer 24,596 232 85 27 344 0 24,940 Total $ 848,618 $ 11,064 $ 2,818 $ 1,025 $ 14,907 $ 15,498 $ 879,023 December 31, 2014 Commercial real estate Non owner-occupied $ 135,994 $ 104 $ 183 $ 0 $ 287 $ 1,152 $ 137,433 All other CRE 112,825 1,196 0 0 1,196 4,610 118,631 Acquisition and development 1-4 family residential construction 13,710 0 0 0 0 0 13,710 All other A&D 81,702 239 40 1 280 3,609 85,591 Commercial and industrial 93,060 0 20 4 24 171 93,255 Residential mortgage Residential mortgage - term 279,340 8,654 1,350 416 10,420 1,666 291,426 Residential mortgage – home equity 74,913 577 313 69 959 343 76,215 Consumer 23,316 287 88 39 414 0 23,730 Total $ 814,860 $ 11,057 $ 1,994 $ 529 $ 13,580 $ 11,551 $ 839,991 Non-accrual loans which have been subject to a partial charge-off totaled $ 4.1 million as of December 31, 2015, compared to $ 4.6 million as of December 31, 2014. Loans secured by 1-4 family residential real estate properties in the process of foreclosure was $1.8 million at December 31, 2015 and $1.9 million at December 31, 2014. The ALL is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35, Receivables-Overall-Subsequent Measurement , for loans individually evaluated for impairment and ASC Subtopic 450-20, Contingencies - Loss Contingencies , for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The following table summarizes the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2015 and December 31, 2014 . (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total December 31, 2015 Individually evaluated for impairment $ 144 $ 867 $ 16 $ 130 $ 0 $ 0 $ 1,157 Collectively evaluated for impairment $ 2,436 $ 3,262 $ 706 $ 3,655 $ 206 $ 500 $ 10,765 Total ALL $ 2,580 $ 4,129 $ 722 $ 3,785 $ 206 $ 500 $ 11,922 December 31, 2014 Individually evaluated for impairment $ 36 $ 1,141 $ 0 $ 59 $ 0 $ 0 $ 1,236 Collectively evaluated for impairment $ 2,388 $ 2,771 $ 1,680 $ 3,803 $ 187 $ 0 $ 10,829 Total ALL $ 2,424 $ 3,912 $ 1,680 $ 3,862 $ 187 $ 0 $ 12,065 Management evaluates individual loans in all of the commercial segments for possible impairment if the loan is greater than $500,000 or is part of a relationship that is greater than $750,000 and (i) is either in nonaccrual status or (ii) is risk-rated Substandard and is greater than 60 days past due. Loans are considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loans are part of larger relationship that is impaired; otherwise loans in these segments are considered impaired when they are classified as non-accrual. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management utilizing the fair value of collateral method for all of the analyses. If the fair value of the collateral less selling costs method is utilized for collateral securing loans in the commercial segments, then an updated external appraisal is ordered on the collateral supporting the loan if the loan balance is greater than $500,000 and the existing appraisal is greater than 18 months old. If the loan balance is less than $500,000, then the estimated fair value of the collateral is determined by adjusting the existing appraisal by the appropriate percentage from an internally prepared appraisal discount grid. This grid considers the age of a third party appraisal and the geographic region where the collateral is located in order to discount an appraisal that was performed between 2004 and 2008. The discount rates in the appraisal discount grid are updated at least annually to reflect the most current knowledge that management has available, including the results of current appraisals. If there is a delay in receiving an updated appraisal or if the appraisal is found to be deficient in our internal appraisal review process and re-ordered, the Bank continues to use a discount factor from the appraisal discount grid based on the collateral location and current appraisal age in order to determine the estimated fair value. If management believes that general market conditions in that geographic market have changed considerably, the property has deteriorated or perhaps lost an income stream, or a recent appraisal for a similar property indicates a significant change, then management may adjust the fair value indicated by the existing appraisal until a new appraisal is obtained. A specific allocation of the ALL is recorded if there is any deficiency in collateral value determined by comparing the estimated fair value to the recorded investment of the loan. When updated appraisals are received and reviewed, adjustments are made to the specific allocation as needed. The evaluation of the need and amount of a specific allocation of the ALL and whether a loan can be removed from impairment status is made on a quarterly basis. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2015 and December 31, 2014 : Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (in thousands) Recorded Investment Related Allowances Recorded Investment Recorded Investment Unpaid Principal Balance December 31, 2015 Commercial real estate Non owner-occupied $ 676 $ 144 $ 1,031 $ 1,707 $ 1,842 All other CRE 0 0 12,939 12,939 13,302 Acquisition and development 1-4 family residential construction 700 178 0 700 746 All other A&D 1,979 689 1,817 3,796 8,362 Commercial and industrial 16 16 1,060 1,076 3,343 Residential mortgage Residential mortgage - term 440 112 3,874 4,314 4,808 Residential mortgage – home equity 57 18 219 276 297 Consumer 0 0 0 0 0 Total impaired loans $ 3,868 $ 1,157 $ 20,940 $ 24,808 $ 32,700 December 31, 2014 Commercial real estate Non owner-occupied $ 143 $ 35 $ 4,353 $ 4,496 $ 4,543 All other CRE 0 0 7,453 7,453 7,944 Acquisition and development 1-4 family residential construction 790 105 0 790 836 All other A&D 3,615 1,037 2,148 5,763 9,590 Commercial and industrial 0 0 1,861 1,861 2,723 Residential mortgage Residential mortgage - term 296 59 3,779 4,075 4,485 Residential mortgage – home equity 0 0 343 343 363 Consumer 0 0 0 0 0 Total impaired loans $ 4,844 $ 1,236 $ 19,937 $ 24,781 $ 30,484 Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. The classes described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity (full and partial charge-offs, net of full and partial recoveries) at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. Consumer pools currently utilize a rolling 12 quarters, while Commercial pools currently utilize a rolling eight quarters. “Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. The un-criticized (“pass”) pools for commercial and residential real estate are further segmented based upon the geographic location of the underlying collateral. There are seven geographic regions utilized – six that represent the Bank’s lending footprint and a seventh for all out-of-market credits. Different economic environments and resultant credit risks exist in each region that are acknowledged in the assignment of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management supplements the historical charge-off factor with a number of additional qualitative factors that are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors, which are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources, are: (i) national and local economic trends and conditions; (ii) levels of and trends in delinquency rates and non-accrual loans; (iii) trends in volumes and terms of loans; (iv) effects of changes in lending policies; (v) experience, ability, and depth of lending staff; (vi) value of underlying collateral; and (vii) concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Residential mortgage and consumer loans are charged off after they are 120 days contractually past due. All other loans are charged off based on an evaluation of the facts and circumstances of each individual loan. When the Bank believes that its ability to collect is solely dependent on the liquidation of the collateral, a full or partial charge-off is recorded promptly to bring the recorded investment to an amount that the Bank believes is supported by an ability to collect on the collateral. The circumstances that may impact the Bank’s decision to charge-off all or a portion of a loan include default or non-payment by the borrower, scheduled foreclosure actions, and/or prioritization of the Bank’s claim in bankruptcy. There may be circumstances where due to pending events, the Bank will place a specific allocation of the ALL on a loan for which a partial charge-off has been previously recognized. This specific allocation may be either charged-off or removed depending upon the outcome of the pending event. Full or partial charge-offs are not recovered until full principal and interest on the loan have been collected, even if a subsequent appraisal supports a higher value. In most cases, loans with partial charge-offs remain in non-accrual status. Both full and partial charge-offs reduce the recorded investment of the loan and the ALL and are considered to be charge-offs for purposes of all credit loss metrics and trends, including the historical rolling charge-off rates used in the determination of the ALL. Activity in the ALL is presented for the years ended December 31, 2015 and December 31, 2014: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at January 1, 2015 $ 2,424 $ 3,912 $ 1,680 $ 3,862 $ 187 $ 0 $ 12,065 Charge-offs (420) (1,261) (26) (300) (307) 0 (2,314) Recoveries 283 382 26 217 209 0 1,117 Provision 293 1,096 (958) 6 117 500 1,054 ALL balance at December 31, 2015 $ 2,580 $ 4,129 $ 722 $ 3,785 $ 206 $ 500 $ 11,922 ALL balance at January 1, 2014 $ 4,052 $ 4,172 $ 766 $ 4,320 $ 284 $ 0 $ 13,594 Charge-offs (485) (2,673) (266) (847) (512) 0 (4,783) Recoveries 11 133 26 229 342 0 741 Provision (1,154) 2,280 1,154 160 73 0 2,513 ALL balance at December 31, 2014 $ 2,424 $ 3,912 $ 1,680 $ 3,862 $ 187 $ 0 $ 12,065 The ALL is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended December 31, 2015 and 2014: 2015 2014 (in thousands) Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Commercial real estate Non owner-occupied $ 3,792 $ 144 $ 0 $ 2,411 $ 71 $ 0 All other CRE 8,688 124 106 9,088 148 67 Acquisition and development 1-4 family residential construction 736 33 0 1,510 43 0 All other A&D 5,008 119 0 7,639 161 0 Commercial and industrial 1,392 69 18 2,024 98 2 Residential mortgage Residential mortgage - term 4,258 164 10 6,056 200 62 Residential mortgage – home equity 334 0 2 581 4 4 Consumer 6 0 0 10 0 0 Total $ 24,214 $ 653 $ 136 $ 29,319 $ 725 $ 135 In the normal course of business, the Bank modifies loan terms for various reasons. These reasons may include as a retention strategy to compete in the current interest rate environment, and to re-amortize or extend a loan term to better match the loan’s payment stream with the borrower’s cash flows. A modified loan is considered to be a TDR when the Bank has determined that the borrower is troubled (i.e. experiencing financial difficulties). The Bank evaluates the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification. To make this determination, the Bank performs a global financial review of the borrower and loan guarantors to assess their current ability to meet their financial obligations. When the Bank restructures a loan to a troubled borrower, the loan terms (i.e. interest rate, payment, amortization period and/or maturity date) are modified in such a way to enable the borrower to cover the modified debt service payments based on current financials and cash flow adequacy. If a borrower’s hardship is thought to be temporary, then modified terms are only offered for that time period. Where possible, the Bank obtains additional collateral and/or secondary payment sources at the time of the restructure in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms. To date, the Bank has not forgiven any principal as a restructuring concession. The Bank will not offer modified terms if it believes that modifying the loan terms will only delay an inevitable permanent default. All loans designated as TDRs are considered impaired loans and may be in either accruing or non-accruing status. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Accordingly, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. If the loan was accruing at the time of the modification, then it continues to be in accruing status subsequent to the modification. Non-accrual TDRs may return to accruing status when there has been sufficient payment performance for a period of at least six months. TDRs are considered to be in payment default if, subsequent to modification, the loans are transferred to non-accrual status or to foreclosure. A loan may be removed from being reported as a TDR in the calendar year following the modification if the interest rate at the time of modification was consistent with the interest rate for a loan with comparable credit risk and the loan has performed according to its modified terms for at least six months. Further, a loan that has been removed from TDR reporting status and has been subsequently re-modified at standard market terms, may be removed from impaired status as well. The volume, type and performance of TDR activity is considered in the assessment of the local economic trend qualitative factor used in the determination of the ALL for loans that are evaluated collectively for impairment. There were 29 loans totaling $ 14.0 million and 27 loans totaling $ 13.7 million that were classified as TDRs at December 31, 2015 and December 31, 2014, respectively. The following table presents the volume and recorded investment at the time of modification of TDRs by class and type of modification that occurred during the periods indicated: Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (Dollars in thousands) For the year ended December 31, 2015 Commercial real estate Non owner-occupied 0 $ 0 1 $ 3,097 2 $ 260 All other CRE 0 0 1 237 5 3,847 Acquisition and development 1-4 family residential construction 0 0 0 0 1 700 All other A&D 0 0 3 372 1 1,746 Commercial and industrial 0 0 1 930 0 0 Residential mortgage Residential mortgage – term 1 156 3 741 1 116 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 1 $ 156 9 $ 5,377 10 $ 6,669 For the year ended December 31, 2014 Commercial real estate Non owner-occupied 0 $ 0 2 $ 277 0 $ 0 All other CRE 0 0 0 0 4 2,627 Acquisition and development 1-4 family residential construction 0 0 0 0 1 790 All other A&D 0 0 0 0 1 1,782 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 2 160 1 233 0 0 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 2 $ 160 3 $ 510 6 $ 5,199 During the year ended December 31, 2015, there were nine new TDRs. In addition, 11 existing TDRs which had reached their original modification maturity were re-modified. A $7,541 reduction of the ALL resulted from a change to the impairment evaluation of three loans, from evaluated collectively to being evaluated individually. The remaining new TDRs were impaired at the time of modification, resulting in no impact to the ALL as a result of the modification. There was no impact to the recorded investment relating to the transfer of these loans. During the year ended December 31, 2015, activity relating to payment defaults included one mortgage loan totaling $.1 million that was transferred to OREO in the third quarter; and two mortgage loans totaling $.2 million that were transferred to non-accrual in the fourth quarter. During the year ended December 31, 2014, activity relating to payment defaults included three A&D loans totaling $1.6 million that were transferred to OREO in the fourth quarter; and a $.2 million C&I loan and a $.4 million owner-occupied CRE loan that were transferred to non-accrual in the third quarter. At December 31, 2015 and 2014, additional funds of up to $11,200 and $10,400 , respectively, were committed to be advanced in connection with TDRs . |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | 9 . Other Real Estate Owned The following table presents the components of OREO as of December 31, 2015 and 2014: (in thousands) 2015 2014 Commercial real estate $ 1,520 $ 1,772 Acquisition and development 4,167 9,263 Residential mortgage 1,196 1,897 Total OREO $ 6,883 $ 12,932 The following table presents the activity in the OREO valuation allowance for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Balance January 1 $ 3,440 $ 4,047 Fair value write-down 1,997 920 Sales of OREO (1,007) (1,527) Balance December 31 $ 4,430 $ 3,440 The following table presents the components of OREO expenses, net for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 (Gains)/losses on real estate, net $ (753) $ 944 Fair value write-down 1,997 920 Expenses, net 885 789 Rental and other income (230) (335) Total OREO expenses, net $ 1,899 $ 2,318 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | 10 . Premises and Equipment The following table presents the components of premises and equipment at December 31, 2015 and 2014: (in thousands) 2015 2014 Land $ 7,304 $ 7,304 Land Improvements 1,210 1,210 Premises 25,272 25,112 Furniture and Equipment 16,824 16,343 Capital Lease 534 534 51,144 50,503 Less accumulated depreciation (25,946) (24,874) Total $ 25,198 $ 25,629 The Corporation recorded depreciation expense of $ 1.8 million in 2015 and $1.9 million in 2014. Pursuant to the terms of non-cancelable operating lease agreements for banking and subsidiaries’ offices and for data processing and telecommunications equipment in effect at December 31, 2015, future minimum rent commitments under these leases for future years are as follows: (i) $ .8 million for 2016; (ii) $.7 million for 2017; (iii) $ . 7 million for 2018; (iv) $ .5 million for 2019; (v) $ .4 million for 2020; and (vi) $ 4. 3 million thereafter. The leases contain options to extend for periods from one to five years, which are not included in the aforementioned amounts. Total building and land rental expense amounted to $ .5 million in 2015 and 2014 . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill | 1 1 . Goodwill ASC Topic 350, Intangibles - Goodwill and Other , establishes standards for the amortization of acquired intangible assets and impairment assessment of goodwill. The $11.0 million in recorded goodwill at December 31, 2015 is related to the Bank’s 2003 acquisition of Huntington National Bank branches and is not subject to periodic amortization. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible elements in the business acquired. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Impairment testing requires that the fair value of each of the Corporation’s reporting units be compared to the carrying amount of its net assets, including goodwill. If the estimated current fair value of the reporting unit exceeds its carrying value, then no additional testing is required and an impairment loss is not recorded. Otherwise, additional testing is performed and, to the extent such additional testing results in a conclusion that the carrying value of goodwill exceeds its implied fair value, an impairment loss is recognized. Our goodwill relates to value inherent in the banking business and the value is dependent upon our ability to provide quality, cost effective services in a highly competitive local market. This ability relies upon continuing investments in processing systems, the development of value-added service features and the ease of use of our services. As such, goodwill value is supported ultimately by revenue that is driven by the volume of business transacted. A decline in earnings as a result of a lack of growth or the inability to deliver cost effective services over sustained periods can lead to impairment of goodwill, which could adversely impact earnings in future periods. ASC Topic 350 requires an annual evaluation of goodwill for impairment. The determination of whether or not these assets are impaired involves significant judgments and estimates. During 2015, including at December 31, 2015, shares of First United Corporation’s common stock traded at prices that were below the common stock’s book value. Management believed that these circumstances could indicate the possibility of impairment. Accordingly, management consulted a third party valuation specialist to assist it with the determination of the fair value of First United Corporation , considering both the market approach (guideline public company method) and the income approach (discounted future benefits method). Due to the illiquidity in the common stock and the adverse conditions surrounding the banking industry, reliance was placed on the income approach in determining the fair value of First United Corporation. The income approach is a discounted cash flow analysis that is determined by adding (i) the present value, which is a representation of the current value of a sum that is to be received some time in the future, of the estimated net income, net of dividends paid out, that First United Corporation could generate over the next five years and (ii) the present value of a terminal value, which is a representation of the current value of an entity at a specified time in the future. The terminal value was calculated using both a price to tangible book multiple method and a capitalization method and the more conservative of the two was utilized in the fair value calculation. Significant assumptions used in the above methods include: · Net income from our forward five-year operating budget, incorporating conservative growth and mix assumptions; · A discount rate of 12.82% based on an internally derived cost of equity capital determined using the “build-up” method; · A price to tangible book multiple of 1.36x , which was the median multiple adjusted for the Corporation’s asset quality profile of non-assisted transactions for non-assisted commercial bank acquisitions during the 12 months ended September 30, 2015 for selling companies headquartered in the Eastern regional area as compiled by Boenning & Scattergood, Inc.; and · A capitalization rate of 6.82% (discount rate of 12.82% adjusted for a conservative growth rate of 6.0%) . The resulting fair value of the income approach resulted in the fair value of First United Corporation exceeding the carrying value by 60% . Management stressed the assumptions used in the analysis to provide additional support for the derived value. This stress testing showed that (i) the discount rate could increase to 27% before the excess would be eliminated in the tangible multiple method, and (ii) the assumption of the tangible book multiple could decline to 0.66x and still result in a fair value in excess of book value. Based on the results of the evaluation, management concluded that the recorded value of goodwill at December 31, 2015 was not impaired. However, future changes in strategy and/or market conditions could significantly impact these judgments and require adjustments to recorded asset balances. Management will continue to evaluate goodwill for impairment on an annual basis and as events occur or circumstances change. The significant components of goodwill at December 31, 2015 and 2014 are as follows: (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill: $ 14,812 $ (3,808) $ 11,004 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | 1 2 . Deposits The aggregate amount of time deposits in denomination of $250,000 or more was $32.6 million at December 31, 2015. The aggregate amount of time deposits with a minimum denomination of $100,000 was $ 124.8 million and $ 145.0 million at December 31, 2015 and 2014, respectively. At December 31, 2015, $ . 2 million of deposit overdrafts were re-classified as loans. The following is a summary of the scheduled maturities of all time deposits as of December 31, 2015 (in thousands): 2016 $ 121,827 2017 49,582 2018 45,758 2019 13,242 2020 24,166 Thereafter 0 Total $ 254,575 In the ordinary course of business, executive officers and directors of the Corporation, including their families and companies in which certain directors are principal owners, were deposit customers of the Bank. Pursuant to the Bank’s policies, such deposits are on the same terms as those prevailing at the time for comparable deposits with persons who are not related to the Corporation. At December 31, 2015, executive officers and directors had approximately $4.4 million in deposits with the Bank . |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2015 | |
Borrowed Funds [Abstract] | |
Borrowed Funds | 1 3 . Borrowed Funds The following is a summary of short-term borrowings at December 31, 2015 and 2014 with original maturities of less than one year : (Dollars in thousands) 2015 2014 Securities sold under agreements to repurchase: Outstanding at end of year $ 35,828 $ 39,801 Weighted average interest rate at year end 0.16% 0.15% Maximum amount outstanding as of any month end $ 47,131 $ 53,819 Average amount outstanding $ 35,908 $ 45,702 Approximate weighted average rate during the year 0.16% 0.13% At December 31, 2015, the repurchase agreements were secured by $ 59.2 million in investment securities . The following is a summary of long-term borrowings at December 31, 2015 and 2014 with original maturities exceeding one year: (In thousands) 2015 2014 FHLB advances, bearing fixed interest rates ranging from 1.00% to 3.69% at December 31, 2015 $ 105,807 $ 135,876 Junior subordinated debt, bearing variable interest rate of 3.28% at December 31, 2015 30,929 35,929 Junior subordinated debt, bearing fixed interest rate of 9.88% at December 31, 2015 10,801 10,801 Total long-term debt $ 147,537 $ 182,606 At December 31, 2015, the long-term FHLB advances were secured by $223.0 million in loans. The contractual maturities of long-term borrowings at December 31, 2015 and 2014 are as follows: 2015 Fixed Floating 2014 (in thousands) Rate Rate Total Total Due in 2015 $ 0 $ 0 $ 0 $ 35,000 Due in 2016 0 0 0 0 Due in 2017 0 0 0 0 Due in 2018 20,000 0 20,000 70,000 Due in 2019 0 0 0 0 Due in 2020 30,000 0 30,000 0 Thereafter 66,608 30,929 97,537 77,606 Total long-term debt $ 116,608 $ 30,929 $ 147,537 $ 182,606 The Bank has a borrowing capacity agreement with the FHLB in an amount equal to 29% of the Bank’s assets. At December 31, 2015, the available line of credit equaled $ 381.0 million. In December 2015, the Bank completed a contemporaneous exchange of debt on several advances. This exchange reduced the rate paid by approximately 14 basis points and laddered the stated maturities more evenly over the next six years. This line of credit, which can be used for both short and long-term funding, can only be utilized to the extent of available collateral. The line is secured by certain qualified mortgage, commercial and home equity loans and investment securities as follows (in thousands): 1-4 family mortgage loans $ 175,581 Commercial loans 19,916 Multi-family loans 872 Home equity loans 26,660 $ 223,029 At December 31, 2015, $ 104.2 million was available for additional borrowings. The Bank also has various unsecured lines of credit totaling $ 70.0 million with various financial institutions and a $ 17.2 million secured line with the Federal Reserve to meet daily liquidity requirements. As of December 31, 2015, there were no borrowings under these credit facilities. In addition, there was approximately $ 102.1 million of available funding through brokered money market funds at December 31, 2015. Repurchase Agreements - The Bank has retail repurchase agreements with customers within its local market areas. Repurchase agreements generally have maturities of one to four days from the transaction date. These borrowings are collateralized with securities that we own and are held in safekeeping at independent correspondent banks. FHLB Advances - The FHLB advances consist of various borrowings with maturities generally ranging from five to 10 years with initial fixed rate periods of one, two or three years. After the initial fixed rate period, the FHLB has one or more options to convert each advance to a LIBOR based, variable rate advance, but the Bank may repay the advance in whole or in part, without a penalty, if the FHLB exercises its option. At all other times, the Bank’s early repayment of any advance could be subject to a prepayment penalty . |
Junior Subordinated Debentures
Junior Subordinated Debentures and Restrictions on Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Junior Subordinated Debentures and Restrictions on Dividends [Abstract] | |
Junior Subordinated Debentures and Restrictions on Dividends | 1 4 . Junior Subordinated Debentures and Restrictions on Dividends In March 2004 , Trust I and Trust II issued preferred securities with an aggregate liquidation amount of $ 30.0 million to third-party investors and issued common equity with an aggregate liquidation amount of $ .9 million to First United Corporation. Trust I and Trust II used the proceeds of these offerings to purchase an equal amount of TPS Debentures, as follows: $ 20.6 million —floating rate payable quarterly based on three-month LIBOR plus 275 basis points ( 3.28 % at December 31, 2015), maturing in 2034 , became redeemable five years after issuance at First United Corporation’s option. $ 10.3 million --floating rate payable quarterly based on three-month LIBOR plus 275 basis points ( 3.28 % at December 31, 2015) maturing in 2034 , became redeemable five years after issuance at First United Corporation’s option. In December 2004 , First United Corporation issued $5.0 million of junior subordinated debentures to third-party investors that were not tied to preferred securities. The debentures had a fixed rate of 5.88% for the first five years, payable quarterly, and converted to a floating rate in March 2010 based on the three month LIBOR plus 185 basis points . The debentures matured and were repaid in full in March 2015 . In December 2009 , Trust III issued 9.875 % fixed-rate preferred securities with an aggregate liquidation amount of approximately $ 7.0 million to private investors and issued common securities to First United Corporation with an aggregate liquidation amount of approximately $ .2 million. Trust III used the proceeds of the offering to purchase approximately $ 7.2 million of 9.875 % fixed-rate TPS Debentures. Interest on these TPS Debentures are payable quarterly, and the TPS Debentures mature in 2040 but are redeemable five years after issuance at First United Corporation’s option. In January 2010 , Trust III issued an additional $ 3.5 million of 9.875 % fixed-rate preferred securities to private investors and issued common securities to First United Corporation with an aggregate liquidation amount of $ .1 million. Trust III used the proceeds of the offering to purchase $ 3.6 million of 9.875 % fixed-rate TPS Debentures. Interest on these TPS Debentures are payable quarterly, and the TPS Debentures mature in 2040 but are redeemable five years after issuance at First United Corporation’s option. The TPS Debentures issued to each of the Trusts represent the sole assets of that Trust, and payments of the TPS Debentures by First United Corporation are the only sources of cash flow for the Trust. First United Corporation has the right, without triggering a default, to defer interest on all of the TPS Debentures for up to 20 quarterly periods, in which case distributions on the preferred securities will also be deferred. Should this occur, the Corporation may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. Refer to Note 4 for further details. In December 2010, the Board of Directors of First United Corporation voted to suspend the payment of cash dividends on the common stock starting in 2011 in connection with the above-mentioned deferral of dividends on the Series A Preferred Stock. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Preferred Stock [Abstract] | |
Preferred Stock | 1 5 . Preferred Stock On January 30, 2009, pursuant to the TARP CPP, First United Corporation issued to the Treasury 30,000 shares of its Series A Preferred Stock, having no par value, and a Warrant to purchase 326,323 shares of common stock at an exercise price of $13.79 per share, for an aggregate consideration of $30 million. The proceeds from this transaction qualify as Tier 1 capital and the Warrant qualified as tangible common equity. The operative documents relating to this transaction are on file with the SEC and available to the public free of charge. On December 4, 2014, the Treasury sold all of its shares of Series A Preferred Stock to third-party investors. On May 26, 2015, First United Corporation repurchased the warrant from the Treasury for $120,786 , which is included in other expense. The warrant was canceled and as a result of the repurchase, the Treasury has no remaining equity investment in First United Corporation. The holders of the Series A Preferred Stock are entitled to receive, if and when declared by the Board of Directors, out of assets legally available for payment, cumulative cash dividends at a rate per annum of 5% per share on a liquidation amount of $1,000 per share of Series A Preferred Stock with respect to each dividend period from January 30, 2009 to, but excluding, February 15, 2014. From and after February 15, 2014, holders of Series A Preferred Stock are entitled to receive cumulative cash dividends at a rate per annum of 9% per share on a liquidation amount of $1,000 per share with respect to each dividend period thereafter. In 2014, the Corporation paid $7.9 million in dividends, including all deferred dividends, to holders of the Series A. Preferred Stock. Under the terms of the Series A Preferred Stock, on and after February 15, 2012, First United Corporation may, at its option and after consulting with the Reserve Bank, redeem shares of Series A Preferred Stock, in whole or in part, at any time and from time to time, for cash at a per share amount equal to the sum of the liquidation preference per share plus any accrued and unpaid dividends to but excluding the redemption date. On February 15, 2016 , First United Corporation redeemed 10,000 shares of the Series A Preferred Stock, having an aggregate liquidation amount of $10.0 million on a pro rata basis from each of the holders. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 1 6 . Variable Interest Entities As noted in Note 1 4 , First United Corporation created the Trusts for the purposes of raising regulatory capital through the sale of mandatorily redeemable preferred capital securities to third party investors and common equity interests to First United Corporation. The Trusts are considered VIEs, but are not consolidated because First United Corporation is not the primary beneficiary of the Trusts. At December 31, 2015, the Corporation reported all of the $41.7 million of TPS Debentures issued in connection with these offerings as long-term borrowings, and it reported its $1.3 million equity interest in the Trusts as “Other Assets”. In November 2009, the Bank became a 99.99% limited partner in Liberty Mews . Liberty Mews was financed with a total of $10.6 million of funding, including a $6.1 million equity contribution from the Bank as the limited partner. Liberty Mews used the proceeds from these sources to purchase land and construct thereon a 36-unit low income housing rental complex at a total cost of $10.6 million. The total assets of Liberty Mews were $9.1 million at December 31, 2015 and $9.4 million at December 31, 2014. Through December 31, 2015, the Bank had made contributions to Liberty Mews totaling $6.1 million. The project for which Liberty Mews was formed was completed in June 2011, and the Bank is entitled to $8.4 million in federal investment tax credits over a 10 -year period as long as certain qualifying hurdles are maintained. The Bank will also receive the benefit of tax operating losses from Liberty Mews the extent of its capital contribution. The investment in Liberty Mews assists the Bank in achieving its community reinvestment initiatives. Because Liberty Mews is considered to be a VIE, management performed an analysis to determine whether its involvement with Liberty Mews would lead it to determine that it must consolidate Liberty Mews. In performing its analysis, management evaluated the risks creating the variability in Liberty Mews and identified which activities most significantly impact the VIE’s economic performance. Finally, it examined each of the variable interest holders to determine which, if any, of the holders was the primary beneficiary based on their power to direct the most significant activities and their obligation to absorb potentially significant losses of Liberty Mews. The Bank, as a limited partner, generally has no voting rights. The Bank is not in any way involved in the daily management of Liberty Mews and has no other rights that provide it with the power to direct the activities that most significantly impact Liberty Mews’ economic performance, which are to develop and operate the housing project in such a manner that complies with specific tax credit guidelines. As a limited partner, there is no recourse to the Bank by the creditors of Liberty Mews. The tax credits that result from the Bank’s investment in Liberty Mews are generally subject to recapture should the partnership fail to comply with the applicable government regulations. The Bank has not provided any financial or other support to Liberty Mews beyond its required capital contributions and does not anticipate providing such support in the future. Management currently believes that no material losses are probable as a result of the Bank’s investment in Liberty Mews. On the basis of management’s analysis, the general partner is deemed to be the primary beneficiary of Liberty Mews. Because the Bank is not the primary beneficiary, Liberty Mews has not been included in the Corporation’s consolidated financial statements. The Corporation accounts for the Bank’s investment in Liberty Mews utilizing the effective yield method under guidance that applies specifically to investments in limited partnerships that operate qualified affordable housing projects. Under the effective yield method, the investor recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the investor. The effective yield is the internal rate of return on the investment, based on the cost of the investment and the guaranteed tax credits allocated to the investor. The tax credit allocated, net of the amortization of the investment in the limited partnership, is recognized in the income statement as a component of income taxes attributable to continuing operations. The Corporation’s tax expense for the year ended December 31, 2015 was approximately $.6 million lower as a result of the impact of the tax credits and the tax losses relating to the partnership. At December 31, 2015 and December 31, 2014, the Corporation included the Bank’s total investment in Liberty Mews in “Other Assets” in its Consolidated Statements of Financial Condition. As of December 31, 2015, the Corporation’s commitment in Liberty Mews is fully funded. The following table presents details of the Bank’s involvement with Liberty Mews at the dates indicated: (In thousands) 2015 2014 Investment in LIHTC Partnership Carrying amount on Balance Sheet of: Investment (Other Assets) $ 3,844 $ 4,429 Maximum exposure to loss 3,844 4,429 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) [Abstract] | |
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) | 1 7 . Accumulated Other Comprehensive Loss (“AOCL”) – (As Restated) The following table presents the changes in each component of accumulated other comprehensive loss for the years ended December 31 , 2015 , December 31, 2015 as restated and 2014: Investment Investment Investment securities- securities- securities- Cash Flow Pension (in thousands) with OTTI AFS all other AFS HTM Hedge Plan SERP Total Accumulated OCL, net: Balance - January 1, 2014 $ (7,623) $ (11,292) $ 0 $ (274) $ (5,088) $ 64 $ (24,213) Other comprehensive income/(loss) before reclassifications 4,349 8,712 (2,395) 155 (6,513) (319) 3,989 Amounts reclassified from accumulated other comprehensive loss (405) 25 140 0 209 22 (9) Balance - December 31, 2014 $ (3,679) $ (2,555) $ (2,255) $ (119) $ (11,392) $ (233) $ (20,233) Other comprehensive income/(loss) before reclassifications 1,793 705 0 80 (1,736) (113) 729 Amounts reclassified from accumulated other comprehensive loss (56) (174) 284 0 465 41 560 Balance - December 31, 2015 (As Restated) $ (1,942) $ (2,024) $ (1,971) $ (39) $ (12,663) $ (305) $ (18,944) The following tables present the components of other comprehensive income for the years ended December 31, 2015 and 2014: Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the year ended December 31, 2015 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 2,985 $ (1,192) $ 1,793 Less: losses recognized in income 672 (268) 404 Less: accretable yield recognized in income (580) 232 (348) Net unrealized gains on investments with OTTI 2,893 (1,156) 1,737 Available for sale securities – all other: Unrealized holding gains 1,174 (469) 705 Plus: gains recognized in income 290 (116) 174 Net unrealized gains on all other AFS securities 884 (353) 531 Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (473) 189 (284) Net unrealized gains on HTM securities 473 (189) 284 Cash flow hedges: Unrealized holding gains 133 (53) 80 Pension Plan: Unrealized net actuarial loss (2,890) 1,154 (1,736) Less: amortization of unrecognized loss (781) 312 (469) Less: amortization of transition asset 19 (8) 11 Less: amortization of prior service costs (12) 5 (7) Net pension plan liability adjustment (2,116) 845 (1,271) SERP: Unrealized net actuarial loss (188) 75 (113) Less: amortization of unrecognized loss (49) 20 (29) Less: amortization of prior service costs (20) 8 (12) Net SERP liability adjustment (119) 47 (72) Other comprehensive income $ 2,148 $ (859) $ 1,289 Components of Other Comprehensive Income (in thousands) Tax (Expense) Benefit Net For the year ended December 31, 2014 Available for sale (AFS) securities with OTTI: Unrealized holding gains 7,234 $ (2,885) $ 4,349 Less: accretable yield recognized in income 674 (269) 405 Net unrealized gains on investments with OTTI 6,560 (2,616) 3,944 Available for sale securities – all other: Unrealized holding gains 14,501 (5,789) 8,712 Less: losses recognized in income (41) 16 (25) Net unrealized gains on all other AFS securities 14,542 (5,805) 8,737 Held to maturity securities: Unrealized holding losses (3,984) 1,589 (2,395) Less: amortization recognized in income (233) 93 (140) Net unrealized losses on HTM securities (3,751) 1,496 (2,255) Cash flow hedges: Unrealized holding gains 258 (103) 155 Pension Plan: Unrealized net actuarial loss (10,833) 4,320 (6,513) Less: amortization of unrecognized loss (374) 149 (225) Less: amortization of transition asset 39 (16) 23 Less: amortization of prior service costs (12) 5 (7) Net pension plan liability adjustment (10,486) 4,182 (6,304) SERP: Unrealized net actuarial loss (531) 212 (319) Less: amortization of unrecognized loss (17) 7 (10) Less: amortization of prior service costs (20) 8 (12) Net SERP liability adjustment (494) 197 (297) Other comprehensive income 6,629 $ (2,649) $ 3,980 The following tables present the details of accumulated other comprehensive income components for the years ended December 31, 2015 and 2014: Amount Reclassified from Accumulated Other Comprehensive Income Details of Accumulated Other Comprehensive Income Components (in thousands) 2015 Affected Line Item in the Statement Where Net Income is Presented Net unrealized losses on investment securities with OTTI: Losses recognized $ 672 Net losses - other Accretable Yield reversal (580) Interest income on taxable investment securities Taxes (36) Tax benefit $ 56 Net of tax Net unrealized gains on available for sale investment securities - all other: Gains on sales $ 290 Net gains - other Taxes (116) Tax expense $ 174 Net of tax Net unrealized gains on held to maturity investment securities: Amortization $ (473) Interest income on taxable investment securities Taxes 189 Tax benefit $ (284) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss (781) Salaries and employee benefits Amortization of transition asset 19 Salaries and employee benefits Amortization of prior service costs (12) Salaries and employee benefits Taxes 309 Tax benefit $ (465) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss (49) Salaries and employee benefits Amortization of prior service costs (20) Salaries and employee benefits Taxes 28 Tax benefit $ (41) Net of tax Total reclassifications for the period $ (560) Net of tax Amount Reclassified from Accumulated Other Comprehensive Income Details of Accumulated Other Comprehensive Income Components (in thousands) 2014 Affected Line Item in the Statement Where Net Income is Presented Net unrealized gains on investment securities with OTTI: Accretable Yield $ 674 Interest income on taxable investment securities Taxes (269) Tax expense $ 405 Net of tax Net unrealized losses on available for sale investment securities - all other: Losses on sales $ (41) Net gains - other Taxes 16 Tax benefit $ (25) Net of tax Net unrealized losses on held to maturity investment securities: Amortization $ (233) Interest income on taxable investment securities Taxes 93 Tax benefit $ (140) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss (374) Salaries and employee benefits Amortization of transition asset 39 Salaries and employee benefits Amortization of prior service costs (12) Salaries and employee benefits Taxes 138 Tax benefit $ (209) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss (17) Salaries and employee benefits Amortization of prior service costs (20) Salaries and employee benefits Taxes 15 Tax benefit $ (22) Net of tax Total reclassifications for the period $ 9 Net of tax |
Income Taxes - (As Restated)
Income Taxes - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes - (As Restated) [Abstract] | |
Income Taxes - (As Restated) | 1 8 . Income Taxes – (As Restated) The provision for income taxes consists of the following for the years ended December 31, 2015 and 2014: (In thousands) 2015 2014 Current Tax expense: Federal $ 585 $ 551 State 627 84 $ 1,212 $ 635 Deferred tax expense: Federal $ 4,715 $ 334 State 546 302 $ 5,261 $ 636 Income tax expense for the year $ 6,473 $ 1,271 The reconciliation between the statutory federal income tax rate and effective income tax rate for the years ended December 31, 2015 and 2014 is as follows: 2015 2014 Federal statutory rate 35.0% 35.0% Tax-exempt income on securities and loans (2.4) (8.2) Tax-exempt BOLI income (2.1) (7.1) State income tax, net of federal tax benefit 4.9 5.2 Tax credits (2.4) (7.1) Other 0.2 0.6 33.2% 18.4% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s temporary differences as of December 31, 2015 and 2014 are as follows: (In thousands) 2015 2014 Deferred tax assets: Allowance for loan losses $ 4,760 $ 4,811 Deferred loan fees 137 58 Deferred compensation 901 800 Federal and state tax loss carry forwards 4,165 6,069 AMT and other carry forwards 4,304 3,462 Unrealized loss on investment securities 4,039 5,735 Pension/SERP 2,598 2,476 Other than temporary impairment on investment securities 1,251 5,100 Other real estate owned 1,769 1,388 Other 1,481 1,352 Total deferred tax assets 25,405 31,251 Valuation allowance (1,794) (1,658) Total deferred tax assets less valuation allowance 23,611 29,593 Deferred tax liabilities: Amortization of goodwill (2,986) (2,495) Depreciation (653) (831) Other (182) (360) Total deferred tax liabilities (3,821) (3,686) Net deferred tax assets $ 19,790 $ 25,907 In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income of the appropriate character (for example, ordinary income or capital gain) within the carry-back or carry-forward period available under the tax law during the periods in which temporary differences are deductible. The Corporation has considered future market growth, forecasted earnings, future taxable income, and feasible and permissible tax planning strategies in determining whether it will be able to realize the deferred tax asset. If the Corporation were to determine that it will not be able to realize a portion of its net deferred tax asset in the future for which there is currently no valuation allowance, an adjustment to the net deferred tax asset would be charged to earnings in the period such determination was made. Conversely, if the Corporation were to make a determination that it is more likely than not that the deferred tax assets for which there is a valuation allowance will be realized, the related valuation allowance would be reduced and a benefit would be recorded. At December 31, 2015 the Corporation has federal net operating losses (“NOLs”) of approximately $6.2 million and West Virginia NOLs of approximately $4.3 million for which deferred tax assets of $2.2 million and $0.2 million, respectively, have been recorded at December 31, 2015. The federal and West Virginia NOLs were created in 2010, 2012 and 2014 and will begin expiring in 2030 . Based on our evaluation of the four sources of taxable income, Management has determined that a deferred tax valuation allowance for 2015 is not required on the Federal and West Virginia NOLs because we believe it is more likely than not that these deferred tax assets can be realized prior to expiration of their carry-forward periods based on the expected reversal of deferred tax liabilities, the generation of future income sufficient to realize the deferred tax assets as they reverse. The Corporation has Maryland NOL carry-forwards of $36.4 million relating to a Parent Company (First United Corporation) NOL for which a deferred tax asset of $1.8 million has been recorded at December 31, 2015. There has been and continues to be a full valuation allowance on this NOL based on the fact that it is more likely than not that this deferred tax asset will not be realized because First United Corporation files a separate Maryland income tax return, has recurring tax losses and is not expected to generate sufficient taxable income in the future to utilize the NOL carry-forwards before they expire. The valuation allowance of $1.8 million at December 31, 2015 reflects an increase of $.1 million from the level at December 31, 2014. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 1 9 . Employee Benefit Plans First United Corporation sponsors a noncontributory defined benefit pension plan (the “Pension Plan”) covering the employees who were hired prior to the freeze and others who were grandfathered into the plan. The benefits are based on years of service and the employees’ compensation during the last five years of employment. Effective April 30, 2010, the Pension Plan was amended, resulting in a “soft freeze”, the effect of which prohibits new entrants into the plan and ceases crediting of additional years of service, after that date. Effective January 1, 2013, the Pension Plan was amended to unfreeze it for those employees for whom the sum of (i) their ages, at their closest birthday, plus (ii) years of service for vesting purposes equals 80 or greater. The “soft freeze” continues to apply to all other plan participants. Pension benefits for these participants will be managed through discretionary contributions to the First United Corporation 401(k) Profit Sharing Plan (the “401(k) Plan”). During 2001, the Bank established an unfunded supplemental executive retirement plan (the “SERP”). The SERP is available only to a select group of management or highly compensated employees to provide supplemental retirement benefits in excess of limits imposed on qualified plans by federal tax law. Concurrent with the establishment of the SERP, the Bank acquired BOLI policies on the senior management personnel and officers of the Bank. The benefits resulting from the favorable tax treatment accorded the earnings on the BOLI policies are intended to provide a source of funds for the future payment of the SERP benefits as well as other employee benefit costs. The benefit obligation activity for both the Pension Plan and SERP was calculated using an actuarial measurement date of January 1. Plan assets and the benefit obligations were calculated using an actuarial measurement date of December 31. On January 9, 2015, First United Corporation and members of management who do not participate in the SERP entered into participation agreements under the Deferred Compensation Plan, each styled as a SERP Alternative Participation Agreement (the “Participation Agreement”). Pursuant to each Participation Agreement, First United Corporation agreed, for each Plan Year (as defined in the Deferred Compensation Plan) in which it determines that it has been Profitable (as defined in the Participation Agreement), to make a discretionary contribution to the participant’s Employer Account in an amount equal to 15% of the participant’s base salary level for such Plan Year, with the first Plan Year being the year ending December 31, 2015. The Participation Agreement provides that the participant will become 100% vested in the amount maintained in his or her Employer Account upon the earliest to occur of the following events: (i) Normal Retirement (as defined in the Participation Agreement); (ii) Separation from Service (as defined in the Participation Agreement) following a Change of Control (as defined in the Deferred Compensation Plan) and subsequent Triggering Event (as defined in the Participation Agreement); (iii) Separation from Service due to a Disability (as defined in the Participation Agreement); (iv) with respect to a particular award of Employer Contribution Credits, the participant’s completion of two consecutive Years of Service (as defined in the Participation Agreement) immediately following the Plan Year for which such award was made; or (v) death. Notwithstanding the foregoing, however, a participant will lose entitlement to the amount maintained in his or her Employer Account in the event employment is terminated for Cause (as defined in the Participation Agreement). In addition, the Participation Agreement conditions entitlement to the amounts held in the Employer Account on the participant (a) refraining from engaging in Competitive Employment (as defined in the Participation Agreement) for three years following his or her Separation from Service, (b) refraining from injurious disclosure of confidential information concerning the Corporation, and (c) remaining available, at the First United Corporation’s reasonable request, to provide at least six hours of transition services per month for 12 months following his or her Separation from Service (except in the case of death or Disability), except that only item (b) will apply in the event of a Separation from Service following a Change of Control and subsequent Triggering Event. In January 2016, the Board of Directors of First United Corporation approved a discretionary contribution in the amount of $63,500 . The following tables summarize benefit obligation and funded status, plan asset activity, components of net pension cost, and weighted average assumptions for the Pension Plan and the SERP : Pension SERP (in thousands) 2015 2014 2015 2014 Change in Benefit Obligation Obligation at the beginning of the year $ 39,348 $ 28,329 $ 5,827 $ 5,084 Service cost 316 258 121 115 Interest cost 1,579 1,478 239 220 Change in discount rate and mortality assumptions (1,207) 7,216 0 0 Actuarial losses 841 3,401 190 499 Benefits paid (1,461) (1,334) (88) (91) Obligation at the end of the year 39,416 39,348 6,289 5,827 Change in Plan Assets Fair value at the beginning of the year 38,967 34,848 0 0 Actual return on plan assets (306) 2,453 0 0 Employer contribution 2,000 3,000 88 91 Benefits paid (1,461) (1,334) (88) (91) Fair value at the end of the year 39,200 38,967 0 0 Unfunded Status $ (216) $ (381) $ (6,289) $ (5,827) Pension SERP (in thousands) 2015 2014 2015 2014 Components of Net Pension Cost Service cost $ 316 $ 258 $ 121 $ 115 Interest cost 1,579 1,478 239 220 Expected return on assets (2,965) (2,653) 0 0 Amortization of transition asset (19) (39) 0 0 Amortization of recognized loss/(gain) 781 374 49 (17) Amortization of prior service cost 12 12 20 20 Net pension (income)/expense in employee benefits $ (296) $ (570) $ 429 $ 338 Weighted Average Assumptions used to determine benefit obligations: Discount rate for benefit obligations 4.50% 4.00% 4.00% 4.00% Discount rate for net pension cost 4.00% 4.75% 0 0 Expected long-term return on assets 7.00% 7.75% 0 0 Rate of compensation increase 3.00% 3.00% 3.00% 3.00% Mortality tables RP-2014 RP-2014 N/A N/A The accumulated benefit obligation for the Pension Plan was $ 3 6.1 million and $ 35.7 million at December 31, 2015 and 2014, respectively. The accumulated benefit obligation for the SERP was $ 5.4 million and $ 4. 9 million at December 31, 2015 and 2014, respectively. The investment assets of a defined benefit plan are managed with the goal of providing for retiree distributions while also supporting long-term plan obligations with a moderate level of portfolio risk. In order to address the variability over time of both risk and return, the plan investment strategy entails a dynamic approach to asset allocation, providing for normalized targets for major asset classes, with the ability to tactically adjust within the following specified ranges around those targets. Asset Class Normalized Target Range Cash 5% 0% - 20% Fixed Income 40% 30% - 50% Equities 55% 45% - 65% Decisions regarding tactical adjustments within the above noted ranges for asset classes are based on a top down review of factors expected to have material impact on the risk and reward dynamics of the portfolio as a whole. Such factors include, but are not limited to, the following: · Anticipated domestic and international economic growth as a whole; · The position of the economy within its longer term economic cycle; and · The expected impact of economic vitality, cycle positioning, financial market risks, industry/demographic trends and political forces on the various market sectors and investment styles. With respect to individual company securities, additional company specific matters are considered, which could include management track record and guidance, future earnings expectations, current relative price expectations and the impact of identified risks on expected performance, among others. A core equity position of large cap stocks will be maintained, with more aggressive or volatile sectors meaningfully represented in the asset mix in pursuit of higher returns. Strategic and specific investment decisions are guided by an in-house investment committee as well as a number of outside institutional resources that provide economic, industry and company data and analytics. It is management’s intent to give the Plan’s investment managers flexibility with respect to investment decisions and their timing within the overall guidelines. However, certain investments require specific review and approval by management. Management is also informed of anticipated changes in nonproprietary investment managers, significant modifications of any previously approved investment, or the anticipated use of derivatives to execute investment strategies. Portfolio risk is managed in large part by a focus on diversification across multiple levels as well as an emphasis on financial strength. For example, current investment policies restrict initial investments in debt securities to be rated investment grade at the time of purchase. Also, with the exception of the highest rated securities (e.g. - U.S. Treasury or government-backed agency securities), no more than 10% of the portfolio may be invested in a single entity’s securities. As a result of the previously noted approaches to controlling portfolio risk, any concentrations of risk would be associated with general systemic risks faced by industry sectors or the portfolio as a whole. Assets in the Pension Plan are valued by the Corporation’s accounting system provider who utilizes a third party pricing service. Valuation data is based on actual market data for stocks and mutual funds (Level 1) and matrix pricing for bonds (Level 2). Cash and cash equivalents are also considered Level 1 within the fair value hierarchy . As of December 31, 2015 and 2014, the value of Pension Plan investments was as follows: December 31, 2015 Fair Value Hierarchy (Dollars in thousands) Assets at Fair Value % of Portfolio Level 1 Level 2 Cash and cash equivalents $ 2,260 5.8% $ 2,260 $ 0 Fixed income securities: U.S. Government and Agencies 131 0.3% 0 131 Taxable municipal bonds and notes 2,869 7.3% 0 2,869 Corporate bonds and notes 8,774 22.4% 0 8,774 Preferred stock 542 1.4% 0 542 Fixed income mutual funds 2,736 7.0% 2,736 0 Total fixed income 15,052 38.5% 2,736 12,316 Equities: Large Cap 16,364 41.7% 16,364 0 Mid Cap 2,775 7.0% 2,775 0 Small Cap 1,061 2.7% 1,061 0 International 1,688 4.3% 1,688 0 Total equities 21,888 55.7% 21,888 0 Total market value $ 39,200 100.0% $ 26,884 $ 12,316 December 31, 2014 Fair Value Hierarchy (Dollars in thousands) Assets at Fair Value % of Portfolio Level 1 Level 2 Cash and cash equivalents $ 1,043 2.7% $ 1,043 $ 0 Fixed income securities: U.S. Government and Agencies 613 1.6% 0 613 Taxable municipal bonds and notes 2,525 6.5% 0 2,525 Corporate bonds and notes 8,393 21.5% 0 8,393 Preferred stock 478 1.2% 0 478 Fixed income mutual funds 5,049 13.0% 5,049 0 Total fixed income 17,058 43.8% 5,049 12,009 Equities: Large Cap 15,646 40.1% 15,646 0 Mid Cap 2,743 7.0% 2,743 0 Small Cap 1,305 3.4% 1,305 0 International 1,172 3.0% 1,172 0 Total equities 20,866 53.5% 20,866 0 Total market value $ 38,967 100.0% $ 26,958 $ 12,009 The expected rate of return on Pension Plan assets is based on a combination of the following: · Historical returns of the portfolio of assets; · Monte Carlo simulations of expected returns for a portfolio with strategic asset targets similar to the normalized targets; and · Market impact adjustments to reflect expected future investment environment considerations. As of December 31, 2015, the 25-year average return on pension portfolio assets was 7.95 %, exceeding the expected long-term return of 7.00 % utilized for 2015. Based on the actual performance experience noted above and long-term returns of relevant indices, a case could be built for retaining the expected returns at the existing level. However, there are a number of reasons that would support a lowering of the expected return. For example, since the early 1980’s, there has been a general trend of lower interest rates that have supported bond market performance in a positive manner. Such support would likely be reversed in the event that the general trend in rates reverses for an extended period of time. In as much, as bond market exposure represents a significant portion of pension plan assets, weaker performance from bonds would be reflected in pension returns. Also, expectations from global economic growth continue to be muted, in spite of the efforts of central banks around the world. Further, long-term average returns of benchmark indices are impacted by favorable markets during the 1990s that may or may not be repeated in the foreseeable future. Given the potentially higher possibility that future returns may face at elevated headwinds, it is considered prudent to lower the expected return assumption to 7.00%. The Pension Plan did not hold any shares of First United Corporation common stock at December 31, 2015 or 2014. Estimated cash flows related to expected future benefit payments from the Pension Plan and SERP are as follows : (In thousands) Pension Plan SERP 2016 $ 1,337 $ 141 2017 1,429 204 2018 1,473 242 2019 1,552 303 2020 1,660 301 2021-2025 10,077 1,769 First United Corporation funded an annual contribution of $2.0 million to the pension plan in the fourth quarter of 2015. First United Corporation will evaluate future annual contributions to the Pension Plan based upon its funded status and an evaluation of the future benefits to be provided thereunder. The Bank expects to fund the annual projected benefit payments for the SERP from operations. Amounts included in accumulated other comprehensive loss as of December 31, 2015 and 2014, net of tax, are as follows: 2015 2014 (In thousands) Pension SERP Pension SERP Unrecognized net actuarial loss $ 12,641 $ 306 $ 11,375 $ 217 Unrecognized prior service costs 20 4 28 16 Net transition asset 0 0 (11) 0 $ 12,661 $ 310 $ 11,392 $ 233 The estimated costs that will be amortized from accumulated other comprehensive loss into net periodic pension cost during the next fiscal year are as follows: (In thousands) Pension SERP Prior service costs $ 12 $ 20 Net transition asset 0 0 Net actuarial loss 848 78 $ 860 $ 98 |
401(k) Profit Sharing Plan
401(k) Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2015 | |
401(k) Profit Sharing Plan [Abstract] | |
401(k) Profit Sharing Plan | 20 . 401(k) Profit Sharing Plan In furtherance of First United Corporation’s belief that every employee should have the ability to accrue retirement benefits, it adopted the 401(k) Profit Sharing Plan, which is available to all employees, including executive officers. Employees are automatically entered in the plan on the first of the month following completion of 30 days of service to First United Corporation and/or its subsidiaries. Employees have the opportunity to opt out of participation or change their deferral amounts under the plan at any time. In addition to contributions by participants, the plan contemplates employer matching and the potential of discretionary contributions to the accounts of participants. First United Corporation believes that matching contributions encourage employees to participate and thereby plan for their post-retirement financial future. Beginning with the 2008 plan year, First United Corporation enhanced the match formula to 100 % on the first 1% of salary reduction and 50% on the next 5% of salary reduction. This match is accrued for all participants, including executive officers, immediately upon entering the plan on the first day of the month following the completion of 30 days of employment. The employee must be a plan participant and be actively employed on the last day of the plan year to share in the employer matching contribution, except in the case of death, disability or retirement of the participant. Additionally, First United Corporation accrued a non-elective employer contribution during 2015 for all employees other than employees who participate in the SERP and SERP Alternative and those employees meeting the age plus service requirement in the Pension Plan equal to 4.5% of each employee’s salary, hired prior to January 1, 2010; and 4% of each employee’s salary hired since January 1, 2010, which will be paid in the first quarter of 2016. Expense charged to operations for the 401(k) Plan was $ 1.0 million in 2015 and 2014. |
Federal Reserve Requirements
Federal Reserve Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Federal Reserve Requirements [Abstract] | |
Federal Reserve Requirements | 2 1 . Federal Reserve Requirements During 2013, the Federal Reserve modified its structure for institutions to calculate their reserve requirements with the Reserve Bank. Under these new calculations, the Bank was not required to maintain certain cash reserve levels as its vault cash exceeded the levels for reserve. |
Restrictions on Dividend Paymen
Restrictions on Dividend Payments | 12 Months Ended |
Dec. 31, 2015 | |
Restrictions on Dividend Payments [Abstract] | |
Restrictions on Dividend Payments | 2 2 . Restrictions on Dividend Payments First United Corporation is subject to an informal agreement with the Federal Reserve Bank of Richmond (the “Reserve Bank”), which requires it to seek the prior approval of the Reserve Bank before making any dividend payment or other distribution on its capital securities or other securities that qualify as Tier 1 capital. On November 15, 2010, First United Corporation, at the request of the Reserve Bank, deferred regular quarterly cash dividend payments on its Series A Preferred Stock. Pursuant to the terms of the Series A Preferred Stock, the deferral prohibits First United Corporation from paying dividends or other distributions on its common stock. On December 15, 2010, First United Corporation, at the request of the Reserve Bank, elected to defer regular quarterly interest payments on its TPS Debentures, beginning with the payments that are due in March 2011. This deferral likewise prohibited First United Corporation from paying any dividends or distributions on its capital securities during the deferral period. In February 2014, First United Corporation received approval from the Reserve Bank to terminate this deferral by making the quarterly interest payments due to the Trusts in March 2014 and paying all deferred interest for prior quarters. In April 2014, First United Corporation received approval from the Reserve Bank to terminate this deferral by making the quarterly dividend payment due to the holders of the outstanding shares of Series A Preferred Stock in May 2014 and paying all unpaid dividends that accrued during the suspension period. See Note 13 for additional information about the current state of the deferral. |
Restrictions on Subsidiary Divi
Restrictions on Subsidiary Dividends, Loans or Advances | 12 Months Ended |
Dec. 31, 2015 | |
Restrictions on Subsidiary Dividends, Loans or Advances [Abstract] | |
Restrictions on Subsidiary Dividends, Loans or Advances | 2 3 . Restrictions on Subsidiary Dividends, Loans or Advances Federal and state banking regulations place certain restrictions on the amount of dividends paid and loans or advances made by the Bank to First United Corporation. The total amount of dividends that may be paid at any date is generally limited to the retained earnings of the Bank, and loans or advances are limited to 10 % of the Bank’s capital stock and surplus on a secured basis. In addition, dividends paid by the Bank to First United Corporation would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. At December 31, 2015, the Bank could have paid additional dividends of $ 22.3 million to First United Corporation within these limits. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | 2 4 . Commitments and Contingent Liabilities We are at times, and in the ordinary course of business, subject to legal actions. Management believes that losses, if any, resulting from current legal actions will not have a material adverse effect on our financial condition or results of operations. Loan commitments are made to accommodate the financial needs of our customers. Loan commitments have credit risk essentially the same as that involved in extending loans to customers and are subject to normal credit policies. Commitments to extend credit generally have fixed expiration dates, may require payment of a fee, and contain cancellation clauses in the event of an adverse change in the customer’s credit quality. We do not issue any guarantees that would require liability recognition or disclosure other than the standby letters of credit issued by the Bank. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party to support contractual obligations and to ensure job performance . Generally, the Bank’s letters of credit are issued with expiration dates within one year. Historically, most letters of credit expire unfunded, and therefore, cash requirements are substantially less than the total commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting letters of credit. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payment required by the letters of credit. Management does not believe that the amount of the liability associated with guarantees under standby letters of credit outstanding at December 31, 2015 and December 31, 2014 is material. The following table is a summary of commitments as of December 31, 2015 and 2014: (In thousands) 2015 2014 Loan commitments $ 129,076 $ 103,019 Commercial letters of credit 1,587 877 Total $ 130,663 $ 103,896 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments - (As Restated) [Abstract] | |
Fair Value of Financial Instruments - (As Restated) | 2 5 . Fair Value of Financial Instruments – (As Restated) The Corporation complies with the guidance of ASC Topic 820, Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements required under other accounting pronouncements . The Corporation also follows the guidance on matters relating to all financial instruments found in ASC Subtopic 825-10, Financial Instruments – Overall . Fair value is defined as the price to sell an asset or to transfer a liability in an orderly transaction between willing market participants as of the measurement date. Fair value is best determined by values quoted through active trading markets. Active trading markets are characterized by numerous transactions of similar financial instruments between willing buyers and willing sellers. Because no active trading market exists for various types of financial instruments, many of the fair values disclosed were derived using present value discounted cash flows or other valuation techniques described below. As a result, the Corporation’s ability to actually realize these derived values cannot be assumed. T he Corporation measures fair values based on the fair value hierarchy established in ASC Paragraph 820-10-35-37. 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 inputs that may be used to measure fair value under the hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. This level is the most reliable source of valuation. Level 2: Quoted prices that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). It also includes inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Several sources are utilized for valuing these assets, including a contracted valuation service, Standard & Poor’s (“S&P”) evaluations and pricing services, and other valuation matrices. Level 3: Prices or valuation techniques that require inputs that are both significant to the valuation assumptions and not readily observable in the market (i.e. supported with little or no market activity). Level 3 instruments are valued based on the best available data, some of which is internally developed, and consider risk premiums that a market participant would require. The level established within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers in and out of Level 1, 2 or 3 are recorded at fair value at the beginning of the reporting period. Management believes that the Corporation’s valuation techniques are appropriate and consistent with the techniques used by other market participants. However, the use of different methodologies and assumptions could result in a different estimate of fair values at the reporting date. T he following valuation techniques were used to measure the fair value of assets in the table below which are measured on a recurring and non-recurring basis as of December 31, 2015. Investments – The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities . The fair value of investments available-for-sale is determined using a market approach. As of December 31, 2015, the U.S. Government agencies and treasuries, residential and commercial mortgage-backed securities, private label residential mortgage-backed securities, and municipal bonds segments are classified as Level 2 within the valuation hierarchy. Their fair values were determined based upon market-corroborated inputs and valuation matrices, which were obtained through third party data service providers or securities brokers through which we have historically transacted both purchases and sales of investment securities. The CDO segment, which consists of pooled trust preferred securities issued by banks, thrifts and insurance companies, is classified as Level 3 within the valuation hierarchy. At December 31, 2015, the Corporation owned 12 pooled trust preferred securities with an amortized cost of $29.3 million and a fair value of $22.2 million. The market for these securities at December 31, 2015 is not active and markets for similar securities are also not active. The inactivity was evidenced first by a significant widening of the bid-ask spread in the brokered markets in which these securities trade and then by a significant decrease in the volume of trades relative to historical levels. The new issue market is also inactive, as few CDOs have been issued since 2007. There are currently very few market participants who are willing to effect transactions in these securities. The market values for these securities or any securities other than those issued or guaranteed by the Treasury are depressed relative to historical levels. Therefore, in the current market, a low market price for a particular bond may only provide evidence of stress in the credit markets in general rather than being an indicator of credit problems with a particular issue. Given the conditions in the current debt markets and the absence of observable transactions in the secondary and new issue markets, management has determined that (i) the few observable transactions and market quotations that are available are not reliable for the purpose of obtaining fair value at December 31, 2015, (ii) an income valuation approach technique (i.e. present value) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than a market approach, and (iii) the CDO segment is appropriately classified within Level 3 of the valuation hierarchy because management determined that significant adjustments were required to determine fair value at the measurement date. Management utilizes an independent third party to prepare both the evaluations of other-than-temporary impairment as well as the fair value determinations for its CDO portfolio. Management does not believe that there were any material differences in the impairment evaluations and pricing between December 31, 2015 and December 31, 2014. The approach of the third party to determine fair value involves several steps, including detailed credit and structural evaluation of each piece of collateral in each bond, default, recovery and prepayment/amortization probabilities for each piece of collateral in the bond, and discounted cash flow modeling. The discount rate methodology used by the third party combines a baseline current market yield for comparable corporate and structured credit products with adjustments based on evaluations of the differences found in structure and risks associated with actual and projected credit performance of each CDO being valued. Currently, the only active and liquid trading market that exists is for stand-alone trust preferred securities. Therefore, adjustments to the baseline discount rate are also made to reflect the additional leverage found in structured instruments. Derivative financial instruments (Cash flow hedge) – The Corporation’s open derivative positions are interest rate swaps that are classified as Level 3 within the valuation hierarchy. Open derivative positions are valued using externally developed pricing models based on observable market inputs provided by a third party and validated by management. The Corporation has considered counterparty credit risk in the valuation of its interest rate swap assets. Management does not believe that there is a significant concentration with the counterparty. Impaired loans – Loans included in the table below are those that are considered impaired with a specific allocation based upon the guidance of the loan impairment subsection of the Receivables Topic, ASC Section 310-10-35, under which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value consists of the loan balance less its valuation allowance and is generally determined based on independent third-party appraisals of the collateral or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned – Fair value of other real estate owned was based on independent third-party appraisals of the properties. These values were determined based on the sales prices of similar properties in the approximate geographic area. These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements. For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015 and 2014, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale - CDO $ 22,211 Discounted Cash Flow Discount Rate Range of Libor+ 4.5% to 5.5% Cash Flow Hedge $ (66) Discounted Cash Flow Reuters Third Party Market Quote 99.9% (weighted avg 99.9% ) Non-recurring: Impaired Loans $ 6,247 Market Comparable Properties Marketability Discount 3% to 15% (1) (weighted avg 11.3% ) OREO $ 4,133 Market Comparable Properties Marketability Discount 10% to 15% (1) (weighted avg 12.5% ) (in thousands) Fair Value at December 31, 2014 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale - CDO $ 25,339 Discounted Cash Flow Discount Rate Range of Libor+ 5% to 12% Cash Flow Hedge $ (199) Discounted Cash Flow Reuters Third Party Market Quote 99.9% (weighted avg 99.9%) Non-recurring: Impaired Loans $ 9,122 Market Comparable Properties Marketability Discount 10% (1) (weighted avg 10% ) OREO $ 2,511 Market Comparable Properties Marketability Discount 10% to 15% (1) (weighted avg 11% ) (1) Range would include discounts taken since appraisal and estimated values For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2015 and 2014 are as follows: Fair Value Measurements at December 31, 2015 Using (In Thousands) Assets Measured at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 33,964 $ 33,964 Residential mortgage-backed agencies $ 14,170 $ 14,170 Commercial mortgage-backed agencies $ 43,636 $ 43,636 Collateralized mortgage obligations $ 9,610 $ 9,610 Obligations of states and political subdivisions $ 46,641 $ 46,641 Collateralized debt obligations $ 22,211 $ 22,211 Financial Derivative $ (66) $ (66) Non-recurring: Impaired loans $ 6,247 $ 6,247 Other real estate owned $ 4,133 $ 4,133 Fair Value Measurements at December 31, 2014 Using (In Thousands) Assets Measured at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. treasuries $ 29,596 $ 29,596 U.S. government agencies $ 38,941 $ 38,941 Residential mortgage-backed agencies $ 45,273 $ 45,273 Commercial mortgage-backed agencies $ 25,957 $ 25,957 Collateralized mortgage obligations $ 8,707 $ 8,707 Obligations of states and political subdivisions $ 47,304 $ 47,304 Collateralized debt obligations $ 25,339 $ 25,339 Financial Derivative $ (199) $ (199) Non-recurring: Impaired loans $ 9,122 $ 9,122 Other real estate owned $ 2,511 $ 2,511 There were no transfers of assets between any of the levels of the fair value hierarchy for the years ended December 31, 2015 or December 31, 2014. The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured using Level 3 significant unobservable inputs for the years ended December 31, 2015 and 2014: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands) Investment Securities Available for Sale Cash Flow Hedge Beginning balance January 1, 2015 $ 25,339 $ (199) Total gains/(losses) realized/unrealized: Included in earnings 818 0 Included in other comprehensive income (3,946) 133 Ending balance December 31, 2015 $ 22,211 $ (66) The amount of total gains or losses for the period included in earnings attributable to the change in realized/unrealized gains or losses related to assets still held at the reporting date $ 0 $ 0 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands) Cash Flow Hedge Beginning balance January 1, 2014 17,538 $ (457) Total gains/(losses) realized/unrealized: Included in earnings 0 0 Included in other comprehensive income 7,801 258 Ending balance December 31, 2014 25,339 $ (199) The amount of total gains or losses for the period included in earnings attributable to the change in realized/unrealized gains or losses related to assets still held at the reporting date 0 $ 0 Gains and losses (realized and unrealized) included in earnings for the periods above are reported in the Consolidated Statement of Income in other operating income. The fair values disclosed may vary significantly between institutions based on the estimates and assumptions used in the various valuation methodologies. The derived fair values are subjective in nature and involve uncertainties and significant judgment. Therefore, they cannot be determined with precision. Changes in the assumptions could significantly impact the derived estimates of fair value. Disclosure of non-financial assets such as buildings as well as certain financial instruments such as leases is not required. Accordingly, the aggregate fair values presented do not represent the underlying value of the Corporation. We use the following methods and assumptions in estimating fair value disclosures for financial instruments: Cash and due from banks: The carrying amounts as reported in the statement of financial condition for cash and due from banks approximate their fair values. Interest bearing deposits in banks: The carrying amount of interest bearing deposits approximates their fair values. Restricted investment in Bank stock: The carrying value of stock issued by the FHLB of Atlanta, ACBB and CBB approximates fair value based on the redemption provisions of the stock. Loans (excluding impaired loans with specific loss allowances): For variable-rate loans that reprice frequently or “in one year or less”, and with no significant change in credit risk, fair values are based on carrying values. Fair values for fixed-rate loans that do not reprice frequently are estimated using a discounted cash flow calculation that applies current market interest rates being offered on the various loan products. Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and certain types of money market accounts, etc.) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on the various certificates of deposit to the cash flow stream. Short-term borrowings : The carrying amount of short-term borrowings approximates their fair values. Borrowed funds: The fair value of the Bank’s FHLB borrowings and First United Corporation’s TPS Debentures is calculated based on the discounted value of contractual cash flows, using rates currently existing for borrowings with similar remaining maturities. The carrying amounts of federal funds purchased and securities sold under agreements to repurchase approximate their fair values. Accrued interest: The carrying amount of accrued interest receivable and payable approximates their fair values. Off-balance-sheet financial instruments: In the normal course of business, the Bank makes commitments to extend credit and issues standby letters of credit. The Bank expects most of these commitments to expire without being drawn upon; therefore, the commitment amounts do not necessarily represent future cash requirements. Due to the uncertainty of cash flows and difficulty in the predicting the timing of such cash flows, fair values were not estimated for these instruments. The following table presents fair value information about financial instruments, whether or not recognized in the statement of financial condition, for which it is practicable to estimate that value. The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the statement of financial condition are as follows: December 31, 2015 Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 50,188 $ 50,188 $ 50,188 Interest bearing deposits in banks 1,953 1,953 1,953 Investment securities - AFS 170,232 170,232 $ 148,021 $ 22,211 Investment securities - HTM 105,560 106,742 103,779 2,963 Restricted Bank stock 5,904 5,904 5,904 Loans, net 867,101 872,991 872,991 Accrued interest receivable 4,218 4,218 4,218 Financial Liabilities: Deposits – non-maturity 744,219 744,219 744,219 Deposits – time deposits 254,575 258,267 258,267 Short-term borrowed funds 35,828 35,828 35,828 Long-term borrowed funds 147,537 151,562 151,562 Accrued interest payable 478 478 478 Financial derivative 66 66 66 Off balance sheet financial instruments 0 0 0 December 31, 2014 Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 27,554 $ 27,554 $ 27,554 Interest bearing deposits in banks 7,897 7,897 7,897 Investment securities - AFS 221,117 221,117 $ 195,778 $ 25,339 Investment securities - HTM 109,449 110,771 108,163 2,608 Restricted Bank stock 7,524 7,524 7,524 Loans, net 827,926 830,904 830,904 Accrued interest receivable 4,152 4,152 4,152 Financial Liabilities: Deposits – non-maturity 689,581 689,581 689,581 Deposits – time deposits 291,742 296,713 296,713 Short-term borrowed funds 39,801 39,801 39,801 Long-term borrowed funds 182,606 187,143 187,143 Accrued interest payable 882 882 882 Financial derivative 199 199 199 Off balance sheet financial instruments 0 0 0 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 2 6 . Derivative Financial Instruments As a part of managing interest rate risk, the Corporation entered into interest rate swap agreements to modify the re-pricing characteristics of certain interest-bearing liabilities. The Corporation has designated its interest rate swap agreements as cash flow hedges under the guidance of ASC Subtopic 815-30, Derivatives and Hedging – Cash Flow Hedges . Cash flow hedges have the effective portion of changes in the fair value of the derivative, net of taxes, recorded in net accumulated other comprehensive income. In July 2009, the Corporation entered into three interest rate swap contracts totaling $20.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt. As of December 31, 2015, swap contracts totaling $5.0 million notional amount remained, as the three-year $5.0 million contract matured on June 15, 2012 and the five-year $10.0 million contract matured on June 17, 2014. The seven-year $5.0 million contract matures June 17, 2016 . The fair value of the interest rate swap contract was ($66) thousand at December 31, 2015 and ($199) thousand at December 31, 2014 and was reported in Other Liabilities on the Consolidated Statement of Financial Condition. Cash in the amount of $.2 million was posted as collateral as of December 31, 2015. For the year ended December 31, 2015, the Corporation recorded an increase in the value of the derivatives of $133 thousand and the related deferred tax benefit of $53 thousand in net accumulated other comprehensive loss to reflect the effective portion of cash flow hedges. ASC Subtopic 815-30 requires this amount to be reclassified to earnings if the hedge becomes ineffective or is terminated. There was no hedge ineffectiveness recorded for the twelve months ending December 31, 2015. The Corporation does not expect any losses relating to these hedges to be reclassified into earnings. Interest rate swap agreements are entered into with counterparties that meet established credit standards and we believe that the credit risk inherent in these contracts is not significant as of December 31, 2015. The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the years ended December 31, 2015 and December 31, 2014. Derivative in Cash Flow Hedging Relationships (In thousands) Amount of gain (loss) recognized in OCI on derivative (effective portion) Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) (1) Amount of gain or (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) (2) Interest rate contracts: December 31, 2015 $ 80 $ 0 $ 0 December 31, 2014 $ 155 $ 0 $ 0 Notes : (1) Reported as interest expense (2) Reported as other income |
Assets and Liabilities Subject
Assets and Liabilities Subject to Enforceable Master Netting Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements [Abstract] | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements | 2 7 . Assets and Liabilities Subject to Enforceable Master Netting Arrangements Interest Rate Swap Agreements (“Swap Agreements”) The Corporation has entered into interest rate swap agreements to modify the re-pricing characteristics of certain interest-bearing liabilities as a part of managing interest rate risk. The swap agreements have been designated as cash flow hedges, and accordingly, the fair value of the interest rate swap contracts is reported in Other Liabilities on the Consolidated Statement of Financial Condition. The swap agreements were entered into with a third party financial institution. The Corporation is party to master netting arrangements with its financial institution counterparty; however the Corporation does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, in the form of cash, is posted by the Corporation as the counterparty with net liability positions in accordance with contract thresholds. See Note 2 6 to the Consolidated Financial Statements for more information. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Bank enters into agreements under which it sells interests in U.S. Securities to certain customers subject to an obligation to repurchase, and on the part of the customers to resell, such interests. Under these arrangements, the Bank may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Bank to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e. secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the consolidated statement of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. There is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Bank does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Bank be in default (i.e. fails to repurchase the U.S. Securities on the maturity date of the agreement). The investment security collateral is held by a third party financial institution in the counterparty’s custodial account. The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 2015 and December 31, 2014 . Gross Amounts Not Offset in the Statement of Condition (In thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Financial Instruments Cash Collateral Pledged Net Amount December 31, 2015 Interest Rate Swap Agreements $ 66 $ 0 $ 66 $ (66) $ 0 $ 0 Repurchase Agreements $ 35,828 $ 0 $ 35,828 $ (35,828) $ 0 $ 0 December 31, 2014 Interest Rate Swap Agreements $ 199 $ 0 $ 199 $ (199) $ 0 $ 0 Repurchase Agreements $ 39,801 $ 0 $ 39,801 $ (39,801) $ 0 $ 0 |
Parent Company Only Financial I
Parent Company Only Financial Information - (As Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Only Financial Information - (As Restated) [Abstract] | |
Parent Company Only Financial Information - (As Restated) | 2 8 . Parent Company Only Financial Information – (As Restated) Condensed Statement of Financial Condition December 31, (In thousands) 2015 2014 Assets Cash $ 11,102 $ 1,036 Investment securities 14,522 0 Investment in bank subsidiary 132,809 150,209 Investment in non-bank subsidiaries 1,255 1,255 Other assets 5,403 5,872 Total Assets $ 165,091 $ 158,372 Liabilities and Shareholder’s Equity Accrued interest and other liabilities $ 2,590 $ 2,643 Dividends payable 0 0 Junior subordinated debt 41,730 46,730 Shareholder’s equity 120,771 108,999 Total Liabilities and Shareholder’s Equity $ 165,091 $ 158,372 Condensed Statement of Income Year Ended December 31, (In thousands) 2015 2014 Income: Dividend income from bank subsidiary $ 33,658 $ 10,972 Gain on Investments 3,521 0 Other income 69 240 Total Other income 3,590 240 Total Income 37,248 11,212 Expenses: Interest expense 2,192 2,492 Other expenses 365 354 Total Expenses 2,557 2,846 Income before income taxes and equity in undistributed net loss of subsidiaries 34,691 8,366 Applicable income tax (expense)/benefit (975) 3,120 Net income before equity in undistributed net loss of subsidiaries 33,716 11,486 Equity in undistributed net loss of subsidiaries: Bank (20,725) (5,870) Non-bank 0 (19) Net Income $ 12,991 $ 5,597 Condensed Statement of Comprehensive Income Year Ended December 31, Components of Comprehensive Income (in thousands) 2015 2014 Net Income $ 12,991 $ 5,597 Unrealized losses on AFS Securities, net of tax (2,115) Unrealized gains on cash flow hedges, net of tax 80 155 Other comprehensive income, net of tax (2,035) 155 Comprehensive income $ 10,956 $ 5,752 Condensed Statement of Cash Flows Year Ended December 31, (In thousands) 2015 2014 Operating Activities Net Income $ 12,991 $ 5,597 Adjustments to reconcile net income to net cash (used in)/provided by operating activities: Equity in undistributed net income of subsidiaries 6,203 5,889 Decrease/(increase) in other assets 470 (1,686) Increase/(decrease) in accrued interest payable and other liabilities (2,089) (12,089) Stock Compensation 191 134 Net cash provided by/(used in) operating activities 17,766 (2,155) Investing Activities Net investment in subsidiaries 0 2,761 Net cash provided by investing activities 0 2,761 Financing Activities Dividends – common stock 0 0 Repayment of Long-term debt (5,000) 0 Dividends - preferred stock paid (2,700) (2,595) Net cash used in financing activities (7,700) (2,595) Increase/(decrease) in cash and cash equivalents 10,066 (1,989) Cash and cash equivalents at beginning of year 1,036 3,025 Cash and cash equivalents at end of year $ 11,102 $ 1,036 Accumulated Other Comprehensive Income Components of Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the period ended December 31, 2015 Available for Sale Securities: Unrealized holding losses $ (3,521) $ 1,406 $ (2,115) Cash flow hedges: Unrealized holding gains 133 (53) 80 Other comprehensive income $ (3,388) $ 1,353 $ (2,035) For the period ended December 31, 2014 Cash flow hedges: Unrealized holding gains $ 258 $ (103) $ 155 Other comprehensive income $ 258 $ (103) $ 155 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Corporation have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) that require management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities at the date of the financial statements as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the assessment of other-than-temporary impairment (“OTTI”) pertaining to investment securities, potential impairment of goodwill, and the valuation of deferred tax assets. For purposes of comparability, certain prior period amounts have been reclassified to conform to the 2015 presentation. Such reclassifications had no impact on net income or equity . The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of December 31, 2015 for items that should potentially be recognized or disclosed in these financial statements as prescribed by ASC Topic 855, Subsequent Events . |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Corporation include the accounts of First United Corporation, the Bank, OakFirst Loan Center, Inc., OakFirst Loan Center, LLC and First OREO Trust. All significant inter-company accounts and transactions have been eliminated. First United Corporation determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) in accordance with GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. The Corporation consolidates voting interest entities in which it has 100%, or at least a majority, of the voting interest. As defined in applicable accounting standards, a VIE is an entity that either (i) does not have equity investors with voting rights or (ii) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A controlling financial interest in an entity exists when an enterprise has a variable interest, or a combination of variable interests that will absorb a majority of an entity’s expected losses, receive a majority of an entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Corporation accounts for its investment in Liberty Mews, utilizing the effective yield method under guidance that applies specifically to investments in limited partnerships that operate qualified affordable housing projects. Under the effective yield method, the investor recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the investor. The effective yield is the internal rate of return on the investment, based on the cost of the investment and the guaranteed tax credits allocated to the investor. The tax credit allocated, net of the amortization of the investment in the limited partnership, is recognized in the income statement as a component of income taxes attributable to continuing operations. |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk Most of the Corporation’s relationships are with customers located in Western Maryland and Northeastern West Virginia. At December 31, 2015, approximately 13% , or $ 110.0 million, of total loans were secured by real estate acquisition, construction and development projects, with $ 106. 0 million performing according to their contractual terms and $ 4 .0 million considered to be impaired based on management’s concerns about the borrowers’ ability to comply with present repayment terms. Of the $4.0 million in impaired loans, $ 3 .0 million were classified as troubled debt restructurings (“TDRs”) performing in accordance with their modified terms, and $ 1. 0 million were classified as non-performing loans at December 31, 2015. Additionally, loans collateralized by commercial rental properties represent 15% of the total loan portfolio as of December 31, 2015. Note 7 discusses the types of securities in which the Corporation invests and Note 8 discusses the Corporation’s lending activities. |
Investments | Investments The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities . Securities bought and held principally for the purpose of selling them in the near term are classified as trading account securities and reported at fair value with unrealized gains and losses included in net gains/losses in other operating income. Securities purchased with the intent and ability to hold the securities to maturity are classified as held-to-maturity securities and are recorded at amortized cost. All other investment securities are classified as available-for-sale. These securities are held for an indefinite period of time and may be sold in response to changing market and interest rate conditions or for liquidity purposes as part of our overall asset/liability management strategy. Available-for-sale securities are reported at market value, with unrealized gains and losses excluded from earnings and reported as a separate component of other comprehensive income included in consolidated statement of comprehensive income, net of applicable income taxes. The amortized cost of debt securities is adjusted for the amortization of premiums to the first call date, if applicable, or to maturity, and for the accretion of discounts to maturity, or, in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from investments. Interest and dividends are included in interest income from investments. Gains and losses on the sale of securities are recorded using the specific identification method. |
Restricted Investment in Bank Stock | Restricted Investment in Bank Stock Restricted stock, which represents required investments in the common stock of the Federal Home Loan Bank (“FHLB”) of Atlanta, Atlantic Community Bankers Bank (“ACBB”) and Community Bankers Bank (“CBB”), is carried at cost and is considered a long-term investment . Management evaluates the restricted stock for impairment in accordance with ASC Industry Topic 942, Financial Services – Depository and Lending , ( 942-325-35). Management’s evaluation of potential impairment is based on its a ssessment of the ultimate recoverability of the cost of the restricted stock rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability is influenced by criteria such as (i) the significance of the decline in net assets of the issuing bank as compared to the capital stock amount for that bank and the length of time this situation has persisted, (ii) commitments by the issuing bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of that bank, and (iii) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuing bank. Management has evaluated the restricted stock for impairment and believes that no impairment charge is necessary as of December 31, 2015 or 2014. The Corporation recognizes dividends on a cash basis. For the years ended December 31, 2015 and December 31, 2014, dividends of $302,227 and $ 2 90, 677 , respectively, were recorded in income. |
Loans and Interest and Fees on Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or full repayment by the borro wer are reported at their unpaid principal balance outstanding, adjusted for any deferred fees or costs pertaining to origination. Loans that management has the intent to sell are reported at the lower of cost or fair value determined on an individual basis. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The commercial real estate (“CRE”) loan segment is further disaggregated into two classes. Non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, generally have a greater risk profile than all other CRE loans, which include loans secured by farmland, multifamily structures and owner-occupied commercial structures. The acquisition and development (“A&D”) loan segment is further disaggregated into two classes. One-to-four family residential construction loans are generally made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. All other A&D loans are generally made to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures. These loans have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the A&D loan. The commercial and industrial (“C&I”) loan segment consists of loans made for the purpose of financing the activities of commercial customers. The residential mortgage loan segment is further disaggregated into two classes: amortizing term loans, which are primarily first liens, and home equity lines of credit, which are generally second liens. The consumer loan segment consists primarily of installment loans (direct and indirect) and overdraft lines of credit connected with customer deposit accounts. Interest and Fees on Loans Interest on loans (other than those on non-accrual status) is recognized based upon the principal amount outstanding. Loan fees in excess of the costs incurred to originate the loan are recognized as income over the life of the loan utilizing either the interest method or the straight-line method, depending on the type of loan. Generally, fees on loans with a specified maturity date, such as residential mortgages, are recognized using the interest method. Loan fees for lines of credit are recognized using the straight-line method. A loan is considered to be past due when a payment has not been received for 30 days past its contractual due date. For all loan segments, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. All non-accrual loans are considered to be impaired. Interest payments received on non-accrual loans are applied as a reduction of the loan principal balance. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Generally, consumer installment loans are not placed on non-accrual status, but are charged off after they are 120 days contractually past due. Loans other than consumer loans are charged-off based on an evaluation of the facts and circumstances of each individual loan. |
Allowance for Loan Losses | Allowance for Loan Losses An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Corporation’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35, Receivables-Overall-Subsequent Measurement , for loans individually evaluated for impairment and ASC Subtopic 450-20, Contingencies - Loss Contingencies , for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Corporation maintains an ALL on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is determined utilizing a methodology that is similar to that used to determine the ALL, modified to take into account the probability of a draw down on the commitment. This allowance is reported as a liability on the balance sheet within accrued interest payable and other liabilities. The balance in the liability account was $65,332 at December 31, 2015 and $51,950 at December 31, 2014. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost, less accumulated depreciation. The provision for depreciation for financial reporting has been made by using the straight-line method based on the estimated useful lives of the assets, which range from 18 to 32 years for buildings and three to 20 years for furniture and equipment. Accelerated depreciation methods are used for income tax purposes. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired in business combinations. In accordance with ASC Topic 350, Intangibles - Goodwill and Other , goodwill is not amortized but is subject to an annual impairment test. |
Bank-Owned Life Insurance ("BOLI") | Bank-Owned Life Insurance (“BOLI”) BOLI policies are recorded at their cash surrender values. Changes in the cash surrender values are recorded as other operating income. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less the cost to sell at the date of foreclosure, with any losses charged to the ALL, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Changes in the valuation allowance, sales gains and losses, and revenue and expenses from holding and operating properties are all included in net expenses from other real estate owned (“OREO”). |
Income Taxes | Income Taxes First United Corporation and its subsidiaries file a consolidated federal income tax return. Income taxes are accounted for using the asset and liability method. Under the asset and liability method, the deferred tax liability or asset is determined based on the difference between the financial statement and tax bases of assets and liabilities (temporary differences ) and is measured at the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is determined by the change in the net liability or asset for deferred taxes adjusted for changes in any deferred tax asset valuation allowance. ASC Topic 740, Taxes, provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We have not identified any income tax uncertainties. State corporate income tax returns are filed annually. Federal and state returns may be selected for examination by the Internal Revenue Service and the states where we file, subject to statutes of limitations. At any given point in time, the Corporation may have several years of filed tax returns that may be selected for examination or review by taxing authorities. Interest and penalties on income taxes are recognized as a component of income tax expense. |
Defined Benefit Plans | Defined Benefit Plans The d efined benefit pension plan and supplemental executive retirement plan are accounted for in accordance with ASC Topic 715, Compensation – Retirement Benefits . Under the provisions of Topic 715, the defined benefit pension plan and the supplemental executive retirement plan are recognized as liabilities in the Consolidated Statement of Financial Condition, and unrecognized net actuarial losses, prior service costs and a net transition asset are recognized as a separate component of other comprehensive loss, net of tax. Actuarial gains and losses in excess of 10 percent of the greater of plan assets or the pension benefit obligation are amortized over a blend of future service of active employees and life expectancy of inactive participants. Refer to Note 1 9 for a further discussion of the pension plan and supplemental executive retirement plan obligations. |
Statement of Cash Flows | Statement of Cash Flows Cash and cash equivalents are defined as cash and due from banks and interest bearing deposits in banks in the Consolidated Statement of Cash Flows. |
Trust Assets and Income | Trust Assets and Income Assets held in an agency or fiduciary capacity are not the Bank’s assets and, accordingly, are not included in the Consolidated Statement of Financial Condition. Income from the Bank’s trust department represents fees charged to customers and is recorded on an accrual basis. |
Business Segments | Business Segments The Corporation operates in one segment, community banking, as defined by ASC Topic 280, Segment Reporting . The Corporation in its entirety is managed and evaluated on an ongoing basis by First United Corporation’s Board of Directors and executive management, with no division or subsidiary receiving separate analysis regarding performance or resource allocation. |
Equity Compensation Plan | Equity Compensation Plan At the 2007 Annual Meeting of Shareholders, First United Corporation’s shareholders approved the First United Corporation Omnibus Equity Compensation Plan (the “Omnibus Plan”), which authorizes the issuance of up to 185,000 shares of common stock pursuant to the grant of stock options, stock appreciation rights, stock awards, stock units, performance units, dividend equivalents, and other stock-based awards to employees or directors. On June 18, 2008, the Board of Directors of First United Corporation adopted a Long-Term Incentive Program (the “LTIP”). This program was adopted as a sub-plan of the Omnibus Plan to reward participants for increasing shareholder value, align executive interests with those of shareholders, and serve as a retention tool for key executives. Under the LTIP, participants are granted shares of restricted common stock of First United Corporation. The amount of an award is based on a specified percentage of the participant’s salary as of the date of grant. These shares will vest if the Corporation meets or exceeds certain performance thresholds. The Corporation applies the provisions of ASC Topic 718, Compensation - Stock Compensation , in measuring and disclosing stock compensation cost. The measurement objective in ASC Paragraph 718-10-30-6 requires public companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The cost is recognized in expense over the period in which an employee is required to provide service in exchange for the award (the vesting period). Stock-based awards were made to non-employee directors in May 2015 pursuant to First United Corporation’s director compensation policy. Beginning May 2014, each director receives an annual retainer of 1,000 shares of First United Corporation common stock, plus $10,000 , all or some of which may be paid, at the director’s election, in cash or additional shares of common stock. Prior to May 2014, directors received shares of common stock valued at $5,000 plus $10,000 in cash or additional shares of common stock. In 2014 and 2015, a total of 17,779 and 16,022 , respectively, fully-vested shares of common stock were issued to directors, which had a fair market value of $8.78 and $8.96 per share, respectively. Director stock compensation expense was $134,060 for the year ended December 31, 2014 and $147,738 for the year ended December 31, 2015. In January 2015, a one-time stock grant was awarded to one executive officer in the amount of 4,845 shares at a fair market value of $8.63 . In February 2015, a one-time stock grant was awarded to one executive officer in the amount of 5,387 shares at a fair market value of $8.76 . These shares have a two -year vesting period. Executive stock compensation expense was $43,475 for the year ended December 31, 2015. Executive stock compensation expense remaining at December 31, 2015 was $45,527 . |
Stock Repurchases | Stock Repurchases Under the Maryland General Corporation Law, shares of capital stock that are repurchased are cancelled and treated as authorized but unissued shares. When a share of capital stock is repurchased, the payment of the repurchase price reduces stated capital by the par value of that share (currently, $0.01 for common stock and $0.00 for preferred stock), and any excess over par value reduces capital surplus. There were no stock repurchases in 2015 and 2014. |
Correction of Error in Compar37
Correction of Error in Comparative Financial Statement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Correction of Error in Comparative Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following tables summarize the effect of the restatement on certain key items of the Original Financial Statements: December 31, 2015 December 31, 2015 As Restated Original Change Item 6: Selected Financial Data Net Gains- Other $1,016 $(2,505) $3,521 Income Before Taxes 19,464 15,943 3,521 Income Tax expense/(benefit) 6,473 5,067 1,406 Net Income 12,991 10,876 2,115 Net Income available to common shareholders 10,291 8,176 2,115 Basic & Diluted Net Income per common share 1.65 1.31 0.34 Return on Average Assets 0.98% 0.82% 0.16 Return on Average Equity 11.40% 9.54% 1.86 Total Risk-based Capital Ratio 17.21% 17.37% (0.16) Tier I Capital to Risk Weighted Assets 15.24% 15.31% (0.07) Tier I Capital to Average Assets 11.64% 11.51% 0.13 Common Equity Tier I to Risk Weighted Assets 9.99% 9.92% 0.07 Item 8: Financial Statement- Balance Sheet Retained Earnings $87,666 $85,551 $2,115 Accumulated Other Comprehensive Loss (18,944) (16,829) (2,115) Item 8: Financial Statement - Income Statement Net gains $1,016 $(2,505) $3,521 Total Other Operating Income 26,008 22,487 3,521 Income before taxes 19,464 15,943 3,521 Provision for income taxes 6,473 5,067 1,406 Net Income 12,991 10,876 2,115 Net Income Available to Common Shareholders 10,291 8,176 2,115 Basic & Diluted Net Income per common share 1.65 1.31 0.34 Item 8: Financial Statement - Comprehensive Income Net Income $12,991 $10,876 $2,115 Net Unrealized gains on investments with OTTI 1,737 3,213 (1,476) Net Unrealized gains on all other AFS securities 531 1,170 (639) Other Comprehensive Income 1,289 3,404 (2,115) Item 8: Financial Statement - Changes in Shareholders Equity Net Income - Retained Earnings $12,991 $10,876 $2,115 Net Income - Total Shareholders Equity 12,991 10,876 2,115 Other Comprehensive Income - AOCL 1,289 3,404 (2,115) Other Comprehensive Income - Total Shareholders Equity 1,289 3,404 (2,115) Retained Earnings - Balance at December 31, 2015 87,666 85,551 2,115 December 31, 2015 December 31, 2015 As Restated Original Change Item 8: Financial Statement - Cash Flows Net Income $12,991 $10,876 $2,115 Net (gain)/loss on investments - available for sale (962) 2,559 (3,521) Change in other assets 4,223 2,817 1,406 |
Earnings Per Common Share - (38
Earnings Per Common Share - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Common Share - (As Restated) [Abstract] | |
Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per common share for the years ended December 31, 2015 and 2014: 2015 2014 (in thousands, except for per share amount) Income Average Shares Per Share Amount Income Average Shares Per Share Amount Basic and Diluted Earnings Per Share: Net income $ 12,991 $ 5,597 Preferred stock dividends paid (2,700) (2,595) Discount accretion on preferred stock 0 (6) Net income available to common shareholders $ 10,291 6,249 $ 1.65 $ 2,996 6,222 $ 0.48 |
Net Gains - (As Restated) (Tabl
Net Gains - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Gains - (As Restated) [Abstract] | |
Schedule of Net Gains | The following table summarizes the (loss)/gain activity for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Net (losses)/gains – other: Available-for-sale securities: Realized gains $ 1,609 $ 427 Realized losses (647) (468) Held-for-trading securities: Realized gains 0 1,100 Gain on sale of consumer loans 57 52 Loss on disposal of fixed assets (3) (58) Net (losses)/gains – other $ 1,016 $ 1,053 Net (losses)/gains $ 1,016 $ 1,053 |
Regulatory Capital Requiremen40
Regulatory Capital Requirements - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements - (As Restated) [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets) Consolidated $ 173,124 17.21% $ 79,276 8.00% $ 99,095 10.00% First United Bank & Trust 149,775 16.29% 73,714 8.00% 92,143 10.00% Tier 1 Capital (to risk-weighted assets) Consolidated 153,283 15.24% 59,457 6.00% 79,276 8.00% First United Bank & Trust 138,243 15.03% 55,286 6.00% 73,714 8.00% Common Equity Tier 1 Capital (to risk-weighted assets) Consolidated 100,485 9.99% 44,593 4.50% 64,412 6.50% First United Bank & Trust 138,243 15.03% 41,464 4.50% 59,893 6.50% Tier 1 Capital (to average assets) Consolidated 153,283 11.64% 52,833 4.00% 66,041 5.00% First United Bank & Trust 138,243 10.53% 52,346 4.00% 65,432 5.00% Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2014 Total Capital (to risk-weighted assets) Consolidated $ 161,377 15.40% $ 83,851 8.00% $ 104,813 10.00% First United Bank & Trust 162,550 15.60% 83,379 8.00% 104,224 10.00% Tier 1 Capital (to risk-weighted assets) Consolidated 149,130 14.23% 41,925 4.00% 62,888 6.00% First United Bank & Trust 150,433 14.43% 41,689 4.00% 62,534 6.00% Tier 1 Capital (to average assets) Consolidated 149,130 11.29% 52,846 4.00% 66,057 5.00% First United Bank & Trust 150,433 11.43% 52,642 4.00% 65,803 5.00% |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedules of Cash and Cash Equivalents | Cash and due from banks, which represents vault cash in the retail offices and invested cash balances at the Federal Reserve, is carried at fair value. (in thousands) December 31, 2015 December 31, 2014 Cash and due from banks, weighted average interest rate of 0.12% (at December 31, 2015) $ 50,188 $ 27,554 Interest bearing deposits in banks, which represent funds invested at a correspondent bank, are carried at fair value and, as of December 31, 2015 and 2014, consisted of daily funds invested at the FHLB of Atlanta, First Tennessee Bank (“FTN”), and M&T Bank (“M&T”). (in thousands) December 31, 2015 December 31, 2014 FHLB daily investments, interest rate of 0.25% (at December 31, 2015) $ 742 $ 983 FTN daily investments, interest rate of 0.20% (at December 31, 2015) 200 850 M&T daily investments, interest rate of 0.15% (at December 31, 2015) 1,011 6,064 $ 1,953 $ 7,897 |
Investment Securities - (As R42
Investment Securities - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities - (As Restated) [Abstract] | |
Unrealized Gain (Loss) on Investments | The following table shows a comparison of amortized cost and fair values of investment securities at December 31, 2015 as restated and December 31, 2015 and 2014: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCL December 31, 2015 Available for Sale: U.S. government agencies $ 34,079 $ 14 $ 129 $ 33,964 $ 0 Residential mortgage-backed agencies 14,285 105 220 14,170 0 Commercial mortgage-backed agencies 43,780 52 196 43,636 0 Collateralized mortgage obligations 9,690 43 123 9,610 0 Obligations of states and political subdivisions 45,949 915 223 46,641 0 Collateralized debt obligations 29,287 0 7,076 22,211 (4,320) Total available for sale $ 177,070 $ 1,129 $ 7,967 $ 170,232 $ (4,320) Held to Maturity: U.S. government agencies $ 24,704 $ 634 $ 0 $ 25,338 $ 0 Residential mortgage-backed agencies 53,734 276 98 53,912 0 Commercial mortgage-backed agencies 18,078 171 17 18,232 0 Collateralized mortgage obligations 6,419 0 122 6,297 0 Obligations of states and political subdivisions 2,625 338 0 2,963 0 Total held to maturity $ 105,560 $ 1,419 $ 237 $ 106,742 $ 0 December 31, 2014 Available for Sale: U.S. treasuries $ 29,607 $ 0 $ 11 $ 29,596 $ 0 U.S. government agencies 39,077 117 253 38,941 0 Residential mortgage-backed agencies 45,175 510 412 45,273 0 Commercial mortgage-backed agencies 26,007 53 103 25,957 0 Collateralized mortgage obligations 8,611 96 0 8,707 0 Obligations of states and political subdivisions 46,151 1,413 260 47,304 0 Collateralized debt obligations 37,117 1,155 12,933 25,339 6,143 Total available for sale $ 231,745 3,344 13,972 221,117 6,143 Held to Maturity: U.S. government agencies $ 24,520 $ 514 $ 0 $ 25,034 $ 0 Residential mortgage-backed agencies 58,400 613 5 59,008 0 Commercial mortgage-backed agencies 16,425 312 0 16,737 0 Collateralized mortgage obligations 7,379 5 0 7,384 0 Obligations of states and political subdivisions 2,725 0 117 2,608 0 Total held to maturity $ 109,449 $ 1,444 $ 122 $ 110,771 $ 0 |
Proceeds from Sales and Realized Gain and Losses | (in thousands) 2015 2014 Proceeds $ 60,598 $ 56,838 Realized gains 1,609 427 Realized losses 647 468 |
Gross Unrealized Losses and Fair Values of Securities | Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015 Available for Sale: U.S. government agencies $ 23,929 $ 129 $ 0 $ 0 Residential mortgage-backed agencies 0 0 8,051 220 Commercial mortgage-backed agencies 25,858 196 0 0 Collateralized mortgage obligations 5,299 123 0 0 Obligations of states and political subdivisions 11,537 104 4,048 119 Collateralized debt obligations 0 0 22,211 7,076 Total available for sale $ 66,623 $ 552 $ 34,310 $ 7,415 Held to Maturity: U.S. government agencies $ 0 $ 0 $ 0 $ 0 Residential mortgage-backed agencies 11,085 98 0 0 Commercial mortgage-backed agencies 9518 17 0 0 Collateralized mortgage obligations 6297 122 0 0 Obligations of states and political subdivisions 0 0 0 0 Total held to maturity $ 26,900 $ 237 $ 0 $ 0 December 31, 2014 Available for Sale: U.S. treasuries $ 27,096 $ 11 $ 0 $ 0 U.S. government agencies 0 0 18,819 253 Residential mortgage-backed agencies 0 0 17,918 412 Commercial mortgage-backed agencies 12,298 97 973 6 Collateralized mortgage obligations 0 0 0 0 Obligations of states and political subdivisions 0 0 8,981 260 Collateralized debt obligations 0 0 20,290 12,933 Total available for sale $ 39,394 $ 108 $ 66,981 $ 13,864 Held to Maturity: U.S. government agencies $ 0 $ 0 $ 0 $ 0 Residential mortgage-backed agencies 3,850 5 0 0 Commercial mortgage-backed agencies 0 0 0 0 Collateralized mortgage obligations 0 0 0 0 Obligations of states and political subdivisions 0 0 2,608 117 Total held to maturity $ 3,850 $ 5 $ 2,608 $ 117 |
Non-Cash OTTI Credit Losses Recognized in Earnings | (in thousands) 2015 2014 Balance of credit-related OTTI at January 1 $ 12,583 $ 13,422 Decreases for previously recognized credit-related OTTI because there was an intent to sell (10,029) (165) Additions for decreases in cash flows expected to be collected 602 0 Reduction for increases in cash flows expected to be collected (23) (674) Balance of credit-related OTTI at December 31 $ 3,133 $ 12,583 |
Amortized Cost and Fair Values Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities by contractual maturity at December 31, 2015 are shown in the following table. Actual maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties . (in thousands) Amortized Cost Fair Value Contractual Maturity Available for sale: Due in one year or less $ 0 $ 0 Due after one year through five years 37,577 37,593 Due after five years through ten years 16,147 16,676 Due after ten years 55,591 48,547 109,315 102,816 Residential mortgage-backed agencies 14,285 14,170 Commercial mortgage-backed agencies 43,780 43,636 Collateralized mortgage obligations 9,690 9,610 Total available for sale $ 177,070 $ 170,232 Held to Maturity: Due after five years through ten years $ 15,604 $ 16,116 Due after ten years 11,725 12,185 27,329 28,301 Residential mortgage-backed agencies 53,734 53,912 Commercial mortgage-backed agencies 18,078 18,232 Collateralized mortgage obligations 6,419 6,297 Total held to maturity $ 105,560 $ 106,742 |
Loans And Related Allowances Fo
Loans And Related Allowances For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Related Allowances for Loan Losses [Abstract] | |
Loan Portfolio Segments | The following table summarizes the primary segments of the loan portfolio as of December 31, 2015 and December 31, 2014: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Total December 31, 2015 Individually evaluated for impairment $ 14,646 $ 4,496 $ 1,076 $ 4,590 $ 0 $ 24,808 Collectively evaluated for impairment $ 265,859 $ 106,490 $ 72,777 $ 384,149 $ 24,940 $ 854,215 Total loans $ 280,505 $ 110,986 $ 73,853 $ 388,739 $ 24,940 $ 879,023 December 31, 2014 Individually evaluated for impairment $ 11,949 $ 6,553 $ 1,861 $ 4,418 $ 0 $ 24,781 Collectively evaluated for impairment $ 244,115 $ 92,748 $ 91,394 $ 363,223 $ 23,730 $ 815,210 Total loans $ 256,064 $ 99,301 $ 93,255 $ 367,641 $ 23,730 $ 839,991 |
Schedule of Related Party Transactions | Changes in the dollar amount of loans outstanding to officers, directors and their associates were as follows for the year ended December 31: (in thousands) 2015 Balance at January 1 $ 9,207 Loans or advances 3,589 Repayments (1,403) Balance at December 31 $ 11,393 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | (in thousands) Pass Special Mention Substandard Total December 31, 2015 Commercial real estate Non owner-occupied $ 140,378 $ 11,574 $ 7,378 $ 159,330 All other CRE 103,811 1,184 16,180 121,175 Acquisition and development 1-4 family residential construction 15,011 0 700 15,711 All other A&D 89,963 74 5,238 95,275 Commercial and industrial 69,420 1,212 3,221 73,853 Residential mortgage Residential mortgage - term 300,558 167 10,744 311,469 Residential mortgage – home equity 75,491 0 1,779 77,270 Consumer 24,881 0 59 24,940 Total $ 819,513 $ 14,211 $ 45,299 $ 879,023 December 31, 2014 Commercial real estate Non owner-occupied $ 115,276 $ 10,884 $ 11,273 $ 137,433 All other CRE 90,740 8,618 19,273 118,631 Acquisition and development 1-4 family residential construction 12,920 0 790 13,710 All other A&D 72,323 1,356 11,912 85,591 Commercial and industrial 88,579 884 3,792 93,255 Residential mortgage Residential mortgage - term 280,113 379 10,934 291,426 Residential mortgage – home equity 74,698 90 1,427 76,215 Consumer 23,658 0 72 23,730 Total $ 758,307 $ 22,211 $ 59,473 $ 839,991 |
Loan Portfolio Summarized by the Past Due Status | (in thousands) Current 30-59 Day Past Due 60-89 Days Past Due 90 Days+ Past Due Total Past Due and still accruing Non-Accrual Total Loans December 31, 2015 Commercial real estate Non owner-occupied $ 157,217 $ 634 $ 171 $ 0 $ 805 $ 1,308 $ 159,330 All other CRE 110,022 1,179 0 0 1,179 9,974 121,175 Acquisition and development 1-4 family residential construction 15,711 0 0 0 0 0 15,711 All other A&D 92,867 417 174 0 591 1,817 95,275 Commercial and industrial 73,619 13 36 0 49 185 73,853 Residential mortgage Residential mortgage - term 298,391 8,084 2,149 907 11,140 1,938 311,469 Residential mortgage – home equity 76,195 505 203 91 799 276 77,270 Consumer 24,596 232 85 27 344 0 24,940 Total $ 848,618 $ 11,064 $ 2,818 $ 1,025 $ 14,907 $ 15,498 $ 879,023 December 31, 2014 Commercial real estate Non owner-occupied $ 135,994 $ 104 $ 183 $ 0 $ 287 $ 1,152 $ 137,433 All other CRE 112,825 1,196 0 0 1,196 4,610 118,631 Acquisition and development 1-4 family residential construction 13,710 0 0 0 0 0 13,710 All other A&D 81,702 239 40 1 280 3,609 85,591 Commercial and industrial 93,060 0 20 4 24 171 93,255 Residential mortgage Residential mortgage - term 279,340 8,654 1,350 416 10,420 1,666 291,426 Residential mortgage – home equity 74,913 577 313 69 959 343 76,215 Consumer 23,316 287 88 39 414 0 23,730 Total $ 814,860 $ 11,057 $ 1,994 $ 529 $ 13,580 $ 11,551 $ 839,991 |
Primary Segments of the Allowance for Loan Loss | (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total December 31, 2015 Individually evaluated for impairment $ 144 $ 867 $ 16 $ 130 $ 0 $ 0 $ 1,157 Collectively evaluated for impairment $ 2,436 $ 3,262 $ 706 $ 3,655 $ 206 $ 500 $ 10,765 Total ALL $ 2,580 $ 4,129 $ 722 $ 3,785 $ 206 $ 500 $ 11,922 December 31, 2014 Individually evaluated for impairment $ 36 $ 1,141 $ 0 $ 59 $ 0 $ 0 $ 1,236 Collectively evaluated for impairment $ 2,388 $ 2,771 $ 1,680 $ 3,803 $ 187 $ 0 $ 10,829 Total ALL $ 2,424 $ 3,912 $ 1,680 $ 3,862 $ 187 $ 0 $ 12,065 |
Impaired Loans and Related Interest Income by Loan Portfolio Class | Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (in thousands) Recorded Investment Related Allowances Recorded Investment Recorded Investment Unpaid Principal Balance December 31, 2015 Commercial real estate Non owner-occupied $ 676 $ 144 $ 1,031 $ 1,707 $ 1,842 All other CRE 0 0 12,939 12,939 13,302 Acquisition and development 1-4 family residential construction 700 178 0 700 746 All other A&D 1,979 689 1,817 3,796 8,362 Commercial and industrial 16 16 1,060 1,076 3,343 Residential mortgage Residential mortgage - term 440 112 3,874 4,314 4,808 Residential mortgage – home equity 57 18 219 276 297 Consumer 0 0 0 0 0 Total impaired loans $ 3,868 $ 1,157 $ 20,940 $ 24,808 $ 32,700 December 31, 2014 Commercial real estate Non owner-occupied $ 143 $ 35 $ 4,353 $ 4,496 $ 4,543 All other CRE 0 0 7,453 7,453 7,944 Acquisition and development 1-4 family residential construction 790 105 0 790 836 All other A&D 3,615 1,037 2,148 5,763 9,590 Commercial and industrial 0 0 1,861 1,861 2,723 Residential mortgage Residential mortgage - term 296 59 3,779 4,075 4,485 Residential mortgage – home equity 0 0 343 343 363 Consumer 0 0 0 0 0 Total impaired loans $ 4,844 $ 1,236 $ 19,937 $ 24,781 $ 30,484 |
Allowance for Loan Losses Summarized by Loan Portfolio Segments | Activity in the ALL is presented for the years ended December 31, 2015 and December 31, 2014: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at January 1, 2015 $ 2,424 $ 3,912 $ 1,680 $ 3,862 $ 187 $ 0 $ 12,065 Charge-offs (420) (1,261) (26) (300) (307) 0 (2,314) Recoveries 283 382 26 217 209 0 1,117 Provision 293 1,096 (958) 6 117 500 1,054 ALL balance at December 31, 2015 $ 2,580 $ 4,129 $ 722 $ 3,785 $ 206 $ 500 $ 11,922 ALL balance at January 1, 2014 $ 4,052 $ 4,172 $ 766 $ 4,320 $ 284 $ 0 $ 13,594 Charge-offs (485) (2,673) (266) (847) (512) 0 (4,783) Recoveries 11 133 26 229 342 0 741 Provision (1,154) 2,280 1,154 160 73 0 2,513 ALL balance at December 31, 2014 $ 2,424 $ 3,912 $ 1,680 $ 3,862 $ 187 $ 0 $ 12,065 |
Average of Impaired Loans and Related Interest Income by Loan Portfolio Class | The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended December 31, 2015 and 2014: 2015 2014 (in thousands) Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Commercial real estate Non owner-occupied $ 3,792 $ 144 $ 0 $ 2,411 $ 71 $ 0 All other CRE 8,688 124 106 9,088 148 67 Acquisition and development 1-4 family residential construction 736 33 0 1,510 43 0 All other A&D 5,008 119 0 7,639 161 0 Commercial and industrial 1,392 69 18 2,024 98 2 Residential mortgage Residential mortgage - term 4,258 164 10 6,056 200 62 Residential mortgage – home equity 334 0 2 581 4 4 Consumer 6 0 0 10 0 0 Total $ 24,214 $ 653 $ 136 $ 29,319 $ 725 $ 135 |
Modification of Troubled Debt Restructuring by Class | The following table presents the volume and recorded investment at the time of modification of TDRs by class and type of modification that occurred during the periods indicated: Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (Dollars in thousands) For the year ended December 31, 2015 Commercial real estate Non owner-occupied 0 $ 0 1 $ 3,097 2 $ 260 All other CRE 0 0 1 237 5 3,847 Acquisition and development 1-4 family residential construction 0 0 0 0 1 700 All other A&D 0 0 3 372 1 1,746 Commercial and industrial 0 0 1 930 0 0 Residential mortgage Residential mortgage – term 1 156 3 741 1 116 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 1 $ 156 9 $ 5,377 10 $ 6,669 For the year ended December 31, 2014 Commercial real estate Non owner-occupied 0 $ 0 2 $ 277 0 $ 0 All other CRE 0 0 0 0 4 2,627 Acquisition and development 1-4 family residential construction 0 0 0 0 1 790 All other A&D 0 0 0 0 1 1,782 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 2 160 1 233 0 0 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 2 $ 160 3 $ 510 6 $ 5,199 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned [Abstract] | |
Schedule of Real Estate Properties | The following table presents the components of OREO as of December 31, 2015 and 2014: (in thousands) 2015 2014 Commercial real estate $ 1,520 $ 1,772 Acquisition and development 4,167 9,263 Residential mortgage 1,196 1,897 Total OREO $ 6,883 $ 12,932 |
Other Real Estate, Roll Forward | The following table presents the activity in the OREO valuation allowance for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Balance January 1 $ 3,440 $ 4,047 Fair value write-down 1,997 920 Sales of OREO (1,007) (1,527) Balance December 31 $ 4,430 $ 3,440 |
Schedule of Components of OREO | The following table presents the components of OREO expenses, net for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 (Gains)/losses on real estate, net $ (753) $ 944 Fair value write-down 1,997 920 Expenses, net 885 789 Rental and other income (230) (335) Total OREO expenses, net $ 1,899 $ 2,318 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Composition of Premises and Equipment | The following table presents the components of premises and equipment at December 31, 2015 and 2014: (in thousands) 2015 2014 Land $ 7,304 $ 7,304 Land Improvements 1,210 1,210 Premises 25,272 25,112 Furniture and Equipment 16,824 16,343 Capital Lease 534 534 51,144 50,503 Less accumulated depreciation (25,946) (24,874) Total $ 25,198 $ 25,629 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The significant components of goodwill at December 31, 2015 and 2014 are as follows: (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill: $ 14,812 $ (3,808) $ 11,004 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of Time Deposit Maturities | The following is a summary of the scheduled maturities of all time deposits as of December 31, 2015 (in thousands): 2016 $ 121,827 2017 49,582 2018 45,758 2019 13,242 2020 24,166 Thereafter 0 Total $ 254,575 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowed Funds [Abstract] | |
Summary of Short Term Borrowings | The following is a summary of short-term borrowings at December 31, 2015 and 2014 with original maturities of less than one year : (Dollars in thousands) 2015 2014 Securities sold under agreements to repurchase: Outstanding at end of year $ 35,828 $ 39,801 Weighted average interest rate at year end 0.16% 0.15% Maximum amount outstanding as of any month end $ 47,131 $ 53,819 Average amount outstanding $ 35,908 $ 45,702 Approximate weighted average rate during the year 0.16% 0.13% |
Summary of Long Term Borrowings | The following is a summary of long-term borrowings at December 31, 2015 and 2014 with original maturities exceeding one year: (In thousands) 2015 2014 FHLB advances, bearing fixed interest rates ranging from 1.00% to 3.69% at December 31, 2015 $ 105,807 $ 135,876 Junior subordinated debt, bearing variable interest rate of 3.28% at December 31, 2015 30,929 35,929 Junior subordinated debt, bearing fixed interest rate of 9.88% at December 31, 2015 10,801 10,801 Total long-term debt $ 147,537 $ 182,606 |
Contractual Maturities of All Long Term Borrowings | The contractual maturities of long-term borrowings at December 31, 2015 and 2014 are as follows: 2015 Fixed Floating 2014 (in thousands) Rate Rate Total Total Due in 2015 $ 0 $ 0 $ 0 $ 35,000 Due in 2016 0 0 0 0 Due in 2017 0 0 0 0 Due in 2018 20,000 0 20,000 70,000 Due in 2019 0 0 0 0 Due in 2020 30,000 0 30,000 0 Thereafter 66,608 30,929 97,537 77,606 Total long-term debt $ 116,608 $ 30,929 $ 147,537 $ 182,606 |
Schedule of Pledged Collateral on Line of Credit | The line is secured by certain qualified mortgage, commercial and home equity loans and investment securities as follows (in thousands): 1-4 family mortgage loans $ 175,581 Commercial loans 19,916 Multi-family loans 872 Home equity loans 26,660 $ 223,029 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Investment in LIHTC Partnership | (In thousands) 2015 2014 Investment in LIHTC Partnership Carrying amount on Balance Sheet of: Investment (Other Assets) $ 3,844 $ 4,429 Maximum exposure to loss 3,844 4,429 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in each component of accumulated other comprehensive loss for the years ended December 31 , 2015 , December 31, 2015 as restated and 2014: Investment Investment Investment securities- securities- securities- Cash Flow Pension (in thousands) with OTTI AFS all other AFS HTM Hedge Plan SERP Total Accumulated OCL, net: Balance - January 1, 2014 $ (7,623) $ (11,292) $ 0 $ (274) $ (5,088) $ 64 $ (24,213) Other comprehensive income/(loss) before reclassifications 4,349 8,712 (2,395) 155 (6,513) (319) 3,989 Amounts reclassified from accumulated other comprehensive loss (405) 25 140 0 209 22 (9) Balance - December 31, 2014 $ (3,679) $ (2,555) $ (2,255) $ (119) $ (11,392) $ (233) $ (20,233) Other comprehensive income/(loss) before reclassifications 1,793 705 0 80 (1,736) (113) 729 Amounts reclassified from accumulated other comprehensive loss (56) (174) 284 0 465 41 560 Balance - December 31, 2015 (As Restated) $ (1,942) $ (2,024) $ (1,971) $ (39) $ (12,663) $ (305) $ (18,944) |
Components of Comprehensive Income | The following tables present the components of other comprehensive income for the years ended December 31, 2015 and 2014: Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the year ended December 31, 2015 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 2,985 $ (1,192) $ 1,793 Less: losses recognized in income 672 (268) 404 Less: accretable yield recognized in income (580) 232 (348) Net unrealized gains on investments with OTTI 2,893 (1,156) 1,737 Available for sale securities – all other: Unrealized holding gains 1,174 (469) 705 Plus: gains recognized in income 290 (116) 174 Net unrealized gains on all other AFS securities 884 (353) 531 Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (473) 189 (284) Net unrealized gains on HTM securities 473 (189) 284 Cash flow hedges: Unrealized holding gains 133 (53) 80 Pension Plan: Unrealized net actuarial loss (2,890) 1,154 (1,736) Less: amortization of unrecognized loss (781) 312 (469) Less: amortization of transition asset 19 (8) 11 Less: amortization of prior service costs (12) 5 (7) Net pension plan liability adjustment (2,116) 845 (1,271) SERP: Unrealized net actuarial loss (188) 75 (113) Less: amortization of unrecognized loss (49) 20 (29) Less: amortization of prior service costs (20) 8 (12) Net SERP liability adjustment (119) 47 (72) Other comprehensive income $ 2,148 $ (859) $ 1,289 Components of Other Comprehensive Income (in thousands) Tax (Expense) Benefit Net For the year ended December 31, 2014 Available for sale (AFS) securities with OTTI: Unrealized holding gains 7,234 $ (2,885) $ 4,349 Less: accretable yield recognized in income 674 (269) 405 Net unrealized gains on investments with OTTI 6,560 (2,616) 3,944 Available for sale securities – all other: Unrealized holding gains 14,501 (5,789) 8,712 Less: losses recognized in income (41) 16 (25) Net unrealized gains on all other AFS securities 14,542 (5,805) 8,737 Held to maturity securities: Unrealized holding losses (3,984) 1,589 (2,395) Less: amortization recognized in income (233) 93 (140) Net unrealized losses on HTM securities (3,751) 1,496 (2,255) Cash flow hedges: Unrealized holding gains 258 (103) 155 Pension Plan: Unrealized net actuarial loss (10,833) 4,320 (6,513) Less: amortization of unrecognized loss (374) 149 (225) Less: amortization of transition asset 39 (16) 23 Less: amortization of prior service costs (12) 5 (7) Net pension plan liability adjustment (10,486) 4,182 (6,304) SERP: Unrealized net actuarial loss (531) 212 (319) Less: amortization of unrecognized loss (17) 7 (10) Less: amortization of prior service costs (20) 8 (12) Net SERP liability adjustment (494) 197 (297) Other comprehensive income 6,629 $ (2,649) $ 3,980 |
Reclassification out of Accumulated Other Comprehensive Income | The following tables present the details of accumulated other comprehensive income components for the years ended December 31, 2015 and 2014: Amount Reclassified from Accumulated Other Comprehensive Income Details of Accumulated Other Comprehensive Income Components (in thousands) 2015 Affected Line Item in the Statement Where Net Income is Presented Net unrealized losses on investment securities with OTTI: Losses recognized $ 672 Net losses - other Accretable Yield reversal (580) Interest income on taxable investment securities Taxes (36) Tax benefit $ 56 Net of tax Net unrealized gains on available for sale investment securities - all other: Gains on sales $ 290 Net gains - other Taxes (116) Tax expense $ 174 Net of tax Net unrealized gains on held to maturity investment securities: Amortization $ (473) Interest income on taxable investment securities Taxes 189 Tax benefit $ (284) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss (781) Salaries and employee benefits Amortization of transition asset 19 Salaries and employee benefits Amortization of prior service costs (12) Salaries and employee benefits Taxes 309 Tax benefit $ (465) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss (49) Salaries and employee benefits Amortization of prior service costs (20) Salaries and employee benefits Taxes 28 Tax benefit $ (41) Net of tax Total reclassifications for the period $ (560) Net of tax Amount Reclassified from Accumulated Other Comprehensive Income Details of Accumulated Other Comprehensive Income Components (in thousands) 2014 Affected Line Item in the Statement Where Net Income is Presented Net unrealized gains on investment securities with OTTI: Accretable Yield $ 674 Interest income on taxable investment securities Taxes (269) Tax expense $ 405 Net of tax Net unrealized losses on available for sale investment securities - all other: Losses on sales $ (41) Net gains - other Taxes 16 Tax benefit $ (25) Net of tax Net unrealized losses on held to maturity investment securities: Amortization $ (233) Interest income on taxable investment securities Taxes 93 Tax benefit $ (140) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss (374) Salaries and employee benefits Amortization of transition asset 39 Salaries and employee benefits Amortization of prior service costs (12) Salaries and employee benefits Taxes 138 Tax benefit $ (209) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss (17) Salaries and employee benefits Amortization of prior service costs (20) Salaries and employee benefits Taxes 15 Tax benefit $ (22) Net of tax Total reclassifications for the period $ 9 Net of tax |
Income Taxes - (As Restated) (T
Income Taxes - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes - (As Restated) [Abstract] | |
Schedule of Components of Income Tax Expense | The provision for income taxes consists of the following for the years ended December 31, 2015 and 2014: (In thousands) 2015 2014 Current Tax expense: Federal $ 585 $ 551 State 627 84 $ 1,212 $ 635 Deferred tax expense: Federal $ 4,715 $ 334 State 546 302 $ 5,261 $ 636 Income tax expense for the year $ 6,473 $ 1,271 |
Reconciliation of Federal Income Tax Rate to Effective Income Tax Rate | The reconciliation between the statutory federal income tax rate and effective income tax rate for the years ended December 31, 2015 and 2014 is as follows: 2015 2014 Federal statutory rate 35.0% 35.0% Tax-exempt income on securities and loans (2.4) (8.2) Tax-exempt BOLI income (2.1) (7.1) State income tax, net of federal tax benefit 4.9 5.2 Tax credits (2.4) (7.1) Other 0.2 0.6 33.2% 18.4% |
Components of Deferred Tax Assets and Liabilities | Significant components of the Corporation’s temporary differences as of December 31, 2015 and 2014 are as follows: (In thousands) 2015 2014 Deferred tax assets: Allowance for loan losses $ 4,760 $ 4,811 Deferred loan fees 137 58 Deferred compensation 901 800 Federal and state tax loss carry forwards 4,165 6,069 AMT and other carry forwards 4,304 3,462 Unrealized loss on investment securities 4,039 5,735 Pension/SERP 2,598 2,476 Other than temporary impairment on investment securities 1,251 5,100 Other real estate owned 1,769 1,388 Other 1,481 1,352 Total deferred tax assets 25,405 31,251 Valuation allowance (1,794) (1,658) Total deferred tax assets less valuation allowance 23,611 29,593 Deferred tax liabilities: Amortization of goodwill (2,986) (2,495) Depreciation (653) (831) Other (182) (360) Total deferred tax liabilities (3,821) (3,686) Net deferred tax assets $ 19,790 $ 25,907 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Schedule of Net Funded Status | The following tables summarize benefit obligation and funded status, plan asset activity, components of net pension cost, and weighted average assumptions for the Pension Plan and the SERP : Pension SERP (in thousands) 2015 2014 2015 2014 Change in Benefit Obligation Obligation at the beginning of the year $ 39,348 $ 28,329 $ 5,827 $ 5,084 Service cost 316 258 121 115 Interest cost 1,579 1,478 239 220 Change in discount rate and mortality assumptions (1,207) 7,216 0 0 Actuarial losses 841 3,401 190 499 Benefits paid (1,461) (1,334) (88) (91) Obligation at the end of the year 39,416 39,348 6,289 5,827 Change in Plan Assets Fair value at the beginning of the year 38,967 34,848 0 0 Actual return on plan assets (306) 2,453 0 0 Employer contribution 2,000 3,000 88 91 Benefits paid (1,461) (1,334) (88) (91) Fair value at the end of the year 39,200 38,967 0 0 Unfunded Status $ (216) $ (381) $ (6,289) $ (5,827) |
Components of Net Periodic Pension Plan Cost | Pension SERP (in thousands) 2015 2014 2015 2014 Components of Net Pension Cost Service cost $ 316 $ 258 $ 121 $ 115 Interest cost 1,579 1,478 239 220 Expected return on assets (2,965) (2,653) 0 0 Amortization of transition asset (19) (39) 0 0 Amortization of recognized loss/(gain) 781 374 49 (17) Amortization of prior service cost 12 12 20 20 Net pension (income)/expense in employee benefits $ (296) $ (570) $ 429 $ 338 Weighted Average Assumptions used to determine benefit obligations: Discount rate for benefit obligations 4.50% 4.00% 4.00% 4.00% Discount rate for net pension cost 4.00% 4.75% 0 0 Expected long-term return on assets 7.00% 7.75% 0 0 Rate of compensation increase 3.00% 3.00% 3.00% 3.00% Mortality tables RP-2014 RP-2014 N/A N/A |
Schedule of Target Asset Allocations | Asset Class Normalized Target Range Cash 5% 0% - 20% Fixed Income 40% 30% - 50% Equities 55% 45% - 65% |
Actual Plan Asset Allocations | As of December 31, 2015 and 2014, the value of Pension Plan investments was as follows: December 31, 2015 Fair Value Hierarchy (Dollars in thousands) Assets at Fair Value % of Portfolio Level 1 Level 2 Cash and cash equivalents $ 2,260 5.8% $ 2,260 $ 0 Fixed income securities: U.S. Government and Agencies 131 0.3% 0 131 Taxable municipal bonds and notes 2,869 7.3% 0 2,869 Corporate bonds and notes 8,774 22.4% 0 8,774 Preferred stock 542 1.4% 0 542 Fixed income mutual funds 2,736 7.0% 2,736 0 Total fixed income 15,052 38.5% 2,736 12,316 Equities: Large Cap 16,364 41.7% 16,364 0 Mid Cap 2,775 7.0% 2,775 0 Small Cap 1,061 2.7% 1,061 0 International 1,688 4.3% 1,688 0 Total equities 21,888 55.7% 21,888 0 Total market value $ 39,200 100.0% $ 26,884 $ 12,316 December 31, 2014 Fair Value Hierarchy (Dollars in thousands) Assets at Fair Value % of Portfolio Level 1 Level 2 Cash and cash equivalents $ 1,043 2.7% $ 1,043 $ 0 Fixed income securities: U.S. Government and Agencies 613 1.6% 0 613 Taxable municipal bonds and notes 2,525 6.5% 0 2,525 Corporate bonds and notes 8,393 21.5% 0 8,393 Preferred stock 478 1.2% 0 478 Fixed income mutual funds 5,049 13.0% 5,049 0 Total fixed income 17,058 43.8% 5,049 12,009 Equities: Large Cap 15,646 40.1% 15,646 0 Mid Cap 2,743 7.0% 2,743 0 Small Cap 1,305 3.4% 1,305 0 International 1,172 3.0% 1,172 0 Total equities 20,866 53.5% 20,866 0 Total market value $ 38,967 100.0% $ 26,958 $ 12,009 |
Expected Future Benefit Payments | Estimated cash flows related to expected future benefit payments from the Pension Plan and SERP are as follows : (In thousands) Pension Plan SERP 2016 $ 1,337 $ 141 2017 1,429 204 2018 1,473 242 2019 1,552 303 2020 1,660 301 2021-2025 10,077 1,769 |
Schedule of Amounts in Accumulated Other Comprehensive Income | Amounts included in accumulated other comprehensive loss as of December 31, 2015 and 2014, net of tax, are as follows: 2015 2014 (In thousands) Pension SERP Pension SERP Unrecognized net actuarial loss $ 12,641 $ 306 $ 11,375 $ 217 Unrecognized prior service costs 20 4 28 16 Net transition asset 0 0 (11) 0 $ 12,661 $ 310 $ 11,392 $ 233 |
Schedule of Amounts that Will Be Amortized from Other Comprehensive Loss | The estimated costs that will be amortized from accumulated other comprehensive loss into net periodic pension cost during the next fiscal year are as follows: (In thousands) Pension SERP Prior service costs $ 12 $ 20 Net transition asset 0 0 Net actuarial loss 848 78 $ 860 $ 98 |
Commitments and Contingent Li53
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Commitments | The following table is a summary of commitments as of December 31, 2015 and 2014: (In thousands) 2015 2014 Loan commitments $ 129,076 $ 103,019 Commercial letters of credit 1,587 877 Total $ 130,663 $ 103,896 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments - (As Restated) [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015 and 2014, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale - CDO $ 22,211 Discounted Cash Flow Discount Rate Range of Libor+ 4.5% to 5.5% Cash Flow Hedge $ (66) Discounted Cash Flow Reuters Third Party Market Quote 99.9% (weighted avg 99.9% ) Non-recurring: Impaired Loans $ 6,247 Market Comparable Properties Marketability Discount 3% to 15% (1) (weighted avg 11.3% ) OREO $ 4,133 Market Comparable Properties Marketability Discount 10% to 15% (1) (weighted avg 12.5% ) (in thousands) Fair Value at December 31, 2014 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale - CDO $ 25,339 Discounted Cash Flow Discount Rate Range of Libor+ 5% to 12% Cash Flow Hedge $ (199) Discounted Cash Flow Reuters Third Party Market Quote 99.9% (weighted avg 99.9%) Non-recurring: Impaired Loans $ 9,122 Market Comparable Properties Marketability Discount 10% (1) (weighted avg 10% ) OREO $ 2,511 Market Comparable Properties Marketability Discount 10% to 15% (1) (weighted avg 11% ) (1) Range would include discounts taken since appraisal and estimated values |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2015 and 2014 are as follows: Fair Value Measurements at December 31, 2015 Using (In Thousands) Assets Measured at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 33,964 $ 33,964 Residential mortgage-backed agencies $ 14,170 $ 14,170 Commercial mortgage-backed agencies $ 43,636 $ 43,636 Collateralized mortgage obligations $ 9,610 $ 9,610 Obligations of states and political subdivisions $ 46,641 $ 46,641 Collateralized debt obligations $ 22,211 $ 22,211 Financial Derivative $ (66) $ (66) Non-recurring: Impaired loans $ 6,247 $ 6,247 Other real estate owned $ 4,133 $ 4,133 Fair Value Measurements at December 31, 2014 Using (In Thousands) Assets Measured at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. treasuries $ 29,596 $ 29,596 U.S. government agencies $ 38,941 $ 38,941 Residential mortgage-backed agencies $ 45,273 $ 45,273 Commercial mortgage-backed agencies $ 25,957 $ 25,957 Collateralized mortgage obligations $ 8,707 $ 8,707 Obligations of states and political subdivisions $ 47,304 $ 47,304 Collateralized debt obligations $ 25,339 $ 25,339 Financial Derivative $ (199) $ (199) Non-recurring: Impaired loans $ 9,122 $ 9,122 Other real estate owned $ 2,511 $ 2,511 |
Reconciliation of Fair Valued Assets Measured on a Recurring Basis | The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured using Level 3 significant unobservable inputs for the years ended December 31, 2015 and 2014: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands) Investment Securities Available for Sale Cash Flow Hedge Beginning balance January 1, 2015 $ 25,339 $ (199) Total gains/(losses) realized/unrealized: Included in earnings 818 0 Included in other comprehensive income (3,946) 133 Ending balance December 31, 2015 $ 22,211 $ (66) The amount of total gains or losses for the period included in earnings attributable to the change in realized/unrealized gains or losses related to assets still held at the reporting date $ 0 $ 0 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In Thousands) Cash Flow Hedge Beginning balance January 1, 2014 17,538 $ (457) Total gains/(losses) realized/unrealized: Included in earnings 0 0 Included in other comprehensive income 7,801 258 Ending balance December 31, 2014 25,339 $ (199) The amount of total gains or losses for the period included in earnings attributable to the change in realized/unrealized gains or losses related to assets still held at the reporting date 0 $ 0 |
Fair Value by Balance Sheet Grouping | The following table presents fair value information about financial instruments, whether or not recognized in the statement of financial condition, for which it is practicable to estimate that value. The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the statement of financial condition are as follows: December 31, 2015 Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 50,188 $ 50,188 $ 50,188 Interest bearing deposits in banks 1,953 1,953 1,953 Investment securities - AFS 170,232 170,232 $ 148,021 $ 22,211 Investment securities - HTM 105,560 106,742 103,779 2,963 Restricted Bank stock 5,904 5,904 5,904 Loans, net 867,101 872,991 872,991 Accrued interest receivable 4,218 4,218 4,218 Financial Liabilities: Deposits – non-maturity 744,219 744,219 744,219 Deposits – time deposits 254,575 258,267 258,267 Short-term borrowed funds 35,828 35,828 35,828 Long-term borrowed funds 147,537 151,562 151,562 Accrued interest payable 478 478 478 Financial derivative 66 66 66 Off balance sheet financial instruments 0 0 0 December 31, 2014 Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 27,554 $ 27,554 $ 27,554 Interest bearing deposits in banks 7,897 7,897 7,897 Investment securities - AFS 221,117 221,117 $ 195,778 $ 25,339 Investment securities - HTM 109,449 110,771 108,163 2,608 Restricted Bank stock 7,524 7,524 7,524 Loans, net 827,926 830,904 830,904 Accrued interest receivable 4,152 4,152 4,152 Financial Liabilities: Deposits – non-maturity 689,581 689,581 689,581 Deposits – time deposits 291,742 296,713 296,713 Short-term borrowed funds 39,801 39,801 39,801 Long-term borrowed funds 182,606 187,143 187,143 Accrued interest payable 882 882 882 Financial derivative 199 199 199 Off balance sheet financial instruments 0 0 0 |
Derivative Financial Instrume55
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Impact Of Derivative Financial Instruments | The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the years ended December 31, 2015 and December 31, 2014. Derivative in Cash Flow Hedging Relationships (In thousands) Amount of gain (loss) recognized in OCI on derivative (effective portion) Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) (1) Amount of gain or (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) (2) Interest rate contracts: December 31, 2015 $ 80 $ 0 $ 0 December 31, 2014 $ 155 $ 0 $ 0 Notes : (1) Reported as interest expense Reported as other income |
Assets and Liabilities Subjec56
Assets and Liabilities Subject to Enforceable Master Netting Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements [Abstract] | |
Schedule of Liabilities Subject to an enforceable Master Netting Arrangement or Repurchase Agreements | The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 2015 and December 31, 2014 . Gross Amounts Not Offset in the Statement of Condition (In thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Financial Instruments Cash Collateral Pledged Net Amount December 31, 2015 Interest Rate Swap Agreements $ 66 $ 0 $ 66 $ (66) $ 0 $ 0 Repurchase Agreements $ 35,828 $ 0 $ 35,828 $ (35,828) $ 0 $ 0 December 31, 2014 Interest Rate Swap Agreements $ 199 $ 0 $ 199 $ (199) $ 0 $ 0 Repurchase Agreements $ 39,801 $ 0 $ 39,801 $ (39,801) $ 0 $ 0 |
Parent Company Only Financial57
Parent Company Only Financial Information - (As Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Only Financial Information - (As Restated) [Abstract] | |
Condensed Statement of Financial Condition | December 31, (In thousands) 2015 2014 Assets Cash $ 11,102 $ 1,036 Investment securities 14,522 0 Investment in bank subsidiary 132,809 150,209 Investment in non-bank subsidiaries 1,255 1,255 Other assets 5,403 5,872 Total Assets $ 165,091 $ 158,372 Liabilities and Shareholder’s Equity Accrued interest and other liabilities $ 2,590 $ 2,643 Dividends payable 0 0 Junior subordinated debt 41,730 46,730 Shareholder’s equity 120,771 108,999 Total Liabilities and Shareholder’s Equity $ 165,091 $ 158,372 |
Condensed Statements of Income | Year Ended December 31, (In thousands) 2015 2014 Income: Dividend income from bank subsidiary $ 33,658 $ 10,972 Gain on Investments 3,521 0 Other income 69 240 Total Other income 3,590 240 Total Income 37,248 11,212 Expenses: Interest expense 2,192 2,492 Other expenses 365 354 Total Expenses 2,557 2,846 Income before income taxes and equity in undistributed net loss of subsidiaries 34,691 8,366 Applicable income tax (expense)/benefit (975) 3,120 Net income before equity in undistributed net loss of subsidiaries 33,716 11,486 Equity in undistributed net loss of subsidiaries: Bank (20,725) (5,870) Non-bank 0 (19) Net Income $ 12,991 $ 5,597 |
Condensed Statement of Comprehensive Income | Year Ended December 31, Components of Comprehensive Income (in thousands) 2015 2014 Net Income $ 12,991 $ 5,597 Unrealized losses on AFS Securities, net of tax (2,115) Unrealized gains on cash flow hedges, net of tax 80 155 Other comprehensive income, net of tax (2,035) 155 Comprehensive income $ 10,956 $ 5,752 |
Condensed Cash Flow Statement | Condensed Statement of Cash Flows Year Ended December 31, (In thousands) 2015 2014 Operating Activities Net Income $ 12,991 $ 5,597 Adjustments to reconcile net income to net cash (used in)/provided by operating activities: Equity in undistributed net income of subsidiaries 6,203 5,889 Decrease/(increase) in other assets 470 (1,686) Increase/(decrease) in accrued interest payable and other liabilities (2,089) (12,089) Stock Compensation 191 134 Net cash provided by/(used in) operating activities 17,766 (2,155) Investing Activities Net investment in subsidiaries 0 2,761 Net cash provided by investing activities 0 2,761 Financing Activities Dividends – common stock 0 0 Repayment of Long-term debt (5,000) 0 Dividends - preferred stock paid (2,700) (2,595) Net cash used in financing activities (7,700) (2,595) Increase/(decrease) in cash and cash equivalents 10,066 (1,989) Cash and cash equivalents at beginning of year 1,036 3,025 Cash and cash equivalents at end of year $ 11,102 $ 1,036 |
Condensed Statement of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Components of Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the period ended December 31, 2015 Available for Sale Securities: Unrealized holding losses $ (3,521) $ 1,406 $ (2,115) Cash flow hedges: Unrealized holding gains 133 (53) 80 Other comprehensive income $ (3,388) $ 1,353 $ (2,035) For the period ended December 31, 2014 Cash flow hedges: Unrealized holding gains $ 258 $ (103) $ 155 Other comprehensive income $ 258 $ (103) $ 155 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 4 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Jan. 31, 2015 | Feb. 28, 2015 | Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and leases receivable, net of deferred income | $ 879,023,000 | $ 839,991,000 | ||||
Dividend income, operating | 302,227 | 290,677 | ||||
Allowance for unfunded loan commitments | $ 65,332 | 51,950 | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 185,000 | |||||
Share-based compensation | $ 191,000 | $ 134,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 | ||||
Director [Member] | ||||||
Immediate vested shares | 16,022 | 17,779 | ||||
Immediate vested shares, per share value | $ 8.96 | $ 8.78 | ||||
Stock compensation expense | $ 147,738 | $ 134,060 | ||||
Director [Member] | Scenario, Plan [Member] | ||||||
Non-employee annual retainer paid in stock awards | $ 10,000 | $ 10,000 | ||||
Stock issued during period, value, issued for services | $ 5,000 | |||||
Immediate vested shares | 1,000 | |||||
Executive Officer [Member] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | |||||
Stock compensation expense | $ 43,475 | |||||
One-time stock grant, shares | 5,387 | 4,845 | ||||
One-time stock grant, price per share | $ 8.76 | $ 8.63 | $ 8.76 | |||
Stock grant, vesting period | 2 years | |||||
Stock compensation expense remaining | 45,527 | |||||
Parent Company [Member] | ||||||
Share-based compensation | $ 191,000 | $ 134,000 | ||||
Liberty Mews Limited Partnership [Member] | ||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 99.90% | |||||
Maximum [Member] | Premises [Member] | ||||||
Property, plant and equipment, useful life | 32 years | |||||
Maximum [Member] | Furniture and Equipment [Member] | ||||||
Property, plant and equipment, useful life | 20 years | |||||
Minimum [Member] | Premises [Member] | ||||||
Property, plant and equipment, useful life | 18 years | |||||
Minimum [Member] | Furniture and Equipment [Member] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Western Maryland and Northeasten Virginia [Member] | Loans Receivable [Member] | ||||||
Concentration Risk, Percentage | 13.00% | |||||
Loans and leases receivable, net of deferred income | $ 110,000,000 | |||||
Western Maryland and Northeasten Virginia [Member] | Loans Receivable [Member] | Nonperforming Financing Receivable [Member] | ||||||
Loans and leases receivable, net of deferred income | 4,000,000 | |||||
Western Maryland and Northeasten Virginia [Member] | Loans Receivable [Member] | Performing Financing Receivable [Member] | ||||||
Loans and leases receivable, net of deferred income | 106,000,000 | |||||
Western Maryland and Northeasten Virginia [Member] | Loans Receivable [Member] | Performing According to Modified Terms [Member] | ||||||
Loans and leases receivable, net of deferred income | 3,000,000 | |||||
Western Maryland and Northeasten Virginia [Member] | Loans Receivable [Member] | Nonperforming Troubled Debt Restructuring [Member] | ||||||
Loans and leases receivable, net of deferred income | $ 1,000,000 | |||||
Western Maryland and Northeasten Virginia [Member] | Real Estate [Member] | ||||||
Concentration Risk, Percentage | 15.00% |
Correction of Error in Compar59
Correction of Error in Comparative Financial Statements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income tax expense | $ 19,464 | $ 6,868 | |
Net income available to common shareholders | 10,291 | 2,996 | |
Net gains | $ 1,016 | $ 1,053 | |
Basic and diluted net income per common share | $ 1.65 | $ 0.48 | |
Amortized cost basis of collateralized debt obligations | $ 29,300 | $ 29,300 | |
Parent Company [Member] | |||
Income before income tax expense | 34,691 | $ 8,366 | |
Scenario, Previously Reported [Member] | |||
Gain (loss) related to transfer of pooled trust preferred securities, gross | (3,500) | ||
Gain (loss) related to transfer of pooled trust preferred securities (net) | (2,100) | ||
Income before income tax expense | 15,943 | ||
Net income available to common shareholders | 8,176 | ||
Net gains | $ (2,505) | ||
Basic and diluted net income per common share | $ 1.31 | ||
Amortized cost basis of collateralized debt obligations | $ 25,800 | $ 25,800 | |
Scenario, Change [Member] | |||
Income before income tax expense | 3,521 | ||
Net income available to common shareholders | 2,115 | ||
Net gains | $ 3,521 | ||
Basic and diluted net income per common share | $ 0.34 |
Correction of Error in Compar60
Correction of Error in Comparative Financial Statements (Schedule of Error Corrections and Prior Period Adjustments) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net gains | $ 1,016 | $ 1,053 | |
Income Before Taxes | 19,464 | 6,868 | |
Income Tax expense/(benefit) | 6,473 | 1,271 | |
Net Income | 12,991 | 5,597 | |
Net income available to common shareholders | $ 10,291 | $ 2,996 | |
Basic and diluted net income per common share | $ 1.65 | $ 0.48 | |
Return on Average Assets | 0.98% | ||
Return on Average Equity | 11.40% | ||
Total Risk-based Capital Ratio | 17.21% | 15.40% | |
Tier I Capital to Risk Weighted Assets | 15.24% | 14.23% | |
Tier I Capital to Average Assets | 11.64% | 11.29% | |
Common Equity Tier I to Risk Weighted Assets | 9.99% | ||
Retained earnings | $ 87,666 | $ 77,375 | |
Accumulated other comprehensive loss | (18,944) | (20,233) | $ (24,213) |
Total Other Operating Income | 26,008 | 13,960 | |
Provision for income tax expense | 6,473 | 1,271 | |
Net Unrealized gains on investments with OTTI | 1,737 | ||
Net unrealized gains on all other AFS securities | 531 | 8,737 | |
Other comprehensive income, net of tax | 1,289 | 3,980 | |
Net (gain)/loss on sales of investment securities - available-for-sale | (962) | 41 | |
Decrease (increase) in accrued interest receivable and other assets | 4,223 | 6,993 | |
Parent Company [Member] | |||
Income Before Taxes | 34,691 | 8,366 | |
Income Tax expense/(benefit) | (975) | 3,120 | |
Net Income | 12,991 | 5,597 | |
Provision for income tax expense | (975) | 3,120 | |
Net unrealized gains on all other AFS securities | (2,115) | ||
Other comprehensive income, net of tax | (2,035) | 155 | $ 155 |
Net (gain)/loss on sales of investment securities - available-for-sale | (3,521) | 0 | |
Decrease (increase) in accrued interest receivable and other assets | 470 | $ (1,686) | |
Scenario, Previously Reported [Member] | |||
Net gains | (2,505) | ||
Income Before Taxes | 15,943 | ||
Income Tax expense/(benefit) | 5,067 | ||
Net Income | 10,876 | ||
Net income available to common shareholders | $ 8,176 | ||
Basic and diluted net income per common share | $ 1.31 | ||
Return on Average Assets | 0.82% | ||
Return on Average Equity | 9.54% | ||
Total Risk-based Capital Ratio | 17.37% | ||
Tier I Capital to Risk Weighted Assets | 15.31% | ||
Tier I Capital to Average Assets | 11.51% | ||
Common Equity Tier I to Risk Weighted Assets | 9.92% | ||
Retained earnings | $ 85,551 | ||
Accumulated other comprehensive loss | (16,829) | ||
Total Other Operating Income | 22,487 | ||
Provision for income tax expense | 5,067 | ||
Net Unrealized gains on investments with OTTI | 3,213 | ||
Net unrealized gains on all other AFS securities | 1,170 | ||
Other comprehensive income, net of tax | 3,404 | ||
Net (gain)/loss on sales of investment securities - available-for-sale | 2,559 | ||
Decrease (increase) in accrued interest receivable and other assets | 2,817 | ||
Scenario, Change [Member] | |||
Net gains | 3,521 | ||
Income Before Taxes | 3,521 | ||
Income Tax expense/(benefit) | 1,406 | ||
Net Income | 2,115 | ||
Net income available to common shareholders | $ 2,115 | ||
Basic and diluted net income per common share | $ 0.34 | ||
Return on Average Assets | 0.16% | ||
Return on Average Equity | 1.86% | ||
Total Risk-based Capital Ratio | (0.16%) | ||
Tier I Capital to Risk Weighted Assets | (0.07%) | ||
Tier I Capital to Average Assets | 0.13% | ||
Common Equity Tier I to Risk Weighted Assets | 0.07% | ||
Retained earnings | $ 2,115 | ||
Accumulated other comprehensive loss | (2,115) | ||
Total Other Operating Income | 3,521 | ||
Provision for income tax expense | 1,406 | ||
Net Unrealized gains on investments with OTTI | (1,476) | ||
Net unrealized gains on all other AFS securities | (639) | ||
Other comprehensive income, net of tax | (2,115) | ||
Net (gain)/loss on sales of investment securities - available-for-sale | (3,521) | ||
Decrease (increase) in accrued interest receivable and other assets | $ 1,406 |
Earnings Per Common Share - (61
Earnings Per Common Share - (As Restated) (Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Common Share - (As Restated) [Abstract] | ||
Net Income | $ 12,991 | $ 5,597 |
Preferred stock dividends | (2,700) | (2,595) |
Discount accretion on preferred stock | 0 | (6) |
Net income available to common shareholders | $ 10,291 | $ 2,996 |
Weighted average number of shares outstanding, basic and diluted | 6,248,830 | 6,222,440 |
Earnings per share, basic and diluted | $ 1.65 | $ 0.48 |
Net Gains - (As Restated) (Sche
Net Gains - (As Restated) (Schedule of Net Gains) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net Gains - (As Restated) [Abstract] | ||
Available-for-sale securities: Realized gains | $ 1,609 | $ 427 |
Available-for-sale Securities: Realized losses | (647) | (468) |
Realized gains, held-for-trading securities | 0 | 1,100 |
Gain on sale of consumer loans | 57 | 52 |
Loss on disposal of fixed assets | (3) | (58) |
Net gains - other | 1,016 | 1,053 |
Total Gains Loss | $ 1,016 | $ 1,053 |
Regulatory Capital Requiremen63
Regulatory Capital Requirements - (As Restated) (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
FHLB available credit | $ 104,200 | |
Tier One Risk Based Capital | 153,283 | $ 149,130 |
Unsecured Debt [Member] | ||
Line of credit facility, current borrowing capacity | 70,000 | |
Secured Debt [Member] | ||
Line of credit facility, current borrowing capacity | 17,200 | |
TPS Debentures [Member] | ||
Tier One Risk Based Capital | $ 40,300 |
Regulatory Capital Requiremen64
Regulatory Capital Requirements - (As Restated) (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $ 173,124 | $ 161,377 |
Capital to Risk Weighted Assets | 17.21% | 15.40% |
Capital Required for Capital Adequacy | $ 79,276 | $ 83,851 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 99,095 | $ 104,813 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | $ 153,283 | $ 149,130 |
Tier One Risk Based Capital to Risk Weighted Assets | 15.24% | 14.23% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 59,457 | $ 41,925 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 79,276 | $ 62,888 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Common equity, Amount | $ 100,485 | |
Common equity, Ratio | 9.99% | |
Common equity, Required For Capital Adequacy Purposes, Amount | $ 44,593 | |
Common equity, Required For Capital Adequacy Purposes, Ratio | 4.50% | |
Common equity, Required To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 64,412 | |
Common equity, Required To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | |
Tier One Leverage Capital | $ 153,283 | $ 149,130 |
Tier One Leverage Capital to Average Assets | 11.64% | 11.29% |
Tier One Leverage Capital Required for Capital Adequacy | $ 52,833 | $ 52,846 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 66,041 | $ 66,057 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
First United Bank & Trust [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $ 149,775 | $ 162,550 |
Capital to Risk Weighted Assets | 16.29% | 15.60% |
Capital Required for Capital Adequacy | $ 73,714 | $ 83,379 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 92,143 | $ 104,224 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | $ 138,243 | $ 150,433 |
Tier One Risk Based Capital to Risk Weighted Assets | 15.03% | 14.43% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 55,286 | $ 41,689 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 73,714 | $ 62,534 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Common equity, Amount | $ 138,243 | |
Common equity, Ratio | 15.03% | |
Common equity, Required For Capital Adequacy Purposes, Amount | $ 41,464 | |
Common equity, Required For Capital Adequacy Purposes, Ratio | 4.50% | |
Common equity, Required To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 59,893 | |
Common equity, Required To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | |
Tier One Leverage Capital | $ 138,243 | $ 150,433 |
Tier One Leverage Capital to Average Assets | 10.53% | 11.43% |
Tier One Leverage Capital Required for Capital Adequacy | $ 52,346 | $ 52,642 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 65,432 | $ 65,803 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Cash And Cash Equivalents (Sche
Cash And Cash Equivalents (Schedules of Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||
Cash and due from banks | $ 50,188 | $ 27,554 |
Interest bearing deposits in banks | $ 1,953 | 7,897 |
Cash and Due from Banks [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest Rate | 0.12% | |
FHLB [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest bearing deposits in banks | $ 742 | 983 |
Interest Rate | 0.25% | |
FTN [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest bearing deposits in banks | $ 200 | 850 |
Interest Rate | 0.20% | |
M&T Fed Funds sold [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest bearing deposits in banks | $ 1,011 | $ 6,064 |
Interest Rate | 0.15% |
Investment Securities - (As R66
Investment Securities - (As Restated) (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 552 | $ 108 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | 7,415 | 13,864 |
Available-for-sale securities pledged as collateral | $ | $ 140,000 | 192,000 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | 11 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | 0 | |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | U.S. Government Agencies – Available for Sale – There were four U.S. government agencies in an unrealized loss position for less than 12 months as of December 31, 2015. There were no U.S. government agencies in an unrealized loss position for 12 months or more. The securities are of the highest investment grade and the Corporation does not intend to sell them, and it is not more likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 4 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 129 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | $ 0 | 253 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | U.S. Government Agencies – Held to Maturity – There were no U.S. government agencies in an unrealized loss position as of December 31, 2015. | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 0 | |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Residential Mortgage-Backed Agencies – Available for Sale - There were no residential mortgage-backed agencies in an unrealized loss position for less than 12 months as of December 31, 2015. There was one residential mortgage-backed agency security in an unrealized loss position for 12 months or more. The security is of the highest investment grade and the Corporation does not intend to sell it, and it is not more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 0 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | $ 220 | 412 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Residential Mortgage-Backed Agencies – Held to Maturity - Nine residential mortgage-backed agencies have been in an unrealized loss position for less than 12 months as of December 31, 2015. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. There were no residential mortgage-backed agencies in an unrealized loss position for 12 months or more. | |
Held To Maturity Securities in unrealized loss positions qualitative disclosure number of positions less than one year | 9 | |
Held to maturity securities in unrealized loss positions qualitative disclosure number of positions greater than or equal to one year | 0 | |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Commercial Mortgage-Backed Agencies – Available for Sale – There were six commercial mortgage-backed agencies in an unrealized loss position for less than 12 months as of December 31, 2015. The securities are of the highest investment grade and the Corporation does not intend to sell them, and it is not more likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. There were no commercial mortgage-backed agency securities in an unrealized loss position for 12 months or more. | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 6 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 196 | 97 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | $ 0 | 6 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Commercial Mortgage-Backed Agencies – Held to Maturity – There was one commercial mortgage-backed agency in an unrealized loss position for less than 12 months as of December 31, 2015. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. There were no commercial mortgage-backed agencies in an unrealized loss position for 12 months or more. | |
Held To Maturity Securities in unrealized loss positions qualitative disclosure number of positions less than one year | 1 | |
Held to maturity securities in unrealized loss positions qualitative disclosure number of positions greater than or equal to one year | 0 | |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Collateralized Mortgage Obligations – Available for Sale – There was one collateralized mortgage obligation in an unrealized loss position for less than 12 months as of December 31, 2015. The security is of the highest investment grade and the Corporation does not intend to sell it, and it is not more likely than not that the Corporation will be required to sell it before recovery of its amortized cost basis, which may be at maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. There were no collateralized mortgage obligations in an unrealized loss position for 12 months or more. | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 123 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | $ 0 | 0 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Collateralized Mortgage Obligations – Held to Maturity – There was one collateralized mortgage obligations in an unrealized loss position for less than 12 months as of December 31, 2015. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at December 31, 2015. There were no collateralized mortgage obligations in an unrealized loss position for 12 months or more. | |
Held to maturity securities in unrealized loss positions qualitative disclosure number of positions greater than or equal to one year | 0 | |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Obligations of State and Political Subdivisions – Available for Sale – There were five obligations of state and political subdivisions that have been in an unrealized loss position for less than 12 months at December 31, 2015. There was one security that has been in an unrealized loss position for 12 months or more. These investments are of investment grade as determined by the major rating agencies and management reviews the ratings of the underlying issuers and performs an in-depth credit analysis on the securities. Management believes that this portfolio is well-diversified throughout the United States, and all bonds continue to perform according to their contractual terms. The Corporation does not intend to sell these investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 5 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 104 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | $ 119 | 260 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Obligations of State and Political Subdivisions – Held to Maturity – There were no obligations of state and political subdivisions in the Held to Maturity portfolio as of December 31, 2015 in a loss position. | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 0 | |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Collateralized Debt Obligations – Available for Sale - The $7.1 million in unrealized losses greater than 12 months at December 31, 2015 relates to twelve pooled trust preferred securities that are included in the CDO portfolio. See Note 25 for a discussion of the methodology used by management to determine the fair values of these securities. Based upon a review of credit quality and the cash flow tests performed by the independent third party, management determined that there were no securities that had credit-related non-cash OTTI charges during 2015. The unrealized losses on the remaining securities in the portfolio are primarily attributable to continued depression in market interest rates, marketability, liquidity and the current economic environment. | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 12 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | $ | $ 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ | $ 7,076 | $ 12,933 |
Held To Maturity Securities in unrealized loss positions qualitative disclosure number of positions less than one year | 1 |
Investment Securities - (As R67
Investment Securities - (As Restated) (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 177,070 | $ 231,745 |
Gross Unrealized Gains | 1,129 | 3,344 |
Gross Unrealized Losses | 7,967 | 13,972 |
Investment securities - available-for-sale (at fair value) | 170,232 | 221,117 |
OTTI in AOCI | (4,320) | 6,143 |
Held-to-maturity Amortized cost | 105,560 | 109,449 |
Held-to-maturity gross Unrealized Gains | 1,419 | 1,444 |
Held-to-maturity Gross Unrealized Losses | 237 | 122 |
Investment securities - HTM | 106,742 | 110,771 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 29,607 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 11 | |
Investment securities - available-for-sale (at fair value) | 29,596 | |
OTTI in AOCI | 0 | |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 34,079 | 39,077 |
Gross Unrealized Gains | 14 | 117 |
Gross Unrealized Losses | 129 | 253 |
Investment securities - available-for-sale (at fair value) | 33,964 | 38,941 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity Amortized cost | 24,704 | 24,520 |
Held-to-maturity gross Unrealized Gains | 634 | 514 |
Held-to-maturity Gross Unrealized Losses | 0 | 0 |
Investment securities - HTM | 25,338 | 25,034 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 14,285 | 45,175 |
Gross Unrealized Gains | 105 | 510 |
Gross Unrealized Losses | 220 | 412 |
Investment securities - available-for-sale (at fair value) | 14,170 | 45,273 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity Amortized cost | 53,734 | 58,400 |
Held-to-maturity gross Unrealized Gains | 276 | 613 |
Held-to-maturity Gross Unrealized Losses | 98 | 5 |
Investment securities - HTM | 53,912 | 59,008 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 43,780 | 26,007 |
Gross Unrealized Gains | 52 | 53 |
Gross Unrealized Losses | 196 | 103 |
Investment securities - available-for-sale (at fair value) | 43,636 | 25,957 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity Amortized cost | 18,078 | 16,425 |
Held-to-maturity gross Unrealized Gains | 171 | 312 |
Held-to-maturity Gross Unrealized Losses | 17 | 0 |
Investment securities - HTM | 18,232 | 16,737 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 9,690 | 8,611 |
Gross Unrealized Gains | 43 | 96 |
Gross Unrealized Losses | 123 | 0 |
Investment securities - available-for-sale (at fair value) | 9,610 | 8,707 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity Amortized cost | 6,419 | 7,379 |
Held-to-maturity gross Unrealized Gains | 0 | 5 |
Held-to-maturity Gross Unrealized Losses | 122 | 0 |
Investment securities - HTM | 6,297 | 7,384 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 45,949 | 46,151 |
Gross Unrealized Gains | 915 | 1,413 |
Gross Unrealized Losses | 223 | 260 |
Investment securities - available-for-sale (at fair value) | 46,641 | 47,304 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity Amortized cost | 2,625 | 2,725 |
Held-to-maturity gross Unrealized Gains | 338 | 0 |
Held-to-maturity Gross Unrealized Losses | 0 | 117 |
Investment securities - HTM | 2,963 | 2,608 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 29,287 | 37,117 |
Gross Unrealized Gains | 0 | 1,155 |
Gross Unrealized Losses | 7,076 | 12,933 |
Investment securities - available-for-sale (at fair value) | 22,211 | 25,339 |
OTTI in AOCI | $ (4,320) | $ 6,143 |
Investment Securities - (As R68
Investment Securities - (As Restated) (Proceeds from Sales and Realized Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Securities - (As Restated) [Abstract] | ||
Proceeds | $ 60,598 | $ 56,838 |
Realized gains | 1,609 | 427 |
Realized losses | $ 647 | $ 468 |
Investment Securities - (As R69
Investment Securities - (As Restated) (Gross Unrealized Losses and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 66,623 | $ 39,394 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 552 | 108 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 34,310 | 66,981 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 7,415 | 13,864 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 26,900 | 3,850 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 237 | 5 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 2,608 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | 117 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 27,096 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 11 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 23,929 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 129 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 18,819 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 253 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | 0 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 8,051 | 17,918 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 220 | 412 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 11,085 | 3,850 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 98 | 5 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | 0 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 25,858 | 12,298 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 196 | 97 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 973 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 6 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 9,518 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 17 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | 0 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,299 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 123 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,297 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 122 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | 0 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 11,537 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 104 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,048 | 8,981 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 119 | 260 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 2,608 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | 117 |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 22,211 | 20,290 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $ 7,076 | $ 12,933 |
Investment Securities - (As R70
Investment Securities - (As Restated) (Non-Cash OTTI Credit Losses Recognized in Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Securities - (As Restated) [Abstract] | ||
Balance of credit-related OTTI, Beginning | $ 12,583 | $ 13,422 |
Decreases for previously recognized credit-related OTTI because there was an intent to sell | (10,029) | (165) |
Additions for decreases in cash flows expected to be collected | 602 | 0 |
Reduction for increases in cash flows expected to be collected | (23) | (674) |
Balance of credit-related OTTI, Ending | $ 3,133 | $ 12,583 |
Investment Securities - (As R71
Investment Securities - (As Restated) (Amortized Cost and Fair Values Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Amortized Cost: Due in one year or less | $ 0 | |
Amortized Cost: Due after one year through five years | 37,577 | |
Amortized Cost: Due after five years through ten years | 16,147 | |
Amortized Cost: Due after ten years | 55,591 | |
Amortized Cost, Single Maturity Date, Total | 109,315 | |
Fair Value: Due in one year or less | 0 | |
Fair Value: Due after one year through five years | 37,593 | |
Fair Value: Due after five years through ten years | 16,676 | |
Fair Value: Due after ten years | 48,547 | |
Fair Value: Single Maturity Date, Total | 102,816 | |
Available for sale debt maturities fair value sub total | 170,232 | |
Available For Sale Debt Maturities Amortized Cost Total | 177,070 | |
Available-for-sale Securities, Amortized Cost Basis | 177,070 | $ 231,745 |
Available-for-sale Securities | 170,232 | 221,117 |
Amortized Cost: Due after five years through ten years, Held to maturity | 15,604 | |
Amortized Cost: Due after ten years, Held to maturity | 11,725 | |
Amortized Cost: Total, Held to maturity | 27,329 | |
Fair Value: Due after five years through ten years, Held to maturity | 16,116 | |
Fair Value: Due after ten years, Held to maturity | 12,185 | |
Fair Value: Total, Held to maturity | 28,301 | |
Held-to-maturity Securities | 105,560 | 109,449 |
Held-to-maturity Securities, Fair Value | 106,742 | 110,771 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost: without Single Maturity Date | 14,285 | |
Fair Value: without Single Maturity Date | 14,170 | |
Available-for-sale Securities, Amortized Cost Basis | 14,285 | 45,175 |
Available-for-sale Securities | 14,170 | 45,273 |
Held-to-maturity Securities | 53,734 | 58,400 |
Held-to-maturity Securities, Fair Value | 53,912 | 59,008 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost: without Single Maturity Date | 43,780 | |
Fair Value: without Single Maturity Date | 43,636 | |
Available-for-sale Securities, Amortized Cost Basis | 43,780 | 26,007 |
Available-for-sale Securities | 43,636 | 25,957 |
Held-to-maturity Securities | 18,078 | 16,425 |
Held-to-maturity Securities, Fair Value | 18,232 | 16,737 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost: without Single Maturity Date | 9,690 | |
Fair Value: without Single Maturity Date | 9,610 | |
Available-for-sale Securities, Amortized Cost Basis | 9,690 | 8,611 |
Available-for-sale Securities | 9,610 | 8,707 |
Held-to-maturity Securities | 6,419 | 7,379 |
Held-to-maturity Securities, Fair Value | $ 6,297 | $ 7,384 |
Loans And Related Allowances 72
Loans And Related Allowances For Loan Losses (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($)loan | Sep. 30, 2015USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Commercial amount benchmark minimum for internal annual review | $ 500,000 | |||
Commercial amount benchmark minimum for annual review by independent reviewer | 1,000,000 | |||
Commercial relationship amount benchmark for evaluation | 750,000 | |||
Nonaccrual loans subject to partial charge off | $ 15,498,000 | $ 15,498,000 | $ 11,551,000 | |
Financing receivable, modifications, number of contracts | loan | 29 | 27 | ||
Reduction of the ALL resulting from new TDRs | $ 7,541 | |||
Financing receivable, modifications, recorded investment | 14,000,000 | 14,000,000 | $ 13,700,000 | |
Partial Charge Off [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 4,100,000 | $ 4,100,000 | $ 4,600,000 | |
New TDR [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | loan | 9 | |||
Pre Existing TDR [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | loan | 11 | |||
Acquisition and Development (A&D) TDR [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, subsequent default, number of contracts | loan | 3 | |||
Commerical Real Estate TDR [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, subsequent default, recorded investment | $ 400,000 | |||
Commerical and Industrial TDR [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, subsequent default, recorded investment | 200,000 | |||
Troubled Debt Restructuring [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Unused commitments to extend credit | 11,200 | $ 11,200 | 10,400 | |
Foreclosure 1-4 Family Real Estate Properties [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Loans secured by real estate properties in process of foreclosure | 1,800,000 | 1,800,000 | 1,900,000 | |
Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 1,308,000 | 1,308,000 | 1,152,000 | |
Commercial real estate- all other CRE [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 9,974,000 | 9,974,000 | 4,610,000 | |
Acquisition and development- 1-4 family residential construction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 0 | 0 | 0 | |
Other Acquired and Development Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 1,817,000 | 1,817,000 | 3,609,000 | |
Financing receivable, modifications, subsequent default, recorded investment | 1,600,000 | |||
Commercial and industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 185,000 | 185,000 | 171,000 | |
Residential mortgage- term [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | $ 1,938,000 | 1,938,000 | 1,666,000 | |
Financing receivable, modifications, subsequent default, number of contracts | loan | 2 | 1 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ 200,000 | $ 100,000 | ||
Residential mortgage- home equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | 276,000 | 276,000 | 343,000 | |
Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans subject to partial charge off | $ 0 | $ 0 | $ 0 |
Loans And Related Allowances 73
Loans And Related Allowances For Loan Losses (Loan Portfolio Segments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 24,808 | $ 24,781 |
Collectively evaluated for impairment | 854,215 | 815,210 |
Total Loans | 879,023 | 839,991 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 14,646 | 11,949 |
Collectively evaluated for impairment | 265,859 | 244,115 |
Total Loans | 280,505 | 256,064 |
Acquisition and Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,496 | 6,553 |
Collectively evaluated for impairment | 106,490 | 92,748 |
Total Loans | 110,986 | 99,301 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 1,076 | 1,861 |
Collectively evaluated for impairment | 72,777 | 91,394 |
Total Loans | 73,853 | 93,255 |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,590 | 4,418 |
Collectively evaluated for impairment | 384,149 | 363,223 |
Total Loans | 388,739 | 367,641 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 24,940 | 23,730 |
Total Loans | $ 24,940 | $ 23,730 |
Loans And Related Allowances 74
Loans And Related Allowances for Loan Losses (Related Party Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Beginning Balance | $ 9,207 |
Loans or advances | 3,589 |
Repayments | (1,403) |
Ending Balance | $ 11,393 |
Loans And Related Allowances 75
Loans And Related Allowances For Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 879,023 | $ 839,991 |
Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 159,330 | 137,433 |
Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 121,175 | 118,631 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,711 | 13,710 |
Other Acquired and Development Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 95,275 | 85,591 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 73,853 | 93,255 |
Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 311,469 | 291,426 |
Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 77,270 | 76,215 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 24,940 | 23,730 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 819,513 | 758,307 |
Pass [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 140,378 | 115,276 |
Pass [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 103,811 | 90,740 |
Pass [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,011 | 12,920 |
Pass [Member] | Other Acquired and Development Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 89,963 | 72,323 |
Pass [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 69,420 | 88,579 |
Pass [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 300,558 | 280,113 |
Pass [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 75,491 | 74,698 |
Pass [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 24,881 | 23,658 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 14,211 | 22,211 |
Special Mention [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 11,574 | 10,884 |
Special Mention [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,184 | 8,618 |
Special Mention [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Special Mention [Member] | Other Acquired and Development Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 74 | 1,356 |
Special Mention [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,212 | 884 |
Special Mention [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 167 | 379 |
Special Mention [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 90 |
Special Mention [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 45,299 | 59,473 |
Substandard [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,378 | 11,273 |
Substandard [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,180 | 19,273 |
Substandard [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 700 | 790 |
Substandard [Member] | Other Acquired and Development Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,238 | 11,912 |
Substandard [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,221 | 3,792 |
Substandard [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,744 | 10,934 |
Substandard [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,779 | 1,427 |
Substandard [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 59 | $ 72 |
Loans And Related Allowances 76
Loans And Related Allowances For Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 848,618 | $ 814,860 |
Total Past Due and Still Accruing | 14,907 | 13,580 |
Non-Accrual | 15,498 | 11,551 |
Loans | 879,023 | 839,991 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 11,064 | 11,057 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 2,818 | 1,994 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,025 | 529 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 157,217 | 135,994 |
Total Past Due and Still Accruing | 805 | 287 |
Non-Accrual | 1,308 | 1,152 |
Loans | 159,330 | 137,433 |
Commercial real estate- non owner-occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 634 | 104 |
Commercial real estate- non owner-occupied [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 171 | 183 |
Commercial real estate- non owner-occupied [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 110,022 | 112,825 |
Total Past Due and Still Accruing | 1,179 | 1,196 |
Non-Accrual | 9,974 | 4,610 |
Loans | 121,175 | 118,631 |
Commercial real estate- all other CRE [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,179 | 1,196 |
Commercial real estate- all other CRE [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate- all other CRE [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 15,711 | 13,710 |
Total Past Due and Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Loans | 15,711 | 13,710 |
Acquisition and development- 1-4 family residential construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Other Acquired and Development Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 92,867 | 81,702 |
Total Past Due and Still Accruing | 591 | 280 |
Non-Accrual | 1,817 | 3,609 |
Loans | 95,275 | 85,591 |
Other Acquired and Development Financing Receivable [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 417 | 239 |
Other Acquired and Development Financing Receivable [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 174 | 40 |
Other Acquired and Development Financing Receivable [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 1 |
Commercial and industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 73,619 | 93,060 |
Total Past Due and Still Accruing | 49 | 24 |
Non-Accrual | 185 | 171 |
Loans | 73,853 | 93,255 |
Commercial and industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 13 | 0 |
Commercial and industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 36 | 20 |
Commercial and industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 4 |
Residential mortgage- term [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 298,391 | 279,340 |
Total Past Due and Still Accruing | 11,140 | 10,420 |
Non-Accrual | 1,938 | 1,666 |
Loans | 311,469 | 291,426 |
Residential mortgage- term [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 8,084 | 8,654 |
Residential mortgage- term [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 2,149 | 1,350 |
Residential mortgage- term [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 907 | 416 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 76,195 | 74,913 |
Total Past Due and Still Accruing | 799 | 959 |
Non-Accrual | 276 | 343 |
Loans | 77,270 | 76,215 |
Residential mortgage- home equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 505 | 577 |
Residential mortgage- home equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 203 | 313 |
Residential mortgage- home equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 91 | 69 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 24,596 | 23,316 |
Total Past Due and Still Accruing | 344 | 414 |
Non-Accrual | 0 | 0 |
Loans | 24,940 | 23,730 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 232 | 287 |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 85 | 88 |
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 27 | $ 39 |
Loans And Related Allowances 77
Loans And Related Allowances For Loan Losses (Primary Segments of the Allowance for Loan Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | $ 1,157 | $ 1,236 | |
Collectively evaluated for impairment | 10,765 | 10,829 | |
Total Allowance For Loan Losses | 11,922 | 12,065 | $ 13,594 |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | 144 | 36 | |
Collectively evaluated for impairment | 2,436 | 2,388 | |
Total Allowance For Loan Losses | 2,580 | 2,424 | 4,052 |
Acquisition and Development [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | 867 | 1,141 | |
Collectively evaluated for impairment | 3,262 | 2,771 | |
Total Allowance For Loan Losses | 4,129 | 3,912 | 4,172 |
Commercial and industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | 16 | 0 | |
Collectively evaluated for impairment | 706 | 1,680 | |
Total Allowance For Loan Losses | 722 | 1,680 | 766 |
Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | 130 | 59 | |
Collectively evaluated for impairment | 3,655 | 3,803 | |
Total Allowance For Loan Losses | 3,785 | 3,862 | 4,320 |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 206 | 187 | |
Total Allowance For Loan Losses | 206 | 187 | 284 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 500 | 0 | |
Total Allowance For Loan Losses | $ 500 | $ 0 | $ 0 |
Loans And Related Allowances 78
Loans And Related Allowances For Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | $ 3,868 | $ 4,844 |
Impaired Loans with Specific Allowance: Related Allowance | 1,157 | 1,236 |
Impaired Loans with No Specific Allowance: Recorded Investment | 20,940 | 19,937 |
Total Impaired Loans: Recorded Investment | 24,808 | 24,781 |
Unpaid Principal Balance | 32,700 | 30,484 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 676 | 143 |
Impaired Loans with Specific Allowance: Related Allowance | 144 | 35 |
Impaired Loans with No Specific Allowance: Recorded Investment | 1,031 | 4,353 |
Total Impaired Loans: Recorded Investment | 1,707 | 4,496 |
Unpaid Principal Balance | 1,842 | 4,543 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 12,939 | 7,453 |
Total Impaired Loans: Recorded Investment | 12,939 | 7,453 |
Unpaid Principal Balance | 13,302 | 7,944 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 700 | 790 |
Impaired Loans with Specific Allowance: Related Allowance | 178 | 105 |
Impaired Loans with No Specific Allowance: Recorded Investment | 0 | 0 |
Total Impaired Loans: Recorded Investment | 700 | 790 |
Unpaid Principal Balance | 746 | 836 |
Other Acquired and Development Financing Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 1,979 | 3,615 |
Impaired Loans with Specific Allowance: Related Allowance | 689 | 1,037 |
Impaired Loans with No Specific Allowance: Recorded Investment | 1,817 | 2,148 |
Total Impaired Loans: Recorded Investment | 3,796 | 5,763 |
Unpaid Principal Balance | 8,362 | 9,590 |
Commercial and industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 16 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 16 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 1,060 | 1,861 |
Total Impaired Loans: Recorded Investment | 1,076 | 1,861 |
Unpaid Principal Balance | 3,343 | 2,723 |
Residential mortgage- term [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 440 | 296 |
Impaired Loans with Specific Allowance: Related Allowance | 112 | 59 |
Impaired Loans with No Specific Allowance: Recorded Investment | 3,874 | 3,779 |
Total Impaired Loans: Recorded Investment | 4,314 | 4,075 |
Unpaid Principal Balance | 4,808 | 4,485 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 57 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 18 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 219 | 343 |
Total Impaired Loans: Recorded Investment | 276 | 343 |
Unpaid Principal Balance | 297 | 363 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 0 | 0 |
Total Impaired Loans: Recorded Investment | 0 | 0 |
Unpaid Principal Balance | $ 0 | $ 0 |
Loans And Related Allowances 79
Loans And Related Allowances For Loan Losses (Allowance for Loan Losses Summarized by Loan Portfolio Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | $ 12,065 | $ 13,594 |
Charge-offs | (2,314) | (4,783) |
Recoveries | 1,117 | 741 |
Provision for loan losses | 1,054 | 2,513 |
ALL Ending Balance | 11,922 | 12,065 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | 2,424 | 4,052 |
Charge-offs | (420) | (485) |
Recoveries | 283 | 11 |
Provision for loan losses | 293 | (1,154) |
ALL Ending Balance | 2,580 | 2,424 |
Acquisition and Development [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | 3,912 | 4,172 |
Charge-offs | (1,261) | (2,673) |
Recoveries | 382 | 133 |
Provision for loan losses | 1,096 | 2,280 |
ALL Ending Balance | 4,129 | 3,912 |
Commercial and industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | 1,680 | 766 |
Charge-offs | (26) | (266) |
Recoveries | 26 | 26 |
Provision for loan losses | (958) | 1,154 |
ALL Ending Balance | 722 | 1,680 |
Residential Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | 3,862 | 4,320 |
Charge-offs | (300) | (847) |
Recoveries | 217 | 229 |
Provision for loan losses | 6 | 160 |
ALL Ending Balance | 3,785 | 3,862 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | 187 | 284 |
Charge-offs | (307) | (512) |
Recoveries | 209 | 342 |
Provision for loan losses | 117 | 73 |
ALL Ending Balance | 206 | 187 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
ALL Beginning Balance | 0 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision for loan losses | 500 | 0 |
ALL Ending Balance | $ 500 | $ 0 |
Loans And Related Allowances 80
Loans And Related Allowances For Loan Losses (Average of Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | ||
Average Investment | $ 24,214 | $ 29,319 |
Interest income recognized on an accrual basis | 653 | 725 |
Interest income recognized on a cash basis | 136 | 135 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 3,792 | 2,411 |
Interest income recognized on an accrual basis | 144 | 71 |
Interest income recognized on a cash basis | 0 | 0 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 8,688 | 9,088 |
Interest income recognized on an accrual basis | 124 | 148 |
Interest income recognized on a cash basis | 106 | 67 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 736 | 1,510 |
Interest income recognized on an accrual basis | 33 | 43 |
Interest income recognized on a cash basis | 0 | 0 |
Other Acquired and Development Financing Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 5,008 | 7,639 |
Interest income recognized on an accrual basis | 119 | 161 |
Interest income recognized on a cash basis | 0 | 0 |
Commercial and industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 1,392 | 2,024 |
Interest income recognized on an accrual basis | 69 | 98 |
Interest income recognized on a cash basis | 18 | 2 |
Residential mortgage- term [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 4,258 | 6,056 |
Interest income recognized on an accrual basis | 164 | 200 |
Interest income recognized on a cash basis | 10 | 62 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 334 | 581 |
Interest income recognized on an accrual basis | 0 | 4 |
Interest income recognized on a cash basis | 2 | 4 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Investment | 6 | 10 |
Interest income recognized on an accrual basis | 0 | 0 |
Interest income recognized on a cash basis | $ 0 | $ 0 |
Loans And Related Allowances 81
Loans And Related Allowances For Loan Losses (Modification of Troubled Debt Restructuring by Class) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | |
Temporary Rate Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 2 |
Recorded Investment | $ | $ 156 | $ 160 |
Temporary Rate Modification [Member] | Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Other Acquired and Development Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Commercial and industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Residential mortgage- term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 2 |
Recorded Investment | $ | $ 156 | $ 160 |
Temporary Rate Modification [Member] | Residential mortgage- home equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Extension Of Maturity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 9 | 3 |
Recorded Investment | $ | $ 5,377 | $ 510 |
Extension Of Maturity [Member] | Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 2 |
Recorded Investment | $ | $ 3,097 | $ 277 |
Extension Of Maturity [Member] | Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment | $ | $ 237 | $ 0 |
Extension Of Maturity [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Extension Of Maturity [Member] | Other Acquired and Development Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 3 | 0 |
Recorded Investment | $ | $ 372 | $ 0 |
Extension Of Maturity [Member] | Commercial and industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment | $ | $ 930 | $ 0 |
Extension Of Maturity [Member] | Residential mortgage- term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 3 | 1 |
Recorded Investment | $ | $ 741 | $ 233 |
Extension Of Maturity [Member] | Residential mortgage- home equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Extension Of Maturity [Member] | Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 10 | 6 |
Recorded Investment | $ | $ 6,669 | $ 5,199 |
Modification Of Payment And Other Terms [Member] | Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 2 | 0 |
Recorded Investment | $ | $ 260 | $ 0 |
Modification Of Payment And Other Terms [Member] | Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 5 | 4 |
Recorded Investment | $ | $ 3,847 | $ 2,627 |
Modification Of Payment And Other Terms [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 700 | $ 790 |
Modification Of Payment And Other Terms [Member] | Other Acquired and Development Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 1,746 | $ 1,782 |
Modification Of Payment And Other Terms [Member] | Commercial and industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Residential mortgage- term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment | $ | $ 116 | $ 0 |
Modification Of Payment And Other Terms [Member] | Residential mortgage- home equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
Other Real Estate Owned (Schedu
Other Real Estate Owned (Schedule of Real Estate Properties) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Total OREO | $ 6,883 | $ 12,932 |
Commercial Real Estate [Member] | ||
Total OREO | 1,520 | 1,772 |
Acquisition and Development [Member] | ||
Total OREO | 4,167 | 9,263 |
Residential Mortgage [Member] | ||
Total OREO | $ 1,196 | $ 1,897 |
Other Real Estate Owned (Other
Other Real Estate Owned (Other Real Estate, Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate Owned [Abstract] | ||
Beginning Balance | $ 3,440 | $ 4,047 |
Fair value write-down | 1,997 | 920 |
Sales of OREO | (1,007) | (1,527) |
Ending Balance | $ 4,430 | $ 3,440 |
Other Real Estate Owned (Sche84
Other Real Estate Owned (Schedule of Components of OREO) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate Owned [Abstract] | ||
(Gains)/losses on real estate, net | $ (753) | $ 944 |
Fair value write-down | 1,997 | 920 |
OREO Expenses, net | 885 | 789 |
Rental and other income | (230) | (335) |
Total OREO expenses, net | $ 1,899 | $ 2,318 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Premises and Equipment [Abstract] | ||
Depreciation Expense | $ 1,768 | $ 1,938 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 800 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 700 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 700 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 500 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 400 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 4,300 | |
Operating Leases, Rent Expense, Net | $ 500 | $ 500 |
Premises and Equipment (Composi
Premises and Equipment (Composition of Premises and Equipment) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 51,144 | $ 50,503 |
Less accumulated depreciation | (25,946) | (24,874) |
Premises and equipment, net | 25,198 | 25,629 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 7,304 | 7,304 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 1,210 | 1,210 |
Premises [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation | (25,272) | (25,112) |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 16,824 | 16,343 |
Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 534 | $ 534 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Goodwill [Line Items] | ||
Goodwill | $ 11,004 | $ 11,004 |
Discount rate | 12.82% | |
Capitalization rate | 6.82% | |
Growth rate | 6.00% | |
Percentage of fair value of goodwill in addition to carrying value as a result of income approach | 60.00% | |
Percentage of potential increase in discount rate | 27.00% | |
Current, used assumption of tangible book multiple | 1.36 | |
Assumption of the tangible book multiple | 0.66 | |
Goodwill [Member] | ||
Goodwill [Line Items] | ||
Fair value measurement assumptions | Significant assumptions used in the above methods include:Net income from our forward five-year operating budget, incorporating conservative growth and mix assumptions;A discount rate of 12.82% based on an internally derived cost of equity capital determined using the "build-up" method;A price to tangible book multiple of 1.36x, which was the median multiple adjusted for the Corporation's asset quality profile of non-assisted transactions for non-assisted commercial bank acquisitions during the 12 months ended September 30, 2015 for selling companies headquartered in the Eastern regional area as compiled by Boenning & Scattergood, Inc.; andA capitalization rate of 6.82% (discount rate of 12.82% adjusted for a conservative growth rate of 6.0%).The resulting fair value of the income approach resulted in the fair value of First United Corporation exceeding the carrying value by 60%. Management stressed the assumptions used in the analysis to provide additional support for the derived value. This stress testing showed that (i) the discount rate could increase to 27% before the excess would be eliminated in the tangible multiple method, and (ii) the assumption of the tangible book multiple could decline to 0.66x and still result in a fair value in excess of book value. Based on the results of the evaluation, management concluded that the recorded value of goodwill at December 31, 2015 was not impaired. However, future changes in strategy and/or market conditions could significantly impact these judgments and require adjustments to recorded asset balances. Management will continue to evaluate goodwill for impairment on an annual basis and as events occur or circumstances change. |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Abstract] | ||
Gross Carrying Amount | $ 14,812 | |
Goodwill, Accumulated Amortization | (3,808) | |
Goodwill, Total | $ 11,004 | $ 11,004 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Time Deposits, $250,000 or More | $ 32.6 | |
Time Deposits, $100,000 or More | 124.8 | $ 145 |
Deposit Liabilities Reclassified as Loans Receivable | 0.2 | |
Related Party Deposit Liabilities | $ 4.4 |
Deposits (Schedule of Time Depo
Deposits (Schedule of Time Deposit Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
2,016 | $ 121,827 | |
2,017 | 49,582 | |
2,018 | 45,758 | |
2,019 | 13,242 | |
2,020 | 24,166 | |
Thereafter | 0 | |
Time Deposits | $ 254,575 | $ 291,742 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Repurchase agreements secured by available for sale securities | $ 140,000 | $ 192,000 |
FHLB, available funds | 381,000 | |
FHLB available credit | $ 104,200 | |
Borrowing capacity to assets, percentage | 29.00% | |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
FHLB advances secured by loans receivable | $ 223,000 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements secured by available for sale securities | 59,200 | |
Various Financial Institutions [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, available funding | 70,000 | |
Line of Credit Facility, Amount Outstanding | 0 | |
Federal Reserve Bank [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, available funding | 17,200 | |
Brokered Money Market Funds [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, available funding | $ 102,100 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 10 years | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years |
Borrowed Funds (Summary of Shor
Borrowed Funds (Summary of Short Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||
Outstanding at end of year | $ 35,828 | $ 39,801 |
Weighted average interest rate at end of period | 0.16% | 0.15% |
Maximum amount outstanding as of any month end | $ 47,131 | $ 53,819 |
Average amount outstanding | $ 35,908 | $ 45,702 |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Approximate weighted average rate during the period | 0.16% | 0.13% |
Borrowed Funds (Summary of Long
Borrowed Funds (Summary of Long Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
FHLB advances | $ 105,807 | $ 135,876 |
Junior subordinated debt, bearing variable interest rates | 30,929 | 35,929 |
Junior subordinated debt, bearing fixed interest rate | 10,801 | 10,801 |
Total long-term debt | $ 147,537 | $ 182,606 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage rate range, minimum | 3.28% | |
Debt instrument, interest rate, effective percentage | 9.88% | |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage rate range, minimum | 1.00% | |
Debt instrument, interest rate, effective percentage rate range, maximum | 3.69% |
Borrowed Funds (Contractual Mat
Borrowed Funds (Contractual Maturities of All Long Term Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Due in 2015 | $ 0 | $ 35,000 |
Due in 2016 | 0 | 0 |
Due in 2017 | 0 | 0 |
Due in 2018 | 20,000 | 70,000 |
Due in 2019 | 0 | 0 |
Due in 2020 | 30,000 | 0 |
Thereafter | 97,537 | 77,606 |
Total long-term debt | 147,537 | $ 182,606 |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Due in 2015 | 0 | |
Due in 2016 | 0 | |
Due in 2017 | 0 | |
Due in 2018 | 20,000 | |
Due in 2019 | 0 | |
Due in 2020 | 30,000 | |
Thereafter | 66,608 | |
Total long-term debt | 116,608 | |
Floating Rate [Member] | ||
Debt Instrument [Line Items] | ||
Due in 2015 | 0 | |
Due in 2016 | 0 | |
Due in 2017 | 0 | |
Due in 2018 | 0 | |
Due in 2019 | 0 | |
Due in 2020 | 0 | |
Thereafter | 30,929 | |
Total long-term debt | $ 30,929 |
Borrowed Funds (Schedule of Ple
Borrowed Funds (Schedule of Pledged Collateral on Line of Credit) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pledged assets for secured line of credit | $ 223,029 |
Residential Mortgage [Member] | |
Loans pledged as collateral | 175,581 |
Commercial Real Estate [Member] | |
Loans pledged as collateral | 19,916 |
Commercial and industrial [Member] | |
Loans pledged as collateral | 872 |
Residential mortgage- home equity [Member] | |
Loans pledged as collateral | $ 26,660 |
Junior Subordinated Debenture96
Junior Subordinated Debentures And Restrictions On Dividends (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Aggregated liquidation amount | $ 63,000 | $ 62,000 |
Maximum Allowable Period Of Interest Deferment | 20 | |
First United Statutory Trust I And II Member | ||
Trust preferred securities | $ 30,000,000 | |
Aggregated liquidation amount | $ 900,000 | |
Debenture issue date | March 2,004 | |
Junior Subordinated Debt [Member] | ||
Debenture issue date | December 2,004 | |
Debt Instrument, Face Amount | $ 5,000,000 | |
Variable interest rate | fixed rate of 5.88% for the first five years, payable quarterly, and converted to a floating rate in March 2010 based on the three month LIBOR plus 185 basis points | |
Reporting date interest rate | 9.88% | |
Maturity date | March 2,015 | |
Earliest availability for redemption | 5 years | |
Fixed interest rate | 5.88% | |
Debenture Rate Conversion Date | March 2,010 | |
Junior Subordinated Debt [Member] | First United Statutory Trust I Member | ||
Debenture issued to unconsolidated subsidiary | $ 20,600,000 | |
Variable interest rate | three-month LIBOR plus 275 basis points | |
Reporting date interest rate | 3.28% | |
Maturity date | 2,034 | |
Earliest availability for redemption | 5 years | |
Junior Subordinated Debt [Member] | First United Statutory Trust II Member | ||
Debenture issued to unconsolidated subsidiary | $ 10,300,000 | |
Variable interest rate | three-month LIBOR plus 275 basis points | |
Reporting date interest rate | 3.28% | |
Maturity date | 2,034 | |
Earliest availability for redemption | 5 years | |
Junior Subordinated Debt [Member] | December 2009 First United Statutory Trust III Member | ||
Trust preferred securities | $ 7,000,000 | |
Aggregated liquidation amount | $ 200,000 | |
Debenture issue date | December 2,009 | |
Fixed interest rate | 9.875% | |
Junior Subordinated Debt [Member] | January 2010 First United Statutory Trust III Member | ||
Trust preferred securities | $ 3,500,000 | |
Aggregated liquidation amount | $ 100,000 | |
Debenture issue date | January 2,010 | |
Fixed interest rate | 9.875% | |
TPS Debentures [Member] | December 2009 First United Statutory Trust III Member | ||
Debenture issued to unconsolidated subsidiary | $ 7,200,000 | |
Maturity date | 2,040 | |
Earliest availability for redemption | 5 years | |
Fixed interest rate | 9.875% | |
TPS Debentures [Member] | January 2010 First United Statutory Trust III Member | ||
Debenture issued to unconsolidated subsidiary | $ 3,600,000 | |
Maturity date | 2,040 | |
Earliest availability for redemption | 5 years | |
Fixed interest rate | 9.875% |
Preferred Stock (Narrative) (De
Preferred Stock (Narrative) (Details) - USD ($) | Feb. 15, 2016 | Feb. 15, 2014 | Jan. 30, 2009 | Dec. 31, 2014 | May 26, 2015 |
Preferred stock, shares issued | 30,000 | ||||
Preferred stock, no par value | $ 0 | ||||
Class of warrant or right, number of securities called by warrants or rights | 326,323 | ||||
Class of warrant or right, exercise price of warrants or rights | $ 13.79 | ||||
Proceeds from issuance of preferred stock and preference stock | $ 30,000,000 | ||||
Repurchase of warrant | $ 120,786 | ||||
Preferred stock, dividend rate, percentage | 9.00% | 5.00% | |||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 | |||
Dividends | $ 7,900,000 | ||||
Subsequent Event [Member] | |||||
Preferred Stock, redemption date | Feb. 15, 2016 | ||||
Aggregate liquidation amount of Preferred Stock | $ 10,000,000 | ||||
Preferred stock redeemed, shares | 10,000 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2009 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||
Long-term debt | $ 147,537 | $ 182,606 | |
Equity method investments | 1,300 | ||
Partnership total assets | 9,100 | $ 9,400 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Long-term debt | 41,700 | ||
Subsidiaries [Member] | |||
Variable Interest Entity [Line Items] | |||
Equity method investments | $ 6,100 | ||
Ownership in Liberty Mews Limited Partnership | 99.99% | ||
VIE financing | $ 10,600 | ||
Purchase of land for low income housing by Liberty Mews | $ 10,600 | ||
Federal investment tax credits | $ 8,400 | ||
Federal investment tax credit duration | 10 years | ||
Liberty Mews Limited Partnership [Member] | |||
Variable Interest Entity [Line Items] | |||
Ownership in Liberty Mews Limited Partnership | 99.90% | ||
Impact of tax credits on total tax expense | $ (600) |
Variable Interest Entities (Inv
Variable Interest Entities (Investment in LIHTC Partnership) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entities [Abstract] | ||
Investment (Other Assets) | $ 3,844 | $ 4,429 |
Maximum exposure to loss | $ 3,844 | $ 4,429 |
Accumulated Other Comprehens100
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance, Beginning | $ (20,233) | $ (24,213) |
Other comprehensive income/(loss) before reclassifications | 729 | 3,989 |
Amounts reclassified from accumulated other comprehensive loss | 560 | (9) |
Balance, Ending | (18,944) | (20,233) |
Investment securities- with OTTI [Member] | ||
Balance, Beginning | (3,679) | (7,623) |
Other comprehensive income/(loss) before reclassifications | 1,793 | 4,349 |
Amounts reclassified from accumulated other comprehensive loss | (56) | (405) |
Balance, Ending | (1,942) | (3,679) |
Investment Securities -All Other AFS [Member] | ||
Balance, Beginning | (2,555) | (11,292) |
Other comprehensive income/(loss) before reclassifications | 705 | 8,712 |
Amounts reclassified from accumulated other comprehensive loss | (174) | 25 |
Balance, Ending | (2,024) | (2,555) |
Investment Securities HTM [Member] | ||
Balance, Beginning | (2,255) | 0 |
Other comprehensive income/(loss) before reclassifications | 0 | (2,395) |
Amounts reclassified from accumulated other comprehensive loss | 284 | 140 |
Balance, Ending | (1,971) | (2,255) |
Cash Flow Hedge (OCI) [Member] | ||
Balance, Beginning | (119) | (274) |
Other comprehensive income/(loss) before reclassifications | 80 | 155 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance, Ending | (39) | (119) |
Pension Plan [Member] | ||
Balance, Beginning | (11,392) | (5,088) |
Other comprehensive income/(loss) before reclassifications | (1,736) | (6,513) |
Amounts reclassified from accumulated other comprehensive loss | 465 | 209 |
Balance, Ending | (12,663) | (11,392) |
SERP [Member] | ||
Balance, Beginning | (233) | 64 |
Other comprehensive income/(loss) before reclassifications | (113) | (319) |
Amounts reclassified from accumulated other comprehensive loss | 41 | 22 |
Balance, Ending | $ (305) | $ (233) |
Accumulated Other Comprehens101
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) (Components of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Net of Tax | $ 1,737 | |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | 531 | $ 8,737 |
Cash flow hedges: Unrealized holding gains, Before Tax | 133 | 258 |
Cash flow hedges: Unrealized holding gains, Tax Effect | (53) | (103) |
Cash flow hedges: Unrealized holding gains, Net of Tax | 80 | 155 |
Unrealized net actuarial gain (loss), Net of Tax | (1,271) | (6,304) |
Other Comprehensive Income, Before Tax Amount | 2,148 | 6,629 |
Other Comprehensive Income, Tax (Expense) Benefit | (859) | (2,649) |
Other Comprehensive Income, Net | 1,289 | 3,980 |
Investment securities- with OTTI [Member] | ||
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Before Tax Amount | 2,985 | 7,234 |
Available for sale (AFS) securities with OTTI: Unrealized holding gains, tax effect | (1,192) | (2,885) |
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Net of Tax | 1,793 | 4,349 |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income, Before Tax Amount | (580) | 674 |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income, Tax Effect | 232 | (269) |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income, Net of Tax | (348) | 405 |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Before Tax Amount | 2,893 | 6,560 |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI: Net unrealized gains on investments with OTTI, Tax Effect | (1,156) | (2,616) |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Net of Tax | 1,737 | 3,944 |
Securities: Less: gains (losses) recognized in income, Before Tax | 672 | |
Securities: Less: gains (losses) recognized in income, Tax Effect | (268) | |
Securities: Less: gains (losses) recognized in income, Net of Tax | 404 | |
Investment Securities -All Other AFS [Member] | ||
Securities: Unrealized holding gains (losses), Before Tax | 1,174 | 14,501 |
Securities: Unrealized holding gains (losses), Tax Effect | (469) | (5,789) |
Securities: Unrealized holding gains (losses), Net of Tax | 705 | 8,712 |
Securities: Less: gains (losses) recognized in income, Before Tax | 290 | (41) |
Securities: Less: gains (losses) recognized in income, Tax Effect | (116) | 16 |
Securities: Less: gains (losses) recognized in income, Net of Tax | 174 | (25) |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Before Tax | 884 | 14,542 |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Tax Effect | (353) | (5,805) |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | 531 | 8,737 |
Investment Securities HTM [Member] | ||
Securities: Unrealized holding gains (losses), Before Tax | 0 | (3,984) |
Securities: Unrealized holding gains (losses), Tax Effect | 0 | 1,589 |
Securities: Unrealized holding gains (losses), Net of Tax | 0 | (2,395) |
Securities: Less: gains (losses) recognized in income, Before Tax | (473) | (233) |
Securities: Less: gains (losses) recognized in income, Tax Effect | 189 | 93 |
Securities: Less: gains (losses) recognized in income, Net of Tax | (284) | (140) |
Held to maturity securities: Net unrealized gains (losses) on all HTM securities, Before tax | 473 | (3,751) |
Held to maturity securities: Net unrealized gains (losses) on all HTM securities, Tax | (189) | 1,496 |
Held to maturity securities: Net unrealized gains (losses) on all HTM securities, After tax | 284 | (2,255) |
Pension Plan [Member] | ||
Unrealized net actuarial gain (loss), Before Tax | (2,890) | (10,833) |
Unrealized net actuarial gain (loss), Tax Effect | 1,154 | 4,320 |
Unrealized net actuarial gain (loss), Net of Tax | (1,736) | (6,513) |
Less: amortization of unrecognized net gain (loss), Before Tax | (781) | (374) |
Less: amortization of unrecognized net gain (loss), Tax Effect | 312 | 149 |
Less: amortization of unrecognized net gain (loss), Net of Tax | (469) | (225) |
Less: amortization of transition asset, Before Tax | 19 | 39 |
Less: amortization of transition asset, Tax Effect | (8) | (16) |
Less: amortization of transition asset, Net of Tax | 11 | 23 |
Less: amortization of prior service costs, Before Tax | (12) | (12) |
Less: amortization of prior service costs, Tax Effect | 5 | 5 |
Less: amortization of prior service costs, Net of Tax | (7) | (7) |
Net plan liability adjustment, Before Tax | (2,116) | (10,486) |
Net plan liability adjustment, Tax Effect | 845 | 4,182 |
Net plan liability adjustment, Net of Tax | (1,271) | (6,304) |
SERP [Member] | ||
Unrealized net actuarial gain (loss), Before Tax | (188) | (531) |
Unrealized net actuarial gain (loss), Tax Effect | 75 | 212 |
Unrealized net actuarial gain (loss), Net of Tax | (113) | (319) |
Less: amortization of unrecognized net gain (loss), Before Tax | (49) | (17) |
Less: amortization of unrecognized net gain (loss), Tax Effect | 20 | 7 |
Less: amortization of unrecognized net gain (loss), Net of Tax | (29) | (10) |
Less: amortization of prior service costs, Before Tax | (20) | (20) |
Less: amortization of prior service costs, Tax Effect | 8 | 8 |
Less: amortization of prior service costs, Net of Tax | (12) | (12) |
Net plan liability adjustment, Before Tax | (119) | (494) |
Net plan liability adjustment, Tax Effect | 47 | 197 |
Net plan liability adjustment, Net of Tax | (72) | $ (297) |
Parent Company [Member] | ||
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Before Tax | (3,521) | |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Tax Effect | 1,406 | |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | $ (2,115) |
Accumulated Other Comprehens102
Accumulated Other Comprehensive Loss ("AOCL") - (As Restated) (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest on investment securities: Taxable | $ 6,248 | $ 6,981 |
Gain (loss) - other | 1,016 | 1,053 |
Salaries and employee benefits | (20,912) | (19,518) |
Tax (expense) benefit | (6,473) | (1,271) |
Net income | 12,991 | 5,597 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (560) | 9 |
Parent Company [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax (expense) benefit | 975 | (3,120) |
Net income | 12,991 | 5,597 |
Investment securities- with OTTI [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest on investment securities: Taxable | (580) | 674 |
Gain (loss) - other | 672 | |
Tax (expense) benefit | (36) | (269) |
Net income | 56 | 405 |
Investment securities- all other [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain (loss) - other | 290 | (41) |
Tax (expense) benefit | (116) | 16 |
Net income | 174 | (25) |
Investment Securities HTM [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest on investment securities: Taxable | (473) | (233) |
Tax (expense) benefit | 189 | 93 |
Net income | (284) | (140) |
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax (expense) benefit | 309 | 138 |
Net income | (465) | (209) |
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Unrecognized Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | (781) | (374) |
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Transition Asset [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | 19 | 39 |
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Prior Service Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | (12) | (12) |
SERP [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax (expense) benefit | 28 | 15 |
Net income | (41) | (22) |
SERP [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Unrecognized Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | (49) | (17) |
SERP [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Prior Service Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | $ (20) | $ (20) |
Income Taxes - (As Restated) (N
Income Taxes - (As Restated) (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
MARYLAND [Member] | |
Operating loss carryforwards | $ 36.4 |
Deferred tax assets, operating loss carryforwards, state and local | 1.8 |
Valuation allowance, deferred tax asset, change in amount | 0.1 |
WEST VIRGINIA [Member] | |
Operating loss carryforwards | 4.3 |
Deferred tax assets, operating loss carryforwards, state and local | 0.2 |
Internal Revenue Service (IRS) [Member] | |
Operating loss carryforwards | 6.2 |
Deferred tax assets, operating loss carryforwards, domestic | $ 2.2 |
Federal and West Virginia [Member] | |
Operating loss carryforwards, expiration date | Dec. 31, 2030 |
Income Taxes - (As Restated) (S
Income Taxes - (As Restated) (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes - (As Restated) [Abstract] | ||
Current Tax Expense: Federal | $ 585 | $ 551 |
Current Tax Expense: State | 627 | 84 |
Current Income Tax Expense | 1,212 | 635 |
Deferred Tax Expense: Federal | 4,715 | 334 |
Deferred Tax Expense: State | 546 | 302 |
Defered Income Tax Expense | 5,261 | 636 |
Income tax expense for the year | $ 6,473 | $ 1,271 |
Income Taxes - (As Restated) (R
Income Taxes - (As Restated) (Reconciliation of Federal Income Tax Rate to Effective Income Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes - (As Restated) [Abstract] | ||
Federal statutory rate | 35.00% | 35.00% |
Tax-exempt income on securities and loans | (2.40%) | (8.20%) |
Tax-exempt BOLI income | (2.10%) | (7.10%) |
State income tax, net of federal tax benefit | 4.90% | 5.20% |
Tax credits | (2.40%) | (7.10%) |
Other | 0.20% | 0.60% |
Effective Income Tax Rate Reconciliation, Percent, Total | 33.20% | 18.40% |
Income Taxes - (As Restated) (C
Income Taxes - (As Restated) (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes - (As Restated) [Abstract] | ||
Deferred tax assets, allowance for loan losses | $ 4,760 | $ 4,811 |
Deferred tax assets, deferred loan fees | 137 | 58 |
Deferred tax assets, deferred compensation | 901 | 800 |
Deferred tax assets, federal and state tax loss carry forwards | 4,165 | 6,069 |
Deferred tax assets, AMT and Other carry forwards | 4,304 | 3,462 |
Deferred tax assets, unrealized loss on investment securities available-for-sale | 4,039 | 5,735 |
Deferred tax assets, Pension/SERP | 2,598 | 2,476 |
Deferred tax assets, other than temporary impairment on investment securities | 1,251 | 5,100 |
Deferred tax assets, other real estate owned | 1,769 | 1,388 |
Deferred tax assets, other | 1,481 | 1,352 |
Total deferred tax assets | 25,405 | 31,251 |
Deferred tax assets, valuation allowance | (1,794) | (1,658) |
Total deferred tax assets less valuation allowance | 23,611 | 29,593 |
Deferred tax liabilities, amortization of goodwill and core deposit intangibles | (2,986) | (2,495) |
Deferred tax liabilities, depreciation | (653) | (831) |
Deferred tax liabilities, other | (182) | (360) |
Total deferred tax liabilities | (3,821) | (3,686) |
Net deferred tax assets | $ 19,790 | $ 25,907 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contribution as percentage of employee's base pay | 15.00% | ||
Defined Benefit Plan, Narrative Description of Basis Used to Determine Overall Expected Long-term Rate-of-Return on Assets Assumption | the 25-year average return on pension portfolio assets was 7.95%, exceeding the expected long-term return of 7.00% utilized for 2015. Based on the actual performance experience noted above and long-term returns of relevant indices, a case could be built for retaining the expected returns at the existing level. However, there are a number of reasons that would support a lowering of the expected return. For example, since the early 1980's, there has been a general trend of lower interest rates that have supported bond market performance in a positive manner. Such support would likely be reversed in the event that the general trend in rates reverses for an extended period of time. In as much, as bond market exposure represents a significant portion of pension plan assets, weaker performance from bonds would be reflected in pension returns. Also, expectations from global economic growth continue to be muted, in spite of the efforts of central banks around the world. Further, long-term average returns of benchmark indices are impacted by favorable markets during the 1990s that may or may not be repeated in the foreseeable future. Given the potentially higher possibility that future returns may face at elevated headwinds, it is considered prudent to lower the expected return assumption to 7.00%. | ||
Subsequent Event [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 63,500 | ||
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 36,100,000 | $ 35,700,000 | |
Average return on pension portfolio assets | 7.95% | ||
Expected long-term return on pension portfolio assets | 7.00% | ||
Defined Benefit Plan, Contributions by Employer | $ 2,000,000 | 3,000,000 | |
SERP [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 5,400,000 | 4,900,000 | |
Defined Benefit Plan, Contributions by Employer | $ 88,000 | $ 91,000 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Net Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance | $ 38,967 | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance | 39,200 | $ 38,967 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Beginning Balance | 39,348 | 28,329 |
Defined Benefit Plan, Service Cost | 316 | 258 |
Defined Benefit Plan, Interest Cost | 1,579 | 1,478 |
Defined Benefit Plan, Other Changes | (1,207) | 7,216 |
Defined Benefit Plan, Actuarial Gain (Loss) | 841 | 3,401 |
Defined Benefit Plan, Benefits Paid | (1,461) | (1,334) |
Defined Benefit Plan, Benefit Obligation, Ending Balance | 39,416 | 39,348 |
Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance | 38,967 | 34,848 |
Defined Benefit Plan, Actual Return on Plan Assets | (306) | 2,453 |
Defined Benefit Plan, Contributions by Employer | 2,000 | 3,000 |
Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance | 39,200 | 38,967 |
Defined Benefit Plan, Unfunded Status of Plan | (216) | (381) |
SERP [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Beginning Balance | 5,827 | 5,084 |
Defined Benefit Plan, Service Cost | 121 | 115 |
Defined Benefit Plan, Interest Cost | 239 | 220 |
Defined Benefit Plan, Other Changes | 0 | 0 |
Defined Benefit Plan, Actuarial Gain (Loss) | 190 | 499 |
Defined Benefit Plan, Benefits Paid | (88) | (91) |
Defined Benefit Plan, Benefit Obligation, Ending Balance | 6,289 | 5,827 |
Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance | 0 | 0 |
Defined Benefit Plan, Actual Return on Plan Assets | 0 | 0 |
Defined Benefit Plan, Contributions by Employer | 88 | 91 |
Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance | 0 | 0 |
Defined Benefit Plan, Unfunded Status of Plan | $ (6,289) | $ (5,827) |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Pension Plan Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | $ 316 | $ 258 |
Defined Benefit Plan, Interest Cost | 1,579 | 1,478 |
Expected return on assets | (2,965) | (2,653) |
Defined Benefit Plan, Amortization of Transition Obligations (Assets) | (19) | (39) |
Amortization of recognized loss | 781 | 374 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 12 | 12 |
Net pension credit included in employee benefits | $ (296) | $ (570) |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | 4.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.00% | 4.75% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.00% | 7.75% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% |
SERP [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | $ 121 | $ 115 |
Defined Benefit Plan, Interest Cost | 239 | 220 |
Expected return on assets | 0 | 0 |
Defined Benefit Plan, Amortization of Transition Obligations (Assets) | 0 | 0 |
Amortization of recognized loss | 49 | (17) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 20 | 20 |
Net pension credit included in employee benefits | $ 429 | $ 338 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% |
Employee Benefit Plans (Sche110
Employee Benefit Plans (Schedule of Target Asset Allocations) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 5.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 20.00% |
Fixed Income Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 40.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 30.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 50.00% |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 55.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 45.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 65.00% |
Employee Benefit Plans (Actual
Employee Benefit Plans (Actual Plan Asset Allocations) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 39,200 | $ 38,967 |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 26,884 | $ 26,958 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 12,316 | 12,009 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,260 | $ 1,043 |
Defined Benefit Plan, Actual Plan Asset Allocations | 5.80% | 2.70% |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,260 | $ 1,043 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 15,052 | $ 17,058 |
Defined Benefit Plan, Actual Plan Asset Allocations | 38.50% | 43.80% |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,736 | $ 5,049 |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 12,316 | 12,009 |
US Treasury and Government [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 131 | $ 613 |
Defined Benefit Plan, Actual Plan Asset Allocations | 0.30% | 1.60% |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 131 | 613 |
Obligations of states and political subdivisions [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,869 | $ 2,525 |
Defined Benefit Plan, Actual Plan Asset Allocations | 7.30% | 6.50% |
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,869 | 2,525 |
Corporate Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 8,774 | $ 8,393 |
Defined Benefit Plan, Actual Plan Asset Allocations | 22.40% | 21.50% |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 8,774 | 8,393 |
Preferred Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 542 | $ 478 |
Defined Benefit Plan, Actual Plan Asset Allocations | 1.40% | 1.20% |
Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 542 | 478 |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,736 | $ 5,049 |
Defined Benefit Plan, Actual Plan Asset Allocations | 7.00% | 13.00% |
Fixed Income Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,736 | $ 5,049 |
Fixed Income Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 21,888 | $ 20,866 |
Defined Benefit Plan, Actual Plan Asset Allocations | 55.70% | 53.50% |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 21,888 | $ 20,866 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Large Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 16,364 | $ 15,646 |
Defined Benefit Plan, Actual Plan Asset Allocations | 41.70% | 40.10% |
Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 16,364 | $ 15,646 |
Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Mid Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,775 | $ 2,743 |
Defined Benefit Plan, Actual Plan Asset Allocations | 7.00% | 7.00% |
Mid Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,775 | $ 2,743 |
Mid Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Small Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,061 | $ 1,305 |
Defined Benefit Plan, Actual Plan Asset Allocations | 2.70% | 3.40% |
Small Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,061 | $ 1,305 |
Small Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,688 | $ 1,172 |
Defined Benefit Plan, Actual Plan Asset Allocations | 4.30% | 3.00% |
International [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,688 | $ 1,172 |
International [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 1,337 |
2,017 | 1,429 |
2,018 | 1,473 |
2,019 | 1,552 |
2,020 | 1,660 |
2021-2025 | 10,077 |
SERP [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 141 |
2,017 | 204 |
2,018 | 242 |
2,019 | 303 |
2,020 | 301 |
2021-2025 | $ 1,769 |
Employee Benefit Plans (Sche113
Employee Benefit Plans (Schedule of Amounts in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | $ 12,641 | $ 11,375 |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 20 | 28 |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Transition Assets (Obligations), after Tax | 0 | (11) |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax, Total | 12,661 | 11,392 |
SERP [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | 306 | 217 |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 4 | 16 |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Transition Assets (Obligations), after Tax | 0 | 0 |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax, Total | $ 310 | $ 233 |
Employee Benefit Plans (Sche114
Employee Benefit Plans (Schedule of Amounts that Will Be Amortized from Other Comprehensive Loss) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | $ 12 |
Defined Benefit Plan, Future Amortization of Transition Obligation (Asset) | 0 |
Defined Benefit Plan, Future Amortization of Gain (Loss) | 848 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year, Total | 860 |
SERP [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 20 |
Defined Benefit Plan, Future Amortization of Transition Obligation (Asset) | 0 |
Defined Benefit Plan, Future Amortization of Gain (Loss) | 78 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year, Total | $ 98 |
401(k) Profit Sharing Plan (Nar
401(k) Profit Sharing Plan (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match, First One Percent of Contributions | 100.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match, Next Five Percent of Contributions | 50.00% |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% |
Defined Contribution Plan, Cost Recognized | $ 1 |
Other Than SERP Hired Prior to 2010 [Member] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.50% |
Restrictions on Subsidiary D116
Restrictions on Subsidiary Dividends, Loans or Advances (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Percentage of capital stock and surplus on secured basis | 10.00% |
Parent Company [Member] | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 22.3 |
Commitments and Contingent L117
Commitments and Contingent Liabilities (Schedule of Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Supply Commitment [Line Items] | ||
Contractual Obligation | $ 130,663 | $ 103,896 |
Loan Origination Commitments [Member] | ||
Supply Commitment [Line Items] | ||
Contractual Obligation | 129,076 | 103,019 |
Commitments to Extend Credit [Member] | ||
Supply Commitment [Line Items] | ||
Contractual Obligation | $ 1,587 | $ 877 |
Fair Value of Financial Inst118
Fair Value of Financial Instruments - (As Restated) (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Fair Value of Financial Instruments - (As Restated) [Abstract] | ||
Acquired Trust Preferred Securities, Number of Securities | security | 12 | |
Trust Preferred Securities, Amortized Cost | $ 29,300 | |
Trust Preferred Securities, Fair Value | 22,200 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value of Financial Inst119
Fair Value of Financial Instruments - (As Restated) (Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 12.82% | ||
Collateralized debt obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Recurring | $ 22,211 | $ 25,339 | |
Significant Unoservable Inputs | Discount Rate | ||
Valuation Technique | Discounted Cash Flow | ||
Cash Flow Hedge [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities, Fair Value Disclosure, Recurring | $ (66) | $ (199) | |
Significant Unoservable Inputs | Reuters Third Party Market Quote | ||
Valuation Technique | Discounted Cash Flow | ||
Fair Value Inputs, Comparability Adjustments | 99.90% | 99.90% | |
Fair Value Inputs, Comparability Adjustments, Weighted Average | 99.90% | 99.90% | |
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Recurring | $ 9,122 | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 6,247 | $ 9,122 | |
Significant Unoservable Inputs | Marketability Discount | ||
Valuation Technique | Market Comparable Properties | ||
Fair Value Inputs, Comparability Adjustments | [1] | 10.00% | |
Fair Value Inputs, Comparability Adjustments, Weighted Average | 11.30% | 10.00% | |
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Recurring | $ 2,511 | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,133 | $ 2,511 | |
Significant Unoservable Inputs | Marketability Discount | ||
Valuation Technique | Market Comparable Properties | ||
Fair Value Inputs, Comparability Adjustments | [1] | 15.00% | |
Fair Value Inputs, Comparability Adjustments, Weighted Average | 12.50% | 11.00% | |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 6,247 | $ 9,122 | |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,133 | $ 2,511 | |
Minimum [Member] | Collateralized debt obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 4.50% | 5.00% | |
Minimum [Member] | Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Comparability Adjustments | [1] | 3.00% | |
Minimum [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Comparability Adjustments | [1] | 10.00% | 10.00% |
Maximum [Member] | Collateralized debt obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 5.50% | 12.00% | |
Maximum [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Comparability Adjustments | [1] | 15.00% | |
Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Comparability Adjustments | 15.00% | ||
[1] | Range would include discounts taken since appraisal and estimated values |
Fair Value of Financial Inst120
Fair Value of Financial Instruments - (As Restated) (Assets And Liabilities Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 170,232 | $ 221,117 |
Financial Derivative | (66) | (199) |
Cash Flow Hedge [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | (66) | (199) |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 148,021 | 195,778 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 22,211 | 25,339 |
Financial Derivative | (66) | (199) |
Fair Value, Inputs, Level 3 [Member] | Cash Flow Hedge [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | (66) | (199) |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,596 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,596 | |
US government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 33,964 | 38,941 |
US government agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 33,964 | 38,941 |
Residential mortgage-backed agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 14,170 | 45,273 |
Residential mortgage-backed agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 14,170 | 45,273 |
Commercial mortgage-backed agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43,636 | 25,957 |
Commercial mortgage-backed agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43,636 | 25,957 |
Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,610 | 8,707 |
Collateralized mortgage obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,610 | 8,707 |
Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 46,641 | 47,304 |
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 46,641 | 47,304 |
Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 22,211 | 25,339 |
Collateralized debt obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 22,211 | 25,339 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,247 | 9,122 |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,247 | 9,122 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,133 | 2,511 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,133 | $ 2,511 |
Fair Value of Financial Inst121
Fair Value of Financial Instruments - (As Restated) (Reconciliation Of Fair Valued Assets Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Collateralized debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Asset beginning balance | $ 25,339 | $ 17,538 |
Included in earnings | 818 | 0 |
Included in other comprehensive income | (3,946) | 7,801 |
Asset ending balance | 22,211 | 25,339 |
The amount of total gains or losses for the period included in earnings attributable to the change in realized/unrealized gains or losses related to assets still held at the reporting date | 0 | 0 |
Cash Flow Hedge [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liability Beginning balance | (199) | (457) |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 133 | 258 |
Liability ending balance | (66) | (199) |
The amount of total gains or losses for the period included in earnings attributable to the change in realized/unrealized gains or losses related to assets still held at the reporting date | $ 0 | $ 0 |
Fair Value of Financial Inst122
Fair Value of Financial Instruments - (As Restated) (Fair Value By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | $ 50,188 | $ 27,554 |
Interest bearing deposits | 1,953 | 7,897 |
Investment securities - AFS, Carrying Amount | 170,232 | 221,117 |
Investment securities - AFS, Fair Value | 170,232 | 221,117 |
Investment securities - HTM | 106,742 | 110,771 |
Investment securities - HTM, carrying amount | 105,560 | 109,449 |
Restricted Bank Stock | 5,904 | 7,524 |
Loans, net | 872,991 | 830,904 |
Accrued interest receivable | 4,218 | 4,152 |
Deposits - non-maturity | 744,219 | 689,581 |
Deposits - time deposits | 258,267 | 296,713 |
Short-term borrowed funds | 35,828 | 39,801 |
Long-term borrowed funds | 151,562 | 187,143 |
Accrued interest payable | 478 | 882 |
Financial Derivative | 66 | 199 |
Off balance sheet financial instruments | 0 | 0 |
Cash and due from banks, Carrying Amount | 50,188 | 27,554 |
Interest bearing deposits in banks, Carrying Amount | 1,953 | 7,897 |
Restricted Bank stock, Carrying Amount | 5,904 | 7,524 |
Loans, net, Carrying Amount | 867,101 | 827,926 |
Accrued interest receivable, Carrying Amount | 4,218 | 4,152 |
Deposits - non-maturity, Carrying Amount | 744,219 | 689,581 |
Deposits - time deposits, Carrying Amount | 254,575 | 291,742 |
Short-term borrowed funds, carrying amount | 35,828 | 39,801 |
Long-term borrowed funds, carrying amount | 147,537 | 182,606 |
Accrued interest payable, Carrying Amount | 478 | 882 |
Financial derivative, Carrying Amount | 66 | 199 |
Off balance sheet financial instruments, carrying amount | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 50,188 | 27,554 |
Interest bearing deposits | 1,953 | 7,897 |
Off balance sheet financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - AFS, Carrying Amount | 148,021 | 195,778 |
Investment securities - HTM | 103,779 | 108,163 |
Restricted Bank Stock | 5,904 | 7,524 |
Accrued interest receivable | 4,218 | 4,152 |
Deposits - non-maturity | 744,219 | 689,581 |
Deposits - time deposits | 258,267 | 296,713 |
Short-term borrowed funds | 35,828 | 39,801 |
Long-term borrowed funds | 151,562 | 187,143 |
Accrued interest payable | 478 | 882 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - AFS, Carrying Amount | 22,211 | 25,339 |
Investment securities - HTM | 2,963 | 2,608 |
Loans, net | 872,991 | 830,904 |
Financial Derivative | $ 66 | $ 199 |
Derivative Financial Instrum123
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($) | Jun. 17, 2014USD ($) | Jun. 15, 2012USD ($) | |
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 5,000 | |||
Interest rate swap fair value | (66) | $ (199) | ||
Cash collateral | 200 | |||
Gain on derivative | 133 | |||
Deferred tax asset on gain on derivative | $ 53 | |||
Cash flow hedge ineffectiveness | Interest rate swap agreements are entered into with counterparties that meet established credit standards and we believe that the credit risk inherent in these contracts is not significant as of December 31, 2015. | |||
Cash Flow Hedge [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 20,000 | |||
Number of interest rate swap contracts | contract | 3 | |||
Derivative Matured [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 10,000 | $ 5,000 | ||
Swap Contract- 7 year $5 Million [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 5,000 | |||
Derivative, maturity date | Jun. 17, 2016 |
Derivative Financial Instrum124
Derivative Financial Instruments (Impact Of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Financial Instruments [Abstract] | |||
Amount of gain or (loss) recognized in OCI on derivative (effective portion) | $ 80 | $ 155 | |
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | [1] | 0 | 0 |
Amount of gain or (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | [2] | $ 0 | $ 0 |
[1] | Reported as interest expense | ||
[2] | Reported as other income |
Assets and Liabilities Subje125
Assets and Liabilities Subject to Enforceable Master Netting Agreements (Schedule of Liabilities Subject to an enforceable Master Netting Arrangement or Repurchase Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash Flow Hedge [Member] | ||
Gross Amounts of Recognized Liabilities | $ 66 | $ 199 |
Gross Amounts Offset in the Statement of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Condition | 66 | 199 |
Gross Amounts Not Offset in the Statment of Condition: Financial Instruments | (66) | (199) |
Gross Amounts Not Offset in the Statment of Condition: Cash Collateral Pledged | 0 | 0 |
Net amount | 0 | 0 |
Repurchase Agreements [Member] | ||
Gross Amounts of Recognized Liabilities | 35,828 | 39,801 |
Gross Amounts Offset in the Statement of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Condition | 35,828 | 39,801 |
Gross Amounts Not Offset in the Statment of Condition: Financial Instruments | (35,828) | (39,801) |
Gross Amounts Not Offset in the Statment of Condition: Cash Collateral Pledged | 0 | 0 |
Net amount | $ 0 | $ 0 |
Parent Company Only Financia126
Parent Company Only Financial Information - (As Restated) (Condensed Statement of Financial Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash | $ 52,141 | $ 35,451 | $ 43,063 |
Investment in bank subsidiary | 1,300 | ||
Other Assets | 19,495 | 21,853 | |
Assets | 1,323,458 | 1,332,296 | |
Shareholders' equity | 120,771 | 108,999 | 101,883 |
Liabilities and Stockholders' Equity | 1,323,458 | 1,332,296 | |
Parent Company [Member] | |||
Cash | 11,102 | 1,036 | $ 3,025 |
Investment securities | 14,522 | 0 | |
Investment in bank subsidiary | 132,809 | 150,209 | |
Investment in non-bank subsidiaries | 1,255 | 1,255 | |
Other Assets | 5,403 | 5,872 | |
Assets | 165,091 | 158,372 | |
Accrued Liabilities and Other Liabilities | 2,590 | 2,643 | |
Dividends Payable | 0 | 0 | |
Junior Subordinated Notes | 41,730 | 46,730 | |
Shareholders' equity | 120,771 | 108,999 | |
Liabilities and Stockholders' Equity | $ 165,091 | $ 158,372 |
Parent Company Only Financia127
Parent Company Only Financial Information - (As Restated) (Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net loss/gain on investments - available for sale | $ 962 | $ (41) |
Total other income | 24,992 | 12,907 |
Interest Expense | 9,407 | 10,870 |
Other Noninterest Expense | 5,068 | 5,631 |
Income before income taxes and equity in undistributed net loss of subsidiaries | 19,464 | 6,868 |
Income Tax Expense (Benefit) | 6,473 | 1,271 |
Net income | 12,991 | 5,597 |
Parent Company [Member] | ||
Investment Income, Dividend | 33,658 | 10,972 |
Net loss/gain on investments - available for sale | 3,521 | 0 |
Interest and Other Income | 69 | 240 |
Total other income | 3,590 | 240 |
Total Income | 37,248 | 11,212 |
Interest Expense | 2,192 | 2,492 |
Other Noninterest Expense | 365 | 354 |
Operating Costs and Expenses | 2,557 | 2,846 |
Income before income taxes and equity in undistributed net loss of subsidiaries | 34,691 | 8,366 |
Income Tax Expense (Benefit) | (975) | 3,120 |
Net loss before equity in undistributed net loss of subsidiaries | 33,716 | 11,486 |
Income (Loss) from Equity Method Investments | (6,203) | (5,889) |
Net income | 12,991 | 5,597 |
Parent Company [Member] | First United Bank & Trust [Member] | ||
Income (Loss) from Equity Method Investments | (20,725) | (5,870) |
Parent Company [Member] | Other Non-Bank Equity Method Investments [Member] | ||
Income (Loss) from Equity Method Investments | $ 0 | $ (19) |
Parent Company Only Financia128
Parent Company Only Financial Information - (As Restated) (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 12,991 | $ 5,597 | |
Unrealized losses on AFS Securities, net of tax | 531 | 8,737 | |
Other Comprehensive Income (Loss), Net of Tax | 1,289 | 3,980 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 14,280 | 9,577 | |
Parent Company [Member] | |||
Net income | 12,991 | 5,597 | |
Unrealized losses on AFS Securities, net of tax | (2,115) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 80 | 155 | |
Other Comprehensive Income (Loss), Net of Tax | (2,035) | 155 | $ 155 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 10,956 | $ 5,752 |
Parent Company Only Financia129
Parent Company Only Financial Information - (As Restated) (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 12,991 | $ 5,597 |
Decrease (increase) in accrued interest receivable and other assets | 4,223 | 6,993 |
Equity in undistributed net income of subsidiaries | (1,143) | (13,066) |
Share-based compensation | 191 | 134 |
Net Cash Provided by (Used in) Operating Activities | 22,199 | 3,887 |
Net Cash Provided by (Used in) Investing Activities | 18,761 | (2,382) |
Repayments of Long-term Debt | 35,069 | 66 |
Payments on long-term borrowings | (35,069) | (66) |
Proceeds from common stock | 1 | 0 |
Net Cash Provided by (Used in) Financing Activities | (24,270) | (9,117) |
Cash and Cash Equivalents, Period Increase (Decrease) | 16,690 | (7,612) |
Cash and cash equivalents at beginning of the year | 35,451 | 43,063 |
Cash and cash equivalents at end of period | 52,141 | 35,451 |
Parent Company [Member] | ||
Net income | 12,991 | 5,597 |
Income (Loss) from Equity Method Investments | 6,203 | 5,889 |
Decrease (increase) in accrued interest receivable and other assets | 470 | (1,686) |
Equity in undistributed net income of subsidiaries | (2,089) | (12,089) |
Share-based compensation | 191 | 134 |
Net Cash Provided by (Used in) Operating Activities | 17,766 | (2,155) |
Net investment in subsidiaries | 0 | 2,761 |
Net Cash Provided by (Used in) Investing Activities | 0 | 2,761 |
Dividends - common stock | 0 | 0 |
Repayments of Long-term Debt | 5,000 | 0 |
Payments on long-term borrowings | (5,000) | 0 |
Dividends - preferred stock paid | (2,700) | (2,595) |
Net Cash Provided by (Used in) Financing Activities | (7,700) | (2,595) |
Cash and Cash Equivalents, Period Increase (Decrease) | 10,066 | (1,989) |
Cash and cash equivalents at beginning of the year | 1,036 | 3,025 |
Cash and cash equivalents at end of period | $ 11,102 | $ 1,036 |
Parent Company Only Financia130
Parent Company Only Financial Information - (As Restated) (Condensed Statement of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrealized losses on AFS Securities, net of tax | $ 531 | $ 8,737 | |
Other Comprehensive Income (Loss), Net of Tax | 1,289 | 3,980 | |
Parent Company [Member] | |||
Available for Sale Securities, unrealized holding losses, before tax | (3,521) | ||
Available for Sale Securities, Unrealized holding losses, tax effect | 1,406 | ||
Unrealized losses on AFS Securities, net of tax | (2,115) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 133 | 258 | |
Taxes | (53) | (103) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 80 | 155 | |
Other Comprehensive Income (Loss), before Tax | (3,388) | $ 258 | |
Other Comprehensive Income (Loss), Tax | 1,353 | (103) | |
Other Comprehensive Income (Loss), Net of Tax | $ (2,035) | $ 155 | $ 155 |