Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CORTLAND BANCORP INC | ||
Entity Central Index Key | 774,569 | ||
Document Type | 10-K | ||
Trading Symbol | CLDB | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 95,540,332 | ||
Entity Common Stock, Shares Outstanding | 4,349,624 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 11,333 | $ 9,741 |
Interest-earning deposits | 8,359 | 9,384 |
Total cash and cash equivalents | 19,692 | 19,125 |
Investment securities available-for-sale (Note 2) | 136,923 | 159,841 |
Regulatory stock (Note 2) | 2,581 | 2,581 |
Loans held for sale | 1,040 | 2,780 |
Total loans (Note 3) | 514,392 | 487,490 |
Less allowance for loan losses (Note 3) | (4,198) | (4,578) |
Net loans | 510,194 | 482,912 |
Premises and equipment (Note 4) | 10,202 | 9,038 |
Bank-owned life insurance | 15,711 | 17,650 |
Other assets | 18,323 | 17,174 |
Total assets | 714,666 | 711,101 |
LIABILITIES | ||
Noninterest-bearing deposits | 136,886 | 123,291 |
Interest-bearing deposits (Note 5) | 467,533 | 462,560 |
Total deposits | 604,419 | 585,851 |
Securities sold under agreements to repurchase (Note 6) | 2,206 | 2,678 |
Federal Home Loan Bank advances - short-term (Note 6) | 12,000 | 32,000 |
Federal Home Loan Bank advances - long term (Note 6) | 16,000 | 14,000 |
Subordinated debt (Note 7) | 5,155 | 5,155 |
Other liabilities | 9,968 | 9,787 |
Total liabilities | 649,748 | 649,471 |
SHAREHOLDERS’ EQUITY | ||
Common stock - $5.00 stated value - authorized 20,000,000 shares; issued 4,728,267 shares in 2018 and 2017; outstanding shares, 4,349,624 in 2018 and 4,420,136 in 2017 | 23,641 | 23,641 |
Additional paid-in capital | 20,984 | 20,928 |
Retained earnings | 31,089 | 24,403 |
Accumulated other comprehensive loss | (3,656) | (1,825) |
Treasury stock, at cost, 378,643 shares in 2018 and 308,131 shares in 2017 | (7,140) | (5,517) |
Total shareholders’ equity | 64,918 | 61,630 |
Total liabilities and shareholders’ equity | $ 714,666 | $ 711,101 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, stated value | $ 5 | $ 5 |
Common stock, shares issued | 4,728,267 | 4,728,267 |
Common stock, shares outstanding | 4,349,624 | 4,420,136 |
Treasury stock, shares | 378,643 | 308,131 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 23,823 | $ 19,243 | $ 18,554 |
Interest and dividends on investment securities: | |||
Taxable interest | 2,118 | 2,098 | 2,026 |
Nontaxable interest | 1,494 | 1,922 | 1,814 |
Dividends | 152 | 131 | 117 |
Other interest income | 162 | 98 | 44 |
Total interest and dividend income | 27,749 | 23,492 | 22,555 |
INTEREST EXPENSE | |||
Deposits | 3,527 | 2,571 | 2,093 |
Short-term borrowings | 6 | 7 | 7 |
Federal Home Loan Bank advances - short term | 374 | 175 | 73 |
Federal Home Loan Bank advances - long term | 287 | 299 | 633 |
Subordinated debt | 189 | 138 | 112 |
Total interest expense | 4,383 | 3,190 | 2,918 |
Net interest income | 23,366 | 20,302 | 19,637 |
PROVISION FOR LOAN LOSSES (Note 3) | 725 | 100 | 50 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 22,641 | 20,202 | 19,587 |
NON-INTEREST INCOME | |||
Fees for customer services | 2,273 | 2,241 | 2,103 |
Investment securities available-for-sale (losses) gains, net (Note 2) | (21) | 7 | 466 |
Trading security losses, net (Note 2) | (47) | ||
Mortgage banking gains, net | 974 | 1,074 | 1,248 |
Earnings on bank-owned life insurance | 1,869 | 1,203 | 328 |
Wealth management | 39 | 35 | 95 |
Other real estate gains | 170 | 13 | |
Other non-interest income | 558 | 436 | 391 |
Total non-interest income | 5,692 | 5,166 | 4,597 |
NON-INTEREST EXPENSES | |||
Salaries and employee benefits | 10,260 | 10,631 | 10,169 |
Occupancy and equipment | 2,232 | 2,331 | 2,151 |
State and local taxes | 493 | 463 | 455 |
FDIC insurance | 176 | 199 | 251 |
Professional fees | 879 | 786 | 882 |
Advertising and marketing | 322 | 478 | 527 |
Net losses from the extinguishment of debt | 242 | ||
Data processing fees | 250 | 251 | 250 |
Other operating expenses | 3,471 | 3,462 | 3,259 |
Total non-interest expenses | 18,083 | 18,601 | 18,186 |
INCOME BEFORE FEDERAL INCOME TAX EXPENSE | 10,250 | 6,767 | 5,998 |
Federal income tax expense (Note 10) | 1,415 | 2,417 | 1,127 |
NET INCOME | $ 8,835 | $ 4,350 | $ 4,871 |
EARNINGS PER SHARE BASIC AND DILUTED (Note 1) | $ 2.03 | $ 0.99 | $ 1.11 |
CASH DIVIDENDS DECLARED PER SHARE | $ 0.49 | $ 0.39 | $ 0.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 8,835 | $ 4,350 | $ 4,871 |
Securities available for sale: | |||
Unrealized holding (losses) gains on available-for-sale securities | (2,426) | 2,153 | (3,719) |
Tax effect | 510 | (733) | 1,265 |
Reclassification adjustment for net losses (gains) realized in net income | 21 | (7) | (466) |
Tax effect | (4) | 3 | 158 |
Total securities available-for-sale | (1,899) | 1,416 | (2,762) |
Change in post-retirement obligations | 68 | 14 | 39 |
Total other comprehensive (loss) income | (1,831) | 1,430 | (2,723) |
Total comprehensive income | $ 7,004 | $ 5,780 | $ 2,148 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Beginning balance at Dec. 31, 2015 | $ 56,684 | $ 23,641 | $ 20,833 | $ 17,851 | $ (238) | $ (5,403) |
Net income | 4,871 | 4,871 | ||||
Other comprehensive income (loss) | (2,723) | (2,723) | ||||
Cash dividend declared | (1,237) | (1,237) | ||||
Equity compensation | 75 | 45 | 30 | |||
Ending balance at Dec. 31, 2016 | 57,670 | 23,641 | 20,878 | 21,485 | (2,961) | (5,373) |
Net income | 4,350 | 4,350 | ||||
Other comprehensive income (loss) | 1,430 | 1,430 | ||||
Reclassification of certain income tax effects from accumulated other comprehensive income | 294 | (294) | ||||
Cash dividend declared | (1,726) | (1,726) | ||||
Treasury shares purchased | (247) | (247) | ||||
Equity compensation | 153 | 50 | 103 | |||
Ending balance at Dec. 31, 2017 | 61,630 | 23,641 | 20,928 | 24,403 | (1,825) | (5,517) |
Net income | 8,835 | 8,835 | ||||
Other comprehensive income (loss) | (1,831) | (1,831) | ||||
Cash dividend declared | (2,149) | (2,149) | ||||
Treasury shares purchased | (1,781) | (1,781) | ||||
Equity compensation | 214 | 56 | 158 | |||
Ending balance at Dec. 31, 2018 | $ 64,918 | $ 23,641 | $ 20,984 | $ 31,089 | $ (3,656) | $ (7,140) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Consolidated Statements Of Changes In Shareholders Equity Parenthetical Unaudited [Abstract] | |||
Cash dividend declared per share | $ 0.49 | $ 0.39 | $ 0.28 |
Treasury shares purchased shares | 82,637 | 13,463 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net cash flow from operating activities | |||
Net income | $ 8,835 | $ 4,350 | $ 4,871 |
Adjustments to reconcile net income to net cash flow from operating activities: | |||
Depreciation, amortization and accretion | 2,315 | 2,735 | 2,770 |
Provision for loan losses | 725 | 100 | 50 |
Investment securities available-for-sale losses (gains), net | 21 | (7) | (466) |
Originations of mortgage banking loans held for sale | (45,813) | (51,730) | (61,003) |
Proceeds from the sale of mortgage banking loans | 48,527 | 54,578 | 61,730 |
Mortgage banking gains, net | (974) | (1,074) | (1,248) |
Decrease in trading account | 8,134 | ||
Earnings on bank-owned life insurance | (1,869) | (1,203) | (328) |
Other real estate gains | (170) | (13) | |
Changes in: | |||
Interest receivable | (62) | (152) | (401) |
Interest payable | 46 | 37 | 33 |
Deferred taxes | 1,008 | 1,218 | (129) |
Equity compensation | 214 | 143 | 75 |
Federal income tax receivable | (625) | (243) | 281 |
Other assets and liabilities | 786 | 551 | (254) |
Net cash flow from operating activities | 13,134 | 9,133 | 14,102 |
Cash deficit from investing activities | |||
Purchases of available-for-sale securities | (14,643) | (44,962) | (103,032) |
Proceeds from sale of available-for-sale securities | 21,418 | 44,801 | 50,862 |
Proceeds from call, maturity and principal payments on available-for-sale securities | 12,173 | 17,255 | 21,203 |
Net increase in loans made to customers | (28,007) | (68,592) | (25,937) |
Proceeds from sale of other real estate | 650 | 121 | |
Proceeds from bank-owned life insurance | 3,808 | 1,829 | 280 |
Purchases of bank-owned life insurance | (900) | ||
Contributions to partnership funds | (1,547) | (4,152) | (857) |
Purchases of premises and equipment | (1,935) | (802) | (799) |
Net cash deficit from investing activities | (8,733) | (54,873) | (58,159) |
Cash flow from financing activities | |||
Net increase in deposit accounts | 18,568 | 46,001 | 43,446 |
Net change in short-term borrowings | (472) | (24) | 203 |
Net change in Federal Home Loan Bank advances - short term | (20,000) | 9,000 | 6,000 |
Proceeds from Federal Home Loan Bank advances - long term | 8,000 | 12,000 | 2,000 |
Repayments of Federal Home Loan Bank advances - long term | (6,000) | (15,500) | (9,500) |
Dividends paid | (2,149) | (1,726) | (1,237) |
Treasury shares purchased | (1,781) | (237) | |
Net cash (deficit) flow from financing activities | (3,834) | 49,514 | 40,912 |
Net change in cash and cash equivalents | 567 | 3,774 | (3,145) |
Cash and cash equivalents | |||
Beginning of period | 19,125 | 15,351 | 18,496 |
End of period | 19,692 | 19,125 | 15,351 |
Cash paid during the period for: | |||
Income taxes | 600 | 1,050 | 625 |
Interest | $ 4,339 | 3,153 | 2,885 |
Transfer of loans to other real estate owned | $ 480 | $ 47 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The accounting and financial reporting policies of Cortland Bancorp (the Company), and its bank subsidiary, The Cortland Savings and Banking Company (the Bank), reflect banking industry practices and conform to U.S. generally accepted accounting principles. A summary of the significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements is set forth below. Principles of Consolidation Industry Segment Information Use of Estimates Cash Flow Investment Securities Available-for-sale securities are carried at fair value with unrealized gains and losses recorded as a separate component of shareholders’ equity, net of tax. Realized gains or losses on dispositions are based on net proceeds and the adjusted carrying amount of securities sold, using the specific identification method. Interest income includes amortization of purchase premium or discount and is amortized on the level-yield method without anticipating payments, except for U.S. Government mortgage-backed and related securities where twelve months of historical prepayments are taken into consideration. The regulatory stock is carried at cost (its redeemable value) and the Company is required to hold such investments as a condition of membership in order to transact business with the Federal Home Loan Bank (FHLB) of Cincinnati and the Federal Reserve Bank (FRB). The stock is bought from and sold based upon its par value. The stock cannot be traded or sold in any market and as such is classified as restricted stock, carried at cost (its redeemable value) and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB and FRB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB and FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB and FRB and (d) the liquidity position of the FHLB and FRB. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2018. Other-than-Temporary Investment Security Impairment Loans Loans Held for Sale Allowance for Loan Losses (ALLL) and Allowance for Losses on Lending Related Commitments Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Accordingly, the allowance is maintained by management at a level considered adequate to cover possible losses that are currently anticipated. Estimates of credit losses should reflect consideration of all significant factors that affect collectability of the portfolio. While historical loss experience provides a reasonable starting point, historical losses, or even recent trends in losses are not, by themselves, a sufficient basis to determine the appropriate level for the ALLL. Management will also consider any factors that are likely to cause estimated credit losses associated with the Bank’s current portfolio to differ from historical loss experience. Factors include, but are not limited to, changes in lending policies and procedures, including underwriting standards and collection, charge-offs, and recovery practices; changes in economic trends; changes in the nature and volume of the portfolio; changes in the experience and ability of lending management and the depth of staff; changes in the trend, volume and severity of past-due and classified loans, and trends in the volume of non-accrual loans; the existence and effect of any concentrations of credit and changes in the level of such concentrations; levels and trends in classification; declining trends in performance; structure and lack of performance measures and migration between risk classifications. Key risk factors and assumptions are updated to reflect actual experience and changing circumstances. While management may periodically allocate portions of the ALLL for specific problem loans, the entire ALLL is available for any charge-offs that occur. Certain collateral dependent loans are evaluated individually for impairment, based on management’s best estimate of discounted cash repayments and the anticipated proceeds from liquidating collateral. The actual timing and amount of repayments and the ultimate realizable value of the collateral may differ from management’s estimates. The expected loss for certain other commercial credits utilizes internal risk ratings. These loss estimates are sensitive to changes in the customer’s risk profile, the realizable value of collateral, other risk factors and the related loss experience of other credits of similar risk. Consumer credits generally employ statistical loss factors, adjusted for other risk indicators, applied to pools of similar loans stratified by asset type. These loss estimates are sensitive to changes in delinquency status and shifts in the aggregate risk profile. The Company maintains an allowance for losses on unfunded commercial lending commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for loan losses. This allowance is reported as a liability on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these losses is recorded as a component of other operating expense. Loan Charge-off Policies Troubled Debt Restructurings (TDR) Premises and Equipment Other Real Estate Cash Surrender Value of Life Insurance Endorsement Split-Dollar Life Insurance Arrangement Derivative Instruments Advertising and Marketing Income Taxes Other Comprehensive (Loss) Income Per Share Amounts Transfers of Financial Assets Years ended December 31, 2018 2017 2016 Net income (amounts in thousands) $ 8,835 $ 4,350 $ 4,871 Weighted average common shares outstanding 4,357,760 4,407,254 4,406,005 Net effect of dilutive common share equivalents 6,474 4,220 1,264 Adjusted average shares outstanding - dilutive $ 4,364,234 $ 4,411,474 $ 4,407,269 Basic earnings per share $ 2.03 $ 0.99 $ 1.11 Dilutive earnings per share $ 2.03 $ 0.99 $ 1.11 Off-Balance Sheet Financial Instruments are funded. Revenue Recognition Revenue from Contracts with Customers – Topic 606 Management determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, gains on the sale of loans, earnings on bank owned life insurance, wealth management and other non-interest income are not within the scope of ASC 606. As a result, no changes were made during the period related to these sources of revenue. The main types of non-interest income within the scope of the standard are as follows: Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if the account balance falls below predetermined levels defined as compensating balances. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include non-sufficient fund fees, overdraft fees, continuous overdraft fees and other fees such as stop payment fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, namely at the completion of the requested service/transaction. Fees, exchange, and other service charges- This is primarily comprised of debit card income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions, in addition to account management fees. Other service charges include cashier’s checks, check charges and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer is reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows. (Amounts in thousands) Year Ended December 31, 2018 Revenue stream Service charges on deposit accounts: Overdraft fees $ 1,084 Service charges 408 Other fees 16 Fees, exchange, and other service charges 765 Non-interest income (in-scope of Topic 606) 2,273 Non-interest income (out-of-scope of Topic 606) 3,419 Total non-interest income $ 5,692 Reclassifications Authoritative Accounting Guidance In January 2016, the FASB issued ASU (Accounting Standard Update) Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The Company’s adoption of this standard during the reporting period had no effect on the Consolidated Financial Statements. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 9 to the financial statements. The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the December 31, 2018 disclosure. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) This Update is not expected to have a significant impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act) In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) ASU 2018-10, Codification Improvements to Topic 842, Leases In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements Leases Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In October 2018, the FASB issued ASU 2018-16 , Derivatives and Hedging (Topic 815) this Update Update 2017-12 this Update Update 2017-12 Update 2017-12 Update 2017-12 this Update Update 2017-12 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 2 - INVESTMENT SECURITIES The following is a summary of investment securities available-for-sale and regulatory stock: (Amounts in thousands) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 9,242 $ 11 $ 251 $ 9,002 Obligations of states and political subdivisions 53,187 26 1,555 51,658 U.S. Government-sponsored mortgage-backed securities 59,070 — 2,483 56,587 U.S. Government-sponsored collateralized mortgage obligations 12,112 41 177 11,976 U.S. Government-guaranteed small business administration pools 7,978 — 278 7,700 Total investment securities available-for-sale $ 141,589 $ 78 $ 4,744 $ 136,923 Federal Home Loan Bank (FHLB) stock $ 2,355 $ — $ — $ 2,355 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,581 $ — $ — $ 2,581 (Amounts in thousands) December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 3,344 $ 1 $ 140 $ 3,205 Obligations of states and political subdivisions 71,700 740 324 72,116 U.S. Government-sponsored mortgage-backed securities 69,066 6 1,404 67,668 U.S. Government-sponsored collateralized mortgage obligations 6,463 — 161 6,302 U.S. Government-guaranteed small business administration pools 9,911 — 256 9,655 Trust preferred securities 1,618 — 723 895 Total investment securities available-for-sale $ 162,102 $ 747 $ 3,008 $ 159,841 Federal Home Loan Bank (FHLB) stock $ 2,355 $ — $ — $ 2,355 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,581 $ — $ — $ 2,581 Trading securities historically had been an investment in obligations of states and political subdivisions, government and agency bonds, short-term government bonds and included cash equivalent investments for trading liquidity. In the second quarter of 2016, management decided to cease its trading activities and liquidated the investments that were in the trading account. The current interest rate and economic environment mitigated the opportunities to generate revenues with a trading strategy. Both realized and unrealized gains and losses for the year ended December 31, 2016 are included in the Consolidated Statements of Income. (Amounts in thousands) 2016 Unrealized gains $ — Unrealized losses — Net unrealized gains — Net realized losses (47 ) Trading securities losses, net $ (47 ) The amortized cost and fair value of debt securities at December 31, 2018, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 481 486 Due after five years through ten years 11,894 11,563 Due after ten years 58,032 56,311 Total 70,407 68,360 U.S. Government-sponsored mortgage-backed and related securities 71,182 68,563 Total investment securities available for sale $ 141,589 $ 136,923 The following table sets forth the proceeds, gains and losses realized on securities sold or called for each of the years ended December 31: (Amounts in thousands) 2018 2017 2016 Proceeds on securities sold $ 21,418 $ 44,801 $ 50,862 Gross realized gains 123 524 725 Gross realized losses 144 517 259 Investment securities with a carrying value of approximately $55.1 million at December 31, 2018 and $105.0 million at December 31, 2017 were pledged to secure deposits and for other purposes. The remaining securities provide an adequate level of liquidity. The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2018: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ 3,280 $ 6 $ 2,755 $ 245 $ 6,035 $ 251 Obligations of states and political subdivisions 23,616 567 24,607 988 48,223 1,555 U.S. Government-sponsored mortgage-backed securities 1,598 18 54,989 2,465 56,587 2,483 U.S. Government-sponsored collateralized mortgage obligations — — 5,350 177 5,350 177 U.S. Government-guaranteed small business administration pools — — 7,700 278 7,700 278 Total $ 28,494 $ 591 $ 95,401 $ 4,153 $ 123,895 $ 4,744 The above table represents 121 investment securities where the fair value is less than the related amortized cost. The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2017: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ — $ — $ 2,860 $ 140 $ 2,860 $ 140 Obligations of states and political subdivisions 7,430 24 18,066 300 25,496 324 U.S. Government-sponsored mortgage-backed securities 24,888 241 40,968 1,163 65,856 1,404 U.S. Government-sponsored collateralized mortgage obligations — — 6,302 161 6,302 161 U.S. Government-guaranteed small business administration pools 2,532 38 7,123 218 9,655 256 Trust preferred securities — — 895 723 895 723 Total $ 34,850 $ 303 $ 76,214 $ 2,705 $ 111,064 $ 3,008 The above table represents 83 investment securities where the current value is less than the related amortized cost. The unrealized losses at December 31, 2018 on the Company’s investments were caused by changes in market rates and related spreads. The significant increase in unrealized losses began in early 2018 as a direct result of the spike in interest rates immediately following the passage of the Tax Act. It is expected that the securities would not be settled at less than the amortized cost of the Company’s investment because the decline in fair value is attributable to changes in interest rates and relative spreads and not credit quality. Also, the Company does not intend to sell those investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of its amortized cost basis less any current period credit loss. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2018. Securities Deemed to be Other-Than-Temporarily Impaired The Company reviews investment debt securities on an ongoing basis for the presence of other-than-temporary impairment (OTTI) with formal reviews performed quarterly. For debt securities in an unrealized loss position, management assesses whether (a) it has the intent to sell the debt security or (b) it is more-likely-than-not that it will be required to sell the debt security before its anticipated recovery. If either of these conditions is met, an OTTI on the security must be recognized. In instances in which a determination is made that a credit loss (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis) exists but the entity does not intend to sell the debt security and it is not more-likely-than-not that the entity will be required to sell the debt security before the anticipated recovery of its remaining amortized cost basis (i.e., the amortized cost basis less any current-period credit loss), the Company presents the amount of the OTTI recognized in the Consolidated Statements of Income. In these instances, the impairment is separated into (a) the amount of the total impairment related to the credit loss, and (b) the amount of the total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in other comprehensive income. The total other-than-temporary impairment is presented in the Consolidated Statements of Income with an offset for the amount of the total other-than-temporary impairment that is recognized in other comprehensive income. The following provides a cumulative rollforward of credit losses recognized in earnings for trust preferred securities held. (Amounts in thousands) December 31, 2018 2017 2016 Beginning balance $ 140 $ 140 $ 140 Reduction for debt securities for which other-than-temporary impairment has been previously recognized and there is no related other comprehensive income — — — Credit losses on debt securities for which other-than-temporary impairment has not been previously recognized — — — Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized — — — Sale of debt securities (140 ) — — Ending balance $ — $ 140 $ 140 At December 31, 2017, there was $895,000 of investment securities considered to be in non-accrual status due to the delay in the collection of interest payments. This balance was comprised of two trust preferred securities which were disposed of in the second quarter of the current calendar year. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES The Company, through the Bank, grants residential, consumer and commercial loans to customers located primarily in Northeastern Ohio and Western Pennsylvania. The following represents the composition of the loan portfolio for the period ending: (Amounts in thousands) December 31, 2018 2017 Balance % Balance % Commercial $ 112,440 21.9 $ 113,341 23.3 Commercial real estate 303,804 59.0 283,135 58.1 Residential real estate 69,845 13.6 62,071 12.7 Consumer - home equity 25,076 4.9 26,018 5.3 Consumer - other 3,227 0.6 2,925 0.6 Total loans $ 514,392 $ 487,490 Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented loans in the portfolio by product type. Loans are segmented into the following pools: commercial loans, commercial real estate loans, residential real estate loans and consumer loans. The pools of commercial real estate loans and commercial loans are also broken down further by industry sectors when analyzing the related pools. Using the largest concentrations as the qualifier, these industry sectors include non-residential buildings; skilled nursing and nursing care; residential real estate lessors, agents and managers; hotel and motels, and trucking. The Company also sub-segments the consumer loan portfolio into the following two classes: home equity loans and other consumer loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over multiple periods for all portfolio segments. Management evaluates these results and utilizes the most reflective period in the calculation. Certain qualitative factors are then added to the historical allocation percentage to get the adjusted factor. These factors include, but are not limited to, the following: Factor Considered: Risk Trend: Levels of and trends in charge-offs, classifications and non-accruals Stable Trends in volume and terms Stable Changes in lending policies and procedures Stable Experience, depth and ability of management, including loan review function Stable Economic trends, including valuation of underlying collateral Increasing Concentrations of credit Decreasing The following factors are analyzed and applied to loans internally graded with higher risk credit in addition to the above factors for non-classified loans: Factor Considered: Risk Trend: Levels and trends in classification Stable Declining trends in financial performance Stable Structure and lack of performance measures Stable Migration between risk categories Stable The provision charged to operations can be allocated to a loan classification either as a positive or negative value as a result of any material changes to: net charge-offs or recoveries which influence the historical allocation percentage, qualitative risk factors or loan balances. The following is an analysis of changes in the allowance for loan losses for the periods ended: (Amounts in thousands) December 31, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 Loan charge-offs (1,163 ) — — — (175 ) (1,338 ) Recoveries — 166 3 5 59 233 Net loan recoveries (charge-offs) (1,163 ) 166 3 5 (116 ) (1,105 ) Provision charged to operations 804 (454 ) 194 40 141 725 Balance at end of period $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 (Amounts in thousands) December 31, 2017 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,394 $ 3,072 $ 163 $ 150 $ 89 $ 4,868 Loan charge-offs — (654 ) (14 ) (26 ) (146 ) (840 ) Recoveries 388 — 5 10 47 450 Net loan recoveries (charge-offs) 388 (654 ) (9 ) (16 ) (99 ) (390 ) Provision charged to operations (191 ) 284 (37 ) (64 ) 108 100 Balance at end of period $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 (Amounts in thousands) December 31, 2016 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,977 $ 2,926 $ 153 $ 52 $ 86 $ 5,194 Loan charge-offs — (287 ) (35 ) (144 ) (148 ) (614 ) Recoveries 117 35 2 23 61 238 Net loan recoveries (charge-offs) 117 (252 ) (33 ) (121 ) (87 ) (376 ) Provision charged to operations (700 ) 398 43 219 90 50 Balance at end of period $ 1,394 $ 3,072 $ 163 $ 150 $ 89 $ 4,868 The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the Consolidated Balance Sheet date. The following tables present a full breakdown by portfolio classification, the changes in the allowance for loan losses and the recorded investment in loans for the periods ended December 31, 2018 and 2017: (Amounts in thousands) December 31, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,232 2,414 314 115 123 4,198 Total ending allowance balance $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 Loan Portfolio: Individually evaluated for impairment $ 5,364 $ 4,340 $ — $ — $ — $ 9,704 Collectively evaluated for impairment 107,076 299,464 69,845 25,076 3,227 504,688 Total ending loan balance $ 112,440 $ 303,804 $ 69,845 $ 25,076 $ 3,227 $ 514,392 (Amounts in thousands) December 31, 2017 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 625 $ — $ — $ — $ — $ 625 Collectively evaluated for impairment 966 2,702 117 70 98 3,953 Total ending allowance balance $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 Loan Portfolio: Individually evaluated for impairment $ 5,581 $ 4,664 $ — $ — $ — $ 10,245 Collectively evaluated for impairment 107,760 278,471 62,071 26,018 2,925 477,245 Total ending loan balance $ 113,341 $ 283,135 $ 62,071 $ 26,018 $ 2,925 $ 487,490 The commercial charge-off in 2018 related to loans that were restructured with no principal forgiveness with a new borrowing relationship, but with a substantial concession in interest rate. The below market rate triggered recognition of a charge-off equivalent to the difference in present value of loan payments discounted at the market rate of interest. The charged off amount of $1.1 million is recorded as a loan discount. As loan payments are made, interest will be recognized at the market rate versus the negotiated rate via the amortization of the discount over the various lives of the loans. There was $625,000 in specific reserve previously allocated to these loans at December 31, 2017. The decrease in the provision for commercial real estate loans in 2018 is due mainly to a decrease in the concentration of credit factor. The recent segmentation of the commercial real estate loan portfolio into its five largest concentrations has resulted in lower allocations to those segments. The consumer-home equity and other household provisions remained fairly constant. The residential real estate provision increased relative to local economic factors. The amount of net charge-offs also impacts the provision charged to operations for any category of loans. Charge-offs affect the historical rate applied to each category, and the amount needed to replenish the amount charged-off, which impacted home equity and consumer loans as well as commercial real estate loans. Along with the impact of classified loans, the amount of net charge-offs impacts the provision charged to operations for any category of loans. Charge-offs affect the historical rate applied to each category, and the amount needed to replenish the charge off to the allowance. The following tables represent credit exposures by internally assigned grades for years ended December 31, 2018 and 2017, respectively. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans. The Company’s internally assigned grades are as follows: • Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Within this category, there are grades of exceptional, quality, acceptable and pass monitor. • Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. • Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset but with the severity which makes collection in full highly questionable and improbable, based on existing circumstances. • Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. This rating does not mean that the assets have no recovery or salvage value but rather that the assets should be charged off now, even though partial or full recovery may be possible in the future. The following is a summary of credit quality indicators by internally assigned grade as of December 31, 2018 and 2017. (Amounts in thousands) Commercial Commercial real estate December 31, 2018 Pass $ 94,316 $ 271,370 Special Mention 6,914 25,199 Substandard 11,210 7,235 Doubtful — — Ending Balance $ 112,440 $ 303,804 (Amounts in thousands) Commercial Commercial real estate December 31, 2017 Pass $ 100,436 $ 252,960 Special Mention 4,836 24,307 Substandard 8,069 5,868 Doubtful — — Ending Balance $ 113,341 $ 283,135 The Company evaluates the classification of consumer, home equity and residential loans primarily on a pooled basis. If the Company becomes aware that adverse or distressed conditions exist that may affect a particular loan, the loan is downgraded following the above definitions of special mention and substandard. Nonaccrual loans in these categories are evaluated for charge off or charge down, and the remaining balance has the same allowance factor as pooled loans. The following is a summary of consumer credit exposure as of December 31, 2018 and 2017. (Amounts in thousands) Residential real estate Consumer - home equity Consumer- other December 31, 2018 Performing $ 69,535 $ 24,956 $ 3,227 Nonperforming 310 120 — Total $ 69,845 $ 25,076 $ 3,227 (Amounts in thousands) Residential real estate Consumer - home equity Consumer- other December 31, 2017 Performing $ 61,824 $ 25,889 $ 2,925 Nonperforming 247 129 — Total $ 62,071 $ 26,018 $ 2,925 Loans are considered to be nonperforming when they become 90 days past due or on nonaccrual status, though the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed in non-accrual status, previously accrued but unpaid interest is recorded against interest income. Loans in foreclosure are considered nonperforming. At December 31, 2018, there were $288,000 of loans in the process of foreclosure. The following is a summary of classes of loans on non-accrual status as of: (Amounts in thousands) December 31, 2018 2017 Commercial $ 1,291 $ — Commercial real estate 512 506 Residential real estate 310 247 Consumer: Consumer - home equity 120 129 Consumer - other — — Total $ 2,233 $ 882 Gross income that should have been recorded in income on nonaccrual loans was $191,000, $57,000 and $160,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Actual interest included in income on these nonaccrual loans amounts to $42,000, $16,000 and $41,000 in 2018, 2017 and 2016, respectively. Troubled Debt Restructuring Nonperforming loans also include certain loans that have been modified in troubled debt restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. There were no loans modified as TDRs during the years ended December 31, 2017 and 2016. The following presents, by class, information related to loans modified in a TDR during the period ended December 31, 2018. (Dollar amounts in thousands) December 31, 2018 Number of contracts Pre-modification recorded investment Post- modification recorded investment Increase in the allowance Commercial 7 $ 5,373 $ 4,210 $ — Total restructured loans 7 $ 5,373 $ 4,210 $ — Subsequently defaulted — $ — The seven commercial loans were all to one new borrowing relationship. The loans were restructured with no principal forgiveness, but with a substantial concession in interest rate. The below market rate triggered recognition of a charge-off equivalent to the difference in present value of loan payments discounted at the market rate of interest. The charged off amount of $1.1 million is recorded as loan discount. As loan payments are made, interest will be recognized at the market rate versus the negotiated rate via the amortization of the discount over the various lives of the loans. The following is an aging analysis of the recorded investment of past due loans as of the periods ended December 31, 2018 and 2017: (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing December 31, 2018 Commercial $ 14 $ — $ 1,291 $ 1,305 $ 111,135 $ 112,440 $ — Commercial real estate — — 167 167 303,637 303,804 — Residential real estate 36 182 257 475 69,370 69,845 — Consumer: Consumer - home equity — 141 25 166 24,910 25,076 — Consumer - other 17 — — 17 3,210 3,227 — Total $ 67 $ 323 $ 1,740 $ 2,130 $ 512,262 $ 514,392 $ — (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing December 31, 2017 Commercial $ — $ — $ — $ — $ 113,341 $ 113,341 $ — Commercial real estate 173 12 390 575 282,560 283,135 — Residential real estate 240 29 216 485 61,586 62,071 — Consumer: Consumer - home equity — 82 28 110 25,908 26,018 — Consumer - other 15 — — 15 2,910 2,925 — Total $ 428 $ 123 $ 634 $ 1,185 $ 486,305 $ 487,490 $ — An impaired loan is a loan on which, based on current information and events, it is probable that a creditor will be unable to collect all amounts due (including both interest and principal) according to the contractual terms of the loan agreement. However, an insignificant delay or insignificant shortfall in amount of payments on a loan does not indicate that the loan is impaired. When a loan is determined to be impaired, impairment should be measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate. However, as a practical expedient, the Company will measure impairment based on a loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. The following are the criteria for selecting individual loans / relationships for impairment analysis. Non-homogenous loans which meet the criteria below are evaluated quarterly. • All borrowers whose loans are classified doubtful by examiners and internal loan review • All loans on non-accrual status • Any loan in foreclosure • Any loan with a specific reserve • Any loan determined to be collateral dependent for repayment • Loans classified as troubled debt restructuring Commercial loans and commercial real estate loans evaluated for impairment are excluded from the general pool of loans in the ALLL calculation regardless if a specific reserve was determined. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at December 31, 2018 and 2017. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the years ended December 31, 2018, 2017 and 2016. (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2018 With no related allowance recorded: Commercial $ 5,364 $ 6,411 $ — Commercial real estate 4,340 4,340 — With an allowance recorded: Commercial — — — Commercial real estate — — — Total: Commercial $ 5,364 $ 6,411 $ — Commercial real estate $ 4,340 $ 4,340 $ — (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2017 With no related allowance recorded: Commercial $ 65 $ 65 $ — Commercial real estate 4,664 4,742 — With an allowance recorded: Commercial 5,516 5,516 625 Commercial real estate — — — Total: Commercial $ 5,581 $ 5,581 $ 625 Commercial real estate $ 4,664 $ 4,742 $ — (Amounts in thousands) Average Recorded Investment Interest Income Recognized December 31, 2018 With no related allowance recorded: Commercial $ 4,231 $ 25 Commercial real estate 4,405 293 With an allowance recorded: Commercial 911 46 Commercial real estate — — Total: Commercial $ 5,142 $ 71 Commercial real estate $ 4,405 $ 293 (Amounts in thousands) Average Recorded Investment Interest Income Recognized December 31, 2017 With no related allowance recorded: Commercial $ 85 $ 6 Commercial real estate 5,062 291 With an allowance recorded: Commercial 460 — Commercial real estate 527 — Total: Commercial $ 545 $ 6 Commercial real estate $ 5,589 $ 291 (Amounts in thousands) Average Recorded Investment Interest Income Recognized December 31, 2016 With no related allowance recorded: Commercial $ 146 $ 8 Commercial real estate 6,072 335 With an allowance recorded: Commercial 279 — Commercial real estate 1,209 85 Total: Commercial $ 425 $ 8 Commercial real estate $ 7,281 $ 420 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 4 - PREMISES AND EQUIPMENT The following is a summary of premises and equipment: (Amounts in thousands) December 31, 2018 2017 Land $ 2,984 $ 2,746 Premises 10,346 9,914 Equipment 10,760 9,711 Leasehold improvements 480 264 Total premises and equipment 24,570 22,635 Less accumulated depreciation 14,368 13,597 Net book value $ 10,202 $ 9,038 Depreciation expense was $771,000 in 2018, $880,000 in 2017 and $835,000 in 2016. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | NOTE 5 - DEPOSITS The following is a summary of interest-bearing deposits: (Amounts in thousands) December 31, 2018 2017 Demand $ 54,901 $ 50,410 Money market 179,430 171,783 Savings 111,837 113,078 Time: In denominations $250,000 or under 101,146 108,761 In denominations of over $250,000 20,219 18,528 Total $ 467,533 $ 462,560 Stated maturities of time deposits were as follows: (Amounts in thousands) 2018 2019 $ 67,197 2020 18,716 2021 16,135 2022 8,025 2023 5,987 2024 and beyond 5,305 Total $ 121,365 The following is a summary of time deposits of $100,000 or more by remaining maturities: (Amounts in thousands) December 31, 2018 Certificates of Deposit Other Time Deposits Total Three months or less $ 8,647 $ 9,530 $ 18,177 Three to six months 6,377 1,151 7,528 Six to twelve months 6,058 2,034 8,092 One through five years 18,295 3,311 21,606 Over five years 1,650 539 2,189 Total $ 41,027 $ 16,565 $ 57,592 |
Federal Home Loan Bank (FHLB) A
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Bank Advances And Other Borrowings [Abstract] | |
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings | NOTE 6 - FEDERAL HOME LOAN BANK (FHLB) ADVANCES AND OTHER SHORT-TERM BORROWINGS The following is a summary of FHLB advances and other short-term borrowings: (Amounts in thousands) December 31, Weighted Average Interest Rate 2018 2017 FHLB advances - long-term: Fixed rate payable and convertible fixed rate FHLB advances, with monthly interest payments: Due in 2018 $ — $ 4,000 Due in 2019 1.60 % 6,000 6,000 Due in 2020 2.04 % 6,000 4,000 Due in 2021 2.65 % 4,000 — Total FHLB advances - long-term 2.03 % 16,000 14,000 FHLB advances - short-term: Short-term 2.47 % 8,000 12,000 Cash management 2.46 % 4,000 20,000 Total FHLB advances - short-term 2.47 % 12,000 32,000 Total FHLB advances 2.22 % 28,000 46,000 Other short-term borrowings: Securities sold under repurchase agreements 0.34 % 2,206 2,678 Total FHLB advances and other short-term borrowings 2.08 % $ 30,206 $ 48,678 The following is a summary of FHLB advances – short term: (Amounts in thousands) 2018 2017 2016 Average balance during the year $ 18,899 $ 16,917 $ 13,550 Average interest rate during the year 1.98 % 1.03 % 0.54 % Maximum month-end balance during the year $ 30,000 $ 32,000 $ 23,000 Weighted average interest rate at year end 2.47 % 1.38 % 0.59 % At December 31, 2018, FHLB advances were collateralized by FHLB stock owned by the Bank with a carrying value of $2.4 million, a blanket lien against the Bank’s qualified mortgage loan portfolio of $71.6 million, $7.0 million in mortgage-backed securities and $3.8 million in U.S. Government-guaranteed small business administration pools. In comparison, in the prior year FHLB advances were collateralized by FHLB stock owned by the Bank with a carrying value of $2.4 million, a blanket lien against the Bank’s qualified mortgage loan portfolio of $64.7 million, $19.8 million in mortgage-backed securities and $9.7 million in U.S. Government-guaranteed small business administration pools. Maximum borrowing capacities from FHLB totaled $55.3 million and $57.0 million at December 31, 2018 and 2017, respectively. At both December 31, 2018 and 2017, there were no FHLB fixed rate advances that were putable on or after certain specified dates at the option of the FHLB. The following is a summary of other short-term borrowings: (Amounts in thousands) 2018 2017 2016 Average balance during the year $ 1,679 $ 2,018 $ 2,249 Average interest rate during the year 0.33 % 0.33 % 0.31 % Maximum month-end balance during the year $ 2,206 $ 2,678 $ 3,608 Weighted average interest rate at year end 0.34 % 0.34 % 0.33 % Securities sold under repurchase agreements represent arrangements the Bank has entered into with certain deposit customers within its local market areas. These borrowings are collateralized with securities. At December 31, 2018 and 2017, securities allocated for this purpose, owned by the Bank and held in safekeeping accounts at independent correspondent banks, amounted to $3.1 million and $3.4 million, respectively. The following table provides additional detail regarding other short-term borrowings: (Amounts in thousands) Repurchase Agreements (Sweep) Accounted for as Secured Borrowings At December 31, 2018 At December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Overnight and Continuous Repurchase agreements: U.S. Government-sponsored mortgage-backed securities $ 3,066 $ 3,414 Total collateral carrying value $ 3,066 $ 3,414 Total short-term borrowings $ 2,206 $ 2,678 |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | NOTE 7 - SUBORDINATED DEBT In July 2007, a trust formed by the Company issued $5.0 million of floating rate trust preferred securities as part of a pooled offering of such securities due December 2037. The Company owns all $155,000 of the common securities issued by the trust. The securities bear interest at the 3-month LIBOR rate plus 1.45%. The rates at December 31, 2018 and 2017 were 4.24% and 3.04%, respectively. The Company issued subordinated debentures to the trust in exchange for the proceeds of the trust preferred offering. The debentures represent the sole assets of this trust. The Company may redeem the subordinated debentures, in whole or in part, at par. The trust is not consolidated with the Company’s financial statements. Accordingly, the Company does not report the securities issued by the trust as liabilities, but instead reports as liabilities the subordinated debentures issued by the Company and held by the trust. The subordinated debentures qualify as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES The Bank occupies office facilities under operating leases extending to 2028. Most of these leases contain an option to renew at the then fair rental value for periods of five and ten years. These options enable the Bank to retain use of facilities in desirable operating areas. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Rental and lease expense was $184,000 for 2018, $230,000 for 2017 and $183,000 for 2016. The following is a summary of remaining future minimum lease payments under current non-cancelable operating leases for office facilities: (Amounts in thousands) Years ending: December 31, 2019 $ 177 December 31, 2020 169 December 31, 2021 116 December 31, 2022 54 December 31, 2023 44 Later years 117 Total $ 677 At December 31, 2018, the Bank was required to maintain aggregate cash reserves amounting to $6.8 million in order to satisfy federal regulatory requirements. The reserves are held in useable vault cash and interest-earning balances at the Federal Reserve Bank of Cleveland. The Bank grants commercial and industrial loans, commercial and residential mortgage loans, and consumer loans to customers in Northeastern Ohio and Western Pennsylvania. Although the Bank has a diversified portfolio, exposure to credit loss can be adversely impacted by downturns in local economic and employment conditions. Approximately 0.28% of total loans are unsecured at December 31, 2018 and approximately 0.30% at December 31 2017. The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Such instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the Consolidated Balance Sheets. The contract or notional amounts on those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. In the event of nonperformance by the other party, the Company’s exposure to credit loss on these financial instruments is represented by the contract or notional amount of the instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for instruments recorded on the balance sheet. The amount and nature of collateral obtained, if any, is based on management’s credit evaluation. The following is a summary of such contractual commitments: (Amounts in thousands) December 31, 2018 2017 Commitments to extend credit: Fixed rate $ 31,225 $ 32,749 Variable rate 74,050 60,508 Standby letters of credit 3,455 3,600 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Generally, these financial arrangements have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. The increase in commitments is in line with the Company’s increased focus on commercial and industrial lending, and specifically lines of credit. The Company also offers limited overdraft protection as a non-contractual courtesy which is available to businesses as well as individually/jointly owned accounts in good standing for personal or household use. The Company reserves the right to discontinue this service without prior notice. The following table is a summary of overdraft protection for the periods indicated: (Amounts in thousands) December 31, 2018 2017 Overdraft protection available on depositors' accounts $ 8,708 $ 9,637 Balance of overdrafts included in loans 116 103 Average daily balance of overdrafts 104 115 Average daily balance of overdrafts as a percentage of available 1.19 % 1.19 % Customer Derivatives - Interest Rate Swaps/Floors – The Company enters into interest rate swaps that allow our commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate into a fixed-rate. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are not marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There was no effect on earnings in any periods presented. At December 31, 2018, based upon the swap contract values, it was not necessary for any collateral to be pledged on the interest rate swap, compared to December 31, 2017 where the company had one U.S. Government-sponsored mortgage-backed security pledged for collateral on its interest rate swaps with the third-party financial institution with a fair value $1.4 million. Summary information regarding these derivatives is presented below: (Amounts in thousands) Notional Amount Fair Value December 31, December 31, 2018 2017 Interest Rate Paid Interest Rate Received 2018 2017 Customer interest rate swap Maturing in 2020 $ 2,410 $ 2,504 1 Mo. Libor + Margin Fixed $ (30 ) $ (16 ) Maturing in 2025 4,930 5,288 1 Mo. Libor + Margin Fixed (28 ) 36 Maturing in 2026 1,946 2,064 1 Mo. Libor + Margin Fixed (64 ) (44 ) Maturing in 2027 13,790 14,197 1 Mo. Libor + Margin Fixed (54 ) 209 Maturing in 2028 6,395 — 1 Mo. Libor + Margin Fixed 268 — Total $ 29,471 $ 24,053 $ 92 $ 185 Third party interest rate swap Maturing in 2020 $ 2,410 $ 2,504 Fixed 1 Mo. Libor + Margin $ 30 $ 16 Maturing in 2025 4,930 5,288 Fixed 1 Mo. Libor + Margin 28 (36 ) Maturing in 2026 1,946 2,064 Fixed 1 Mo. Libor + Margin 64 44 Maturing in 2027 13,790 14,197 Fixed 1 Mo. Libor + Margin 54 (209 ) Maturing in 2028 6,395 — Fixed 1 Mo. Libor + Margin (268 ) — Total $ 29,471 $ 24,053 $ (92 ) $ (185 ) The following table presents the fair values of derivative instruments in the Consolidated Balance Sheet. (Amounts in thousands) Assets Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value December 31, 2018 Interest rate derivatives Other assets $ 92 Other liabilities $ 92 December 31, 2017 Interest rate derivatives Other assets $ 185 Other liabilities $ 185 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | NOTE 9 – BENEFIT PLANS The Bank has a contributory defined contribution retirement plan (401(k) plan) which covers substantially all employees. Total expense under the plan was $337,000 for 2018, $361,000 for 2017 and $349,000 for 2016. The Bank matches participants’ voluntary contributions up to 5% of gross pay. Participants were able to make voluntary contributions to the plan up to a maximum of $18,000 with an additional $6,000 catch-up deferral for plan participants over the age of 50. The Bank makes bi-weekly contributions to this plan equal to amounts accrued for plan expense. The Company provides supplemental retirement benefit plans for the benefit of certain officers and non-officer directors. The plan for officers is designed to provide post-retirement benefits to supplement other sources of retirement income such as social security and 401(k) benefits. The benefits will be paid for a period of 15 years after retirement. Director Retirement Agreements provide for a benefit of $10,000 annually on or after the director reaches normal retirement age, which is based on a combination of age and years of service. Director retirement benefits are paid over a period of 10 years following retirement. The Company accrues the cost of these post-retirement benefits during the working careers of the officers and directors. At December 31, 2018, the accumulated liability for these benefits totaled $3.5 million, with $2.9 million accrued for the officers’ plan and $600,000 for the directors’ plan. The following table reconciles the accumulated liability for the benefit obligation of these agreements: (Amounts in thousands) Years Ended December 31, 2018 2017 2016 Beginning balance $ 3,182 $ 2,957 $ 2,760 Benefit expense 445 387 359 Benefit payments (162 ) (162 ) (162 ) Ending balance $ 3,465 $ 3,182 $ 2,957 Supplemental executive retirement agreements are unfunded plans and have no plan assets. The benefit obligation represents the vested net present value of future payments to individuals under the agreements. The benefit expense, as specified in the agreements for the entire year 2019, is expected to be approximately $352,000. The benefits expected to be paid in the next year are approximately $164,000. The Bank has purchased insurance contracts on the lives of the participants in the supplemental retirement benefit plan and has named the Bank as the beneficiary. Similarly, the Company has purchased insurance contracts on the lives of the directors with the Bancorp as beneficiary. While no direct linkage exists between the supplemental retirement benefit plan and the life insurance contracts, it is management’s current intent that the revenue from the insurance contracts be used as a funding source for the plan. The Company accrues for the monthly benefit expense of postretirement cost of insurance for split-dollar life insurance coverage. The following table presents the changes in the accumulated liability. (Amounts in thousands) December 31, 2018 2017 2016 Beginning balance $ 876 $ 840 $ 856 Expense recorded 23 50 23 Other comprehensive income recorded (68 ) (14 ) (39 ) Ending balance $ 831 $ 876 $ 840 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | NOTE 10 - FEDERAL INCOME TAXES With the passage of the Tax Cuts and Jobs Act (“Tax Act”), tax law for corporations had several material changes effective beginning in 2018. The most significant change is the reduction in the corporate tax rate from 34% to 21%. Because this reduced rate was signed into law in December 2017, generally accepted accounting principles required recognition of the lower rate on the Company’s deferred tax position as of December 31, 2017. As the Company is in a net deferred tax asset position, the reduction of this benefit resulted in a $1.2 million additional charge to Federal Income Tax expense in the Company’s 2017 Consolidated Statements of Income. The composition of income tax expense is as follows: (Amounts in thousands) Years Ended December 31 , 2018 2017 2016 Current $ 407 $ 1,199 $ 1,256 Deferred 1,008 (28 ) (129 ) Change in corporate tax rate — 1,246 — Total $ 1,415 $ 2,417 $ 1,127 The ability to realize the benefit of deferred tax assets is dependent upon a number of factors, including the generation of future taxable income, the ability to carry back taxes paid in previous years, the ability to offset capital losses with capital gains, the reversal of deferred tax liabilities, and certain tax planning strategies. A valuation allowance of $28,000 was established in 2018 to offset in its entirety capital losses. For years subsequent to 2017, the ability to carry back taxes paid in previous years has been eliminated by the Tax Act. The following is a summary of net deferred taxes included in other assets: (Amounts in thousands) December 31, 2018 2017 Gross deferred tax assets: Allowance for loan and other real estate losses $ 882 $ 961 Deferred loan origination cost - net 232 234 Impairment loss on securities — 29 Deferred compensation 727 668 Capital loss carryforward 28 — AMT credit carryforward — 904 Unrealized loss on available-for-sale securities 980 475 Other items 390 333 Total gross deferred tax assets 3,239 3,604 Valuation allowance (28 ) — Total net deferred tax assets 3,211 3,604 Gross deferred tax liabilities: Premises and equipment (477 ) (362 ) Other items (320 ) (325 ) Total net deferred tax liabilities (797 ) (687 ) Net deferred tax asset $ 2,414 $ 2,917 The Company had a deferred tax asset of $904,000 for unused credits related to Alternative Minimum Taxes (AMT) as of December 31, 2017. The Tax Act eliminated the AMT for corporations beginning in 2018. After applying the allowable credits in 2018, the remaining unused credits of $59,000 related to AMT have been reclassed to a receivable in other assets. The following is a reconciliation of the valuation allowance for net deferred tax assets: (Amounts in thousands) December 31, 2018 2017 Valuation allowance at beginning of year $ — $ — Capital loss carryover 28 — Valuation allowance at end of year $ 28 $ — The following is a reconciliation between tax expense using the statutory tax rate of 21% for 2018 and 34% for 2017 and 2016 and the income tax provision: (Amounts in thousands) Years Ended December 31 , 2018 2017 2016 Statutory tax expense $ 2,153 $ 2,301 $ 2,039 Tax effect of non-taxable interest income (319 ) (663 ) (628 ) Tax effect of earnings on bank-owned life insurance-net (403 ) (414 ) (112 ) Tax effect of deferred tax valuation (reversal) provision 28 — (94 ) Change in corporate tax rate (1) — 1,246 — Tax effect of low-income housing credits (140 ) (149 ) (142 ) Tax effect of non-deductible expenses 96 96 64 Federal income tax expense $ 1,415 $ 2,417 $ 1,127 (1) The tax act lowers the base corporate tax rate from 35% to 21% which was applied to the existing deferred tax balance. The related income tax (benefit) expense on investment securities gains amounted to $(4,000) for 2018, $3,000 for 2017 and $142,000 for 2016 and is included in the federal income tax expense. The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The provision also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. There were no significant unrecognized tax benefits at December 31, 2018 and the Company does not expect any significant increase in unrecognized tax benefits in the next twelve months. No interest or penalties were incurred for income taxes which would have been recorded as a component of income tax expense. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal and state income tax returns for taxable years through 2014 have been closed for purposes of examination by the Internal Revenue Service and the Ohio Department of Revenue. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 11 – FAIR VALUE Measurements The Company groups assets and liabilities recorded at fair value into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but which trade less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where inputs into the determination of fair value require significant management judgment or estimation. The following table presents the assets reported on the consolidated balance sheets at their fair value as of December 31, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. (Amounts in thousands) Fair Value Measurements at December 31, 2018 Using Description December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS U.S. Government agencies and corporations $ 9,002 $ — $ 9,002 $ — Obligations of states and political subdivisions 51,658 — 51,658 — U.S. Government-sponsored mortgage-backed securities 56,587 — 56,587 — U.S. Government-sponsored collateralized mortgage obligations 11,976 — 11,976 — U.S. Government-guaranteed small business administration pools 7,700 — 7,700 — Loans held for sale 1,040 1,040 — — Interest rate derivatives 92 — 92 — LIABILITIES Interest rate derivatives $ 92 $ — $ 92 $ — (Amounts in thousands) Fair Value Measurements at December 31, 2017 Using Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS U.S. Government agencies and corporations $ 3,205 $ — $ 3,205 $ — Obligations of states and political subdivisions 72,116 — 72,116 — U.S. Government-sponsored mortgage-backed securities 67,668 — 67,668 — U.S. Government-sponsored collateralized mortgage obligations 6,302 — 6,302 — U.S. Government-guaranteed small business administration pools 9,655 — 9,655 — Trust preferred securities 895 — — 895 Loans held for sale 2,780 2,780 — — Interest rate derivatives 185 — 185 — LIABILITIES Interest rate derivatives $ 185 $ — $ 185 $ — The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2018, 2017 and 2016. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. (Amounts in thousands) December 31, 2018 2017 2016 Trust preferred securities Trust preferred securities Trust preferred securities Beginning balance $ 895 $ 825 $ 778 Net realized/unrealized gains/(losses) included in: Noninterest income — — — Other comprehensive income 723 72 67 Discount accretion (premium amortization) — — — Sales (1,618 ) — — Purchases, issuance, and settlements — (2 ) (20 ) Ending balance $ — $ 895 $ 825 Losses included in net income for the period relating to assets held at period end $ — $ — $ — The Company conducts OTTI analyses on a quarterly basis. The initial indication of other-than-temporary impairment for both debt and equity securities is a decline in the fair value below the amount recorded for an investment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statements of Income. In determining whether an impairment is other than temporary, the Company considers a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and a determination that the Company does not intend to sell those investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of its amortized cost basis less any current period credit loss. Among the factors that are considered in determining the Company’s intent and ability is a review of its capital adequacy, interest rate risk position and liquidity. The Company also considers the issuer’s financial condition, capital strength and near-term prospects. In addition, for debt securities the Company considers the cause of the price decline (general level of interest rates and industry- and issuer-specific factors), current ability to make future payments in a timely manner and the issuer’s ability to service debt, the assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and the Company’s intent and ability to retain the security. All of the foregoing require considerable judgment. Trust Preferred Securities Trust preferred securities, which are accounted for under FASB ASC Topic 325 Investments Other, The following table details the breakdown of trust preferred securities for the periods indicated: (Dollar amounts in thousands) December 31, 2017 Total number of trust preferred securities 2 Par value $ 1,939 Number not considered OTTI 1 Par value $ 903 Number considered OTTI 1 Par value $ 1,036 Life-to-date impairment recognized in earnings $ 140 Life-to-date impairment recognized in other comprehensive income 723 Total life-to-date impairment $ 863 The following table details the one debt security with other-than-temporary impairment, its credit rating at December 31, 2017 and the related losses recognized in earnings: (Dollar amounts in thousands) Moody’s/Fitch Rating Amount of OTTI related to credit loss at January 1, 2017 Additions March 31, 2017 Additions in QTD June 30, 2017 Additions in QTD September 30, 2017 Additions in QTD December 31, 2017 Amount of OTTI related to credit loss at December 31, 2017 Trapeza IX B-1 Caa2/CC $ 140 $ — $ — $ — $ — $ 140 The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2017 used to evaluate other-than-temporary impairments: (Dollar amounts in thousands) Deal Class Amortized Cost Fair Value Unrealized Gain/(Loss) Moody’s/ Fitch Rating Number of Issuers Currently Performing Deferrals and Defaults as a % of Current Collateral Excess Subordination as a % of Current Performing Collateral PreTSL XXIII C-2 $ 758 $ 336 $ (422 ) Ba1/CCC 90 20.9 % 7.12 % Trapeza IX B-1 860 559 (301 ) Caa2/CC 30 14.0 — Total $ 1,618 $ 895 $ (723 ) The market for these securities at December 31, 2017 was 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 trust preferred 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 new issuance is essentially nonexistent. There are currently very few market participants who are willing and/or able to transact for these securities. The pooled market value for these securities remains very depressed relative to historical levels. Although there has been marked improvement in the credit spread premium in the corporate bond space, little improvement has been noted in the market for trust preferred securities. Given conditions in the current debt markets and the absence of observable transactions in the secondary and the new issue markets, the Company determined the following: • The few observable transactions and market quotations that are available are not reliable for purposes of determining fair value; • An income valuation approach technique (present value technique) 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 the market approach valuation technique used at measurement dates prior to 2008; and • The trust preferred securities will be classified within Level 3 of the fair value hierarchy because the Company determined that significant judgments are required to determine fair value at the measurement date. The Company enlisted the aid of an independent third party to perform the trust preferred security valuations. The approach to determining fair value involved the following process: 1. Estimate the credit quality of the collateral using average probability of default values for each issuer (adjusted for rating levels). 2. Consider the potential for correlation among issuers within the same industry for default probabilities (e.g. banks with other banks). 3. Forecast the cash flows for the underlying collateral and apply to each trust preferred security tranche to determine the resulting distribution among the securities, including prepayment and cures. 4. Discount the expected cash flows to calculate the present value of the security. The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of December 31, 2017, by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include: quoted market prices for identical assets classified as Level 1 inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level 2 inputs. In cases where valuation techniques include inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level 3 inputs. Other real estate owned is carried at the lower of cost or fair value less estimated costs to sell. There were no impaired loans carried at fair value in 2018. (Amounts in thousands) December 31, 2017 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Impaired loans $ — $ — $ 9,620 $ 9,620 Financial Instruments The Company discloses fair value information about financial instruments, whether or not recognized in the Consolidated Balance Sheets, for which it is practicable to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Such techniques and assumptions, as they apply to individual categories of the financial instruments, are as follows: Investment securities available for sale – Fair values of securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Prices on trust preferred securities were calculated using a discounted cash-flow technique. Cash flows were estimated based on credit and prepayment assumptions. The present value of the projected cash flows was calculated using a discount rate equal to the current yield used to accrete the beneficial interest. Loans held for sale – Loans held for sale consist of residential mortgage loans originated for sale. Loans held for sale are recorded at fair value based on what the secondary markets have offered on best efforts commitments. Interest rate derivatives – The fair value is based on settlement values adjusted for credit risks associated with the counter parties and the Company and observable market interest rate curves. In addition, other assets and liabilities of the Company that are not defined as financial instruments are not included in the disclosures, such as property and equipment. Also, non-financial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning power of core deposit accounts, the trained work force, customer goodwill and similar items. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: (Amounts in thousands) December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 19,692 $ 19,692 $ — $ — $ 19,692 Investment securities available-for-sale 136,923 — 136,923 — 136,923 Loans held for sale 1,040 1,040 — — 1,040 Loans 510,194 — — 513,103 513,103 Bank-owned life insurance 15,711 15,711 — — 15,711 Accrued interest receivable 2,255 2,255 — — 2,255 Interest rate derivatives 92 — 92 — 92 LIABILITIES: Demand, savings and money market deposits $ 483,054 $ 483,054 $ — $ — $ 483,054 Time deposits 121,365 — — 122,295 122,295 Short-term borrowings 2,206 2,206 — — 2,206 Federal Home Loan Bank advances - short term 12,000 — — 11,987 11,987 Federal Home Loan Bank advances - long term 16,000 — — 15,880 15,880 Subordinated debt 5,155 — — 4,620 4,620 Accrued interest payable 371 371 — — 371 Interest rate derivatives 92 — 92 — 92 (Amounts in thousands) December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 19,125 $ 19,125 $ — $ — $ 19,125 Investment securities available-for-sale 159,841 — 158,946 895 159,841 Loans held for sale 2,780 2,780 — — 2,780 Loans 482,912 — — 486,230 486,230 Bank-owned life insurance 17,650 17,650 — — 17,650 Accrued interest receivable 2,193 2,193 — — 2,193 Interest rate derivatives 185 — 185 — 185 LIABILITIES: Demand, savings and money market deposits $ 458,562 $ 458,562 $ — $ — $ 458,562 Time deposits 127,289 — — 128,624 128,624 Short-term borrowings 2,678 2,678 — — 2,678 Federal Home Loan Bank advances - short term 32,000 — — 31,982 31,982 Federal Home Loan Bank advances - long term 14,000 — — 13,880 13,880 Subordinated debt 5,155 — — 4,785 4,785 Accrued interest payable 325 325 — — 325 Interest rate derivatives 185 — 185 — 185 The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2017. (Amounts Fair value at December 31, 2017 Valuation Technique Significant Unobservable Input Description of Inputs Trust preferred securities $ 895 Discounted Cash Flow Projected Prepayments 1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital. All fixed rate within one year; variable rate at increasing intervals depending on spread. 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. 3) 1% annually for all other fixed rate issues and all variable rate issues. 4) Zero for collateral issued by REITs and 2% for insurance companies. Projected Defaults 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. 3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings. Projected Cures 1) Deferring issuers that have definitive agreements to either be acquired or recapitalized. Projected Recoveries 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. Discount Rates 1) Ranging from ~9.10% to ~14.74%, depending on each bond's seniority and remaining subordination after projected losses. Impaired loans 4,891 Cash Flow Discount Rates Range 4.50% to 5.38% Weighted average 4.88 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | NOTE 12 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents the changes in accumulated other comprehensive loss or income by component net of tax for the years ended December 31, 2018, 2017 and 2016. (Amounts in thousands) Unrealized gains (losses) on available-for-sale securities (a) Change in pension and postretirement obligations (a) Balance as of December 31, 2015 $ (147 ) $ (91 ) Other comprehensive (loss) income before reclassification (2,454 ) 39 Amount reclassified from accumulated other comprehensive loss (308 ) — Total other comprehensive income (2,762 ) 39 Balance as of December 31, 2016 $ (2,909 ) $ (52 ) Other comprehensive income before reclassification 1,420 14 Reclassification of certain income tax effects from accumulated other comprehensive income (294 ) — Amount reclassified from accumulated other comprehensive loss (4 ) — Total other comprehensive income 1,122 14 Balance as of December 31, 2017 $ (1,787 ) $ (38 ) Other comprehensive (loss) income before reclassification (1,916 ) 68 Amount reclassified from accumulated other comprehensive loss 17 — Total other comprehensive (loss) income (1,899 ) 68 Balance as of December 31, 2018 $ (3,686 ) $ 30 (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents significant amounts reclassified out of each component of accumulated other comprehensive loss or income for the years ended December 31, 2018, 2017 and 2016. (Amounts in thousands) December 31, 2018 2017 2016 Amount accumulated other comprehensive Amount accumulated other comprehensive Amount accumulated other comprehensive Affected statement where net income is presented Details about other comprehensive income or loss: Unrealized gains on available-for-sale securities $ (21 ) $ 7 $ 466 Investment securities available-for-sale (losses) gains, net 4 (3 ) (158 ) Federal income tax expense $ (17 ) $ 4 $ 308 (a) Amounts in parentheses indicate debits to net income. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | NOTE 13 - REGULATORY MATTERS The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks and their holding companies (commonly known as Basel III). Under the final rules, which began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by the Company and the Bank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. Management expects that the capital ratios for the Company and the Bank under Basel III will continue to exceed the well capitalized minimum capital requirements, as they currently exceed the fully phased in 2019 requirements. In addition to the capital requirements for bank holding companies generally, financial holding companies are also required to meet “well-capitalized” requirements of the Federal Reserve Board. A bank holding company or financial holding company that is covered by the Federal Reserve’s Small Bank Holding Company Policy is not required to comply with the consolidated capital requirements, although its bank subsidiaries still must comply with the applicable capital requirements. As a bank holding company with assets of less than $1 billion and meeting certain other requirements, the Company is covered by the Small Bank Holding Company Policy. At December 31, 2018 and December 31, 2017, actual capital levels and minimum required levels for the Company, if it were not covered by the Small Bank Holding Company Policy, were: (Amounts in thousands) Actual Minimum required for capital adequacy purposes December 31, 2018 Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets) $ 68,574 12.01 % $ 25,700 4.5 % Tier 1 capital (to risk-weighted assets) 73,574 12.88 % 34,267 6.0 % Total capital (to risk-weighted assets) 77,856 13.63 % 45,689 8.0 % Tier 1 capital (to average assets) 73,574 10.72 % 27,452 4.0 % (Amounts in thousands) Actual Minimum required for capital adequacy purposes December 31, 2017 Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets) $ 63,455 11.97 % $ 23,864 4.5 % Tier 1 capital (to risk-weighted assets) 68,455 12.91 % 31,819 6.0 % Total capital (to risk-weighted assets) 73,116 13.79 % 42,425 8.0 % Tier 1 capital (to average assets) 68,455 10.77 % 25,416 4.0 % $5.0 million of trust preferred securities outstanding at December 31, 2018 and December 31, 2017, respectively, qualified as Tier 1 capital. Refer to Note 7, “Subordinated Debt.” The Bank met all capital requirements to be categorized as "well capitalized" at December 31, 2018 and December 31, 2017. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 - RELATED PARTY TRANSACTIONS Certain directors, executive officers and companies with whom they are affiliated were loan customers during 2018. The following is an analysis of such loans: (Amounts in thousands) Total related-party loans at December 31, 2017 $ 4,230 New related-party loans 2,997 Repayments or other (2,765 ) Total related-party loans at December 31, 2018 $ 4,462 Deposit balances of executive officers, directors, and their affiliates at December 31, 2018 and 2017 were $8.4 million and $7.6 million, respectively. The banking relationships were made in the ordinary course of business with the Bank. |
Condensed Financial Information
Condensed Financial Information - Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information - Parent Company | NOTE 15 - CONDENSED FINANCIAL INFORMATION – PARENT COMPANY Below is condensed financial information of Cortland Bancorp (parent company only). In this information, the Parent’s investment in subsidiaries is stated at cost, including equity in the undistributed earnings of the subsidiaries, adjusted for any unrealized gains or losses on available-for-sale securities. BALANCE SHEETS (Amounts in thousands) December 31, 2018 2017 ASSETS Cash $ 240 $ 261 Investment in bank subsidiary 61,272 58,028 Subordinated note from subsidiary bank 6,000 6,000 Other assets 3,538 3,489 Total assets $ 71,050 $ 67,778 LIABILITIES Other liabilities $ 977 $ 993 Subordinated debt (Note 7) 5,155 5,155 Total liabilities 6,132 6,148 SHAREHOLDERS’ EQUITY Common stock 23,641 23,641 Additional paid-in capital 20,984 20,928 Retained earnings 31,089 24,403 Accumulated other comprehensive loss (3,656 ) (1,825 ) Treasury stock (7,140 ) (5,517 ) Total shareholders’ equity 64,918 61,630 Total liabilities & shareholders’ equity $ 71,050 $ 67,778 STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) Years ended December 31 , 2018 2017 2016 Dividends from bank subsidiary $ 4,150 $ 1,900 $ 1,400 Interest and dividend income 213 153 121 Other income 56 58 60 Interest on subordinated debt (189 ) (138 ) (112 ) Other expenses (606 ) (568 ) (497 ) Income before income tax and equity in undistributed earnings of subsidiaries 3,624 1,405 972 Income tax benefit 136 106 265 Equity in undistributed earnings of subsidiaries 5,075 2,839 3,634 Net income $ 8,835 $ 4,350 $ 4,871 Comprehensive income $ 7,004 $ 5,780 $ 2,148 STATEMENTS OF CASH FLOWS (Amounts in thousands) Years ended December 31 , 2018 2017 2016 Cash flow from operating activities Net income $ 8,835 $ 4,350 $ 4,871 Adjustments to reconcile net income to net cash flow from operating activities: Equity in undistributed earnings of subsidiaries (5,075 ) (2,839 ) (3,634 ) Deferred tax benefit (13 ) 62 (15 ) Equity compensation 214 143 75 Change in other assets and liabilities (52 ) 188 138 Net cash flow from operating activities 3,909 1,904 1,435 Cash deficit from financing activities Dividends paid (2,149 ) (1,726 ) (1,237 ) Treasury shares purchased (1,781 ) (237 ) — Net cash deficit from financing activities (3,930 ) (1,963 ) (1,237 ) Net change in cash (21 ) (59 ) 198 Cash Beginning of year 261 320 122 End of year $ 240 $ 261 $ 320 |
Dividend Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Dividend Restrictions | NOTE 16 - DIVIDEND RESTRICTIONS The Bank is subject to a dividend restriction that generally limits the amount of dividends that can be paid by an Ohio state-chartered bank. Under the Ohio Banking Code, cash dividends may not exceed net profits as defined for that year combined with retained net profits for the two preceding years less any required transfers to surplus. Under this formula, the amount available for payment of dividends in 2019 is $8.2 million plus 2019 profits retained up to the date of the dividend declaration. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | NOTE 17 – LITIGATION The Bank is involved in legal actions arising in the ordinary course of business. In the opinion of management, the outcomes from these other matters, either individually or in the aggregate, are not expected to have any material effect on the Company. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2018 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | NOTE 18 – STOCK REPURCHASE PROGRAM On January 26, 2016, the Company’s Board of Directors approved a program which allowed the Company to repurchase up to 100,000 shares, or approximately 2.3% of the 4,404,783 shares outstanding at January 26, 2016, of the Company’s outstanding common stock. This program terminated on December 31, 2016. The Company did not purchase any shares under this program. On January 24, 2017, the Company’s Board of Directors approved a program which allowed the Company to repurchase up to 100,000 shares, or approximately 2.3% of the 4,420,055 shares outstanding at January 24, 2017, of the Company’s outstanding common stock. This program terminated on December 31, 2017. The Company purchased 12,863 shares under this program. On January 23, 2018, the Company’s Board of Directors approved a program which allowed the Company to repurchase up to 100,000 shares, or approximately 2.3% of the 4,420,136 shares outstanding at January 23, 2018, of the Company’s outstanding common stock. On May 22, 2018 the Company’s Board of Directors approved an increase in the number of shares authorized for repurchase under the January 23, 2018 plan by 200,000 shares bringing the total to 300,000 shares authorized. This program terminated on December 31, 2018. The Company purchased 80,944 shares under this program. On December 18, 2018, the Company’s Board of Directors approved a new program which allows the Company to repurchase up to 300,000 shares, or approximately 6.9% of the 4,349,624 outstanding shares of common stock at December 18, 2018. This program will terminate on December 31, 2019, or upon purchase of 300,000 shares if earlier or at any time without prior notice. Repurchased shares are designated as treasury shares, available for general corporate purposes, including possible use in connection with the Company’s dividend reinvestment program, employee benefit plans, acquisitions or other distributions. Based on the value of the Company’s stock on December 31, 2018, the remaining authorization to repurchase the stock for the program is approximately $6.2 million. |
Equity Compensation
Equity Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation | NOTE 19 – EQUITY COMPENSATION During 2015, the Company, created the 2015 Omnibus Equity Plan and The Director Equity Plan. The Omnibus Equity Plan permits the award of up to 340,000 shares to the Company’s employees to promote the long-term financial success of the Company, increasing shareholder value by providing employees the opportunity to acquire an ownership interest in the Company and enabling the Company and its related entities to attract and retain the services of those upon whom the successful conduct of business depends. There were 12,593 restricted Board approved shares granted under the plan in calendar 2018 and 12,976 restricted Board approved shares granted under the plan in calendar 2017. The Company is expensing the grant date fair value of all share-based compensation over the requisite vesting periods on a prorated straight-line basis. In 2018 and 2017, compensation expense of $192,000 and $123,000, respectively, was recorded in the Consolidated Statements of Income. As of December 31, 2018, there was $310,000 of total unrecognized compensation expense related to the non-vested shares granted under the Plan. Shares awarded under this plan vest in equal thirds on the first three anniversaries of the award date if the employee remains employed with Cortland Bancorp. The remaining cost is expected to be recognized over 17 months, which is the remainder of the three-year tiered vesting period. Granted shares are awarded upon meeting achievement of performance objectives derived from one or more of the performance criteria. The main metrics used for the periods presented were three-year earnings per share growth and three-year total shareholder return each ranked versus a peer group. The following is the activity under the Omnibus Equity Plan during the period ended December 31, 2018: Restricted Stock Units Units Price at Grant Date Nonvested at January 1, 2018 20,814 $ 17.02 Granted 12,593 22.01 Vested (8,359 ) 16.71 Forfeited (1,457 ) 18.92 Nonvested at December 31, 2018 23,591 $ 19.68 The Director Equity Plan permits the award of up to 113,000 shares to nonemployee directors to promote the long-term financial success of the Company, increasing shareholder value by enabling the Company and its related entities to attract and retain the services of those directors upon whom the successful conduct of business depends. There were 989 Board approved shares granted under the plan in April 2018 with immediate vesting, and 1,656 Board approved shares granted under the plan in March 2017 with immediate vesting. In 2018 and 2017, expense of $22,000 and $30,000 was recorded in the Consolidated Statements of Income, respectively. |
Extinguishment of Debt
Extinguishment of Debt | 12 Months Ended |
Dec. 31, 2018 | |
Extinguishment Of Debt Disclosures [Abstract] | |
Extinguishment of Debt | NOTE 20 – EXTINGUISHMENT OF DEBT In January of 2016, the Company paid off two FHLB convertible fixed rate advances totaling $4.5 million with an average rate of 4.01% due in 2017. The Company incurred prepayment penalties of $242,000, or $160,000 after tax. The Earnings per Share effect of ($.04) was offset by gains generated on investment securities sales during the same month. The Company used a combination of alternative wholesale borrowings at a rate of 1.44% and current liquidity to fund the early payoff, for an estimated annual interest expense savings of $130,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Industry Segment Information | Industry Segment Information |
Use of Estimates | Use of Estimates |
Cash Flow | Cash Flow |
Investment Securities | Investment Securities Available-for-sale securities are carried at fair value with unrealized gains and losses recorded as a separate component of shareholders’ equity, net of tax. Realized gains or losses on dispositions are based on net proceeds and the adjusted carrying amount of securities sold, using the specific identification method. Interest income includes amortization of purchase premium or discount and is amortized on the level-yield method without anticipating payments, except for U.S. Government mortgage-backed and related securities where twelve months of historical prepayments are taken into consideration. The regulatory stock is carried at cost (its redeemable value) and the Company is required to hold such investments as a condition of membership in order to transact business with the Federal Home Loan Bank (FHLB) of Cincinnati and the Federal Reserve Bank (FRB). The stock is bought from and sold based upon its par value. The stock cannot be traded or sold in any market and as such is classified as restricted stock, carried at cost (its redeemable value) and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB and FRB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB and FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB and FRB and (d) the liquidity position of the FHLB and FRB. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2018. |
Other-than-Temporary Investment Security Impairment | Other-than-Temporary Investment Security Impairment |
Loans | Loans |
Loans Held for Sale | Loans Held for Sale |
Allowance for Loan Losses (ALLL) and Allowance for Losses on Lending Related Commitments | Allowance for Loan Losses (ALLL) and Allowance for Losses on Lending Related Commitments Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Accordingly, the allowance is maintained by management at a level considered adequate to cover possible losses that are currently anticipated. Estimates of credit losses should reflect consideration of all significant factors that affect collectability of the portfolio. While historical loss experience provides a reasonable starting point, historical losses, or even recent trends in losses are not, by themselves, a sufficient basis to determine the appropriate level for the ALLL. Management will also consider any factors that are likely to cause estimated credit losses associated with the Bank’s current portfolio to differ from historical loss experience. Factors include, but are not limited to, changes in lending policies and procedures, including underwriting standards and collection, charge-offs, and recovery practices; changes in economic trends; changes in the nature and volume of the portfolio; changes in the experience and ability of lending management and the depth of staff; changes in the trend, volume and severity of past-due and classified loans, and trends in the volume of non-accrual loans; the existence and effect of any concentrations of credit and changes in the level of such concentrations; levels and trends in classification; declining trends in performance; structure and lack of performance measures and migration between risk classifications. Key risk factors and assumptions are updated to reflect actual experience and changing circumstances. While management may periodically allocate portions of the ALLL for specific problem loans, the entire ALLL is available for any charge-offs that occur. Certain collateral dependent loans are evaluated individually for impairment, based on management’s best estimate of discounted cash repayments and the anticipated proceeds from liquidating collateral. The actual timing and amount of repayments and the ultimate realizable value of the collateral may differ from management’s estimates. The expected loss for certain other commercial credits utilizes internal risk ratings. These loss estimates are sensitive to changes in the customer’s risk profile, the realizable value of collateral, other risk factors and the related loss experience of other credits of similar risk. Consumer credits generally employ statistical loss factors, adjusted for other risk indicators, applied to pools of similar loans stratified by asset type. These loss estimates are sensitive to changes in delinquency status and shifts in the aggregate risk profile. The Company maintains an allowance for losses on unfunded commercial lending commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for loan losses. This allowance is reported as a liability on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these losses is recorded as a component of other operating expense. |
Loan Charge-off Policies | Loan Charge-off Policies |
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (TDR) |
Premises and Equipment | Premises and Equipment |
Other Real Estate | Other Real Estate |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance |
Endorsement Split-Dollar Life Insurance Arrangement | Endorsement Split-Dollar Life Insurance Arrangement |
Derivative Instruments | Derivative Instruments |
Advertising and Marketing | Advertising and Marketing |
Income Taxes | Income Taxes |
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income |
Per Share Amounts | Per Share Amounts Years ended December 31, 2018 2017 2016 Net income (amounts in thousands) $ 8,835 $ 4,350 $ 4,871 Weighted average common shares outstanding 4,357,760 4,407,254 4,406,005 Net effect of dilutive common share equivalents 6,474 4,220 1,264 Adjusted average shares outstanding - dilutive $ 4,364,234 $ 4,411,474 $ 4,407,269 Basic earnings per share $ 2.03 $ 0.99 $ 1.11 Dilutive earnings per share $ 2.03 $ 0.99 $ 1.11 |
Transfers of Financial Assets | Transfers of Financial Assets |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments are funded. |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers – Topic 606 Management determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, gains on the sale of loans, earnings on bank owned life insurance, wealth management and other non-interest income are not within the scope of ASC 606. As a result, no changes were made during the period related to these sources of revenue. The main types of non-interest income within the scope of the standard are as follows: Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if the account balance falls below predetermined levels defined as compensating balances. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include non-sufficient fund fees, overdraft fees, continuous overdraft fees and other fees such as stop payment fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, namely at the completion of the requested service/transaction. Fees, exchange, and other service charges- This is primarily comprised of debit card income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions, in addition to account management fees. Other service charges include cashier’s checks, check charges and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer is reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows. (Amounts in thousands) Year Ended December 31, 2018 Revenue stream Service charges on deposit accounts: Overdraft fees $ 1,084 Service charges 408 Other fees 16 Fees, exchange, and other service charges 765 Non-interest income (in-scope of Topic 606) 2,273 Non-interest income (out-of-scope of Topic 606) 3,419 Total non-interest income $ 5,692 |
Reclassifications | Reclassifications |
Authoritative Accounting Guidance | Authoritative Accounting Guidance In January 2016, the FASB issued ASU (Accounting Standard Update) Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The Company’s adoption of this standard during the reporting period had no effect on the Consolidated Financial Statements. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 9 to the financial statements. The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the December 31, 2018 disclosure. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) This Update is not expected to have a significant impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act) In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) ASU 2018-10, Codification Improvements to Topic 842, Leases In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements Leases Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In October 2018, the FASB issued ASU 2018-16 , Derivatives and Hedging (Topic 815) this Update Update 2017-12 this Update Update 2017-12 Update 2017-12 Update 2017-12 this Update Update 2017-12 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Computation of Basic Earnings Per Common Share | Years ended December 31, 2018 2017 2016 Net income (amounts in thousands) $ 8,835 $ 4,350 $ 4,871 Weighted average common shares outstanding 4,357,760 4,407,254 4,406,005 Net effect of dilutive common share equivalents 6,474 4,220 1,264 Adjusted average shares outstanding - dilutive $ 4,364,234 $ 4,411,474 $ 4,407,269 Basic earnings per share $ 2.03 $ 0.99 $ 1.11 Dilutive earnings per share $ 2.03 $ 0.99 $ 1.11 |
Disaggregation of Revenue Derived From Contracts with Customers | The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows. (Amounts in thousands) Year Ended December 31, 2018 Revenue stream Service charges on deposit accounts: Overdraft fees $ 1,084 Service charges 408 Other fees 16 Fees, exchange, and other service charges 765 Non-interest income (in-scope of Topic 606) 2,273 Non-interest income (out-of-scope of Topic 606) 3,419 Total non-interest income $ 5,692 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investment Securities Available-for-Sale and Regulatory Stock | The following is a summary of investment securities available-for-sale and regulatory stock: (Amounts in thousands) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 9,242 $ 11 $ 251 $ 9,002 Obligations of states and political subdivisions 53,187 26 1,555 51,658 U.S. Government-sponsored mortgage-backed securities 59,070 — 2,483 56,587 U.S. Government-sponsored collateralized mortgage obligations 12,112 41 177 11,976 U.S. Government-guaranteed small business administration pools 7,978 — 278 7,700 Total investment securities available-for-sale $ 141,589 $ 78 $ 4,744 $ 136,923 Federal Home Loan Bank (FHLB) stock $ 2,355 $ — $ — $ 2,355 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,581 $ — $ — $ 2,581 (Amounts in thousands) December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 3,344 $ 1 $ 140 $ 3,205 Obligations of states and political subdivisions 71,700 740 324 72,116 U.S. Government-sponsored mortgage-backed securities 69,066 6 1,404 67,668 U.S. Government-sponsored collateralized mortgage obligations 6,463 — 161 6,302 U.S. Government-guaranteed small business administration pools 9,911 — 256 9,655 Trust preferred securities 1,618 — 723 895 Total investment securities available-for-sale $ 162,102 $ 747 $ 3,008 $ 159,841 Federal Home Loan Bank (FHLB) stock $ 2,355 $ — $ — $ 2,355 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,581 $ — $ — $ 2,581 |
Summary of Realized and Unrealized Gains and Losses on Trading Securities | (Amounts in thousands) 2016 Unrealized gains $ — Unrealized losses — Net unrealized gains — Net realized losses (47 ) Trading securities losses, net $ (47 ) |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities at December 31, 2018, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 481 486 Due after five years through ten years 11,894 11,563 Due after ten years 58,032 56,311 Total 70,407 68,360 U.S. Government-sponsored mortgage-backed and related securities 71,182 68,563 Total investment securities available for sale $ 141,589 $ 136,923 |
Proceeds and Gains or Losses Realized on Available for Sale Securities Sold or Called | The following table sets forth the proceeds, gains and losses realized on securities sold or called for each of the years ended December 31: (Amounts in thousands) 2018 2017 2016 Proceeds on securities sold $ 21,418 $ 44,801 $ 50,862 Gross realized gains 123 524 725 Gross realized losses 144 517 259 |
Fair Value of Securities with Unrealized Losses and an Aging of those Unrealized Losses | The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2018: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ 3,280 $ 6 $ 2,755 $ 245 $ 6,035 $ 251 Obligations of states and political subdivisions 23,616 567 24,607 988 48,223 1,555 U.S. Government-sponsored mortgage-backed securities 1,598 18 54,989 2,465 56,587 2,483 U.S. Government-sponsored collateralized mortgage obligations — — 5,350 177 5,350 177 U.S. Government-guaranteed small business administration pools — — 7,700 278 7,700 278 Total $ 28,494 $ 591 $ 95,401 $ 4,153 $ 123,895 $ 4,744 The above table represents 121 investment securities where the fair value is less than the related amortized cost. The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2017: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ — $ — $ 2,860 $ 140 $ 2,860 $ 140 Obligations of states and political subdivisions 7,430 24 18,066 300 25,496 324 U.S. Government-sponsored mortgage-backed securities 24,888 241 40,968 1,163 65,856 1,404 U.S. Government-sponsored collateralized mortgage obligations — — 6,302 161 6,302 161 U.S. Government-guaranteed small business administration pools 2,532 38 7,123 218 9,655 256 Trust preferred securities — — 895 723 895 723 Total $ 34,850 $ 303 $ 76,214 $ 2,705 $ 111,064 $ 3,008 |
Other than Temporary Impairment Credit Losses Recognized in Earnings | The following provides a cumulative rollforward of credit losses recognized in earnings for trust preferred securities held. (Amounts in thousands) December 31, 2018 2017 2016 Beginning balance $ 140 $ 140 $ 140 Reduction for debt securities for which other-than-temporary impairment has been previously recognized and there is no related other comprehensive income — — — Credit losses on debt securities for which other-than-temporary impairment has not been previously recognized — — — Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized — — — Sale of debt securities (140 ) — — Ending balance $ — $ 140 $ 140 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Composition of the Loan Portfolio | The following represents the composition of the loan portfolio for the period ending: (Amounts in thousands) December 31, 2018 2017 Balance % Balance % Commercial $ 112,440 21.9 $ 113,341 23.3 Commercial real estate 303,804 59.0 283,135 58.1 Residential real estate 69,845 13.6 62,071 12.7 Consumer - home equity 25,076 4.9 26,018 5.3 Consumer - other 3,227 0.6 2,925 0.6 Total loans $ 514,392 $ 487,490 |
Certain Qualitative Factors Considered in Measuring Risk Trends | These factors include, but are not limited to, the following: Factor Considered: Risk Trend: Levels of and trends in charge-offs, classifications and non-accruals Stable Trends in volume and terms Stable Changes in lending policies and procedures Stable Experience, depth and ability of management, including loan review function Stable Economic trends, including valuation of underlying collateral Increasing Concentrations of credit Decreasing |
Factors Analyzed and Applied to Loans Internally Graded with Higher Credit Risk | The following factors are analyzed and applied to loans internally graded with higher risk credit in addition to the above factors for non-classified loans: Factor Considered: Risk Trend: Levels and trends in classification Stable Declining trends in financial performance Stable Structure and lack of performance measures Stable Migration between risk categories Stable |
Analysis of Changes in the Allowance for Loan Losses | The following is an analysis of changes in the allowance for loan losses for the periods ended: (Amounts in thousands) December 31, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 Loan charge-offs (1,163 ) — — — (175 ) (1,338 ) Recoveries — 166 3 5 59 233 Net loan recoveries (charge-offs) (1,163 ) 166 3 5 (116 ) (1,105 ) Provision charged to operations 804 (454 ) 194 40 141 725 Balance at end of period $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 (Amounts in thousands) December 31, 2017 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,394 $ 3,072 $ 163 $ 150 $ 89 $ 4,868 Loan charge-offs — (654 ) (14 ) (26 ) (146 ) (840 ) Recoveries 388 — 5 10 47 450 Net loan recoveries (charge-offs) 388 (654 ) (9 ) (16 ) (99 ) (390 ) Provision charged to operations (191 ) 284 (37 ) (64 ) 108 100 Balance at end of period $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 (Amounts in thousands) December 31, 2016 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,977 $ 2,926 $ 153 $ 52 $ 86 $ 5,194 Loan charge-offs — (287 ) (35 ) (144 ) (148 ) (614 ) Recoveries 117 35 2 23 61 238 Net loan recoveries (charge-offs) 117 (252 ) (33 ) (121 ) (87 ) (376 ) Provision charged to operations (700 ) 398 43 219 90 50 Balance at end of period $ 1,394 $ 3,072 $ 163 $ 150 $ 89 $ 4,868 |
Allowance for Loan Losses and the Recorded Investment in Loans | The following tables present a full breakdown by portfolio classification, the changes in the allowance for loan losses and the recorded investment in loans for the periods ended December 31, 2018 and 2017: (Amounts in thousands) December 31, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,232 2,414 314 115 123 4,198 Total ending allowance balance $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 Loan Portfolio: Individually evaluated for impairment $ 5,364 $ 4,340 $ — $ — $ — $ 9,704 Collectively evaluated for impairment 107,076 299,464 69,845 25,076 3,227 504,688 Total ending loan balance $ 112,440 $ 303,804 $ 69,845 $ 25,076 $ 3,227 $ 514,392 (Amounts in thousands) December 31, 2017 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 625 $ — $ — $ — $ — $ 625 Collectively evaluated for impairment 966 2,702 117 70 98 3,953 Total ending allowance balance $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 Loan Portfolio: Individually evaluated for impairment $ 5,581 $ 4,664 $ — $ — $ — $ 10,245 Collectively evaluated for impairment 107,760 278,471 62,071 26,018 2,925 477,245 Total ending loan balance $ 113,341 $ 283,135 $ 62,071 $ 26,018 $ 2,925 $ 487,490 |
Summary of Credit Quality Indicators by Internally Assigned Grade | The following is a summary of credit quality indicators by internally assigned grade as of December 31, 2018 and 2017. (Amounts in thousands) Commercial Commercial real estate December 31, 2018 Pass $ 94,316 $ 271,370 Special Mention 6,914 25,199 Substandard 11,210 7,235 Doubtful — — Ending Balance $ 112,440 $ 303,804 (Amounts in thousands) Commercial Commercial real estate December 31, 2017 Pass $ 100,436 $ 252,960 Special Mention 4,836 24,307 Substandard 8,069 5,868 Doubtful — — Ending Balance $ 113,341 $ 283,135 |
Summary of Consumer Credit Exposure | The following is a summary of consumer credit exposure as of December 31, 2018 and 2017. (Amounts in thousands) Residential real estate Consumer - home equity Consumer- other December 31, 2018 Performing $ 69,535 $ 24,956 $ 3,227 Nonperforming 310 120 — Total $ 69,845 $ 25,076 $ 3,227 (Amounts in thousands) Residential real estate Consumer - home equity Consumer- other December 31, 2017 Performing $ 61,824 $ 25,889 $ 2,925 Nonperforming 247 129 — Total $ 62,071 $ 26,018 $ 2,925 |
Summary of Classes of Loans on Non-Accrual Status | The following is a summary of classes of loans on non-accrual status as of: (Amounts in thousands) December 31, 2018 2017 Commercial $ 1,291 $ — Commercial real estate 512 506 Residential real estate 310 247 Consumer: Consumer - home equity 120 129 Consumer - other — — Total $ 2,233 $ 882 |
Information Related to Loans Modified in a TDR | There were no loans modified as TDRs during the years ended December 31, 2017 and 2016. The following presents, by class, information related to loans modified in a TDR during the period ended December 31, 2018. (Dollar amounts in thousands) December 31, 2018 Number of contracts Pre-modification recorded investment Post- modification recorded investment Increase in the allowance Commercial 7 $ 5,373 $ 4,210 $ — Total restructured loans 7 $ 5,373 $ 4,210 $ — Subsequently defaulted — $ — |
Aging Analysis of the Recorded Investment of Past Due Loans | The following is an aging analysis of the recorded investment of past due loans as of the periods ended December 31, 2018 and 2017: (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing December 31, 2018 Commercial $ 14 $ — $ 1,291 $ 1,305 $ 111,135 $ 112,440 $ — Commercial real estate — — 167 167 303,637 303,804 — Residential real estate 36 182 257 475 69,370 69,845 — Consumer: Consumer - home equity — 141 25 166 24,910 25,076 — Consumer - other 17 — — 17 3,210 3,227 — Total $ 67 $ 323 $ 1,740 $ 2,130 $ 512,262 $ 514,392 $ — (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing December 31, 2017 Commercial $ — $ — $ — $ — $ 113,341 $ 113,341 $ — Commercial real estate 173 12 390 575 282,560 283,135 — Residential real estate 240 29 216 485 61,586 62,071 — Consumer: Consumer - home equity — 82 28 110 25,908 26,018 — Consumer - other 15 — — 15 2,910 2,925 — Total $ 428 $ 123 $ 634 $ 1,185 $ 486,305 $ 487,490 $ — |
Recorded Investment, Unpaid Principal Balances, Average Recorded Investments and Interest Recognized on Impaired Loans, Excluding Homogenous Loans for Which Impaired Analyses are Not Necessarily Performed | The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at December 31, 2018 and 2017. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the years ended December 31, 2018, 2017 and 2016. (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2018 With no related allowance recorded: Commercial $ 5,364 $ 6,411 $ — Commercial real estate 4,340 4,340 — With an allowance recorded: Commercial — — — Commercial real estate — — — Total: Commercial $ 5,364 $ 6,411 $ — Commercial real estate $ 4,340 $ 4,340 $ — (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2017 With no related allowance recorded: Commercial $ 65 $ 65 $ — Commercial real estate 4,664 4,742 — With an allowance recorded: Commercial 5,516 5,516 625 Commercial real estate — — — Total: Commercial $ 5,581 $ 5,581 $ 625 Commercial real estate $ 4,664 $ 4,742 $ — (Amounts in thousands) Average Recorded Investment Interest Income Recognized December 31, 2018 With no related allowance recorded: Commercial $ 4,231 $ 25 Commercial real estate 4,405 293 With an allowance recorded: Commercial 911 46 Commercial real estate — — Total: Commercial $ 5,142 $ 71 Commercial real estate $ 4,405 $ 293 (Amounts in thousands) Average Recorded Investment Interest Income Recognized December 31, 2017 With no related allowance recorded: Commercial $ 85 $ 6 Commercial real estate 5,062 291 With an allowance recorded: Commercial 460 — Commercial real estate 527 — Total: Commercial $ 545 $ 6 Commercial real estate $ 5,589 $ 291 (Amounts in thousands) Average Recorded Investment Interest Income Recognized December 31, 2016 With no related allowance recorded: Commercial $ 146 $ 8 Commercial real estate 6,072 335 With an allowance recorded: Commercial 279 — Commercial real estate 1,209 85 Total: Commercial $ 425 $ 8 Commercial real estate $ 7,281 $ 420 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | The following is a summary of premises and equipment: (Amounts in thousands) December 31, 2018 2017 Land $ 2,984 $ 2,746 Premises 10,346 9,914 Equipment 10,760 9,711 Leasehold improvements 480 264 Total premises and equipment 24,570 22,635 Less accumulated depreciation 14,368 13,597 Net book value $ 10,202 $ 9,038 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Summary of Interest-Bearing Deposits | The following is a summary of interest-bearing deposits: (Amounts in thousands) December 31, 2018 2017 Demand $ 54,901 $ 50,410 Money market 179,430 171,783 Savings 111,837 113,078 Time: In denominations $250,000 or under 101,146 108,761 In denominations of over $250,000 20,219 18,528 Total $ 467,533 $ 462,560 |
Stated Maturities of Time Deposits | Stated maturities of time deposits were as follows: (Amounts in thousands) 2018 2019 $ 67,197 2020 18,716 2021 16,135 2022 8,025 2023 5,987 2024 and beyond 5,305 Total $ 121,365 |
Summary of Time Deposits of One Hundred Thousand or More by Remaining Maturities | The following is a summary of time deposits of $100,000 or more by remaining maturities: (Amounts in thousands) December 31, 2018 Certificates of Deposit Other Time Deposits Total Three months or less $ 8,647 $ 9,530 $ 18,177 Three to six months 6,377 1,151 7,528 Six to twelve months 6,058 2,034 8,092 One through five years 18,295 3,311 21,606 Over five years 1,650 539 2,189 Total $ 41,027 $ 16,565 $ 57,592 |
Federal Home Loan Bank (FHLB)_2
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Federal Home Loan Bank F H L B Advances And Other Borrowings Details [Line Items] | |
Summary of FHLB Advances and Other Short-Term Borrowings | The following is a summary of FHLB advances and other short-term borrowings: (Amounts in thousands) December 31, Weighted Average Interest Rate 2018 2017 FHLB advances - long-term: Fixed rate payable and convertible fixed rate FHLB advances, with monthly interest payments: Due in 2018 $ — $ 4,000 Due in 2019 1.60 % 6,000 6,000 Due in 2020 2.04 % 6,000 4,000 Due in 2021 2.65 % 4,000 — Total FHLB advances - long-term 2.03 % 16,000 14,000 FHLB advances - short-term: Short-term 2.47 % 8,000 12,000 Cash management 2.46 % 4,000 20,000 Total FHLB advances - short-term 2.47 % 12,000 32,000 Total FHLB advances 2.22 % 28,000 46,000 Other short-term borrowings: Securities sold under repurchase agreements 0.34 % 2,206 2,678 Total FHLB advances and other short-term borrowings 2.08 % $ 30,206 $ 48,678 |
Summary of Other Short Term Borrowings | The following is a summary of other short-term borrowings: (Amounts in thousands) 2018 2017 2016 Average balance during the year $ 1,679 $ 2,018 $ 2,249 Average interest rate during the year 0.33 % 0.33 % 0.31 % Maximum month-end balance during the year $ 2,206 $ 2,678 $ 3,608 Weighted average interest rate at year end 0.34 % 0.34 % 0.33 % The following table provides additional detail regarding other short-term borrowings: (Amounts in thousands) Repurchase Agreements (Sweep) Accounted for as Secured Borrowings At December 31, 2018 At December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Overnight and Continuous Repurchase agreements: U.S. Government-sponsored mortgage-backed securities $ 3,066 $ 3,414 Total collateral carrying value $ 3,066 $ 3,414 Total short-term borrowings $ 2,206 $ 2,678 |
Federal Home Loan Bank Advances | |
Disclosure Federal Home Loan Bank F H L B Advances And Other Borrowings Details [Line Items] | |
Summary of Other Short Term Borrowings | The following is a summary of FHLB advances – short term: (Amounts in thousands) 2018 2017 2016 Average balance during the year $ 18,899 $ 16,917 $ 13,550 Average interest rate during the year 1.98 % 1.03 % 0.54 % Maximum month-end balance during the year $ 30,000 $ 32,000 $ 23,000 Weighted average interest rate at year end 2.47 % 1.38 % 0.59 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Remaining Future Minimum Lease Payments | The following is a summary of remaining future minimum lease payments under current non-cancelable operating leases for office facilities: (Amounts in thousands) Years ending: December 31, 2019 $ 177 December 31, 2020 169 December 31, 2021 116 December 31, 2022 54 December 31, 2023 44 Later years 117 Total $ 677 |
Summary of Contractual Commitments | The following is a summary of such contractual commitments: (Amounts in thousands) December 31, 2018 2017 Commitments to extend credit: Fixed rate $ 31,225 $ 32,749 Variable rate 74,050 60,508 Standby letters of credit 3,455 3,600 |
Summary of Overdraft Protection | The following table is a summary of overdraft protection for the periods indicated: (Amounts in thousands) December 31, 2018 2017 Overdraft protection available on depositors' accounts $ 8,708 $ 9,637 Balance of overdrafts included in loans 116 103 Average daily balance of overdrafts 104 115 Average daily balance of overdrafts as a percentage of available 1.19 % 1.19 % |
Summary of Information Regarding Derivatives | Summary information regarding these derivatives is presented below: (Amounts in thousands) Notional Amount Fair Value December 31, December 31, 2018 2017 Interest Rate Paid Interest Rate Received 2018 2017 Customer interest rate swap Maturing in 2020 $ 2,410 $ 2,504 1 Mo. Libor + Margin Fixed $ (30 ) $ (16 ) Maturing in 2025 4,930 5,288 1 Mo. Libor + Margin Fixed (28 ) 36 Maturing in 2026 1,946 2,064 1 Mo. Libor + Margin Fixed (64 ) (44 ) Maturing in 2027 13,790 14,197 1 Mo. Libor + Margin Fixed (54 ) 209 Maturing in 2028 6,395 — 1 Mo. Libor + Margin Fixed 268 — Total $ 29,471 $ 24,053 $ 92 $ 185 Third party interest rate swap Maturing in 2020 $ 2,410 $ 2,504 Fixed 1 Mo. Libor + Margin $ 30 $ 16 Maturing in 2025 4,930 5,288 Fixed 1 Mo. Libor + Margin 28 (36 ) Maturing in 2026 1,946 2,064 Fixed 1 Mo. Libor + Margin 64 44 Maturing in 2027 13,790 14,197 Fixed 1 Mo. Libor + Margin 54 (209 ) Maturing in 2028 6,395 — Fixed 1 Mo. Libor + Margin (268 ) — Total $ 29,471 $ 24,053 $ (92 ) $ (185 ) |
Schedule of Fair Values of Derivative Instruments | The following table presents the fair values of derivative instruments in the Consolidated Balance Sheet. (Amounts in thousands) Assets Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value December 31, 2018 Interest rate derivatives Other assets $ 92 Other liabilities $ 92 December 31, 2017 Interest rate derivatives Other assets $ 185 Other liabilities $ 185 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Reconcilement of the Accumulated Liability for the Benefit Obligation | The following table reconciles the accumulated liability for the benefit obligation of these agreements: (Amounts in thousands) Years Ended December 31, 2018 2017 2016 Beginning balance $ 3,182 $ 2,957 $ 2,760 Benefit expense 445 387 359 Benefit payments (162 ) (162 ) (162 ) Ending balance $ 3,465 $ 3,182 $ 2,957 |
Other Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
Reconcilement of the Accumulated Liability for the Benefit Obligation | The following table presents the changes in the accumulated liability. (Amounts in thousands) December 31, 2018 2017 2016 Beginning balance $ 876 $ 840 $ 856 Expense recorded 23 50 23 Other comprehensive income recorded (68 ) (14 ) (39 ) Ending balance $ 831 $ 876 $ 840 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Composition of income tax expense (benefit) | The composition of income tax expense is as follows: (Amounts in thousands) Years Ended December 31 , 2018 2017 2016 Current $ 407 $ 1,199 $ 1,256 Deferred 1,008 (28 ) (129 ) Change in corporate tax rate — 1,246 — Total $ 1,415 $ 2,417 $ 1,127 |
Summary of net deferred taxes included in other assets | The following is a summary of net deferred taxes included in other assets: (Amounts in thousands) December 31, 2018 2017 Gross deferred tax assets: Allowance for loan and other real estate losses $ 882 $ 961 Deferred loan origination cost - net 232 234 Impairment loss on securities — 29 Deferred compensation 727 668 Capital loss carryforward 28 — AMT credit carryforward — 904 Unrealized loss on available-for-sale securities 980 475 Other items 390 333 Total gross deferred tax assets 3,239 3,604 Valuation allowance (28 ) — Total net deferred tax assets 3,211 3,604 Gross deferred tax liabilities: Premises and equipment (477 ) (362 ) Other items (320 ) (325 ) Total net deferred tax liabilities (797 ) (687 ) Net deferred tax asset $ 2,414 $ 2,917 |
Reconciliation of the valuation allowance for net deferred tax assets | The following is a reconciliation of the valuation allowance for net deferred tax assets: (Amounts in thousands) December 31, 2018 2017 Valuation allowance at beginning of year $ — $ — Capital loss carryover 28 — Valuation allowance at end of year $ 28 $ — |
Reconciliation between tax expense using the statutory tax rate of 21% and 34% and the income tax provision | The following is a reconciliation between tax expense using the statutory tax rate of 21% for 2018 and 34% for 2017 and 2016 and the income tax provision: (Amounts in thousands) Years Ended December 31 , 2018 2017 2016 Statutory tax expense $ 2,153 $ 2,301 $ 2,039 Tax effect of non-taxable interest income (319 ) (663 ) (628 ) Tax effect of earnings on bank-owned life insurance-net (403 ) (414 ) (112 ) Tax effect of deferred tax valuation (reversal) provision 28 — (94 ) Change in corporate tax rate (1) — 1,246 — Tax effect of low-income housing credits (140 ) (149 ) (142 ) Tax effect of non-deductible expenses 96 96 64 Federal income tax expense $ 1,415 $ 2,417 $ 1,127 (1) The tax act lowers the base corporate tax rate from 35% to 21% which was applied to the existing deferred tax balance. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets Reported on Consolidated Balance Sheets at their Fair Value | The following table presents the assets reported on the consolidated balance sheets at their fair value as of December 31, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. (Amounts in thousands) Fair Value Measurements at December 31, 2018 Using Description December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS U.S. Government agencies and corporations $ 9,002 $ — $ 9,002 $ — Obligations of states and political subdivisions 51,658 — 51,658 — U.S. Government-sponsored mortgage-backed securities 56,587 — 56,587 — U.S. Government-sponsored collateralized mortgage obligations 11,976 — 11,976 — U.S. Government-guaranteed small business administration pools 7,700 — 7,700 — Loans held for sale 1,040 1,040 — — Interest rate derivatives 92 — 92 — LIABILITIES Interest rate derivatives $ 92 $ — $ 92 $ — (Amounts in thousands) Fair Value Measurements at December 31, 2017 Using Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS U.S. Government agencies and corporations $ 3,205 $ — $ 3,205 $ — Obligations of states and political subdivisions 72,116 — 72,116 — U.S. Government-sponsored mortgage-backed securities 67,668 — 67,668 — U.S. Government-sponsored collateralized mortgage obligations 6,302 — 6,302 — U.S. Government-guaranteed small business administration pools 9,655 — 9,655 — Trust preferred securities 895 — — 895 Loans held for sale 2,780 2,780 — — Interest rate derivatives 185 — 185 — LIABILITIES Interest rate derivatives $ 185 $ — $ 185 $ — |
Changes in the Level 3 Fair Value Category | The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2018, 2017 and 2016. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. (Amounts in thousands) December 31, 2018 2017 2016 Trust preferred securities Trust preferred securities Trust preferred securities Beginning balance $ 895 $ 825 $ 778 Net realized/unrealized gains/(losses) included in: Noninterest income — — — Other comprehensive income 723 72 67 Discount accretion (premium amortization) — — — Sales (1,618 ) — — Purchases, issuance, and settlements — (2 ) (20 ) Ending balance $ — $ 895 $ 825 Losses included in net income for the period relating to assets held at period end $ — $ — $ — |
Breakdown of Trust Preferred Securities | The following table details the breakdown of trust preferred securities for the periods indicated: (Dollar amounts in thousands) December 31, 2017 Total number of trust preferred securities 2 Par value $ 1,939 Number not considered OTTI 1 Par value $ 903 Number considered OTTI 1 Par value $ 1,036 Life-to-date impairment recognized in earnings $ 140 Life-to-date impairment recognized in other comprehensive income 723 Total life-to-date impairment $ 863 |
Trust Preferred Security with OTTI, its Credit Rating at Period End and Related Losses Recognized in Earnings | The following table details the one debt security with other-than-temporary impairment, its credit rating at December 31, 2017 and the related losses recognized in earnings: (Dollar amounts in thousands) Moody’s/Fitch Rating Amount of OTTI related to credit loss at January 1, 2017 Additions March 31, 2017 Additions in QTD June 30, 2017 Additions in QTD September 30, 2017 Additions in QTD December 31, 2017 Amount of OTTI related to credit loss at December 31, 2017 Trapeza IX B-1 Caa2/CC $ 140 $ — $ — $ — $ — $ 140 |
Additional Information Related to the Company's Trust Preferred Securities | The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2017 used to evaluate other-than-temporary impairments: (Dollar amounts in thousands) Deal Class Amortized Cost Fair Value Unrealized Gain/(Loss) Moody’s/ Fitch Rating Number of Issuers Currently Performing Deferrals and Defaults as a % of Current Collateral Excess Subordination as a % of Current Performing Collateral PreTSL XXIII C-2 $ 758 $ 336 $ (422 ) Ba1/CCC 90 20.9 % 7.12 % Trapeza IX B-1 860 559 (301 ) Caa2/CC 30 14.0 — Total $ 1,618 $ 895 $ (723 ) |
Assets Measured on a Nonrecurring Basis on the Consolidated Balance Sheets at their Fair Value | The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of December 31, 2017, by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include: quoted market prices for identical assets classified as Level 1 inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level 2 inputs. In cases where valuation techniques include inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level 3 inputs. Other real estate owned is carried at the lower of cost or fair value less estimated costs to sell. There were no impaired loans carried at fair value in 2018. (Amounts in thousands) December 31, 2017 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Impaired loans $ — $ — $ 9,620 $ 9,620 |
Carrying Amounts and Estimated Fair Values of the Company's Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: (Amounts in thousands) December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 19,692 $ 19,692 $ — $ — $ 19,692 Investment securities available-for-sale 136,923 — 136,923 — 136,923 Loans held for sale 1,040 1,040 — — 1,040 Loans 510,194 — — 513,103 513,103 Bank-owned life insurance 15,711 15,711 — — 15,711 Accrued interest receivable 2,255 2,255 — — 2,255 Interest rate derivatives 92 — 92 — 92 LIABILITIES: Demand, savings and money market deposits $ 483,054 $ 483,054 $ — $ — $ 483,054 Time deposits 121,365 — — 122,295 122,295 Short-term borrowings 2,206 2,206 — — 2,206 Federal Home Loan Bank advances - short term 12,000 — — 11,987 11,987 Federal Home Loan Bank advances - long term 16,000 — — 15,880 15,880 Subordinated debt 5,155 — — 4,620 4,620 Accrued interest payable 371 371 — — 371 Interest rate derivatives 92 — 92 — 92 (Amounts in thousands) December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 19,125 $ 19,125 $ — $ — $ 19,125 Investment securities available-for-sale 159,841 — 158,946 895 159,841 Loans held for sale 2,780 2,780 — — 2,780 Loans 482,912 — — 486,230 486,230 Bank-owned life insurance 17,650 17,650 — — 17,650 Accrued interest receivable 2,193 2,193 — — 2,193 Interest rate derivatives 185 — 185 — 185 LIABILITIES: Demand, savings and money market deposits $ 458,562 $ 458,562 $ — $ — $ 458,562 Time deposits 127,289 — — 128,624 128,624 Short-term borrowings 2,678 2,678 — — 2,678 Federal Home Loan Bank advances - short term 32,000 — — 31,982 31,982 Federal Home Loan Bank advances - long term 14,000 — — 13,880 13,880 Subordinated debt 5,155 — — 4,785 4,785 Accrued interest payable 325 325 — — 325 Interest rate derivatives 185 — 185 — 185 |
Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2017. (Amounts Fair value at December 31, 2017 Valuation Technique Significant Unobservable Input Description of Inputs Trust preferred securities $ 895 Discounted Cash Flow Projected Prepayments 1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital. All fixed rate within one year; variable rate at increasing intervals depending on spread. 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. 3) 1% annually for all other fixed rate issues and all variable rate issues. 4) Zero for collateral issued by REITs and 2% for insurance companies. Projected Defaults 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. 3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings. Projected Cures 1) Deferring issuers that have definitive agreements to either be acquired or recapitalized. Projected Recoveries 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. Discount Rates 1) Ranging from ~9.10% to ~14.74%, depending on each bond's seniority and remaining subordination after projected losses. Impaired loans 4,891 Cash Flow Discount Rates Range 4.50% to 5.38% Weighted average 4.88 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss or Income | The following table presents the changes in accumulated other comprehensive loss or income by component net of tax for the years ended December 31, 2018, 2017 and 2016. (Amounts in thousands) Unrealized gains (losses) on available-for-sale securities (a) Change in pension and postretirement obligations (a) Balance as of December 31, 2015 $ (147 ) $ (91 ) Other comprehensive (loss) income before reclassification (2,454 ) 39 Amount reclassified from accumulated other comprehensive loss (308 ) — Total other comprehensive income (2,762 ) 39 Balance as of December 31, 2016 $ (2,909 ) $ (52 ) Other comprehensive income before reclassification 1,420 14 Reclassification of certain income tax effects from accumulated other comprehensive income (294 ) — Amount reclassified from accumulated other comprehensive loss (4 ) — Total other comprehensive income 1,122 14 Balance as of December 31, 2017 $ (1,787 ) $ (38 ) Other comprehensive (loss) income before reclassification (1,916 ) 68 Amount reclassified from accumulated other comprehensive loss 17 — Total other comprehensive (loss) income (1,899 ) 68 Balance as of December 31, 2018 $ (3,686 ) $ 30 (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Schedule of Reclassifications out of Each Component of Accumulated Other Comprehensive Loss or Income | The following table presents significant amounts reclassified out of each component of accumulated other comprehensive loss or income for the years ended December 31, 2018, 2017 and 2016. (Amounts in thousands) December 31, 2018 2017 2016 Amount accumulated other comprehensive Amount accumulated other comprehensive Amount accumulated other comprehensive Affected statement where net income is presented Details about other comprehensive income or loss: Unrealized gains on available-for-sale securities $ (21 ) $ 7 $ 466 Investment securities available-for-sale (losses) gains, net 4 (3 ) (158 ) Federal income tax expense $ (17 ) $ 4 $ 308 (a) Amounts in parentheses indicate debits to net income. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Regulatory Capital Requirement | At December 31, 2018 and December 31, 2017, actual capital levels and minimum required levels for the Company, if it were not covered by the Small Bank Holding Company Policy, were: (Amounts in thousands) Actual Minimum required for capital adequacy purposes December 31, 2018 Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets) $ 68,574 12.01 % $ 25,700 4.5 % Tier 1 capital (to risk-weighted assets) 73,574 12.88 % 34,267 6.0 % Total capital (to risk-weighted assets) 77,856 13.63 % 45,689 8.0 % Tier 1 capital (to average assets) 73,574 10.72 % 27,452 4.0 % (Amounts in thousands) Actual Minimum required for capital adequacy purposes December 31, 2017 Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets) $ 63,455 11.97 % $ 23,864 4.5 % Tier 1 capital (to risk-weighted assets) 68,455 12.91 % 31,819 6.0 % Total capital (to risk-weighted assets) 73,116 13.79 % 42,425 8.0 % Tier 1 capital (to average assets) 68,455 10.77 % 25,416 4.0 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Analysis of Related Party Loan | Certain directors, executive officers and companies with whom they are affiliated were loan customers during 2018. The following is an analysis of such loans: (Amounts in thousands) Total related-party loans at December 31, 2017 $ 4,230 New related-party loans 2,997 Repayments or other (2,765 ) Total related-party loans at December 31, 2018 $ 4,462 |
Condensed Financial Informati_2
Condensed Financial Information Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | BALANCE SHEETS (Amounts in thousands) December 31, 2018 2017 ASSETS Cash $ 240 $ 261 Investment in bank subsidiary 61,272 58,028 Subordinated note from subsidiary bank 6,000 6,000 Other assets 3,538 3,489 Total assets $ 71,050 $ 67,778 LIABILITIES Other liabilities $ 977 $ 993 Subordinated debt (Note 7) 5,155 5,155 Total liabilities 6,132 6,148 SHAREHOLDERS’ EQUITY Common stock 23,641 23,641 Additional paid-in capital 20,984 20,928 Retained earnings 31,089 24,403 Accumulated other comprehensive loss (3,656 ) (1,825 ) Treasury stock (7,140 ) (5,517 ) Total shareholders’ equity 64,918 61,630 Total liabilities & shareholders’ equity $ 71,050 $ 67,778 |
Condensed Statement of Comprehensive Income | STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) Years ended December 31 , 2018 2017 2016 Dividends from bank subsidiary $ 4,150 $ 1,900 $ 1,400 Interest and dividend income 213 153 121 Other income 56 58 60 Interest on subordinated debt (189 ) (138 ) (112 ) Other expenses (606 ) (568 ) (497 ) Income before income tax and equity in undistributed earnings of subsidiaries 3,624 1,405 972 Income tax benefit 136 106 265 Equity in undistributed earnings of subsidiaries 5,075 2,839 3,634 Net income $ 8,835 $ 4,350 $ 4,871 Comprehensive income $ 7,004 $ 5,780 $ 2,148 |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS (Amounts in thousands) Years ended December 31 , 2018 2017 2016 Cash flow from operating activities Net income $ 8,835 $ 4,350 $ 4,871 Adjustments to reconcile net income to net cash flow from operating activities: Equity in undistributed earnings of subsidiaries (5,075 ) (2,839 ) (3,634 ) Deferred tax benefit (13 ) 62 (15 ) Equity compensation 214 143 75 Change in other assets and liabilities (52 ) 188 138 Net cash flow from operating activities 3,909 1,904 1,435 Cash deficit from financing activities Dividends paid (2,149 ) (1,726 ) (1,237 ) Treasury shares purchased (1,781 ) (237 ) — Net cash deficit from financing activities (3,930 ) (1,963 ) (1,237 ) Net change in cash (21 ) (59 ) 198 Cash Beginning of year 261 320 122 End of year $ 240 $ 261 $ 320 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Omnibus Equity Plan | |
Schedule of Nonvested Restricted Stock Units Activity | The following is the activity under the Omnibus Equity Plan during the period ended December 31, 2018: Restricted Stock Units Units Price at Grant Date Nonvested at January 1, 2018 20,814 $ 17.02 Granted 12,593 22.01 Vested (8,359 ) 16.71 Forfeited (1,457 ) 18.92 Nonvested at December 31, 2018 23,591 $ 19.68 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Number of operating segment | Segment | 1 | |
Loan is placed on non-accrual status | 90 days | |
Loans delinquent period for impairment evaluation | 90 days | |
Number of days before charge down/charge off for consumer loans | 180 days | |
Charge off period for loans other than consumer | 90 days | |
Bank owned life insurance to tier one capital percentage | 15.00% | |
Securities classified as held-to-maturity or trading | $ 0 | |
ASU 2016-02 | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Impact of new accounting principal adoption on balance sheet | $ 2,000,000 | |
New Accounting Pronouncement, Early Adoption, Effect | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Impact of new accounting principal adoption on balance sheet | $ 294,000 | |
Minimum | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Estimated useful lives | 5 years | |
Maximum | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Estimated useful lives | 40 years | |
Maximum | ASU 2016-02 | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Anticipated increase in assets, in percent | 0.30% | |
Anticipated increase in liabilities, in percent | 0.30% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Computation of basic earnings per common share | |||
Net income | $ 8,835 | $ 4,350 | $ 4,871 |
Weighted average common shares outstanding | 4,357,760 | 4,407,254 | 4,406,005 |
Net effect of dilutive common share equivalents | 6,474 | 4,220 | 1,264 |
Adjusted average shares outstanding - dilutive | 4,364,234 | 4,411,474 | 4,407,269 |
Basic earnings per share | $ 2.03 | $ 0.99 | $ 1.11 |
Dilutive earnings per share | $ 2.03 | $ 0.99 | $ 1.11 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
NON-INTEREST INCOME | |||
Total non-interest income | $ 5,692 | $ 5,166 | $ 4,597 |
Non-interest income (out-of-scope of Topic 606) | |||
NON-INTEREST INCOME | |||
Total non-interest income | 3,419 | ||
Accounting Standards Update 2014-09 | |||
NON-INTEREST INCOME | |||
Non-interest income (in-scope to Topic 606) | 2,273 | ||
Accounting Standards Update 2014-09 | Overdraft Fees | |||
NON-INTEREST INCOME | |||
Non-interest income (in-scope to Topic 606) | 1,084 | ||
Accounting Standards Update 2014-09 | Service Charges | |||
NON-INTEREST INCOME | |||
Non-interest income (in-scope to Topic 606) | 408 | ||
Accounting Standards Update 2014-09 | Other Fees | |||
NON-INTEREST INCOME | |||
Non-interest income (in-scope to Topic 606) | 16 | ||
Accounting Standards Update 2014-09 | Fees, Exchange, and Other Service Charges | |||
NON-INTEREST INCOME | |||
Non-interest income (in-scope to Topic 606) | $ 765 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | $ 141,589 | $ 162,102 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains | 78 | 747 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 4,744 | 3,008 |
Available-for-sale securities and Regulatory Stock, Fair Value | 136,923 | 159,841 |
U.S. Government agencies and corporations | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 9,242 | 3,344 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains | 11 | 1 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 251 | 140 |
Available-for-sale securities and Regulatory Stock, Fair Value | 9,002 | 3,205 |
Obligations of states and political subdivisions | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 53,187 | 71,700 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains | 26 | 740 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 1,555 | 324 |
Available-for-sale securities and Regulatory Stock, Fair Value | 51,658 | 72,116 |
U.S. Government-sponsored mortgage-backed securities | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 59,070 | 69,066 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains | 6 | |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 2,483 | 1,404 |
Available-for-sale securities and Regulatory Stock, Fair Value | 56,587 | 67,668 |
U.S. Government-sponsored collateralized mortgage obligations | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 12,112 | 6,463 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains | 41 | |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 177 | 161 |
Available-for-sale securities and Regulatory Stock, Fair Value | 11,976 | 6,302 |
U.S. Government-guaranteed small business administration pools | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 7,978 | 9,911 |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 278 | 256 |
Available-for-sale securities and Regulatory Stock, Fair Value | 7,700 | 9,655 |
Trust preferred securities | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 1,618 | |
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses | 723 | |
Available-for-sale securities and Regulatory Stock, Fair Value | 895 | |
Federal Home Loan Bank (FHLB) stock | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 2,355 | 2,355 |
Available-for-sale securities and Regulatory Stock, Fair Value | 2,355 | 2,355 |
Federal Reserve Bank (FRB) stock | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 226 | 226 |
Available-for-sale securities and Regulatory Stock, Fair Value | 226 | 226 |
Total regulatory stock | ||
Summary of investment securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | 2,581 | 2,581 |
Available-for-sale securities and Regulatory Stock, Fair Value | $ 2,581 | $ 2,581 |
Investment Securities (Details
Investment Securities (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Net realized losses | $ (47) |
Trading securities losses, net | $ (47) |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost and fair value of debt securities by contractual maturity | ||
Amortized Cost, Due after one year through five years | $ 481 | |
Amortized Cost, Due after five years through ten years | 11,894 | |
Amortized Cost, Due after ten years | 58,032 | |
Amortized Cost, Total | 70,407 | |
Total investment securities available for sale, Amortized Cost | 141,589 | $ 162,102 |
Fair Value, Due after one year through five years | 486 | |
Fair Value, Due after five years through ten years | 11,563 | |
Fair Value, Due after ten years | 56,311 | |
Fair Value, Total | 68,360 | |
Total investment securities available for sale, Fair Value | 136,923 | $ 159,841 |
U.S. Government-sponsored mortgage-backed and related securities | ||
Amortized cost and fair value of debt securities by contractual maturity | ||
Total investment securities available for sale, Amortized Cost | 71,182 | |
Total investment securities available for sale, Fair Value | $ 68,563 |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Proceeds, gains and losses realized on securities sold or called | |||
Proceeds on securities sold | $ 21,418 | $ 44,801 | $ 50,862 |
Gross realized gains | 123 | 524 | 725 |
Gross realized losses | $ 144 | $ 517 | $ 259 |
Investment Securities (Detail_4
Investment Securities (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security | Jun. 30, 2018Investment | |
Investments Debt And Equity Securities [Abstract] | |||
Carrying value of investment securities for pledge | $ 55,100,000 | $ 105,000,000 | |
Investment securities with fair value less than amortized cost | Security | 121 | 83 | |
Non-accrual investment securities | $ 895,000 | ||
Trust preferred securities in nonaccrual status | Investment | 2 |
Investment Securities (Detail_5
Investment Securities (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Fair Value, Less than 12 Months | $ 28,494 | $ 34,850 |
Fair Value, 12 Months or More | 95,401 | 76,214 |
Fair Value, Total | 123,895 | 111,064 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 591 | 303 |
Unrealized Losses, 12 Months or More | 4,153 | 2,705 |
Unrealized Losses, Total | 4,744 | 3,008 |
U.S. Government agencies and corporations | ||
Fair Value | ||
Fair Value, Less than 12 Months | 3,280 | |
Fair Value, 12 Months or More | 2,755 | 2,860 |
Fair Value, Total | 6,035 | 2,860 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 6 | |
Unrealized Losses, 12 Months or More | 245 | 140 |
Unrealized Losses, Total | 251 | 140 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Fair Value, Less than 12 Months | 23,616 | 7,430 |
Fair Value, 12 Months or More | 24,607 | 18,066 |
Fair Value, Total | 48,223 | 25,496 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 567 | 24 |
Unrealized Losses, 12 Months or More | 988 | 300 |
Unrealized Losses, Total | 1,555 | 324 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Fair Value, Less than 12 Months | 1,598 | 24,888 |
Fair Value, 12 Months or More | 54,989 | 40,968 |
Fair Value, Total | 56,587 | 65,856 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 18 | 241 |
Unrealized Losses, 12 Months or More | 2,465 | 1,163 |
Unrealized Losses, Total | 2,483 | 1,404 |
U.S. Government-sponsored collateralized mortgage obligations | ||
Fair Value | ||
Fair Value, 12 Months or More | 5,350 | 6,302 |
Fair Value, Total | 5,350 | 6,302 |
Unrealized Losses | ||
Unrealized Losses, 12 Months or More | 177 | 161 |
Unrealized Losses, Total | 177 | 161 |
U.S. Government-guaranteed small business administration pools | ||
Fair Value | ||
Fair Value, Less than 12 Months | 2,532 | |
Fair Value, 12 Months or More | 7,700 | 7,123 |
Fair Value, Total | 7,700 | 9,655 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 38 | |
Unrealized Losses, 12 Months or More | 278 | 218 |
Unrealized Losses, Total | $ 278 | 256 |
Trust preferred securities | ||
Fair Value | ||
Fair Value, 12 Months or More | 895 | |
Fair Value, Total | 895 | |
Unrealized Losses | ||
Unrealized Losses, 12 Months or More | 723 | |
Unrealized Losses, Total | $ 723 |
Investment Securities (Detail_6
Investment Securities (Details 5) - Trust preferred securities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cumulative roll forward of credit losses recognized in earnings for trust preferred securities | |||
Beginning balance, Amount of OTTI related to credit loss | $ 140 | $ 140 | $ 140 |
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 0 | 0 | 0 |
Sale of debt securities | $ (140) | ||
Ending balance, Amount of OTTI related to credit loss | $ 140 | $ 140 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Composition of the loan portfolio | ||
Total loans | $ 514,392 | $ 487,490 |
Commercial | ||
Composition of the loan portfolio | ||
Total loans | $ 112,440 | $ 113,341 |
Percentage of loans | 21.90% | 23.30% |
Commercial real estate | ||
Composition of the loan portfolio | ||
Total loans | $ 303,804 | $ 283,135 |
Percentage of loans | 59.00% | 58.10% |
Residential real estate | ||
Composition of the loan portfolio | ||
Total loans | $ 69,845 | $ 62,071 |
Percentage of loans | 13.60% | 12.70% |
Consumer | Home equity | ||
Composition of the loan portfolio | ||
Total loans | $ 25,076 | $ 26,018 |
Percentage of loans | 4.90% | 5.30% |
Consumer | Other | ||
Composition of the loan portfolio | ||
Total loans | $ 3,227 | $ 2,925 |
Percentage of loans | 0.60% | 0.60% |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Factor Considered: | |
Levels of and trends in charge-offs, classifications and non-accruals | Stable |
Trends in volume and terms | Stable |
Changes in lending policies and procedures | Stable |
Experience, depth and ability of management, including loan review function | Stable |
Economic trends, including valuation of underlying collateral | Increasing |
Concentrations of credit | Decreasing |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
Factor Considered: | |
Levels and trends in classification | Stable |
Declining trends in financial performance | Stable |
Structure and lack of performance measures | Stable |
Migration between risk categories | Stable |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | $ 4,578 | $ 4,868 | $ 5,194 |
Loan charge-offs | (1,338) | (840) | (614) |
Recoveries | 233 | 450 | 238 |
Net loan recoveries (charge-offs) | (1,105) | (390) | (376) |
Provision charged to operations | 725 | 100 | 50 |
Balance at end of period | 4,198 | 4,578 | 4,868 |
Commercial | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 1,591 | 1,394 | 1,977 |
Loan charge-offs | (1,163) | ||
Recoveries | 388 | 117 | |
Net loan recoveries (charge-offs) | (1,163) | 388 | 117 |
Provision charged to operations | 804 | (191) | (700) |
Balance at end of period | 1,232 | 1,591 | 1,394 |
Commercial real estate | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 2,702 | 3,072 | 2,926 |
Loan charge-offs | (654) | (287) | |
Recoveries | 166 | 35 | |
Net loan recoveries (charge-offs) | 166 | (654) | (252) |
Provision charged to operations | (454) | 284 | 398 |
Balance at end of period | 2,414 | 2,702 | 3,072 |
Residential real estate | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 117 | 163 | 153 |
Loan charge-offs | (14) | (35) | |
Recoveries | 3 | 5 | 2 |
Net loan recoveries (charge-offs) | 3 | (9) | (33) |
Provision charged to operations | 194 | (37) | 43 |
Balance at end of period | 314 | 117 | 163 |
Consumer | Home equity | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 70 | 150 | 52 |
Loan charge-offs | (26) | (144) | |
Recoveries | 5 | 10 | 23 |
Net loan recoveries (charge-offs) | 5 | (16) | (121) |
Provision charged to operations | 40 | (64) | 219 |
Balance at end of period | 115 | 70 | 150 |
Consumer | Other | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 98 | 89 | 86 |
Loan charge-offs | (175) | (146) | (148) |
Recoveries | 59 | 47 | 61 |
Net loan recoveries (charge-offs) | (116) | (99) | (87) |
Provision charged to operations | 141 | 108 | 90 |
Balance at end of period | $ 123 | $ 98 | $ 89 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 625 | |||
Collectively evaluated for impairment | $ 4,198 | 3,953 | ||
Total ending allowance balance | 4,198 | 4,578 | $ 4,868 | $ 5,194 |
Loan Portfolio: | ||||
Individually evaluated for impairment | 9,704 | 10,245 | ||
Collectively evaluated for impairment | 504,688 | 477,245 | ||
Total ending loan balance | 514,392 | 487,490 | ||
Commercial | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 625 | |||
Collectively evaluated for impairment | 1,232 | 966 | ||
Total ending allowance balance | 1,232 | 1,591 | 1,394 | 1,977 |
Loan Portfolio: | ||||
Individually evaluated for impairment | 5,364 | 5,581 | ||
Collectively evaluated for impairment | 107,076 | 107,760 | ||
Total ending loan balance | 112,440 | 113,341 | ||
Commercial real estate | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 2,414 | 2,702 | ||
Total ending allowance balance | 2,414 | 2,702 | 3,072 | 2,926 |
Loan Portfolio: | ||||
Individually evaluated for impairment | 4,340 | 4,664 | ||
Collectively evaluated for impairment | 299,464 | 278,471 | ||
Total ending loan balance | 303,804 | 283,135 | ||
Residential real estate | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 314 | 117 | ||
Total ending allowance balance | 314 | 117 | 163 | 153 |
Loan Portfolio: | ||||
Collectively evaluated for impairment | 69,845 | 62,071 | ||
Total ending loan balance | 69,845 | 62,071 | ||
Consumer | Home equity | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 115 | 70 | ||
Total ending allowance balance | 115 | 70 | 150 | 52 |
Loan Portfolio: | ||||
Collectively evaluated for impairment | 25,076 | 26,018 | ||
Total ending loan balance | 25,076 | 26,018 | ||
Consumer | Other | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 123 | 98 | ||
Total ending allowance balance | 123 | 98 | $ 89 | $ 86 |
Loan Portfolio: | ||||
Collectively evaluated for impairment | 3,227 | 2,925 | ||
Total ending loan balance | $ 3,227 | $ 2,925 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($)ContractBorrower | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | |||
Reserve previously allocated to loans | $ 625,000 | ||
Period after which loans considered nonperforming | 90 days | ||
Loans in process of foreclosure | $ 288,000 | ||
Gross income on nonaccrual loans | 191,000 | 57,000 | $ 160,000 |
Actual interest on nonaccrual loans | $ 42,000 | $ 16,000 | $ 41,000 |
Number of loans modified as TDRs | 7 | 0 | 0 |
Number of commercial loan new borrowing relationship | Borrower | 1 | ||
Commercial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Charge off amount recorded as loan discount | $ 1,100,000 | ||
Number of loans modified as TDRs | Contract | 7 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of credit quality indicators by internally assigned grade | ||
Total loans | $ 514,392 | $ 487,490 |
Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 112,440 | 113,341 |
Commercial | Pass | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 94,316 | 100,436 |
Commercial | Special Mention | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 6,914 | 4,836 |
Commercial | Substandard | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 11,210 | 8,069 |
Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 303,804 | 283,135 |
Commercial real estate | Pass | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 271,370 | 252,960 |
Commercial real estate | Special Mention | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 25,199 | 24,307 |
Commercial real estate | Substandard | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | $ 7,235 | $ 5,868 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of consumer credit exposure | ||
Total loans | $ 514,392 | $ 487,490 |
Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 69,845 | 62,071 |
Consumer | Home equity | ||
Summary of consumer credit exposure | ||
Total loans | 25,076 | 26,018 |
Consumer | Other | ||
Summary of consumer credit exposure | ||
Total loans | 3,227 | 2,925 |
Performing | Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 69,535 | 61,824 |
Performing | Consumer | Home equity | ||
Summary of consumer credit exposure | ||
Total loans | 24,956 | 25,889 |
Performing | Consumer | Other | ||
Summary of consumer credit exposure | ||
Total loans | 3,227 | 2,925 |
Nonperforming | Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 310 | 247 |
Nonperforming | Consumer | Home equity | ||
Summary of consumer credit exposure | ||
Total loans | $ 120 | $ 129 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of classes of loans on non-accrual status | ||
Total | $ 2,233 | $ 882 |
Commercial | ||
Summary of classes of loans on non-accrual status | ||
Total | 1,291 | |
Commercial real estate | ||
Summary of classes of loans on non-accrual status | ||
Total | 512 | 506 |
Residential real estate | ||
Summary of classes of loans on non-accrual status | ||
Total | 310 | 247 |
Consumer | Home equity | ||
Summary of classes of loans on non-accrual status | ||
Total | $ 120 | $ 129 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses (Details 8) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Contract | Dec. 31, 2017Loan | Dec. 31, 2016Loan | |
Information related to loans modified in a TDR | |||
Number of contracts | 7 | 0 | 0 |
Pre-modification recorded investment | $ 5,373 | ||
Post-modification recorded investment | $ 4,210 | ||
Commercial | |||
Information related to loans modified in a TDR | |||
Number of contracts | Contract | 7 | ||
Pre-modification recorded investment | $ 5,373 | ||
Post-modification recorded investment | $ 4,210 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | $ 2,130 | $ 1,185 |
Current | 512,262 | 486,305 |
Total ending loan balance | 514,392 | 487,490 |
30-59 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 67 | 428 |
60-89 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 323 | 123 |
90 Days Or Greater | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 1,740 | 634 |
Commercial | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 1,305 | |
Current | 111,135 | 113,341 |
Total ending loan balance | 112,440 | 113,341 |
Commercial | 30-59 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 14 | |
Commercial | 90 Days Or Greater | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 1,291 | |
Commercial real estate | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 167 | 575 |
Current | 303,637 | 282,560 |
Total ending loan balance | 303,804 | 283,135 |
Commercial real estate | 30-59 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 173 | |
Commercial real estate | 60-89 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 12 | |
Commercial real estate | 90 Days Or Greater | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 167 | 390 |
Residential real estate | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 475 | 485 |
Current | 69,370 | 61,586 |
Total ending loan balance | 69,845 | 62,071 |
Residential real estate | 30-59 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 36 | 240 |
Residential real estate | 60-89 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 182 | 29 |
Residential real estate | 90 Days Or Greater | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 257 | 216 |
Consumer | Home equity | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 166 | 110 |
Current | 24,910 | 25,908 |
Total ending loan balance | 25,076 | 26,018 |
Consumer | Home equity | 60-89 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 141 | 82 |
Consumer | Home equity | 90 Days Or Greater | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 25 | 28 |
Consumer | Other | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | 17 | 15 |
Current | 3,210 | 2,910 |
Total ending loan balance | 3,227 | 2,925 |
Consumer | Other | 30-59 Days Past Due | ||
Aging analysis of the recorded investment of past due loans | ||
Total Past Due | $ 17 | $ 15 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commercial | |||
Loans evaluated for impairment by loan segment | |||
Recorded Investment, With no related allowance recorded | $ 5,364 | $ 65 | |
Recorded Investment, With related allowance recorded | 5,516 | ||
Recorded Investment, Total | 5,364 | 5,581 | |
Unpaid Principal Balance, with no related allowance | 6,411 | 65 | |
Unpaid Principal Balance, with related allowance | 5,516 | ||
Unpaid Principal Balance, Total | 6,411 | 5,581 | |
Related Allowance, with related allowance | 625 | ||
Related Allowance, Total | 625 | ||
Average Recorded Investment, with no related allowance recorded | 4,231 | 85 | $ 146 |
Average Recorded Investment, with related allowance recorded | 911 | 460 | 279 |
Average Recorded Investment, Total | 5,142 | 545 | 425 |
Interest Income Recognized, with no related allowance | 25 | 6 | 8 |
Interest Income Recognized, with related allowance | 46 | ||
Interest Income Recognized, Total | 71 | 6 | 8 |
Commercial real estate | |||
Loans evaluated for impairment by loan segment | |||
Recorded Investment, With no related allowance recorded | 4,340 | 4,664 | |
Recorded Investment, Total | 4,340 | 4,664 | |
Unpaid Principal Balance, with no related allowance | 4,340 | 4,742 | |
Unpaid Principal Balance, Total | 4,340 | 4,742 | |
Average Recorded Investment, with no related allowance recorded | 4,405 | 5,062 | 6,072 |
Average Recorded Investment, with related allowance recorded | 527 | 1,209 | |
Average Recorded Investment, Total | 4,405 | 5,589 | 7,281 |
Interest Income Recognized, with no related allowance | 293 | 291 | 335 |
Interest Income Recognized, with related allowance | 85 | ||
Interest Income Recognized, Total | $ 293 | $ 291 | $ 420 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of premises and equipment | ||
Total premises and equipment | $ 24,570 | $ 22,635 |
Less accumulated depreciation | 14,368 | 13,597 |
Net book value | 10,202 | 9,038 |
Land | ||
Summary of premises and equipment | ||
Total premises and equipment | 2,984 | 2,746 |
Premises | ||
Summary of premises and equipment | ||
Total premises and equipment | 10,346 | 9,914 |
Equipment | ||
Summary of premises and equipment | ||
Total premises and equipment | 10,760 | 9,711 |
Leasehold Improvements | ||
Summary of premises and equipment | ||
Total premises and equipment | $ 480 | $ 264 |
Premises and Equipment (Detai_2
Premises and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premises and Equipment (Textual) [Abstract] | |||
Depreciation expense | $ 771 | $ 880 | $ 835 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of interest-bearing deposits: | ||
Demand | $ 54,901 | $ 50,410 |
Money market | 179,430 | 171,783 |
Savings | 111,837 | 113,078 |
Time: | ||
In denominations $250,000 or under | 101,146 | 108,761 |
In denominations of over $250,000 | 20,219 | 18,528 |
Interest bearing deposits total | $ 467,533 | $ 462,560 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Stated maturities of time deposits | ||
2,019 | $ 67,197 | |
2,020 | 18,716 | |
2,021 | 16,135 | |
2,022 | 8,025 | |
2,023 | 5,987 | |
2024 and beyond | 5,305 | |
Total Stated maturities of time deposits | $ 121,365 | $ 127,289 |
Deposits (Details 2)
Deposits (Details 2) $ in Thousands | Dec. 31, 2018USD ($) |
Summary of time deposits of $100,000 or more by remaining maturities | |
Three months or less | $ 18,177 |
Three to six months | 7,528 |
Six to twelve months | 8,092 |
One through five years | 21,606 |
Over five years | 2,189 |
Total | 57,592 |
Certificates of Deposit | |
Summary of time deposits of $100,000 or more by remaining maturities | |
Three months or less | 8,647 |
Three to six months | 6,377 |
Six to twelve months | 6,058 |
One through five years | 18,295 |
Over five years | 1,650 |
Total | 41,027 |
Other Time Deposits | |
Summary of time deposits of $100,000 or more by remaining maturities | |
Three months or less | 9,530 |
Three to six months | 1,151 |
Six to twelve months | 2,034 |
One through five years | 3,311 |
Over five years | 539 |
Total | $ 16,565 |
Federal Home Loan Bank (FHLB)_3
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other short-term borrowings: | |||
Securities sold under repurchase agreements | $ 2,206 | $ 2,678 | |
Securities sold under repurchase agreements, Weighted Average Interest Rate | 2.47% | 1.38% | 0.59% |
Long-term Debt | |||
Fixed-rate payable and convertible fixed-rate FHLB advances, with monthly interest payments: | |||
Due in 2018 | $ 4,000 | ||
Due in 2019 | $ 6,000 | 6,000 | |
Due in 2020 | 6,000 | 4,000 | |
Due in 2021 | 4,000 | ||
Total FHLB advances - long-term | $ 16,000 | 14,000 | |
Weighted Average Interest Rate Due in 2019 | 1.60% | ||
Weighted Average Interest Rate Due in 2020 | 2.04% | ||
Weighted Average Interest Rate Due in 2021 | 2.65% | ||
Weighted Average Interest Rate, Total FHLB advances - long term | 2.03% | ||
Short-term Debt | |||
FHLB advances - short-term: | |||
Short-term | $ 8,000 | 12,000 | |
Cash management | 4,000 | 20,000 | |
Total FHLB advances - short-term | $ 12,000 | 32,000 | |
Weighted Average Interest Rate Short term | 2.47% | ||
Weighted Average Interest Rate Cash management | 2.46% | ||
Total FHLB advances - short term, Weighted Average Interest Rate | 2.47% | ||
Total FHLB advances, Weighted Average Interest Rate | 2.22% | ||
Total FHLB advances | $ 28,000 | 46,000 | |
Other short-term borrowings: | |||
Securities sold under repurchase agreements | 2,206 | 2,678 | |
Total FHLB advances and other short-term borrowings | $ 30,206 | $ 48,678 | |
Securities sold under repurchase agreements, Weighted Average Interest Rate | 0.34% | ||
Total FHLB advances and other short-term borrowings, Weighted Average Interest Rate | 2.08% |
Federal Home Loan Bank (FHLB)_4
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details 1) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of FHLB and Other Short Term Borrowings | ||||
Average balance during the year | $ 18,899,000 | $ 16,917,000 | $ 13,550,000 | |
Average interest rate during the year | 1.98% | 1.03% | 0.54% | |
Maximum month-end balance during the year | $ 30,000,000 | $ 32,000,000 | $ 23,000,000 | |
Weighted average interest rate at year end | 2.47% | 1.38% | 0.59% | |
Federal Home Loan Bank Advances | ||||
Summary of FHLB and Other Short Term Borrowings | ||||
Average balance during the year | $ 1,679,000 | $ 2,018,000 | $ 2,249,000 | |
Average interest rate during the year | 4.01% | 0.33% | 0.33% | 0.31% |
Maximum month-end balance during the year | $ 2,206,000 | $ 2,678,000 | $ 3,608,000 | |
Weighted average interest rate at year end | 0.34% | 0.34% | 0.33% |
Federal Home Loan Bank (FHLB)_5
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank Advances and Other Short-Term Borrowings (Additional Textual) [Abstract] | ||
Carrying value of owned FHLB Stock | $ 2,400,000 | $ 2,400,000 |
Maximum borrowing capacity from FHLB | 55,300,000 | 57,000,000 |
FHLB fixed rate advances | 0 | 0 |
Securities allocated under repurchase agreement, value | 3,100,000 | 3,400,000 |
Qualified mortgage loan portfolio | 71,600,000 | 64,700,000 |
Blanket lien against mortgage backed securities | 7,000,000 | 19,800,000 |
Blanket lien against U.S. Government guaranteed small business administration pools | $ 3,800,000 | $ 9,700,000 |
Federal Home Loan Bank (FHLB)_6
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short Term Debt [Line Items] | ||
Total short-term borrowings | $ 2,206 | $ 2,678 |
Repurchase Agreements | ||
Short Term Debt [Line Items] | ||
Total collateral carrying value | 3,066 | 3,414 |
Repurchase Agreements | U.S. Government-sponsored mortgage-backed securities | ||
Short Term Debt [Line Items] | ||
Total collateral carrying value | $ 3,066 | $ 3,414 |
Subordinated Debt (Details Text
Subordinated Debt (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2007 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Floating rate trust preferred securities issued | $ 5,000,000 | ||
Maturity date of floating rate trust preferred securities | 2037-12 | ||
Investment in common securities issued by trust | $ 155,000 | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Interest rate description | 3-month LIBOR rate plus 1.45% | ||
LIBOR Rate Points | 1.45% | ||
Interest rate | 4.24% | 3.04% |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($) | |
Commitments and Contingencies (Textual) [Abstract] | |||
Operating leases extending | 2,028 | ||
Rental and lease expense | $ 184,000 | $ 230,000 | $ 183,000 |
Aggregate cash reserves for federal regulatory requirements | $ 6,800,000 | ||
Percentage of unsecured loans | 0.28% | 0.30% | |
Third party interest rate swap | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Security pledged for collateral | $ 1,400,000 | ||
Third party interest rate swap | U.S. Government-sponsored mortgage-backed securities | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Number of security owned and pledged as collateral | Security | 1 | ||
Minimum | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Operating leases renewal period | 5 years | ||
Maximum | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Operating leases renewal period | 10 years |
Commitments and Contingencies_3
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Summary of remaining future minimum lease payments | |
December 31, 2019 | $ 177 |
December 31, 2020 | 169 |
December 31, 2021 | 116 |
December 31, 2022 | 54 |
December 31, 2023 | 44 |
Later years | 117 |
Total | $ 677 |
Commitments and Contingencies_4
Commitments and Contingencies (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to extend credit: | ||
Fixed rate | $ 31,225 | $ 32,749 |
Variable rate | 74,050 | 60,508 |
Standby letters of credit | $ 3,455 | $ 3,600 |
Commitments and Contingencies_5
Commitments and Contingencies (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of overdraft protection | ||
Overdraft protection available on depositors' accounts | $ 8,708 | $ 9,637 |
Balance of overdrafts included in loans | 116 | 103 |
Average daily balance of overdrafts | $ 104 | $ 115 |
Average daily balance of overdrafts as a percentage of available | 1.19% | 1.19% |
Commitments and Contingencies_6
Commitments and Contingencies (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer interest rate swap, Maturing in 2020 | ||
Derivative [Line Items] | ||
Maturity | 2,020 | |
Notional Amount | $ 2,410,000 | $ 2,504,000 |
Interest Rate Paid | 1 Mo. Libor + Margin | |
Interest Rate Received | Fixed | |
Fair Value | $ (30,000) | (16,000) |
Customer interest rate swap, Maturing in 2025 | ||
Derivative [Line Items] | ||
Maturity | 2,025 | |
Notional Amount | $ 4,930,000 | 5,288,000 |
Interest Rate Paid | 1 Mo. Libor + Margin | |
Interest Rate Received | Fixed | |
Fair Value | $ (28,000) | 36,000 |
Customer interest rate swap, Maturing in 2026 | ||
Derivative [Line Items] | ||
Maturity | 2,026 | |
Notional Amount | $ 1,946,000 | 2,064,000 |
Interest Rate Paid | 1 Mo. Libor + Margin | |
Interest Rate Received | Fixed | |
Fair Value | $ (64,000) | (44,000) |
Customer interest rate swap, Maturing in 2027 | ||
Derivative [Line Items] | ||
Maturity | 2,027 | |
Notional Amount | $ 13,790,000 | 14,197,000 |
Interest Rate Paid | 1 Mo. Libor + Margin | |
Interest Rate Received | Fixed | |
Fair Value | $ (54,000) | 209,000 |
Customer interest rate swap, Maturing in 2028 | ||
Derivative [Line Items] | ||
Maturity | 2,028 | |
Notional Amount | $ 6,395,000 | |
Interest Rate Paid | 1 Mo. Libor + Margin | |
Interest Rate Received | Fixed | |
Fair Value | $ 268,000 | |
Customer interest rate swap | ||
Derivative [Line Items] | ||
Notional Amount | 29,471,000 | 24,053,000 |
Fair Value | $ 92,000 | 185,000 |
Third party interest rate swap, Maturing in 2020 | ||
Derivative [Line Items] | ||
Maturity | 2,020 | |
Notional Amount | $ 2,410,000 | 2,504,000 |
Interest Rate Paid | Fixed | |
Interest Rate Received | 1 Mo. Libor + Margin | |
Fair Value | $ 30,000 | 16,000 |
Third party interest rate swap, Maturing in 2025 | ||
Derivative [Line Items] | ||
Maturity | 2,025 | |
Notional Amount | $ 4,930,000 | 5,288,000 |
Interest Rate Paid | Fixed | |
Interest Rate Received | 1 Mo. Libor + Margin | |
Fair Value | $ 28,000 | (36,000) |
Third party interest rate swap, Maturing in 2026 | ||
Derivative [Line Items] | ||
Maturity | 2,026 | |
Notional Amount | $ 1,946,000 | 2,064,000 |
Interest Rate Paid | Fixed | |
Interest Rate Received | 1 Mo. Libor + Margin | |
Fair Value | $ 64,000 | 44,000 |
Third party interest rate swap, Maturing in 2027 | ||
Derivative [Line Items] | ||
Maturity | 2,027 | |
Notional Amount | $ 13,790,000 | 14,197,000 |
Interest Rate Paid | Fixed | |
Interest Rate Received | 1 Mo. Libor + Margin | |
Fair Value | $ 54,000 | (209,000) |
Third party interest rate swap, Maturing in 2028 | ||
Derivative [Line Items] | ||
Maturity | 2,028 | |
Notional Amount | $ 6,395,000 | |
Interest Rate Paid | Fixed | |
Interest Rate Received | 1 Mo. Libor + Margin | |
Fair Value | $ (268,000) | |
Third party interest rate swap | ||
Derivative [Line Items] | ||
Notional Amount | 29,471,000 | 24,053,000 |
Fair Value | $ (92,000) | $ (185,000) |
Commitments and Contingencies_7
Commitments and Contingencies (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives Fair Value [Line Items] | ||
Assets, Fair Value | $ 92 | $ 185 |
Liabilities, Fair Value | 92 | 185 |
Other assets | ||
Derivatives Fair Value [Line Items] | ||
Assets, Fair Value | 92 | 185 |
Other liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities, Fair Value | $ 92 | $ 185 |
Benefit Plans (Details Textual)
Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | $ 3,465,000 | $ 3,182,000 | $ 2,957,000 | $ 2,760,000 |
Benefit Plans (Additional Textual) [Abstract] | ||||
Maximum percentage of employer match for employee voluntary contributions | 5.00% | |||
Maximum allowable amount of voluntary contributions by participants for 2017 | $ 18,000 | |||
Additional catch-up deferral for plan participants over the age of 50 | 6,000 | |||
Total expense under the contribution retirement plan | 337,000 | $ 361,000 | $ 349,000 | |
Officer's Plan | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | 2,900,000 | |||
Director's Plan | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | $ 600,000 | |||
Term of age | ||||
Benefit Plans (Textual) [Abstract] | ||||
Minimum Age Requirement for Additional Allowable Contributions | 50 years | |||
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | $ 3,500,000 | |||
Plan assets | $ 0 | |||
Supplemental Employee Retirement Plans, Defined Benefit | Directors and Officers | ||||
Benefit Plans (Textual) [Abstract] | ||||
Post-retirement benefits plan duration | 15 years | |||
Director Retirement Agreements annual benefit | $ 10,000 | |||
Director retirement benefits plan duration | 10 years | |||
Supplemental Employee Retirement Plans, Defined Benefit | Executive Officer | ||||
Benefit Plans (Textual) [Abstract] | ||||
Expected benefit expense as specified in the agreements for the entire year 2018 | $ 352,000 | |||
Benefits expected to be paid in 2019 approximately | $ 164,000 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciles the accumulated liability for the benefit obligation | |||
Beginning balance | $ 3,182 | $ 2,957 | $ 2,760 |
Benefit expense | 445 | 387 | 359 |
Benefit payments | (162) | (162) | (162) |
Ending balance | $ 3,465 | $ 3,182 | $ 2,957 |
Benefit Plans (Details 1)
Benefit Plans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | $ 3,182 | $ 2,957 | $ 2,760 |
Expense recorded | 445 | 387 | 359 |
Other comprehensive income recorded | (68) | (14) | (39) |
Ending balance | 3,465 | 3,182 | 2,957 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 876 | 840 | 856 |
Expense recorded | 23 | 50 | 23 |
Other comprehensive income recorded | (68) | (14) | (39) |
Ending balance | $ 831 | $ 876 | $ 840 |
Federal Income Taxes (Details T
Federal Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Federal Income Taxes (Textual) [Abstract] | ||||
Corporate tax rate | 21.00% | 34.00% | 34.00% | |
Change in corporate tax rate | [1] | $ 1,246,000 | ||
Valuation allowance | $ 28,000 | |||
AMT unused credit carryforward | 904,000 | |||
Remaining unused credits related to AMT reclassed to receivable | 59,000 | |||
Income tax (benefit) expense on investment securities gains | (4,000) | $ 3,000 | $ 142,000 | |
Expected increase in unrecognized tax benefits | 0 | |||
Interest or penalties incurred | 0 | |||
Liability for uncertain tax position | 0 | |||
Unrecognized tax benefits | $ 0 | |||
[1] | The tax act lowers the base corporate tax rate from 35% to 21% which was applied to the existing deferred tax balance. |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Composition of income tax expense (benefit) | ||||
Current | $ 407 | $ 1,199 | $ 1,256 | |
Deferred | 1,008 | (28) | (129) | |
Change in corporate tax rate | [1] | 1,246 | ||
Federal income tax expense (benefit) | $ 1,415 | $ 2,417 | $ 1,127 | |
[1] | The tax act lowers the base corporate tax rate from 35% to 21% which was applied to the existing deferred tax balance. |
Federal Income Taxes (Details 1
Federal Income Taxes (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Gross deferred tax assets: | ||
Allowance for loan and other real estate losses | $ 882,000 | $ 961,000 |
Deferred loan origination cost - net | 232,000 | 234,000 |
Impairment loss on securities | 29,000 | |
Deferred compensation | 727,000 | 668,000 |
Capital loss carryforward | 28,000 | |
AMT credit carryforward | 904,000 | |
Unrealized loss on available-for-sale securities | 980,000 | 475,000 |
Other items | 390,000 | 333,000 |
Total gross deferred tax assets | 3,239,000 | 3,604,000 |
Valuation allowance | (28,000) | |
Total net deferred tax assets | 3,211,000 | 3,604,000 |
Gross deferred tax liabilities: | ||
Premises and equipment | (477,000) | (362,000) |
Other items | (320,000) | (325,000) |
Total net deferred tax liabilities | (797,000) | (687,000) |
Net deferred tax asset | $ 2,414,000 | $ 2,917,000 |
Federal Income Taxes (Details 2
Federal Income Taxes (Details 2) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Capital loss carryover | $ 28,000 |
Valuation allowance at end of year | $ 28,000 |
Federal Income Taxes (Details 3
Federal Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reconciliation between (tax -benefit) expense | ||||
Statutory tax expense | $ 2,153 | $ 2,301 | $ 2,039 | |
Tax effect of non-taxable interest income | (319) | (663) | (628) | |
Tax effect of earnings on bank-owned life insurance-net | (403) | (414) | (112) | |
Tax effect of deferred tax valuation (reversal) provision | 28 | (94) | ||
Change in corporate tax rate | [1] | 1,246 | ||
Tax effect of low-income housing credits | (140) | (149) | (142) | |
Tax effect of non-deductible expenses | 96 | 96 | 64 | |
Federal income tax expense (benefit) | $ 1,415 | $ 2,417 | $ 1,127 | |
[1] | The tax act lowers the base corporate tax rate from 35% to 21% which was applied to the existing deferred tax balance. |
Federal Income Taxes (Parenthet
Federal Income Taxes (Parenthetical) (Details 3) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Corporate tax rate | 21.00% | 34.00% | 34.00% |
Maximum | |||
Income Tax Disclosure [Line Items] | |||
Corporate tax rate | 35.00% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Investment securities available-for-sale, fair value | $ 136,923 | $ 159,841 |
Loans held for sale | 1,040 | 2,780 |
Interest rate derivatives | 92 | 185 |
LIABILITIES | ||
Liabilities, Fair Value | 92 | 185 |
Trust preferred securities | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 895 | |
Level 2 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 136,923 | 158,946 |
Interest rate derivatives | 92 | 185 |
LIABILITIES | ||
Liabilities, Fair Value | 92 | 185 |
Level 3 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 895 | |
Fair Value, Measurements, Recurring | ||
ASSETS | ||
Loans held for sale | 1,040 | 2,780 |
Interest rate derivatives | 92 | 185 |
LIABILITIES | ||
Liabilities, Fair Value | 92 | 185 |
Fair Value, Measurements, Recurring | Trust preferred securities | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 895 | |
Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Loans held for sale | 1,040 | 2,780 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Interest rate derivatives | 92 | 185 |
LIABILITIES | ||
Liabilities, Fair Value | 92 | 185 |
Fair Value, Measurements, Recurring | Level 3 | Trust preferred securities | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 895 | |
Fair Value, Measurements, Recurring | U.S. Government agencies and corporations | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 9,002 | 3,205 |
Fair Value, Measurements, Recurring | U.S. Government agencies and corporations | Level 2 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 9,002 | 3,205 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 51,658 | 72,116 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | Level 2 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 51,658 | 72,116 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 56,587 | 67,668 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | Level 2 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 56,587 | 67,668 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored collateralized mortgage obligations | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 11,976 | 6,302 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored collateralized mortgage obligations | Level 2 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 11,976 | 6,302 |
Fair Value, Measurements, Recurring | U.S. Government-guaranteed small business administration pools | ||
ASSETS | ||
Investment securities available-for-sale, fair value | 7,700 | 9,655 |
Fair Value, Measurements, Recurring | U.S. Government-guaranteed small business administration pools | Level 2 | ||
ASSETS | ||
Investment securities available-for-sale, fair value | $ 7,700 | $ 9,655 |
Fair Value (Details 1)
Fair Value (Details 1) - Trust preferred securities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the Level 3 fair value category | |||
Beginning balance | $ 895 | $ 825 | $ 778 |
Net realized/unrealized gains/(losses) included in: | |||
Other comprehensive income | 723 | 72 | 67 |
Sales | $ (1,618) | ||
Purchases, issuance, and settlements | (2) | (20) | |
Ending balance | $ 895 | $ 825 |
Fair Value (Details 2)
Fair Value (Details 2) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)Security | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Breakdown of trust preferred securities | ||||
Number considered OTTI | Security | 1 | |||
Life-to-date impairment recognized in other comprehensive income | $ 3,008 | $ 4,744 | ||
Trust preferred securities | ||||
Breakdown of trust preferred securities | ||||
Total number of trust preferred securities | Security | 2 | |||
Par value, trust preferred securities | $ 1,939 | |||
Number not considered OTTI | Security | 1 | |||
Par value, trust preferred securities not considered OTTI | $ 903 | |||
Number considered OTTI | Security | 1 | |||
Par value, trust preferred securities considered OTTI | $ 1,036 | |||
Life-to-date impairment recognized in earnings | 140 | $ 140 | $ 140 | |
Life-to-date impairment recognized in other comprehensive income | 723 | |||
Total life-to-date impairment | $ 863 |
Fair Value (Details Textual)
Fair Value (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($)Security | Dec. 31, 2018USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of debt securities with other-than-temporary impairment | 1 | |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 9.10% | |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 14.74% | |
Trust preferred securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of debt securities with other-than-temporary impairment | 1 | |
Period frequency of projected prepayment rate | 1 year | |
Projected Prepayments, minimum fixed rate coupons | 8.00% | |
Projected Prepayments, percentage of fair value input for banks | 1.00% | |
Projected prepayment, percentage of fair value for collateral by REITs | 0.00% | |
Projected prepayment, percentage of fair value for collateral for insurance companies | 2.00% | |
Annually projected defaults percentage for healthy banks | 2.00% | |
Period frequency of projected default rate | 2 years | |
Projected defaults rate for healthy banks | 0.36% | |
Projected Recoveries, percentage for insurance companies, REITs and insolvent banks | 0.00% | |
Projected recovery, percentage for projected bank deferrals | 10.00% | |
Projected Bank Deferrals lagged | 2 years | |
Trust preferred securities | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 9.10% | |
Trust preferred securities | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 14.74% | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ | $ 9,620,000 | $ 0 |
Fair Value (Details 3)
Fair Value (Details 3) - Trapeza IX B-1 - Moodys Caa2 Rating - Fitch CC Rating - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Losses recognized in earnings for trust preferred securities held | |||||
Beginning balance, Amount of OTTI related to credit loss | $ 140 | $ 140 | |||
Additions in QTD | $ 0 | $ 0 | $ 0 | $ 0 | |
Ending balance, Amount of OTTI related to credit loss | $ 140 | $ 140 |
Fair Value (Details 4)
Fair Value (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Issurers_Currently_Performing | Dec. 31, 2018USD ($) | |
Additional information related to the Company's trust preferred securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | $ 162,102 | $ 141,589 |
Available-for-sale securities and Regulatory Stock, Fair Value | 159,841 | 136,923 |
Unrealized Gain/(Loss) | $ (3,008) | $ (4,744) |
PreTSL XXIII | Moodys Ba1 Rating | Fitch CCC Rating | ||
Additional information related to the Company's trust preferred securities | ||
Class | C2 | |
Available-for-sale Securities and Regulatory Stock, Amortized Cost | $ 758 | |
Available-for-sale securities and Regulatory Stock, Fair Value | 336 | |
Unrealized Gain/(Loss) | $ (422) | |
Number of Issuers Currently Performing | Issurers_Currently_Performing | 90 | |
Deferrals and Defaults as a % of Current Collateral | 20.90% | |
Excess Subordination as a % of Current Performing Collateral | 7.12% | |
Trapeza IX | Moodys Caa2 Rating | Fitch CC Rating | ||
Additional information related to the Company's trust preferred securities | ||
Class | B1 | |
Available-for-sale Securities and Regulatory Stock, Amortized Cost | $ 860 | |
Available-for-sale securities and Regulatory Stock, Fair Value | 559 | |
Unrealized Gain/(Loss) | $ (301) | |
Number of Issuers Currently Performing | Issurers_Currently_Performing | 30 | |
Deferrals and Defaults as a % of Current Collateral | 14.00% | |
Trust preferred securities | ||
Additional information related to the Company's trust preferred securities | ||
Available-for-sale Securities and Regulatory Stock, Amortized Cost | $ 1,618 | |
Available-for-sale securities and Regulatory Stock, Fair Value | 895 | |
Unrealized Gain/(Loss) | $ (723) |
Fair Value (Details 5)
Fair Value (Details 5) - Fair Value, Measurements, Nonrecurring - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets measured on a nonrecurring basis: | ||
Impaired loans | $ 0 | $ 9,620,000 |
Level 3 | ||
Assets measured on a nonrecurring basis: | ||
Impaired loans | $ 9,620,000 |
Fair Value (Details 6)
Fair Value (Details 6) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents, carrying value | $ 19,692 | $ 19,125 | $ 15,351 | $ 18,496 |
Investment securities available-for-sale, carrying value | 136,923 | 159,841 | ||
Loans held for sale | 1,040 | 2,780 | ||
Loans, carrying value | 510,194 | 482,912 | ||
Bank-owned life insurance | 15,711 | 17,650 | ||
Accrued interest receivable, carrying value | 2,255 | 2,193 | ||
Interest rate derivative assets, carrying value | 92 | 185 | ||
LIABILITIES | ||||
Demand, savings and money market deposits, carrying value | 483,054 | 458,562 | ||
Time deposits, carrying value | 121,365 | 127,289 | ||
Short-term borrowings | 2,206 | 2,678 | ||
Federal Home Loan Bank advances - short term | 12,000 | 32,000 | ||
Federal Home Loan Bank advances - long term | 16,000 | 14,000 | ||
Subordinated debt, carrying value | 5,155 | 5,155 | ||
Accrued interest payable, carrying value | 371 | 325 | ||
Interest rate derivative liabilities, carrying value | 92 | 185 | ||
ASSETS: | ||||
Cash and cash equivalents, fair value | 19,692 | 19,125 | ||
Investment securities available-for-sale, fair value | 136,923 | 159,841 | ||
Loans held for sale, fair value | 1,040 | 2,780 | ||
Loans, fair value | 513,103 | 486,230 | ||
Bank-owned life insurance, fair value | 15,711 | 17,650 | ||
Accrued interest receivable, fair value | 2,255 | 2,193 | ||
Interest rate derivative assets, fair value | 92 | 185 | ||
LIABILITIES: | ||||
Demand, savings and money market deposits, fair value | 483,054 | 458,562 | ||
Time deposits, fair value | 122,295 | 128,624 | ||
Short-term borrowings, fair value | 2,206 | 2,678 | ||
Federal Home Loan Bank advances - short term, fair value | 11,987 | 31,982 | ||
Federal Home Loan Bank advances - long term, fair value | 15,880 | 13,880 | ||
Subordinated debt, fair value | 4,620 | 4,785 | ||
Accrued interest payable, fair value | 371 | 325 | ||
Interest rate derivative liabilities, fair value | 92 | 185 | ||
Level 1 | ||||
ASSETS: | ||||
Cash and cash equivalents, fair value | 19,692 | 19,125 | ||
Loans held for sale, fair value | 1,040 | 2,780 | ||
Bank-owned life insurance, fair value | 15,711 | 17,650 | ||
Accrued interest receivable, fair value | 2,255 | 2,193 | ||
LIABILITIES: | ||||
Demand, savings and money market deposits, fair value | 483,054 | 458,562 | ||
Short-term borrowings, fair value | 2,206 | 2,678 | ||
Accrued interest payable, fair value | 371 | 325 | ||
Level 2 | ||||
ASSETS: | ||||
Investment securities available-for-sale, fair value | 136,923 | 158,946 | ||
Interest rate derivative assets, fair value | 92 | 185 | ||
LIABILITIES: | ||||
Interest rate derivative liabilities, fair value | 92 | 185 | ||
Level 3 | ||||
ASSETS: | ||||
Investment securities available-for-sale, fair value | 895 | |||
Loans, fair value | 513,103 | 486,230 | ||
LIABILITIES: | ||||
Time deposits, fair value | 122,295 | 128,624 | ||
Federal Home Loan Bank advances - short term, fair value | 11,987 | 31,982 | ||
Federal Home Loan Bank advances - long term, fair value | 15,880 | 13,880 | ||
Subordinated debt, fair value | $ 4,620 | $ 4,785 |
Fair Value (Details 7)
Fair Value (Details 7) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Investment securities available-for-sale, fair value | $ 159,841 | $ 136,923 |
Minimum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 9.10% | |
Maximum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 14.74% | |
Trust preferred securities | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Investment securities available-for-sale, fair value | $ 895 | |
Trust preferred securities | Minimum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 9.10% | |
Trust preferred securities | Maximum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 14.74% | |
Trust preferred securities | Discounted Cash Flow | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Investment securities available-for-sale, fair value | $ 895 | |
Impaired Loans | Minimum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 4.50% | |
Impaired Loans | Maximum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 5.38% | |
Impaired Loans | Weighted average | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 4.88% | |
Impaired Loans | Appraisal Of Collateral | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Investment securities available-for-sale, fair value | $ 4,891 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning balance | $ 61,630 | $ 57,670 | $ 56,684 | |
Total other comprehensive (loss) income | (1,831) | 1,430 | (2,723) | |
Ending balance | 64,918 | 61,630 | 57,670 | |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning balance | [1] | (1,787) | (2,909) | (147) |
Other comprehensive (loss) income before reclassification | [1] | (1,916) | 1,420 | (2,454) |
Reclassification of certain income tax effects from accumulated other comprehensive income | [1] | (294) | ||
Amount reclassified from accumulated other comprehensive loss | [1] | 17 | (4) | (308) |
Total other comprehensive (loss) income | [1] | (1,899) | 1,122 | (2,762) |
Ending balance | [1] | (3,686) | (1,787) | (2,909) |
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning balance | [1] | (38) | (52) | (91) |
Other comprehensive (loss) income before reclassification | [1] | 68 | 14 | 39 |
Total other comprehensive (loss) income | [1] | 68 | 14 | 39 |
Ending balance | [1] | $ 30 | $ (38) | $ (52) |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Unrealized gains on available-for-sale securities | ||||
Federal income tax expense | $ (1,415) | $ (2,417) | $ (1,127) | |
NET INCOME | 8,835 | 4,350 | 4,871 | |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | ||||
Unrealized gains on available-for-sale securities | ||||
Investment securities available-for-sale (losses) gains, net | [1] | (21) | 7 | 466 |
Federal income tax expense | [1] | 4 | (3) | (158) |
NET INCOME | [1] | $ (17) | $ 4 | $ 308 |
[1] | Amounts in parentheses indicate debits to net income. |
Regulatory Matters (Details Tex
Regulatory Matters (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2013 | |
Regulatory Matters (Textual) [Abstract] | |||
Minimum Tier I risk-based capital to risk-weighted assets ratio | 6.00% | 6.00% | |
Minimum total risk-based capital to risk-weighted assets ratio | 12.88% | 12.91% | |
Ratio to risk-weighted assets | 13.63% | 13.79% | |
Maximum value for classification as small bank holding company | $ 1,000,000,000 | ||
Floating rate trust preferred securities outstanding | $ 5,000,000 | $ 5,000,000 | |
CET1 | |||
Regulatory Matters (Textual) [Abstract] | |||
Minimum Tier I risk-based capital to risk-weighted assets ratio | 4.50% | ||
Minimum Tier I risk-based capital to average assets ratio | 2.50% | ||
Minimum total risk-based capital to risk-weighted assets ratio | 7.00% | ||
Basel III | |||
Regulatory Matters (Textual) [Abstract] | |||
Minimum Tier I risk-based capital to risk-weighted assets ratio | 8.50% | ||
Minimum Tier I risk-based capital to average assets ratio | 10.50% | ||
Minimum total risk-based capital to risk-weighted assets ratio | 4.00% | ||
Basel III | Minimum | |||
Regulatory Matters (Textual) [Abstract] | |||
Ratio to risk-weighted assets | 4.00% | ||
Basel III | Maximum | |||
Regulatory Matters (Textual) [Abstract] | |||
Ratio to risk-weighted assets | 6.00% |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking And Thrift [Abstract] | ||
CET1 capital to risk-weighted assets, amount | $ 68,574 | $ 63,455 |
Tier 1 capital to risk-weighted assets, amount | 73,574 | 68,455 |
Total capital to risk-weighted assets, amount | 77,856 | 73,116 |
Tier 1 capital to average assets, amount | $ 73,574 | $ 68,455 |
CET1 capital to risk-weighted assets, ratio | 12.01% | 11.97% |
Tier 1 capital to risk-weighted assets, ratio | 12.88% | 12.91% |
Total capital to risk-weighted assets, ratio | 13.63% | 13.79% |
Tier 1 capital to average assets, ratio | 10.72% | 10.77% |
CET1 capital to risk-weighted assets, amount for capital adequacy purposes | $ 25,700 | $ 23,864 |
Tier 1 capital to risk-weighted assets, amount for capital adequacy purposes | 34,267 | 31,819 |
Total capital to risk-weighted assets, amount for capital adequacy purposes | 45,689 | 42,425 |
Tier 1 capital to average assets, amount for capital adequacy purposes | $ 27,452 | $ 25,416 |
CET1 capital to risk-weighted assets, ratio for capital adequacy purposes | 4.50% | 4.50% |
Tier 1 capital to risk-weighted assets, ratio for capital adequacy purposes | 6.00% | 6.00% |
Total capital to risk-weighted assets, ratio for capital adequacy purposes | 8.00% | 8.00% |
Tier 1 capital to average assets, ratio for capital adequacy purposes | 4.00% | 4.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - Management $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Schedule of analysis of related party loan | |
Total related-party loans at December 31, 2017 | $ 4,230 |
New related-party loans | 2,997 |
Repayments or other | (2,765) |
Total related-party loans at December 31, 2018 | $ 4,462 |
Related Party Transactions (D_2
Related Party Transactions (Details Textual) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Management | ||
Related Party Transaction [Line Items] | ||
Deposits of executive officers, directors, and their affiliates | $ 8.4 | $ 7.6 |
Condensed Financial Informati_3
Condensed Financial Information Parent Company (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash | $ 19,692 | $ 19,125 | $ 15,351 | $ 18,496 |
Other assets | 18,323 | 17,174 | ||
Total assets | 714,666 | 711,101 | ||
LIABILITIES | ||||
Other liabilities | 9,968 | 9,787 | ||
Subordinated debt (Note 7) | 5,155 | 5,155 | ||
Total liabilities | 649,748 | 649,471 | ||
SHAREHOLDERS’ EQUITY | ||||
Common stock | 23,641 | 23,641 | ||
Additional paid-in capital | 20,984 | 20,928 | ||
Retained earnings | 31,089 | 24,403 | ||
Accumulated other comprehensive loss | (3,656) | (1,825) | ||
Treasury stock | (7,140) | (5,517) | ||
Total shareholders’ equity | 64,918 | 61,630 | 57,670 | 56,684 |
Total liabilities and shareholders’ equity | 714,666 | 711,101 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 240 | 261 | $ 320 | $ 122 |
Investment in bank subsidiary | 61,272 | 58,028 | ||
Subordinated note from subsidiary bank | 6,000 | 6,000 | ||
Other assets | 3,538 | 3,489 | ||
Total assets | 71,050 | 67,778 | ||
LIABILITIES | ||||
Other liabilities | 977 | 993 | ||
Subordinated debt (Note 7) | 5,155 | 5,155 | ||
Total liabilities | 6,132 | 6,148 | ||
SHAREHOLDERS’ EQUITY | ||||
Common stock | 23,641 | 23,641 | ||
Additional paid-in capital | 20,984 | 20,928 | ||
Retained earnings | 31,089 | 24,403 | ||
Accumulated other comprehensive loss | (3,656) | (1,825) | ||
Treasury stock | (7,140) | (5,517) | ||
Total shareholders’ equity | 64,918 | 61,630 | ||
Total liabilities and shareholders’ equity | $ 71,050 | $ 67,778 |
Condensed Financial Informati_4
Condensed Financial Information Parent Company (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Of Comprehensive Income | |||
Dividends from bank subsidiary | $ 152 | $ 131 | $ 117 |
Interest on subordinated debt | (189) | (138) | (112) |
Federal income tax expense | (1,415) | (2,417) | (1,127) |
NET INCOME | 8,835 | 4,350 | 4,871 |
Comprehensive income | 7,004 | 5,780 | 2,148 |
Parent Company | |||
Statements Of Comprehensive Income | |||
Dividends from bank subsidiary | 4,150 | 1,900 | 1,400 |
Interest and dividend income | 213 | 153 | 121 |
Other income | 56 | 58 | 60 |
Interest on subordinated debt | (189) | (138) | (112) |
Other expenses | (606) | (568) | (497) |
Income before income tax and equity in undistributed earnings of subsidiaries | 3,624 | 1,405 | 972 |
Federal income tax expense | 136 | 106 | 265 |
Equity in undistributed earnings of subsidiaries | 5,075 | 2,839 | 3,634 |
NET INCOME | 8,835 | 4,350 | 4,871 |
Comprehensive income | $ 7,004 | $ 5,780 | $ 2,148 |
Condensed Financial Informati_5
Condensed Financial Information Parent Company (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow from operating activities | |||
Net income | $ 8,835 | $ 4,350 | $ 4,871 |
Adjustments to reconcile net income to net cash flow from operating activities: | |||
Deferred tax benefit | 1,008 | (28) | (129) |
Net cash flow from operating activities | 13,134 | 9,133 | 14,102 |
Cash deficit from financing activities | |||
Dividends paid | (2,149) | (1,726) | (1,237) |
Treasury shares purchased | (1,781) | (237) | |
Net cash (deficit) flow from financing activities | (3,834) | 49,514 | 40,912 |
Net change in cash and cash equivalents | 567 | 3,774 | (3,145) |
Cash | |||
Beginning of period | 19,125 | 15,351 | 18,496 |
End of period | 19,692 | 19,125 | 15,351 |
Parent Company | |||
Cash flow from operating activities | |||
Net income | 8,835 | 4,350 | 4,871 |
Adjustments to reconcile net income to net cash flow from operating activities: | |||
Equity in undistributed earnings of subsidiaries | (5,075) | (2,839) | (3,634) |
Deferred tax benefit | (13) | 62 | (15) |
Equity compensation | 214 | 143 | 75 |
Change in other assets and liabilities | (52) | 188 | 138 |
Net cash flow from operating activities | 3,909 | 1,904 | 1,435 |
Cash deficit from financing activities | |||
Dividends paid | (2,149) | (1,726) | (1,237) |
Treasury shares purchased | (1,781) | (237) | |
Net cash (deficit) flow from financing activities | (3,930) | (1,963) | (1,237) |
Net change in cash and cash equivalents | (21) | (59) | 198 |
Cash | |||
Beginning of period | 261 | 320 | 122 |
End of period | $ 240 | $ 261 | $ 320 |
Dividend Restrictions (Details
Dividend Restrictions (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Equity [Abstract] | |
Payment of dividends | $ 8.2 |
Dividend restriction description | Under the Ohio Banking Code, cash dividends may not exceed net profits as defined for that year combined with retained net profits for the two preceding years less any required transfers to surplus. Under this formula, the amount available for payment of dividends in 2019 is $8.2 million plus 2019 profits retained up to the date of the dividend declaration. |
Litigation (Details Textual)
Litigation (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Management assessment of legal actions on financial statement description | The Bank is involved in legal actions arising in the ordinary course of business. In the opinion of management, the outcomes from these other matters, either individually or in the aggregate, are not expected to have any material effect on the Company. |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details Textual) - USD ($) | Dec. 18, 2018 | Jan. 23, 2018 | Jan. 24, 2017 | Jan. 26, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 22, 2018 |
Equity Class Of Treasury Stock [Line Items] | ||||||||
Common stock, shares outstanding | 4,349,624 | 4,420,136 | ||||||
Stock repurchase program, shares repurchased | 82,637 | 13,463 | ||||||
Stock Repurchase Program on January 26, 2016 | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Percentage of shares authorized to be repurchased to common stock outstanding | 2.30% | |||||||
Common stock, shares outstanding | 4,404,783 | |||||||
Stock repurchase program expiration date | Dec. 31, 2016 | |||||||
Stock repurchase program, shares repurchased | 0 | |||||||
Stock Repurchase Program on January 26, 2016 | Maximum | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Shares authorized to be repurchased | 100,000 | |||||||
Stock Repurchase Program on January 24, 2017 | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Percentage of shares authorized to be repurchased to common stock outstanding | 2.30% | |||||||
Common stock, shares outstanding | 4,420,055 | |||||||
Stock repurchase program expiration date | Dec. 31, 2017 | |||||||
Stock repurchase program, shares repurchased | 12,863 | |||||||
Stock Repurchase Program on January 24, 2017 | Maximum | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Shares authorized to be repurchased | 100,000 | |||||||
Stock Repurchase Program on January 23, 2018 | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Shares authorized to be repurchased | 300,000 | |||||||
Percentage of shares authorized to be repurchased to common stock outstanding | 2.30% | |||||||
Common stock, shares outstanding | 4,420,136 | |||||||
Stock repurchase program, remaining authorized amount | $ 6,200,000 | |||||||
Stock repurchase program expiration date | Dec. 31, 2018 | |||||||
Stock repurchase program, shares repurchased | 80,944 | |||||||
Increase in number of shares authorized to be repurchased | 200,000 | |||||||
Stock Repurchase Program on January 23, 2018 | Maximum | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Shares authorized to be repurchased | 100,000 | |||||||
Stock Repurchase Program on December 18,2018 | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Percentage of shares authorized to be repurchased to common stock outstanding | 6.90% | |||||||
Common stock, shares outstanding | 4,349,624 | |||||||
Stock repurchase program expiration date | Dec. 31, 2019 | |||||||
Stock Repurchase Program on December 18,2018 | Maximum | ||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||
Shares authorized to be repurchased | 300,000 |
Equity Compensation (Details Te
Equity Compensation (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Omnibus Equity Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized | 340,000 | |||
Equity compensation expense recorded | $ 192,000 | $ 123,000 | ||
Unrecognized compensation expense | $ 310,000 | |||
Unrecognized compensation expense, expected to be recognized | 17 months | |||
Award vesting period | 3 years | |||
Shares awarded under the plan, vesting description | Shares awarded under this plan vest in equal thirds on the first three anniversaries of the award date if the employee remains employed with Cortland Bancorp. | |||
Omnibus Equity Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted to employees under the plan | 12,593 | 12,976 | ||
Shares granted under the plan immediately vested | 8,359 | |||
Director Equity Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Equity compensation expense recorded | $ 22,000 | $ 30,000 | ||
Director Equity Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized | 113,000 | |||
Shares granted under the plan immediately vested | 989 | 1,656 |
Equity Compensation (Details)
Equity Compensation (Details) - Omnibus Equity Plan - Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Units, Nonvested, beginning balance | 20,814 | |
Units, Granted | 12,593 | 12,976 |
Units, Vested | (8,359) | |
Units, Forfeited | (1,457) | |
Units, Nonvested, ending balance | 23,591 | 20,814 |
Price at Grant Date, Nonvested, beginning balance | $ 17.02 | |
Price at Grant Date, Granted | 22.01 | |
Price at Grant Date, Vested | 16.71 | |
Price at Grant Date, Forfeited | 18.92 | |
Price at Grant Date, Nonvested, ending balance | $ 19.68 | $ 17.02 |
Extinguishment of Debt (Details
Extinguishment of Debt (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016USD ($)Advance$ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016USD ($) | |
Extinguishment Of Debt [Line Items] | ||||
Average interest rate during the year | 1.98% | 1.03% | 0.54% | |
Losses from the extinguishment of debt | $ (242,000) | |||
Federal Home Loan Bank Advances | ||||
Extinguishment Of Debt [Line Items] | ||||
Number of federal home loan bank advances paid off | Advance | 2 | |||
Extinguishment of debt, amount | $ 4,500,000 | |||
Average interest rate during the year | 4.01% | 0.33% | 0.33% | 0.31% |
Losses from the extinguishment of debt | $ 242,000 | |||
Prepayment penalties after tax | $ 160,000 | |||
Extinguishment of debt effect on earnings per share | $ / shares | $ (0.04) | |||
Debt instrument alternative wholesale borrowing rate | 1.44% | |||
Estimated annual interest expense savings | $ 130,000 |