Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34292 | |
Entity Registrant Name | ORRSTOWN FINANCIAL SERVICES, INC. | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2530374 | |
Entity Address, Address Line One | 77 East King Street | |
Entity Address, Address Line Two | P. O. Box 250 | |
Entity Address, City or Town | Shippensburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17257 | |
City Area Code | (717) | |
Local Phone Number | 532-6114 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ORRF | |
Securities Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,196,724 | |
Entity Central Index Key | 0000826154 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 33,974 | $ 25,969 |
Interest-bearing deposits with banks | 23,163 | 29,994 |
Cash and cash equivalents | 57,137 | 55,963 |
Restricted investments in bank stocks | 15,823 | 16,184 |
Securities available for sale (amortized cost of $497,454 and $491,492 at March 31, 2020 and December 31, 2019, respectively) | 479,599 | 490,885 |
Loans held for sale, at fair value | 7,900 | 9,364 |
Loans | 1,656,948 | 1,644,330 |
Less: Allowance for loan losses | (15,803) | (14,655) |
Net loans | 1,641,145 | 1,629,675 |
Premises and equipment, net | 37,098 | 37,524 |
Cash surrender value of life insurance | 64,016 | 63,613 |
Goodwill | 20,142 | 19,925 |
Other intangible assets, net | 6,717 | 7,180 |
Accrued interest receivable | 6,697 | 6,040 |
Other assets | 51,279 | 46,921 |
Total assets | 2,387,553 | 2,383,274 |
Deposits: | ||
Noninterest-bearing | 263,502 | 249,450 |
Interest-bearing | 1,633,794 | 1,626,072 |
Total deposits | 1,897,296 | 1,875,522 |
Securities sold under agreements to repurchase | 10,933 | 8,269 |
FHLB Advances | 201,166 | 209,667 |
Subordinated notes | 31,861 | 31,847 |
Other liabilities | 35,727 | 34,720 |
Total liabilities | 2,176,983 | 2,160,025 |
Shareholders’ Equity | ||
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, no par value—$0.05205 stated value per share 50,000,000 shares authorized; 11,268,679 and 11,220,604 shares issued; 11,196,724 and 11,199,874 shares outstanding | 586 | 584 |
Additional paid - in capital | 187,843 | 188,365 |
Retained earnings | 38,408 | 35,246 |
Accumulated other comprehensive loss | (15,097) | (480) |
Treasury stock— 71,955 and 20,730 shares, at cost at March 31, 2020 and December 31, 2019, respectively | (1,170) | (466) |
Total shareholders’ equity | 210,570 | 223,249 |
Total liabilities and shareholders’ equity | $ 2,387,553 | $ 2,383,274 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Securities available for sale amortized cost | $ 497,454 | $ 491,492 |
Preferred stock, par value (usd per share) | $ 1.25 | $ 1.25 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, stated value (usd per share) | $ 0.05205 | $ 0.05205 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 11,268,679 | 11,220,604 |
Common stock, shares outstanding (in shares) | 11,196,724 | 11,199,874 |
Treasury stock - common - shares (in shares) | 71,955 | 20,730 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | ||
Loans | $ 20,166,000 | $ 15,151,000 |
Investment securities - taxable | 3,438,000 | 3,492,000 |
Investment securities - tax-exempt | 284,000 | 842,000 |
Short-term investments | 79,000 | 173,000 |
Total interest income | 23,967,000 | 19,658,000 |
Interest expense | ||
Deposits | 4,354,000 | 3,715,000 |
Securities sold under agreements to repurchase | 32,000 | 27,000 |
FHLB Advances | 818,000 | 659,000 |
Subordinated notes | 501,000 | 497,000 |
Total interest expense | 5,705,000 | 4,898,000 |
Net interest income | 18,262,000 | 14,760,000 |
Provision for loan losses | 925,000 | 400,000 |
Net interest income after provision for loan losses | 17,337,000 | 14,360,000 |
Noninterest income | ||
Service charges on deposit accounts | 847,000 | 753,000 |
Interchange income | 788,000 | 736,000 |
Other service charges, commissions and fees | 140,000 | 149,000 |
Loan swap referral fees | 200,000 | 0 |
Trust and investment management income | 1,640,000 | 1,758,000 |
Brokerage income | 719,000 | 478,000 |
Mortgage banking activities | 332,000 | 468,000 |
Gain on sale of portfolio loans | 1,878,000 | 0 |
Income from life insurance | 540,000 | 342,000 |
Investment securities (losses) gains | (40,000) | 339,000 |
Other income | 30,000 | 112,000 |
Total noninterest income | 7,074,000 | 5,135,000 |
Noninterest expenses | ||
Salaries and employee benefits | 11,594,000 | 8,677,000 |
Occupancy | 1,127,000 | 1,001,000 |
Furniture and equipment | 1,162,000 | 1,023,000 |
Data processing | 871,000 | 770,000 |
Automated teller and interchange fees | 251,000 | 236,000 |
Advertising and bank promotions | 789,000 | 521,000 |
FDIC insurance | 47,000 | 185,000 |
Other professional services | 716,000 | 557,000 |
Directors' compensation | 201,000 | 236,000 |
Taxes other than income | 0 | 306,000 |
Intangible asset amortization | 463,000 | 208,000 |
Merger related and branch consolidation expenses | 0 | 645,000 |
Insurance claim receivable (recovery) write-off | (486,000) | 615,000 |
Other operating expenses | 1,569,000 | 1,181,000 |
Total noninterest expenses | 18,304,000 | 16,161,000 |
Income before income tax expense | 6,107,000 | 3,334,000 |
Income tax expense | 1,039,000 | 232,000 |
Net income | $ 5,068,000 | $ 3,102,000 |
Per share information: | ||
Basic earnings per share (in usd per share) | $ 0.46 | $ 0.34 |
Diluted earnings per share (in usd per share) | 0.46 | 0.33 |
Dividends paid per share (in usd per share) | $ 0.17 | $ 0.15 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 5,068 | $ 3,102 |
Other comprehensive (loss) income, net of tax: | ||
Unrealized (losses) gains on securities available for sale arising during the period | (17,288) | 5,127 |
Reclassification adjustment for losses (gains) realized in net income | 40 | (339) |
Net unrealized (losses) gains on securities available for sale | (17,248) | 4,788 |
Tax effect | 3,622 | (1,006) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax, Total | (13,626) | 3,782 |
Unrealized loss on interest rate swaps used in cash flow hedges | (1,259) | 0 |
Reclassification adjustment for losses realized in net income | 4 | 0 |
Net unrealized loss on interest rate swaps used in cash flow hedges | (1,255) | 0 |
Tax effect | 264 | 0 |
Total other comprehensive loss, net of tax and reclassification adjustments on interest rate swaps | (991) | 0 |
Total other comprehensive (loss) income, net of tax and reclassification adjustments | (14,617) | 3,782 |
Total comprehensive (loss) income | $ (9,549) | $ 6,884 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2018 | $ 173,433 | $ 491 | $ 151,678 | $ 24,472 | $ (2,972) | $ (236) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 3,102 | 3,102 | ||||
Total other comprehensive income (loss), net of taxes | 3,782 | 3,782 | ||||
Cash dividends | (1,413) | (1,413) | ||||
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 263 | 3 | 24 | 236 | ||
Ending balance at Mar. 31, 2019 | 179,167 | 494 | 151,702 | 26,161 | 810 | 0 |
Beginning balance at Dec. 31, 2019 | 223,249 | 584 | 188,365 | 35,246 | (480) | (466) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 5,068 | 5,068 | ||||
Total other comprehensive income (loss), net of taxes | (14,617) | (14,617) | ||||
Cash dividends | (1,906) | (1,906) | ||||
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | (1,224) | 2 | (522) | (704) | ||
Ending balance at Mar. 31, 2020 | $ 210,570 | $ 586 | $ 187,843 | $ 38,408 | $ (15,097) | $ (1,170) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share (in usd per share) | $ 0.17 | $ 0.15 |
Common shares issued during the period (in shares) | 48,075 | 45,514 |
Treasury stock, shares acquired (in shares) | 51,225 | 9,031 |
Compensation expense, issuance of stock | $ 525 | $ 499 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 5,068 | $ 3,102 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net (discount accretion) premium amortization | (664) | 69 |
Depreciation and amortization expense | 1,388 | 1,079 |
Provision for loan losses | 925 | 400 |
Share-based compensation | 525 | 499 |
Gain on sales of loans originated for sale | (1,216) | (350) |
Mortgage loans originated for sale | (20,851) | (16,682) |
Proceeds from sales of loans originated for sale | 23,185 | 15,505 |
Gain on sale of portfolio loans | (1,878) | 0 |
Net loss on disposal of premises and equipment | 1 | 130 |
Deferred income taxes | 1,024 | 211 |
Investment securities losses (gains) | 40 | (339) |
Income from life insurance | (540) | (342) |
Increase in accrued interest receivable | (657) | (413) |
Decrease in accrued interest payable and other liabilities | (352) | (2,351) |
Other, net | (1,567) | (89) |
Net cash provided by operating activities | 4,431 | 429 |
Cash flows from investing activities | ||
Proceeds from sales of AFS securities | 0 | 59,464 |
Maturities, repayments and calls of AFS securities | 20,497 | 6,306 |
Purchases of AFS securities | (26,692) | (85,324) |
Net redemptions of restricted investments in bank stocks | 361 | 550 |
Net increase in loans | (31,515) | (17,974) |
Proceeds from sales of portfolio loans | 21,618 | 0 |
Purchases of bank premises and equipment | (83) | (689) |
Net cash used in investing activities | (15,814) | (37,667) |
Cash flows from financing activities | ||
Net increase in deposits | 21,746 | 61,931 |
Net decrease in borrowings with original maturities less than 90 days | (65,716) | (29,490) |
Proceeds from FHLB advances | 99,977 | 20,000 |
Payments on FHLB advances | (40,098) | (25,094) |
Subordinated note issuance costs | 0 | (58) |
Dividends paid | (1,906) | (1,413) |
Acquisition of treasury stock | (1,510) | 0 |
Treasury shares repurchased for employee taxes associated with restricted stock vesting | 0 | (294) |
Proceeds from issuance of stock for option exercises and employee stock purchase plan | 64 | 58 |
Net cash provided by financing activities | 12,557 | 25,640 |
Net increase (decrease) in cash and cash equivalents | 1,174 | (11,598) |
Cash and cash equivalents at beginning of period | 55,963 | 88,815 |
Cash and cash equivalents at end of period | 57,137 | 77,217 |
Cash paid during the period for: | ||
Interest | 5,544 | 4,724 |
Supplemental schedule of noncash investing activities: | ||
OREO acquired in settlement of loans | 0 | 161 |
Lease liabilities arising from obtaining ROU assets | 0 | 8,115 |
Securities purchases not yet settled | $ 714 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES See the Glossary of Defined Terms at the beginning of this Report for terms used throughout the unaudited condensed consolidated financial statements and related notes of this Form 10-Q. Nature of Operations – Orrstown Financial Services, Inc. is a financial holding company that operates Orrstown Bank, a commercial bank with banking and financial advisory offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, Maryland, as well as Baltimore City, Maryland and Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster County, Pennsylvania. The Company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending, and deposit services, including checking, savings, time, and money market deposits. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by such regulatory authorities. Basis of Presentation – The accompanying unaudited condensed consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiaries, the Bank and Wheatland. The Company has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, SEC rules that permit reduced disclosure for interim periods, and Article 10 of Regulation S-X. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. The December 31, 2019 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2019 audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications may have been made to prior year amounts to conform with current year classifications. The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's unaudited condensed consolidated financial statements and notes as required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The effects of the COVID-19 pandemic may negatively impact material estimates. Material estimates that are particularly susceptible to significant change include the determination of the ALL and those used in valuation methodologies in areas with no observable market, such as loans, deposits, borrowings, goodwill, core deposit and other intangible assets, mortgage servicing rights, other assets and liabilities obtained or assumed in business combinations. Derivatives - FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily use interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged transaction affects earnings. During the three months ended March 31, 2020, such derivatives were used to hedge the variable cash flows associated with overnight borrowings. Leases - The Company evaluates its contracts at inception to determine if an arrangement either is a lease or contains one. Operating lease ROU assets are included in other assets and operating lease liabilities in accrued interest payable and other liabilities in the unaudited condensed consolidated balance sheets. The Company had no finance leases at March 31, 2020. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company's leases do not provide an implicit rate, so the Company's incremental borrowing rate is used, which approximates its fully collateralized borrowing rate, based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. In accordance with ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), the Company keeps leases with an initial term of 12 months or less off of the balance sheet. The Company recognizes these lease payments in the unaudited condensed consolidated statements of income on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to account for them as a single lease component. The Company's operating leases relate primarily to bank branches and office space. Upon the adoption of ASU 2016-02 on January 1, 2019, operating lease liabilities of $10.5 million and related lease assets of $7.5 million were recognized on the unaudited condensed consolidated balance sheets. The difference between the lease assets and lease liabilities primarily consists of deferred rent liabilities reclassified upon adoption to reduce the measurement of the lease assets. Recent Accounting Pronouncements - ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The amendments in this update require an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the amendments in this update amend the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For certain public companies, this update was effective for interim and annual periods beginning after December 15, 2019. The Company delayed the adoption of ASU 2016-13 as noted below. ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ("ASU 2019-10"), extended the implementation deadline of ASU 2016-13 for smaller reporting and other companies until the fiscal year and interim periods beginning after December 15, 2022. The Company meets the requirements to be considered a smaller reporting company under SEC Regulation S-K and SEC Rule 405, and did not adopt ASU 2016-13 on January 1, 2020. The Company is evaluating the impact of the delay for adoption of ASU 2016-13. The Company is working with a third party vendor solution to assist with the application of ASU 2016-13 and finalizing the loss estimation models to be used. Once management determines which methods will be utilized, a third party will be contracted to perform a model validation prior to adoption. While the Company anticipates the allowance for loan losses will increase under its current assumptions, it expects the impact of adopting ASU 2016-13 will be influenced by the composition, characteristics and quality of its loan and securities portfolios, as well as general economic conditions and forecasts at the adoption date. The other provisions of ASU 2019-10 were not applicable to the Company. |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
MERGERS AND ACQUISITIONS | MERGERS AND ACQUISITIONS Hamilton Bancorp, Inc. On May 1, 2019, the Company acquired 100% of the outstanding common shares of Hamilton Bancorp, Inc., and its wholly-owned subsidiary, Hamilton Bank, based in Towson, Maryland. The Company acquired Hamilton to introduce our banking and financial services into the Greater Baltimore area of Maryland. Pursuant to the merger agreement, the Company issued 1,765,704 shares of its common stock and paid $14.2 million in cash for all outstanding shares of Hamilton stock and options vesting upon acquisition. Based on the Company's closing stock price of $20.74 on April 30, 2019, the consideration paid to acquire Hamilton totaled approximately $50.8 million. The fair value of assets acquired, excluding goodwill, totaled $492.6 million, including loans totaling $347.1 million. The fair value of liabilities assumed totaled $449.4 million, including deposits totaling $388.2 million. Goodwill represents consideration transferred in excess of the fair value of the net assets acquired. At May 1, 2019, the Company recognized $7.6 million in goodwill associated with the Hamilton acquisition. The goodwill resulting from the acquisition represents the value expected from the expansion of our market in the Greater Baltimore area and the enhancement of our operations through customer synergies and efficiencies, thereby providing enhanced customer service. Goodwill acquired in the Hamilton acquisition is not deductible for tax purposes. The Hamilton acquisition was accounted for using the acquisition method of accounting and, accordingly, purchased assets, including identifiable intangible assets, and assumed liabilities were recorded at their respective acquisition date fair values. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. The Company continues to finalize the fair values of loans, intangible assets, other assets, income taxes and liabilities. As a result, the recorded fair value adjustments are preliminary and may change as additional information becomes available. Fair value adjustments will be finalized no later than May 2020. Measurement period adjustments made from the date of acquisition through March 31, 2020 are summarized in Note 6 - Goodwill and Other Intangible Assets . The following table summarizes the consideration paid for Hamilton and the estimated fair values of the assets acquired and liabilities assumed recognized at the acquisition date: Fair value of consideration transferred: Cash $ 14,197 Common stock issued 36,622 Total consideration transferred $ 50,819 Estimated fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 43,140 Securities available for sale 60,882 Restricted investments in bank stocks 2,658 Loans 347,143 Premises and equipment 3,749 Core deposit intangible 4,550 Goodwill 7,551 Cash surrender value of life insurance 17,948 Deferred tax asset, net 5,838 ROU lease asset 2,793 Other assets 3,925 Total assets acquired 500,177 Deposits (388,246) Borrowings (51,393) Other liabilities (9,719) Total liabilities assumed $ (449,358) The determination of estimated fair values of the acquired loans required the Company to make certain estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. Based on such factors as past due status, nonaccrual status, bankruptcy status, and credit risk ratings, the acquired loans were divided into loans with evidence of credit quality deterioration, which are accounted for under ASC 310-30 (purchased credit impaired), and loans that do not meet this criteria, which are accounted for under ASC 310-20 (purchased non-impaired). Expected cash flows, both principal and interest, were estimated based on key assumptions covering such factors as prepayments, default rates and severity of loss given default. These assumptions were developed using both Hamilton's historical experience and the portfolio characteristics as of the acquisition date, as well as available market research. The fair value estimates for acquired loans were based on the amount and timing of expected principal, interest and other cash flows, including expected prepayments, discounted at prevailing market interest rates applicable to the types of acquired loans, which the Company considered to be level 3 fair value measurements. Deposit liabilities assumed in the Hamilton acquisition were segregated into two categories: time-deposits (i.e., deposit accounts with a stated maturity) and demand deposits, both using level 2 fair value measurements. In determining fair value of time deposits, the Company discounted the contractual cash flows of the deposit accounts using prevailing market interest rates for time deposit accounts of similar type and duration. For demand deposits, the acquisition date outstanding balance of the assumed demand deposit accounts approximates fair value. Acquisition date fair values for securities available for sale were determined using Level 1 or Level 2 inputs consistent with the methods discussed further in Note 13 - Fair Value . The remaining acquisition date fair values represent either Level 2 fair value measurements or Level 3 fair value measurements (premises and equipment and core deposit intangible). Upon completion of the acquisition, the Company sold the acquired investment portfolio and paid off acquired borrowings at the indicated fair value amounts in conjunction with its asset/liability management strategies. The Company recognized a core deposit intangible of $4.6 million, which is being amortized using an accelerated method over a 10-year amortization period, consistent with expected future cash flows. Loans acquired with Hamilton were measured at fair value at the acquisition date with no carryover of any ALL. Loans were segregated into those loans considered to be performing and those considered PCI. The following table presents performing and PCI loans acquired, by loan class, at May 1, 2019: Performing PCI Total Commercial real estate: Owner-occupied $ 42,148 $ 5,894 $ 48,042 Non-owner occupied 45,401 770 46,171 Multi-family 10,773 — 10,773 Acquisition and development: 1-4 family residential construction 7,450 — 7,450 Commercial and land development 4,528 — 4,528 Commercial and industrial 32,316 1,914 34,230 Residential mortgage: First lien 152,657 10,494 163,151 Home-equity - term 4,478 1 4,479 Home equity - lines of credit 13,657 — 13,657 Installment and other loans 14,467 195 14,662 Total loans acquired $ 327,875 $ 19,268 $ 347,143 The following table presents the fair value adjustments made to the amortized cost basis of loans acquired at May 1, 2019: Gross amortized cost basis at acquisition $ 362,125 Market rate adjustment (5,309) Credit fair value adjustment on non-credit impaired loans (3,947) Credit fair value adjustment on PCI loans (5,726) Estimated fair value of acquired loans $ 347,143 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the contractual rates of the acquired loans. The credit fair value adjustment made on non-credit impaired loans represents the changes in credit quality of the underlying borrowers from loan inception to the acquisition date. The credit fair value adjustment on PCI loans is derived in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and represents the portion of the loan balance that has been deemed uncollectible based on our expectations of future cash flows for each respective loan. The following table provides information about acquired PCI loans at May 1, 2019: Contractually required principal and interest at acquisition $ 31,599 Nonaccretable difference (8,834) Expected cash flows at acquisition 22,765 Accretable yield (3,497) Estimated fair value of acquired PCI loans $ 19,268 Unaudited pro forma net income for the Company for the three months ended March 31, 2019, would have totaled $3.3 million, and revenues would have totaled $23.3 million for the same period had the Hamilton acquisition occurred January 1, 2019. The Company did not incur any merger related expenses in connection with the Hamilton acquisition for the three months ended March 31, 2020. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES At March 31, 2020 and December 31, 2019, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at March 31, 2020 and December 31, 2019: Amortized Cost Gross Unrealized Gross Unrealized Fair Value March 31, 2020 States and political subdivisions $ 105,572 $ 6,111 $ 626 $ 111,057 GSE residential MBSs 4,551 55 — 4,606 GSE residential CMOs 66,134 2,022 941 67,215 Non-agency CMOs 17,161 — 482 16,679 Private label commercial CMOs 73,978 — 7,844 66,134 Asset-backed 229,461 75 16,225 213,311 Other 597 — — 597 Totals $ 497,454 $ 8,263 $ 26,118 $ 479,599 December 31, 2019 States and political subdivisions $ 83,607 $ 4,288 $ 32 $ 87,863 GSE residential CMOs 67,928 1,000 774 68,154 Non-agency CMOs 17,210 — 123 17,087 Private label commercial CMOs 86,704 156 231 86,629 Asset-backed 235,406 138 5,029 230,515 Other 637 — — 637 Totals $ 491,492 $ 5,582 $ 6,189 $ 490,885 The following table summarizes investment securities with unrealized losses at March 31, 2020 and December 31, 2019, aggregated by major security type and the length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized March 31, 2020 States and political subdivisions 1 $ 9,595 $ 626 — $ — $ — 1 $ 9,595 $ 626 GSE residential CMOs 3 27,206 941 — — — 3 27,206 941 Non-agency CMOs 1 16,679 482 — — — 1 16,679 482 Private label commercial CMOs 7 34,983 3,121 8 31,151 4,723 15 66,134 7,844 Asset-backed 11 84,057 5,304 9 122,692 10,921 20 206,749 16,225 Totals 23 $ 172,520 $ 10,474 17 $ 153,843 $ 15,644 40 $ 326,363 $ 26,118 December 31, 2019 States and political subdivisions 1 $ 6,173 $ 32 — $ — $ — 1 $ 6,173 $ 32 GSE residential CMOs 5 37,158 309 1 11,602 465 6 48,760 774 Non-agency CMOs 1 17,087 123 — — — 1 17,087 123 Private label commercial CMOs 6 26,079 67 8 39,726 164 14 65,805 231 Asset-backed 9 92,189 1,145 9 121,399 3,884 18 213,588 5,029 Totals 22 $ 178,686 $ 1,676 18 $ 172,727 $ 4,513 40 $ 351,413 $ 6,189 The Company determines whether unrealized losses are temporary in nature in accordance with FASB ASC 320-10, Investments - Overall , (“FASB ASC 320-10”) and FASB ASC 325-40, Investments – Beneficial Interests in Securitized Financial Assets , when applicable. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. FASB ASC 320-10 requires the Company to assess if an OTTI exists by considering whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If either of these situations applies, the guidance requires the Company to record an OTTI charge to earnings on debt securities for the difference between the amortized cost basis of the security and the fair value of the security. If neither of these situations applies, the Company is required to assess whether it is expected to recover the entire amortized cost basis of the security. If the Company is not expected to recover the entire amortized cost basis of the security, the guidance requires the Company to bifurcate the identified OTTI into a credit loss component and a component representing loss related to other factors. A discount rate is applied which equals the effective yield of the security. The difference between the present value of the expected flows and the amortized book value is considered a credit loss, which would be recorded through earnings as an OTTI charge. When a market price is not readily available, the market value of the security is determined using the same expected cash flows; the discount rate is a rate the Company determines from the open market and other sources as appropriate for the security. The difference between the market value and the present value of cash flows expected to be collected is recognized in accumulated other comprehensive loss on the consolidated statements of financial condition. As of March 31, 2020, the Company had no cumulative OTTI. There were no OTTI charges recognized in earnings as a result of credit losses on investments in the three months ended March 31, 2020 or 2019. Unrealized losses in the Company's investment portfolio are the result of interest rate fluctuations. During the three months ended March 31, 2020, unrealized losses were substantially higher due to the impact of the COVID-19 pandemic and the resulting market uncertainty.. States and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads from the time these securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is OTTI. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at March 31, 2020 or December 31, 2019. GSE Residential CMOs. The unrealized losses presented in the table above have been caused by a widening of spreads from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis. Management considers the investment rating and other credit support in determining whether a security is other-than-temporarily impaired. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at March 31, 2020 or December 31, 2019. Non-agency CMOs . The unrealized losses presented in the table above have been caused by a widening of spreads from the time the securities were purchased. Management considers the investment rating and other credit support in determining whether a security is other-than-temporarily impaired. As of March 31, 2020, management concluded that an OTTI did not exist on any of the aforementioned securities based upon its assessment. Management also concluded that it does not intend to sell nor will it be required to sell the securities, before their recovery, which may be maturity, and management expects to recover the entire amortized cost basis of these securities. Private Label Commercial CMOs and Asset-backed. The unrealized losses presented in the table above have been caused by a widening of spreads from the time the securities were purchased. The sudden and desperate need for liquidity from many institutional pools of capital combined with the global economic implications of the COVID-19 pandemic caused significant widening of spreads. Management considers the investment rating and other credit support in determining whether a security is other-than-temporarily impaired. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at March 31, 2020 or December 31, 2019. The following table summarizes the credit ratings and collateral associated with the Company's investment portfolio, excluding equity securities, at March 31, 2020: Sector Portfolio Mix Amortized Book Fair Value Credit Enhancement AAA AA A BBB NR Collateral Type Unsecured ABS 2 % $ 12,112 $ 11,098 37 % 7 % — % — % — % 93 % Unsecured Consumer Debt Student Loan ABS 3 % 13,450 12,212 25 % — % — % — % — % 100 % Seasoned Student Loans Federal Family Education Loan ABS 37 % 184,009 170,418 6 % 4 % 73 % 23 % — % — % Federal Family Education Loan (1) PACE Loan ABS 1 % 6,488 6,563 5 % 100 % — % — % — % — % PACE Loans Non-Agency CMBS 15 % 73,978 66,134 55 % 87 % — % 3 % 10 % — % Commercial Real Estate Non-Agency RMBS 4 % 17,161 16,679 33 % 100 % — % — % — % — % Reverse Mortgages (2) Municipal - General Obligation 11 % 54,310 58,332 3 % 84 % 13 % — % — % Municipal - Revenue 10 % 51,263 52,725 — % 61 % 19 % — % 20 % SBA ReRemic 3 % 13,402 13,020 — % 100 % — % — % — % SBA Guarantee (3) Agency MBS 14 % 70,684 71,821 — % 100 % — % — % — % Residential Mortgages (3) Bank CDs — % 499 499 — % — % — % — % 100 % FDIC Insured CD 100 % $ 497,356 $ 479,502 20 % 60 % 12 % 1 % 7 % (1) 97% guaranteed by U.S. government (2) Currently 5% credit enhancement; expected credit enhancement is provided (3) 100% guaranteed by U.S. government agencies Note : Ratings in table are the lowest of the three rating agencies (Standard & Poors, Moody's & Fitch). Standard & Poors rates U.S. government obligations at AA+ The following table summarizes amortized cost and fair value of investment securities by contractual maturity at March 31, 2020. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Amortized Cost Fair Value Due in one year or less $ 480 $ 480 Due after one year through five years 249 249 Due after five years through ten years 27,296 28,734 Due after ten years 78,144 82,191 CMOs 161,824 154,634 Asset-backed 229,461 213,311 $ 497,454 $ 479,599 The following table summarizes proceeds from sales of investment securities and gross gains and gross losses for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Proceeds from sale of investment securities $ — $ 59,464 Gross gains — 519 Gross losses 40 180 During the three months ended March 31, 2020, a loss of $40 thousand was recorded to write-down an equity security to market value, compared to net investment security gains of $339 thousand for the three months ended March 31, 2019. Investment securities with a fair value of $377.0 million and $158.7 million at March 31, 2020 and December 31, 2019, respectively, were pledged to secure public funds and for other purposes as required or permitted by law. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio is grouped into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Consistent with ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, the segments are further broken down into classes to allow for differing risk characteristics within a segment. The risks associated with lending activities differ among the various loan classes and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact both the borrower’s ability to repay its loans and associated collateral. The Company has various types of commercial real estate loans, which have differing levels of credit risk. Owner occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner occupied loans mentioned above. Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including, if any, the guarantors of the project or other collateral securing the loan. Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest-rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the creditworthiness of the borrower and, to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility. The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the creditworthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance. Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to-value ratios of no greater than 90% of the value of the real estate taken as collateral. The creditworthiness of the borrower is considered including credit scores and debt-to-income ratios. Installment and other loans’ credit risk are mitigated through prudent underwriting standards, including evaluation of the creditworthiness of the borrower through credit scores and debt-to-income ratios and, if secured, the collateral value of the assets. These loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, and may present a greater risk to the Company than 1-4 family residential loans. The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial real estate: Owner occupied $ 168,586 $ 170,884 Non-owner occupied 377,933 361,050 Multi-family 107,797 106,893 Non-owner occupied residential 118,773 120,038 Acquisition and development: 1-4 family residential construction 13,037 15,865 Commercial and land development 49,348 41,538 Commercial and industrial 235,791 214,554 Municipal 46,551 47,057 Residential mortgage: First lien 324,766 336,372 Home equity - term 13,337 14,030 Home equity - lines of credit 165,375 165,314 Installment and other loans 35,654 50,735 Total Loans $ 1,656,948 $ 1,644,330 In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including "Special Mention," "Substandard," "Doubtful" or "Loss." The Special Mention category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank's position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. Substandard loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as Loss is deferred. Loss loans are considered uncollectible, as the borrowers are often in bankruptcy, have suspended debt repayments, or have ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’s principal or interest and it is charged-off. The Company has a loan review policy and program which is designed to identify and monitor risk in the lending function. The Management ERM Committee, comprised of executive officers and loan department personnel, is charged with the oversight of overall credit quality and risk exposure of the Company's loan portfolio. This includes the monitoring of the lending activities of all Company personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. A loan review program provides the Company with an independent review of the commercial loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event. Internal loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $500 thousand, which includes confirmation of risk rating by an independent credit officer. In addition, all commercial relationships greater than $500 thousand rated Substandard, Doubtful or Loss are reviewed quarterly and corresponding risk ratings are reaffirmed by the Company's Problem Loan Committee, with subsequent reporting to the Management ERM Committee and the Board of Directors. The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2020 and December 31, 2019: Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total March 31, 2020 Commercial real estate: Owner occupied $ 152,679 $ 4,538 $ 3,013 $ 3,487 $ — $ 4,869 $ 168,586 Non-owner occupied 361,029 15,996 — — — 908 377,933 Multi-family 102,838 3,951 672 336 — — 107,797 Non-owner occupied residential 111,102 4,374 1,380 340 — 1,577 118,773 Acquisition and development: 1-4 family residential construction 12,523 514 — — — — 13,037 Commercial and land development 47,762 200 549 837 — — 49,348 Commercial and industrial 222,152 967 8,108 840 — 3,724 235,791 Municipal 42,221 4,330 — — — — 46,551 Residential mortgage: First lien 316,296 — — 2,188 — 6,282 324,766 Home equity - term 13,233 72 — 12 — 20 13,337 Home equity - lines of credit 164,549 73 36 717 — — 165,375 Installment and other loans 35,540 — — 20 — 94 35,654 $ 1,581,924 $ 35,015 $ 13,758 $ 8,777 $ — $ 17,474 $ 1,656,948 December 31, 2019 Commercial real estate: Owner occupied $ 151,161 $ 4,513 $ 3,163 $ 5,872 $ — $ 6,175 $ 170,884 Non-owner occupied 342,753 17,152 — — — 1,145 361,050 Multi-family 100,361 4,822 682 345 — 683 106,893 Non-owner occupied residential 111,697 4,534 1,115 235 — 2,457 120,038 Acquisition and development: 1-4 family residential construction 15,865 — — — — — 15,865 Commercial and land development 39,939 206 1,393 — — — 41,538 Commercial and industrial 198,951 1,133 8,899 1,763 — 3,808 214,554 Municipal 42,649 4,408 — — — — 47,057 Residential mortgage: First lien 323,040 978 — 2,590 — 9,764 336,372 Home equity - term 13,774 74 149 13 — 20 14,030 Home equity - lines of credit 164,469 74 38 733 — — 165,314 Installment and other loans 50,497 — — 85 — 153 50,735 $ 1,555,156 $ 37,894 $ 15,439 $ 11,636 $ — $ 24,205 $ 1,644,330 For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios and any TDRs are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the impairment analysis in the next reporting period. Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value, the loan has been identified as uncollectible, and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two, and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant. At March 31, 2020 and December 31, 2019, nearly all of the Company’s loan impairments were measured based on the estimated fair value of the collateral securing the loan, except for TDRs. By definition, TDRs are considered impaired. All TDR impairment analyses are initially based on discounted cash flows for those loans. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it could also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral. Updated appraisals are generally required every 18 months for classified commercial loans in excess of $250 thousand. The “as is" value provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances, dictate that another value than that provided by the appraiser is more appropriate. Generally, impaired commercial loans secured by real estate, other than performing TDRs, are measured at fair value using certified real estate appraisals that had been completed within the last 18 months. Appraised values are discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on either an existing appraisal or a discounted cash flow analysis as determined by management. The approaches are discussed below: • Existing appraisal – if the existing appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the existing certified appraised value may be used. Discounts to the appraised value, as deemed appropriate for selling costs, are factored into the fair value. • Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches. Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable aging or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies. The Company distinguishes substandard loans on both an impaired and non-impaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. A substandard classification does not automatically meet the definition of impaired. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual extensions of credit classified as substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and development, and commercial and industrial loans rated substandard to be collectively evaluated for impairment. Although the Company believes these loans meet the definition of substandard, they are generally performing and management has concluded that it is likely the Company will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Generally, the Company does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2020 and December 31, 2019. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) March 31, 2020 Commercial real estate: Owner-occupied $ — $ — $ — $ 3,487 $ 4,246 Multi-family — — — 336 565 Non-owner occupied residential — — — 340 537 Acquisition and development: Commercial and land development — — — 837 875 Commercial and industrial — — — 840 2,159 Residential mortgage: First lien 724 724 37 1,464 2,777 Home equity—term — — — 12 14 Home equity—lines of credit — — — 717 1,028 Installment and other loans — — — 20 30 $ 724 $ 724 $ 37 $ 8,053 $ 12,231 December 31, 2019 Commercial real estate: Owner-occupied $ — $ — $ — $ 5,872 $ 8,086 Multi-family — — — 345 569 Non-owner occupied residential — — — 235 422 Commercial and industrial — — — 1,763 3,361 Residential mortgage: First lien 425 425 36 2,165 3,164 Home equity—term — — — 13 15 Home equity—lines of credit — — — 733 1,077 Installment and other loans — — — 85 97 $ 425 $ 425 $ 36 $ 11,211 $ 16,791 The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2020 and 2019: 2020 2019 Average Interest Average Interest Three Months Ended March 31, Commercial real estate: Owner occupied $ 5,234 $ 1 $ 1,863 $ — Non-owner occupied — — — — Multi-family 341 — 127 — Non-owner occupied residential 257 — 301 — Acquisition and development: 1-4 family residential construction — — — — Commercial and land development 209 — — — Commercial and industrial 1,313 — 277 — Residential mortgage: First lien 2,400 12 2,788 15 Home equity - term 12 — 15 — Home equity - lines of credit 726 — 758 — Installment and other loans 46 — 7 — $ 10,538 $ 13 $ 6,136 $ 15 The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 29 1 $ 30 Residential mortgage: First lien 9 925 9 931 Home equity - lines of credit 1 17 1 18 11 971 11 979 Nonaccruing: Commercial real estate: Owner occupied 2 218 4 1,909 Residential mortgage: First lien 5 350 5 359 7 568 9 2,268 18 $ 1,539 20 $ 3,247 There were zero new TDR's for the three months ended March 31, 2020 and 2019. Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2020 and December 31, 2019: Days Past Due Current 30-59 60-89 90+ Total Non- Total March 31, 2020 Commercial real estate: Owner occupied $ 156,194 $ 4,065 $ — $ — $ 4,065 $ 3,458 $ 163,717 Non-owner occupied 377,025 — — — — — 377,025 Multi-family 107,180 281 — — 281 336 107,797 Non-owner occupied residential 116,222 634 — — 634 340 117,196 Acquisition and development: 1-4 family residential construction 12,780 257 — — 257 — 13,037 Commercial and land development 48,495 16 — — 16 837 49,348 Commercial and industrial 230,859 367 — 1 368 840 232,067 Municipal 46,551 — — — — — 46,551 Residential mortgage: First lien 305,689 10,705 621 206 11,532 1,263 318,484 Home equity - term 13,302 3 — — 3 12 13,317 Home equity - lines of credit 164,049 475 151 — 626 700 165,375 Installment and other loans 35,235 260 45 — 305 20 35,560 Subtotal 1,613,581 17,063 817 207 18,087 7,806 1,639,474 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 3,199 1,545 — 125 1,670 — 4,869 Non-owner occupied 338 — — 570 570 — 908 Non-owner occupied residential 1,296 1 — 280 281 — 1,577 Commercial and industrial 3,708 — — 16 16 — 3,724 Residential mortgage: First lien 3,551 1,814 — 917 2,731 — 6,282 Home equity - term 16 4 — — 4 — 20 Installment and other loans 67 10 17 — 27 — 94 Subtotal 12,175 3,374 17 1,908 5,299 — 17,474 $ 1,625,756 $ 20,437 $ 834 $ 2,115 $ 23,386 $ 7,806 $ 1,656,948 Days Past Due Current 30-59 60-89 90+ Total Non- Total December 31, 2019 Commercial real estate: Owner occupied $ 158,723 $ 144 $ — $ — $ 144 $ 5,842 $ 164,709 Non-owner occupied 359,425 480 — — 480 — 359,905 Multi-family 105,865 — — — — 345 106,210 Non-owner occupied residential 116,370 841 66 69 976 235 117,581 Acquisition and development: 1-4 family residential construction 15,587 278 — — 278 — 15,865 Commercial and land development 40,403 1,135 — — 1,135 — 41,538 Commercial and industrial 208,668 315 — — 315 1,763 210,746 Municipal 47,057 — — — — — 47,057 Residential mortgage: First lien 314,473 9,092 1,234 150 10,476 1,659 326,608 Home equity - term 13,993 — 4 — 4 13 14,010 Home equity - lines of credit 163,907 417 275 — 692 715 165,314 Installment and other loans 50,224 236 37 — 273 85 50,582 Subtotal 1,594,695 12,938 1,616 219 14,773 10,657 1,620,125 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 6,015 — 129 31 160 — 6,175 Non-owner occupied 564 — — 581 581 — 1,145 Multi-family 683 — — — — — 683 Non-owner occupied residential 1,710 105 111 531 747 — 2,457 Commercial and industrial 3,792 — — 16 16 — 3,808 Residential mortgage: First lien 6,308 1,857 745 854 3,456 — 9,764 Home equity - term 16 4 — — 4 — 20 Installment and other loans 131 22 — — 22 — 153 Subtotal 19,219 1,988 985 2,013 4,986 — 24,205 $ 1,613,914 $ 14,926 $ 2,601 $ 2,232 $ 19,759 $ 10,657 $ 1,644,330 The Company maintains its ALL at a level management believes adequate for probable incurred credit losses. The ALL is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the ALL utilizing a defined methodology which considers specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes its approach properly addresses relevant accounting guidance for loans individually identified as impaired and for loans collectively evaluated for impairment, and other bank regulatory guidance. In connection with its quarterly evaluation of the adequacy of the ALL, management reviews its methodology to determine if it properly addresses the current risk in the loan portfolio. For each loan class, general allowances based on quantitative factors, principally historical loss trends, are provided for loans that are collectively evaluated for impairment. An adjustment to historical loss factors may be incorporated for delinquency and other potential risk not elsewhere defined within the ALL methodology. In addition to this quantitative analysis, adjustments to the ALL requirements are allocated on loans collectively evaluated for impairment based on additional qualitative factors, including: Nature and Volume of Loans – including loan growth in the current and subsequent quarters based on the Company’s targeted growth and strategic plan, coupled with the types of loans booked based on risk management and credit culture; the number of exceptions to loan policy; and supervisory loan to value exceptions. Concentrations of Credit and Changes within Credit Concentrations – including the composition of the Company’s overall portfolio makeup and management's evaluation related to concentration risk management and the inherent risk associated with the concentrations identified. Underwriting Standards and Recovery Practices – including changes to underwriting standards and perceived impact on anticipated losses; trends in the number of exceptions to loan policy; supervisory loan to value exceptions; and administration of loan recovery practices. Delinquency Trends – including delinquency percentages noted in the portfolio relative to economic conditions; severity of the delinquencies; and whether the ratios are trending upwards or downwards. Classified Loans Trends – including internal loan ratings of the portfolio; severity of the ratings; whether the loan segment’s ratings show a more favorable or less favorable trend; and underlying market conditions and impact on the collateral values securing the loans. Experience, Ability and Depth of Management/Lending staff – including the years’ experience of senior and middle management and the lending staff; turnover of the staff; and instances of repeat criticisms of ratings. Quality of Loan Review – including the years of experience of the loan review staff; in-house versus outsourced provider of review; turnover of staff and the perceived quality of their work in relation to other external information. National and Local Economic Conditions – including trends in the consumer price index, unemployment rates, the housing price index, housing statistics compared to the prior year, bankruptcy rates, regulatory and legal environment risks and competition. This factor was increased in the three months ended March 31, 2020 due to the anticipated impact of the COVID-19 pandemic on the Bank's loan portfolio. The following table presents the activity in the ALL for the three months ended March 31, 2020 and 2019: Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2020 Balance, beginning of period $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 Provision for loan losses 383 71 322 (1) 775 77 42 119 31 925 Charge-offs — — (75) — (75) (91) (72) (163) — (238) Recoveries 403 3 44 — 450 6 5 11 — 461 Balance, end of period $ 8,420 $ 1,033 $ 2,647 $ 99 $ 12,199 $ 3,139 $ 294 $ 3,433 $ 171 $ 15,803 March 31, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 103 150 159 — 412 189 (26) 163 (175) 400 Charge-offs (25) — (43) — (68) (246) (20) (266) — (334) Recoveries 71 2 42 — 115 69 19 88 — 203 Balance, end of period $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2020 and December 31, 2019. PCI loans are excluded from loans individually evaluated for impairment. Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2020 Loans allocated by: Individually evaluated for impairment $ 4,163 $ 837 $ 840 $ — $ 5,840 $ 2,917 $ 20 $ 2,937 $ — $ 8,777 Collectively evaluated for impairment 768,926 61,548 234,951 46,551 1,111,976 500,561 35,634 536,195 — 1,648,171 $ 773,089 $ 62,385 $ 235,791 $ 46,551 $ 1,117,816 $ 503,478 $ 35,654 $ 539,132 $ — $ 1,656,948 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 37 $ — $ 37 $ — $ 37 Collectively evaluated for impairment 8,420 1,033 2,647 99 12,199 3,102 294 3,396 171 15,766 $ 8,420 $ 1,033 $ 2,647 $ 99 $ 12,199 $ 3,139 $ 294 $ 3,433 $ 171 $ 15,803 December 31, 2019 Loans allocated by: Individually evaluated for impairment $ 6,452 $ — $ 1,763 $ — $ 8,215 $ 3,336 $ 85 $ 3,421 $ — $ 11,636 Collectively evaluated for impairment 752,413 57,403 212,791 47,057 1,069,664 512,380 50,650 563,030 — 1,632,694 $ 758,865 $ 57,403 $ 214,554 $ 47,057 $ 1,077,879 $ 515,716 $ 50,735 $ 566,451 $ — $ 1,644,330 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 36 $ — $ 36 $ — $ 36 Collectively evaluated for impairment 7,634 959 2,356 100 11,049 3,111 319 3,430 140 14,619 $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 The following table provides activity for the accretable yield of PCI loans for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Accretable yield, beginning of period $ 6,950 $ 2,065 Additions (1) 570 — Accretion of income (598) (171) Reclassifications from nonaccretable difference due to improvement in expected cash flows 17 — Other changes, net (2) (2,525) — Accretable yield, end of period $ 4,414 $ 1,894 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASESA lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has primarily entered into operating leases for branches and office space. Most of the Company's leases contain renewal options, which the Company is reasonably certain to exercise. Including renewal options, the Company's leases range from three years to 50 years. Operating lease right-of-use assets and lease liabilities are included in other assets and accrued interest and other liabilities on the Company's unaudited condensed consolidated balance sheets. The Company uses its incremental borrowing rate to determine the present value of the lease payments, as the rate implicit in the Company's leases is not readily determinable. Lease agreements that contain non-lease components are generally accounted for as a single lease component, while variable costs, such as common area maintenance expenses and property taxes, are expensed as incurred. The following table presents information related to the Company's operating leases at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Operating lease ROU assets $ 8,985 $ 9,222 Operating lease ROU liabilities 9,478 9,688 Weighted-average remaining lease term (in years) 17.9 17.6 Weighted-average discount rate 4.6 % 4.5 % The following table presents information related to the Company's operating leases for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Cash paid for operating lease liabilities $ 318 $ 180 Operating lease expense 380 253 The following table presents expected future maturities of the Company's lease liabilities as of March 31, 2020: Remainder of 2020 $ 961 2021 1,147 2022 727 2023 748 2024 738 Thereafter 10,549 14,870 Less: imputed interest 5,392 Total lease liabilities $ 9,478 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents changes in goodwill at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Balance, beginning of year $ 19,925 $ 12,592 Acquired goodwill — 7,029 Adjustments to acquired goodwill 217 304 Balance, end of period $ 20,142 $ 19,925 Goodwill is not amortized but is reviewed for potential impairment on at least an annual basis, with testing between annual tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit. Due to the severe economic impact of COVID-19, the Company reviewed its goodwill for impairment. It was concluded that no impairment existed at March 31, 2020. Management will continue to evaluate current economic conditions to determine if a triggering event would impact the current valuations for these assets. The following table presents changes in other intangible assets for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Beginning of period $ 7,180 $ 3,910 Amortization Expense (463) (208) Balance, end of period $ 6,717 $ 3,702 The following table presents the components of other identifiable intangible assets at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Gross Amount Accumulated Gross Amount Accumulated Amortized intangible assets: Core deposit intangibles $ 8,390 $ 1,868 $ 8,390 $ 1,493 Other customer relationship intangibles 524 353 524 338 Non-compete agreement 290 266 290 193 Total $ 9,204 $ 2,487 $ 9,204 $ 2,024 The following table presents future estimated aggregate amortization expense for intangible assets remaining at March 31, 2020: Remainder of 2020 $ 1,128 2021 1,313 2022 1,137 2023 960 2024 784 Thereafter 1,395 $ 6,717 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company files income tax returns in the U.S. federal jurisdiction, the Commonwealth of Pennsylvania and the State of Maryland. The Company is no longer subject to tax examination by tax authorities for years before 2016. The following table summarizes income tax expense for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Current expense $ 28 $ 21 Deferred expense 1,011 211 Income tax expense $ 1,039 $ 232 The following table summarizes deferred tax assets and liabilities at March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, December 31, Deferred tax assets: Allowance for loan losses $ 3,674 $ 3,418 Deferred compensation 414 415 Retirement and salary continuation plans 2,384 2,357 Share-based compensation 574 631 Off-balance sheet reserves 231 234 Nonaccrual loan interest 720 697 Net unrealized losses on AFS securities 3,749 127 Purchase accounting adjustments 3,042 4,081 Bonus accrual 167 493 Low-income housing credit carryforward 115 — Net operating loss carryovers 1,759 1,872 Other 629 672 Total deferred tax assets 17,458 14,997 Deferred tax liabilities: Depreciation 443 452 Mortgage servicing rights 694 694 Purchase accounting adjustments 1,471 1,599 Other 275 275 Total deferred tax liabilities 2,883 3,020 Net deferred tax asset, included in other assets $ 14,575 $ 11,977 At March 31, 2020, the Company had acquired federal and state net operating loss carryforwards of $11.1 million and $6.7 million, respectively, subject to annual loss limitation limits, that expire through 2037. A deferred tax asset is recognized for these carryforwards because the benefit is more likely than not to be realized. FASB ASC 740, Income Taxes, (“ASC 740”) clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined in ASC 740 as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 was applied to all existing tax positions upon initial adoption. There was no liability for uncertain tax positions and no known unrecognized tax benefits at March 31, 2020 or December 31, 2019. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The Company maintains share-based compensation plans under the shareholder-approved 2011 Plan. The purpose of the share-based compensation plans is to provide officers, employees, and non-employee members of the Board of Directors of the Company with additional incentive to further the success of the Company. At March 31, 2020, 881,920 shares of the common stock of the Company were reserved to be issued and 360,111 shares were available to be issued. The 2011 Plan incentive awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. All employees and members of the Board of Directors of the Company and its subsidiaries, are eligible to participate in the 2011 Plan. The 2011 Plan allows for the Compensation Committee of the Board of Directors to determine the type of incentive to be awarded, its term, manner of exercise, vesting and restrictions on shares. Generally, awards are nonqualified under the IRC, unless the awards are deemed to be incentive awards to employees at the Compensation Committee’s discretion. The table below presents a summary of nonvested restricted shares activity for the three months ended March 31, 2020: Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 228,758 $ 21.90 Granted 97,167 21.22 Forfeited (2,250) 17.45 Vested (34,497) 22.35 Nonvested shares, at period end 289,178 $ 21.65 The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested, for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Restricted share award expense $ 519 $ 496 Restricted share award tax benefit 109 110 Fair value of shares vested 742 444 The unrecognized compensation expense related to the share awards totaled $3.6 million at March 31, 2020 and $2.2 million at December 31, 2019. The unrecognized compensation expense at March 31, 2020 is expected to be recognized over a weighted-average period of 2.2 years. The following table presents a summary of outstanding stock options activity for the three months ended March 31, 2020: Shares Weighted Average Exercise Price Outstanding, beginning of year 30,559 $ 21.56 Forfeited (100) 21.14 Options outstanding and exercisable 30,459 $ 21.56 The exercise price of each option equals the market price of the Company’s stock on the grant date. An option’s maximum term is ten years. All options are fully vested upon issuance. The following table presents information pertaining to options outstanding and exercisable at March 31, 2020: Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $21.14 - $25.76 30,459 0.27 $ 21.56 Outstanding and exercisable options had an intrinsic value of zero at March 31, 2020 and $41 thousand at December 31, 2019. The Company maintains an employee stock purchase plan to provide its employees with an opportunity to purchase Company common stock. Eligible employees may purchase shares in an amount that does not exceed 10% of their annual salary, at the lower of 95% of the fair market value of the shares on the semi-annual offering date or related purchase date. The Company reserved 350,000 shares of its common stock to be issued under the employee stock purchase plan. At March 31, 2020, 164,453 shares were available to be issued. The following table presents information for the employee stock purchase plan for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Shares purchased 3,613 3,004 Weighted average price of shares purchased $ 16.91 $ 18.96 Compensation expense recognized 3 3 Tax benefits 1 1 The Company issues either new shares or treasury shares, depending on market conditions, for award through its share-based compensation plans. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used as risk management tools by the Company to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings and are not used for trading or speculative purposes. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At March 31, 2020, the Company had two interest rate derivatives designated as hedging instruments with an aggregate notional amount of $100.0 million. The Company had no derivative instruments at December 31, 2019. Such derivatives were used to hedge the variable cash flows associated with the Company's borrowings. Interest rate lock commitments on residential mortgage loans As a part of its normal residential mortgage operations, the Company will enter into an interest rate lock commitment with a potential borrower. The Company enters into a corresponding commitment to an investor to sell that loan at a specific price shortly after origination. In accordance with FASB ASC 820, adjustments are recorded through earnings to account for the net change in fair value of these transactions for the held for sale pipeline. The following table summarizes the fair value of the Company's derivative instruments at March 31, 2020 and December 31, 2019: 3/31/2020 12/31/2019 Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products $ 50,000 Other assets $ 104 $ — $ — Interest rate products 50,000 Other liabilities (1,359) — — Total derivatives designated as hedging instruments $ (1,255) $ — Derivatives not designated as hedging instruments: Interest rate lock commitments with customers $ 22,732 Other assets $ 435 $ 4,408 Other assets $ 103 Forward sale commitments 30,650 Other liabilities (195) 8,969 Other assets 1 Total derivatives not designated as hedging instruments $ 239 $ 104 The following tables summarize the effect of the Company's derivative financial instruments on OCI and net income for the three months ended March 31, 2020 and 2019: Amount of Loss Recognized in OCI on Derivative Three Months Ended March 31, 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ (1,259) $ — Total $ (1,259) $ — Amount of Loss Reclassified from AOCI into Income Location of Loss Recognized from AOCI into Income Three Months Ended March 31, 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ (4) $ — Interest expense Total $ (4) $ — Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2020 2019 Derivatives not designated as hedging instruments: Interest rate lock commitments with customers $ 332 $ — Mortgage banking activities Forward sale commitment (197) — Mortgage banking activities Total $ 135 $ — The following table is a summary of interest rate swap components at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Weighted average pay rate 0.54 % — % Weighted average receive rate 0.08 % — % Weighted average maturity in years 6.0 — |
SHAREHOLDERS' EQUITY AND REGULA
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL | SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, 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. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision's capital guidelines for U.S. Banks ("Basel III rules"), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The Company and the Bank have elected not to include net unrealized gain or loss on available for sale securities in computing regulatory capital. The consolidated asset limit on small bank holding companies is $3.0 billion and a company with assets under that limit is not subject to the FRB consolidated capital rules, but may file reports that include capital amounts and ratios. The Company has elected to file those reports. Management believes that the Company and the Bank met all capital adequacy requirements to which they are subject at March 31, 2020 and December 31, 2019. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At March 31, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's classification. The following table presents capital amounts and ratios at March 31, 2020 and December 31, 2019: Actual For Capital Adequacy Purposes To Be Well Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total risk-based capital: Orrstown Financial Services, Inc. $ 247,209 14.0 % $ 185,714 10.5 % n/a n/a Orrstown Bank 237,121 13.4 % 185,634 10.5 % $ 176,794 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 198,508 11.2 % 150,340 8.5 % n/a n/a Orrstown Bank 220,281 12.5 % 150,275 8.5 % 141,435 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 198,508 11.2 % 123,809 7.0 % n/a n/a Orrstown Bank 220,281 12.5 % 123,756 7.0 % 114,916 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 198,508 8.5 % 93,406 4.0 % n/a n/a Orrstown Bank 220,281 9.4 % 93,441 4.0 % 116,802 5.0 % December 31, 2019 Total risk-based capital: Orrstown Financial Services, Inc. $ 244,003 14.1 % $ 182,028 10.5 % n/a n/a Orrstown Bank 231,805 13.4 % 181,948 10.5 % $ 173,284 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 147,356 8.5 % n/a n/a Orrstown Bank 216,100 12.5 % 147,291 8.5 % 138,627 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 121,352 7.0 % n/a n/a Orrstown Bank 216,100 12.5 % 121,299 7.0 % 112,635 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 196,451 8.6 % 91,782 4.0 % n/a n/a Orrstown Bank 216,100 9.4 % 91,798 4.0 % 114,747 5.0 % In September 2015, the Board of Directors of the Company authorized a share repurchase program under which the Company may repurchase up to 5% of the Company's outstanding shares of common stock, or approximately 416,000 shares, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act of 1934, as amended. When and if appropriate, repurchases may be made in open market or privately negotiated transactions, depending on market conditions, regulatory requirements and other corporate considerations, as determined by management. Share repurchases may not occur and may be discontinued at any time. At March 31, 2020, 154,680 shares had been repurchased under the program at a total cost of $2.6 million, or $16.88 per share. On April 21, 2020, the Board declared a cash dividend of $0.17 per common share, which will be paid on May 11, 2020 to shareholders of record at May 4, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents earnings per share for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 Net income $ 5,068 $ 3,102 Weighted average shares outstanding - basic 10,959 9,160 Dilutive effect of share-based compensation 103 166 Weighted average shares outstanding - diluted 11,062 9,326 Per share information: Basic earnings per share $ 0.46 $ 0.34 Diluted earnings per share 0.46 0.33 |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table presents these contractual, or notional, amounts: Contractual or Notional Amount March 31, 2020 December 31, 2019 Commitments to fund: Home equity lines of credit $ 210,908 $ 205,502 1-4 family residential construction loans 18,360 19,812 Commercial real estate, construction and land development loans 25,676 19,018 Commercial, industrial and other loans 266,287 222,288 Standby letters of credit 9,902 10,588 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral varies but may include accounts receivable, inventory, equipment, residential real estate, and income-producing commercial properties. Standby letters of credit and financial guarantees written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company holds collateral supporting those commitments when deemed necessary by management. The liability, at March 31, 2020 and December 31, 2019, for guarantees under standby letters of credit issued was not material. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: Level 1 – quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date. Level 2 – significant other observable inputs other than Level 1 prices such as prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – at least one significant unobservable input that reflects a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value for instruments measured on a recurring basis: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, securities are classified within Level 2 and fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flow. Level 2 securities include U.S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. All of the Company’s securities are classified as available for sale. The Company had no fair value liabilities measured on a recurring basis at March 31, 2020 and December 31, 2019. The following table summarizes assets measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total Fair March 31, 2020 Investment securities: States and political subdivisions $ — $ 111,057 $ — $ 111,057 GSE residential MBSs — 4,606 — 4,606 GSE residential CMOs — 67,215 — 67,215 Nonagency CMOs — — 16,679 16,679 Private label commercial CMOs — 59,563 6,571 66,134 Asset-backed — 213,311 — 213,311 Other 597 — — 597 Loans held for sale — 7,900 — 7,900 Interest rate lock commitments on residential mortgages — — 435 435 Totals $ 597 $ 463,652 $ 23,685 $ 487,934 December 31, 2019 Investment securities: States and political subdivisions $ — $ 87,863 $ — $ 87,863 GSE residential CMOs — 68,154 — 68,154 Nonagency CMOs — — 17,087 17,087 Private label commercial CMOs — 79,437 7,192 86,629 Asset-backed — 230,515 — 230,515 Other 637 — — 637 Loans held for sale — 9,364 — 9,364 Interest rate lock commitments on residential mortgages — — 103 103 Totals $ 637 $ 475,333 $ 24,382 $ 500,352 The Company has CMOs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2020 and December 31, 2019. The Level 3 valuation is based on a non-executable broker quote, which is considered a significant unobservable input. Such quotes are updated as available and may remain constant for a period of time for certain broker-quoted securities that do not move with the market or that are not interest rate sensitive as a result of their structure or overall attributes. Effective October 1, 2019, the Company’s residential mortgage loans held for sale were recorded at fair value utilizing Level 2 measurements. This fair value measurement is determined based upon third party quotes obtained on similar loans. For loans held for sale for which the fair value option has been elected, the aggregate fair value exceeded the aggregate principal balance by $149 thousand as of March 31, 2020. The determination of the fair value of interest rate lock commitments on residential mortgages is based on agreed upon pricing with the respective investor on each loan and includes a pull through percentage. The pull through percentage represents an estimate of loans in the pipeline to be delivered to an investor versus the total loans committed for delivery. Significant changes in this input could result in a significantly higher or lower fair value measurement. An increase or decrease of 5% in the pull through assumption would result in a positive or negative change of $41 thousand in the fair value of interest rate lock commitments at March 31, 2020. As the pull through percentage is a significant unobservable input, this is deemed a Level 3 valuation input. The average pull through percentage, which is based upon historical experience, was 91% as of March 31, 2020. The following provides details of the Level 3 fair value measurement activity for the periods ended March 31, 2020 and 2019: CMOs: March 31, 2020 March 31, 2019 Balance, beginning of year $ 24,279 $ — Unrealized loss included in OCI (961) — Principal payments (68) — Balance, end of period $ 23,250 $ — Interest rate lock commitments on residential mortgages: March 31, 2020 March 31, 2019 Balance, beginning of year $ 103 $ — Total gains, realized/unrealized: Included in earnings 332 — Balance, end of period $ 435 $ — Certain financial assets are measured at fair value on a nonrecurring basis. Adjustments to the fair value of these assets usually results from the application of lower of cost or market accounting or write-downs of individual assets. The Company used the following methods and significant assumptions to estimate fair value for these financial assets. Impaired Loans Loans are designated as impaired when, in the judgment of management and based on current information and events, it is probable that all amounts due, according to the contractual terms of the loan agreement, will not be collected. The measurement of loss associated with impaired loans for all loan classes can be based on either the observable market price of the loan, the fair value of the collateral, or discounted cash flows using a market rate of interest for performing TDRs. For collateral-dependent loans, fair value is measured based on the value of the collateral securing the loan, less estimated costs to sell. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The value of the real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, or if management adjusts the appraisal value, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal, if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level 3). Impaired loans with an allocation to the ALL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the unaudited condensed consolidated statements of income. Any changes in the fair value of impaired loans still held were not material for the three months ended March 31, 2020 and 2019: Foreclosed Real Estate OREO property acquired through foreclosure is initially recorded at the fair value of the property at the transfer date less estimated selling cost. Subsequently, OREO is carried at the lower of its carrying value or the fair value less estimated selling cost. Fair value is usually determined based upon an independent third-party appraisal of the property or occasionally upon a recent sales offer. There were no charges recorded to the value of OREO at the lower of cost or fair value on properties held during the three months ended March 31, 2020 and 2019. There were no changes in the fair value of OREO for properties, still held at March 31, that were charged to real estate expenses for the three months ended March 31, 2020 and 2019. Mortgage Servicing Rights The MSR fair value is estimated to be equal to its carrying value, unless the quarterly valuation model calculates the present value of the estimated net servicing income is less than its carrying value, in which case an impairment charge is taken. At March 31, 2020 and December 31, 2019, an impairment reserve of $571 thousand and $70 thousand, respectively, existed on the mortgage servicing right portfolio. For the three months ended March 31, 2020 and 2019, impairment charges of $501 thousand and zero were included, respectively, in mortgage banking activities on the unaudited condensed consolidated statements of income. The impairment charges resulted from rapidly declining market rates caused by the COVID-19 pandemic. The following table summarizes assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total March 31, 2020 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 909 $ 909 Multi-family — — 88 88 Non-owner occupied residential — — 96 96 Commercial and industrial — — 11 11 Residential mortgage: First lien — — 928 928 Home equity - lines of credit — — 302 302 Installment and other loans — — 7 7 Total impaired loans $ — $ — $ 2,341 $ 2,341 Mortgage servicing rights $ — $ 2,576 $ — $ 2,576 December 31, 2019 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 938 $ 938 Multi-family — — 96 96 Non-owner occupied residential — — 103 103 Commercial and industrial — — 11 11 Residential mortgage: First lien — — 641 641 Home equity - lines of credit — — 400 400 Installment and other loans — — 7 7 Total impaired loans $ — $ — $ 2,196 $ 2,196 Mortgage servicing rights $ — $ 3,119 $ — $ 3,119 The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Fair Value Valuation Unobservable Input Range March 31, 2020 Impaired loans $ 2,341 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 20% discount - Management adjustments for liquidation expenses 6%- 33% discount Mortgage servicing rights $ 2,576 Discounted cash flows Weighted average CPR 15.16% - Weighted average discount rate 9.54% December 31, 2019 Impaired loans $ 2,196 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 20% discount - Management adjustments for liquidation expenses 6% - 33% discount Mortgage servicing rights $ 3,119 Discounted cash flows Weighted average CPR 11.63% - Weighted average discount rate 9.54% Fair values of financial instruments The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019: Carrying Fair Value Level 1 Level 2 Level 3 March 31, 2020 Financial Assets Cash and due from banks $ 33,974 $ 33,974 $ 33,974 $ — $ — Interest-bearing deposits with banks 23,163 23,163 23,163 — — Restricted investments in bank stocks 15,823 n/a n/a n/a n/a Investment securities 479,599 479,599 — 456,349 23,250 Loans held for sale 7,900 7,900 — 7,900 — Loans (carrying amount net of allowance for loan losses) 1,641,145 1,587,426 — — 1,587,426 Interest rate lock commitments on residential mortgages 435 435 — — 435 Interest rate swaps 104 104 — 104 — Accrued interest receivable 6,697 6,697 — 2,237 4,460 Financial Liabilities Deposits 1,897,296 1,901,268 — 1,901,268 — Securities sold under agreements to repurchase 10,933 10,933 — 10,933 — FHLB Advances 201,166 201,544 — 201,544 — Subordinated notes 31,861 32,970 — 32,970 — Interest rate swaps 1,359 1,359 — 1,359 — Accrued interest payable 1,040 1,040 — 1,040 — December 31, 2019 Financial Assets Cash and due from banks $ 25,969 $ 25,969 $ 25,969 $ — $ — Interest-bearing deposits with banks 30,493 30,493 30,493 — — Restricted investments in bank stocks 16,184 n/a n/a n/a n/a Investment securities 490,386 490,386 — 466,107 24,279 Loans held for sale 9,364 9,364 — 9,364 — Loans, net of allowance for loan losses 1,629,675 1,652,788 — — 1,652,788 Interest rate lock commitments on residential mortgages 103 103 — — 103 Accrued interest receivable 6,040 6,040 — 1,863 4,177 Financial Liabilities Deposits 1,875,522 1,876,555 — 1,876,555 — Securities sold under agreements to repurchase 8,269 8,269 — 8,269 — FHLB Advances 209,667 210,005 — 210,005 — Subordinated notes 31,847 33,953 — 33,953 — Accrued interest payable 879 879 — 879 — The methods used to estimate the fair value of financial instruments at March 31, 2020 did not necessarily represent an exit price. In accordance with the Company's adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the methods utilized to measure the fair value of financial instruments at March 31, 2020 represents an approximation of exit price; however, an actual exit price may differ. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The nature of the Company’s business generates a certain amount of litigation involving matters arising out of the ordinary course of business. Except as described below, in the opinion of management, there are no legal proceedings that might have a material effect on the results of operations, liquidity, or the financial position of the Company at this time. On March 5, 2019, Paul Parshall, a purported individual stockholder of Hamilton, filed, on behalf of himself and all of Hamilton’s stockholders other than the named defendants and their affiliates (the “Purported Class”), a derivative and putative class action complaint in the Circuit Court for Baltimore City, Maryland, captioned Paul Parshall v. Carol Coughlin et. al., naming each Hamilton director, Orrstown, and Hamilton as defendants (the “Action”). The Action alleged, among other things, that Hamilton’s directors breached their fiduciary duties to the Purported Class in connection with the merger, and that the Proxy Statement/Prospectus omitted certain material information regarding the merger. Orrstown was alleged to have aided and abetted the Hamilton directors’ alleged breaches of their fiduciary duties. The Action sought, among other remedies, to enjoin the merger or, in the event the merger was completed, rescission of the merger or rescissory damages; unspecified damages; and costs of the lawsuit, including attorneys’ and experts’ fees. A settle ment was reached on the Action in March 2020 which resulted in a payment by the Company of $135 thousand in mootness fees to the defendants in April 2020. On May 25, 2012, SEPTA filed a putative class action complaint in the U.S. District Court for the Middle District of Pennsylvania against the Company, the Bank and certain current and former directors and executive officers (collectively, the “Orrstown Defendants”). The complaint alleges, among other things, that (i) in connection with the Company’s Registration Statement on Form S-3 dated February 23, 2010 and its Prospectus Supplement dated March 23, 2010, and (ii) during the purported class period of March 24, 2010 through October 27, 2011, the Company issued materially false and misleading statements regarding the Company’s lending practices and financial results, including misleading statements concerning the stringent nature of the Bank’s credit practices and underwriting standards, the quality of its loan portfolio, and the intended use of the proceeds from the Company’s March 2010 public offering of common stock. The complaint asserts claims under Sections 11, 12(a) and 15 of the Securities Act of 1933, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks class certification, unspecified money damages, interest, costs, fees and equitable or injunctive relief. Under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), motions for appointment of Lead Plaintiff in this case were due by July 24, 2012. SEPTA was the sole movant and the Court appointed SEPTA Lead Plaintiff on August 20, 2012. Pursuant to the PSLRA and the Court’s September 27, 2012 Order, SEPTA was given until October 26, 2012 to file an amended complaint and the Orrstown Defendants until December 7, 2012 to file a motion to dismiss the amended complaint. SEPTA’s opposition to the Orrstown Defendants’ motion to dismiss was originally due January 11, 2013. Under the PSLRA, discovery and all other proceedings in the case were stayed pending the Court’s ruling on the motion to dismiss. The September 27, 2012 Order specified that if the motion to dismiss were denied, the Court would schedule a conference to address discovery and the filing of a motion for class certification. On October 26, 2012, SEPTA filed an unopposed motion for enlargement of time to file its amended complaint in order to permit the parties and new defendants to be named in the amended complaint time to discuss plaintiff’s claims and defendants’ defenses. On October 26, 2012, the Court granted SEPTA’s motion, mooting its September 27, 2012 scheduling Order, and requiring SEPTA to file its amended complaint on or before January 16, 2013 or otherwise advise the Court of circumstances that require a further enlargement of time. On January 14, 2013, the Court granted SEPTA’s second unopposed motion for enlargement of time to file an amended complaint on or before March 22, 2013. On March 4, 2013, SEPTA filed an amended complaint. The amended complaint expanded the list of defendants in the action to include the Company’s former independent registered public accounting firm, Smith Elliott Kearns & Company, LLC (“SEK”), and the underwriters of the Company’s March 2010 public offering of common stock. In addition, among other things, the amended complaint extends the purported 1934 Exchange Act class period from March 15, 2010 through April 5, 2012. Pursuant to the Court’s March 28, 2013 Second Scheduling Order, on May 28, 2013, all defendants filed their motions to dismiss the amended complaint, and on July 22, 2013, SEPTA filed its “omnibus” opposition to all of the defendants’ motions to dismiss. On August 23, 2013, all defendants filed reply briefs in further support of their motions to dismiss. On December 5, 2013, the Court ordered oral argument on the Orrstown Defendants’ motion to dismiss the amended complaint to be heard on February 7, 2014. Oral argument on the pending motions to dismiss SEPTA’s amended complaint was held on April 29, 2014. The Second Scheduling Order stayed all discovery in the case pending the outcome of the motions to dismiss, and informed the parties that, if required, a telephonic conference to address discovery and the filing of SEPTA’s motion for class certification would be scheduled after the Court’s ruling on the motions to dismiss. On April 10, 2015, pursuant to Court order, all parties filed supplemental briefs addressing the impact of the U.S. Supreme Court’s March 24, 2015 decision in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund on defendants’ motions to dismiss the amended complaint. On June 22, 2015, in a 96-page Memorandum, the Court dismissed without prejudice SEPTA’s amended complaint against all defendants, finding that SEPTA failed to state a claim under either the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. The Court ordered that, within 30 days, SEPTA either seek leave to amend its amended complaint, accompanied by the proposed amendment, or file a notice of its intention to stand on the amended complaint. On July 22, 2015, SEPTA filed a motion for leave to amend under Local Rule 15.1, and attached a copy of its proposed second amended complaint to its motion. Many of the allegations of the proposed second amended complaint are essentially the same or similar to the allegations of the dismissed amended complaint. The proposed second amended complaint also alleges that the Orrstown Defendants did not publicly disclose certain alleged failures of internal controls over loan underwriting, risk management, and financial reporting during the period 2009 to 2012, in violation of the federal securities laws. On February 8, 2016, the Court granted SEPTA’s motion for leave to amend and SEPTA filed its second amended complaint that same day. On February 25, 2016, the Court issued a scheduling Order directing: all defendants to file any motions to dismiss by March 18, 2016; SEPTA to file an omnibus opposition to defendants’ motions to dismiss by April 8, 2016; and all defendants to file reply briefs in support of their motions to dismiss by April 22, 2016. Defendants timely filed their motions to dismiss the second amended complaint and the parties filed their briefs in accordance with the Court-ordered schedule, above. The February 25, 2016 Order stays all discovery and other deadlines in the case (including the filing of SEPTA’s motion for class certification) pending the outcome of the motions to dismiss. The allegations of SEPTA’s second amended complaint disclosed the existence of a confidential, non-public, fact-finding inquiry regarding the Company being conducted by the SEC. As disclosed in the Company’s Form 8-K filed on September 27, 2016, on that date the Company entered into a settlement agreement with the SEC resolving the investigation of accounting and related matters at the Company for the periods ended June 30, 2010, to December 31, 2011. As part of the settlement of the SEC’s administrative proceedings and pursuant to the cease-and-desist order, without admitting or denying the SEC’s findings, the Company, its Chief Executive Officer, its former Chief Financial Officer, its former Executive Vice President and Chief Credit Officer, and its Chief Accounting Officer, agreed to pay civil money penalties to the SEC. The Company agreed to pay a civil money penalty of $1.0 million. The Company had previously established a reserve for that amount which was expensed in the second fiscal quarter of 2016. In the settlement agreement with the SEC, the Company also agreed to cease and desist from committing or causing any violations and any future violations of Securities Act Sections 17(a)(2) and 17(a)(3) and Exchange Act Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B), and Rules 12b-20, 13a-1 and 13a-13 promulgated thereunder. On September 27, 2016, the Orrstown Defendants filed with the Court a Notice of Subsequent Event in Further Support of their Motion to Dismiss the Second Amended Complaint, regarding the settlement with the SEC. The Notice attached a copy of the SEC’s cease-and-desist order and briefly described what the Company believed were the most salient terms of the neither-admit-nor-deny settlement. On September 29, 2016, SEPTA filed a Response to the Notice, in which SEPTA argued that the settlement with the SEC did not support dismissal of the second amended complaint. On December 7, 2016, the Court issued an Order and Memorandum granting in part and denying in part defendants’ motions to dismiss SEPTA’s second amended complaint. The Court granted the motions to dismiss the Securities Act claims against all defendants, and granted the motions to dismiss the Exchange Act Section 10(b) and Rule 10b-5 claims against all defendants except Orrstown Financial Services, Inc., Orrstown Bank, Thomas R. Quinn, Jr., Bradley S. Everly, and Jeffrey W. Embly. The Court also denied the motions to dismiss the Exchange Act Section 20(a) claims against Quinn, Everly, and Embly. On January 31, 2017, the Court entered a Case Management Order establishing the schedule for the litigation and, on August 15, 2017, it entered a revised Order that, among other things, set the following deadlines: all fact discovery closes on March 1, 2018, and SEPTA’s motion for class certification is due the same day; expert merits discovery closes May 30, 2018; summary judgment motions are due by June 26, 2018; the mandatory pretrial and settlement conference is set for December 11, 2018; and trial is scheduled to begin on January 7, 2019. On December 15, 2017, the Orrstown Defendants and SEPTA exchanged expert reports in opposition to and in support of class certification, respectively. On January 15, 2018, the parties exchanged expert rebuttal reports. SEPTA’s motion for class certification was due March 1, 2018, with the Orrstown Defendants’ opposition due April 2, 2018, and SEPTA’s reply due April 23, 2018. On February 9, 2018, SEPTA filed a Status Report and Request for a Telephonic Status Conference asking the Court to convene a conference to discuss the status of discovery in the case and possible revisions to the case schedule. On February 12, 2018, the Orrstown Defendants filed their status report to provide the Court with a summary of document discovery in the case to date. On February 27, 2018, SEPTA filed an unopposed motion for a continuance of the existing case deadlines pending a status conference with the Court or the issuance of a revised case schedule. On February 28, 2018, the Court issued an Order continuing all case management deadlines until further order of the Court. On March 27, 2018, the Court held a telephonic status conference with the parties to discuss outstanding discovery issues and case deadlines. On May 2, 2018, the parties filed a joint status report. On May 10, 2018, the Court held a follow-up telephonic status conference at which the parties reported on the progress of discovery to date. Party and non-party document discovery in the case has continued. To date, SEPTA has taken a few non-party depositions. On August 9, 2018, SEPTA filed a motion to compel the production of Confidential Supervisory Information (CSI) of non-parties the Board of Governors of the Federal Reserve System (FRB) and the Pennsylvania Department of Banking and Securities, in the possession of Orrstown and third parties. On August 23, 2018, the Orrstown Defendants filed a response to the motion to compel. On August 30, 2018, the FRB filed an unopposed motion to intervene in the Action for the purpose of opposing SEPTA’s motion to compel, and on September 27, 2018, the FRB filed its brief in opposition to SEPTA’s motion. On October 11, 2018, SEPTA filed its reply brief in support of its motion to compel. On February 12, 2019, the Court denied SEPTA’s motion to compel the production of CSI on the ground that SEPTA had failed to exhaust its administrative remedies. On April 11, 2019, SEPTA filed a motion for leave to file a third amended complaint. The proposed third amended complaint seeks to reassert the Securities Act claims that the Court dismissed as to all defendants on December 7, 2016, when the Court granted in part and denied in part defendants’ motions to dismiss SEPTA’s second amended complaint. The proposed third amended complaint also seeks to reassert the Exchange Act claims against those defendants that the Court dismissed from the case on December 7, 2016. Defendants’ briefs in opposition to SEPTA’s motion for leave to file a third amended complaint were filed on April 25, 2019. SEPTA filed a reply brief in further support of its motion for leave to file a third amended complaint on May 9, 2019. On June 13, 2019, Orrstown filed a motion for protective order to stay discovery pending resolution of SEPTA’s motion for leave to file a third amended complaint. On June 19, 2019, former defendants SEK and the underwriters of the Company’s March 2010 public offering joined in Orrstown’s motion for protective order. On June 25, 2019, SEPTA filed its opposition to Orrstown’s motion. On July 9, 2019, Orrstown filed a reply brief in further support of its motion. On July 17, 2019, the Court entered an Order partially granting Orrstown’s motion for protective order, ruling that all deposition discovery in the case is stayed pending a decision on SEPTA’s motion for leave to file a third amended complaint. On February 14, 2020, the Court issued an Order and Memorandum granting SEPTA’s motion for leave to file a third amended complaint. The third amended complaint is now the operative complaint. It reinstates the Orrstown Defendants, as well as SEK and the underwriter defendants, previously dismissed from the case on December 7, 2016. The third amended complaint also revives the previously-dismissed 1933 Securities Act claim against the Orrstown Defendants, SEK, and the underwriter defendants. Under the Court-ordered briefing schedule, defendants filed their motions to dismiss the third amended complaint on April 24, 2020. SEPTA’s oppositions are due May 29, 2020, and defendants’ reply briefs are due June 19, 2020. On February 24, 2020, the Orrstown Defendants, and the underwriter defendants and SEK, separately filed motions under 28 U.S.C. § 1292(b) asking the Court to certify its February 14, 2020 Order for interlocutory appeal to the Third Circuit Court of Appeals. SEPTA filed its brief in opposition on April 21, 2020. Defendants’ reply briefs are due May 11, 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted. The CARES Act established the Paycheck Protection Program (“PPP”) which was implemented by the SBA. The PPP is intended to provide economic relief to small businesses nationwide adversely impacted under the COVID-19 Emergency Declaration issued on March 13, 2020. The PPP, which began on April 3, 2020, provides small businesses with funds to cover up to eight weeks of payroll costs, including benefits. It also provides for forgiveness of up to the full principal amount of qualifying loans. The Bank closed and funded almost 2,000 PPP loans for a total loan amount of $423.8 million th rough May 5, 2020. The Company anticipates funding a total of approximately 2,500 loans for $450.0 million upon completion of the program. These loans are expected to result in fee income in excess of $12.0 million to be recognized through net interest income over the life of the loans, currently estimated to be six months. In addition, in an effort to assist clients who were negatively impacted by the COVID-19 pandemic, the Bank offered various mitigation options, including a loan payment deferral program. Most loan deferrals under this program were for a 90-day period. As of April 30, 2020, the Company has processed loan deferrals under this program for commercial and consumer clients with a total loan balance of $179.6 million and $18.5 million, respectively. In accordance with the revised Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus issued on April 7, 2020, these deferrals are exempt from TDR status as they meet the specified requirements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Orrstown Financial Services, Inc. is a financial holding company that operates Orrstown Bank, a commercial bank with banking and financial advisory offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, Maryland, as well as Baltimore City, Maryland and Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster County, Pennsylvania. The Company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending, and deposit services, including checking, savings, time, and money market deposits. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by such regulatory authorities. |
Basis of Presentation | Basis of Presentation – The accompanying unaudited condensed consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiaries, the Bank and Wheatland. The Company has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, SEC rules that permit reduced disclosure for interim periods, and Article 10 of Regulation S-X. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. The December 31, 2019 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2019 audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications may have been made to prior year amounts to conform with current year classifications. The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's unaudited condensed consolidated financial statements and notes as required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The effects of the COVID-19 pandemic may negatively impact material estimates. Material estimates that are particularly susceptible to significant change include the determination of the ALL and those used in valuation methodologies in areas with no observable market, such as loans, deposits, borrowings, goodwill, core deposit and other intangible assets, mortgage servicing rights, other assets and liabilities obtained or assumed in business combinations. Derivatives - FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily use interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged transaction affects earnings. During the three months ended March 31, 2020, such derivatives were used to hedge the variable cash flows associated with overnight borrowings. |
Leases | Leases - The Company evaluates its contracts at inception to determine if an arrangement either is a lease or contains one. Operating lease ROU assets are included in other assets and operating lease liabilities in accrued interest payable and other liabilities in the unaudited condensed consolidated balance sheets. The Company had no finance leases at March 31, 2020. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company's leases do not provide an implicit rate, so the Company's incremental borrowing rate is used, which approximates its fully collateralized borrowing rate, based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. In accordance with ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), the Company keeps leases with an initial term of 12 months or less off of the balance sheet. The Company recognizes these lease payments in the unaudited condensed consolidated statements of income on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to account for them as a single lease component. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The amendments in this update require an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the amendments in this update amend the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For certain public companies, this update was effective for interim and annual periods beginning after December 15, 2019. The Company delayed the adoption of ASU 2016-13 as noted below. ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ("ASU 2019-10"), extended the implementation deadline of ASU 2016-13 for smaller reporting and other companies until the fiscal year and interim periods beginning after December 15, 2022. The Company meets the requirements to be considered a smaller reporting company under SEC Regulation S-K and SEC Rule 405, and did not adopt ASU 2016-13 on January 1, 2020. The Company is evaluating the impact of the delay for adoption of ASU 2016-13. The Company is working with a third party vendor solution to assist with the application of ASU 2016-13 and finalizing the loss estimation models to be used. Once management determines which methods will be utilized, a third party will be contracted to perform a model validation prior to adoption. While the Company anticipates the allowance for loan losses will increase under its current assumptions, it expects the impact of adopting ASU 2016-13 will be influenced by the composition, characteristics and quality of its loan and securities portfolios, as well as general economic conditions and forecasts at the adoption date. The other provisions of ASU 2019-10 were not applicable to the Company. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04). ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The optional expedients apply consistently to all contracts or transactions within the scope of this topic, while the optional expedients for hedging relationships can be elected on an individual basis. The Company has formed a cross-functional working group to lead the transition from LIBOR to a planned adoption of an alternate index. The Company has not yet determined what index will replace LIBOR in its loan agreements. The Company is in the process of implementing fallback language for loans that will mature after 2021. The Company expects to adopt the LIBOR transition relief allowed under this standard, and is currently evaluating the potential impact of this guidance on its financial statements. |
MERGERS AND ACQUISITIONS (Table
MERGERS AND ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid and Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Hamilton and the estimated fair values of the assets acquired and liabilities assumed recognized at the acquisition date: Fair value of consideration transferred: Cash $ 14,197 Common stock issued 36,622 Total consideration transferred $ 50,819 Estimated fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 43,140 Securities available for sale 60,882 Restricted investments in bank stocks 2,658 Loans 347,143 Premises and equipment 3,749 Core deposit intangible 4,550 Goodwill 7,551 Cash surrender value of life insurance 17,948 Deferred tax asset, net 5,838 ROU lease asset 2,793 Other assets 3,925 Total assets acquired 500,177 Deposits (388,246) Borrowings (51,393) Other liabilities (9,719) Total liabilities assumed $ (449,358) |
Schedule of Performing and PCI Loans Acquired, by Loan Class | The following table presents performing and PCI loans acquired, by loan class, at May 1, 2019: Performing PCI Total Commercial real estate: Owner-occupied $ 42,148 $ 5,894 $ 48,042 Non-owner occupied 45,401 770 46,171 Multi-family 10,773 — 10,773 Acquisition and development: 1-4 family residential construction 7,450 — 7,450 Commercial and land development 4,528 — 4,528 Commercial and industrial 32,316 1,914 34,230 Residential mortgage: First lien 152,657 10,494 163,151 Home-equity - term 4,478 1 4,479 Home equity - lines of credit 13,657 — 13,657 Installment and other loans 14,467 195 14,662 Total loans acquired $ 327,875 $ 19,268 $ 347,143 |
Schedule of Fair Value Adjustments Made to Amortized Costs Basis of Loans Acquired | The following table presents the fair value adjustments made to the amortized cost basis of loans acquired at May 1, 2019: Gross amortized cost basis at acquisition $ 362,125 Market rate adjustment (5,309) Credit fair value adjustment on non-credit impaired loans (3,947) Credit fair value adjustment on PCI loans (5,726) Estimated fair value of acquired loans $ 347,143 |
Schedule of Information About Acquired PCI Loans | The following table provides information about acquired PCI loans at May 1, 2019: Contractually required principal and interest at acquisition $ 31,599 Nonaccretable difference (8,834) Expected cash flows at acquisition 22,765 Accretable yield (3,497) Estimated fair value of acquired PCI loans $ 19,268 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of AFS Securities | At March 31, 2020 and December 31, 2019, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at March 31, 2020 and December 31, 2019: Amortized Cost Gross Unrealized Gross Unrealized Fair Value March 31, 2020 States and political subdivisions $ 105,572 $ 6,111 $ 626 $ 111,057 GSE residential MBSs 4,551 55 — 4,606 GSE residential CMOs 66,134 2,022 941 67,215 Non-agency CMOs 17,161 — 482 16,679 Private label commercial CMOs 73,978 — 7,844 66,134 Asset-backed 229,461 75 16,225 213,311 Other 597 — — 597 Totals $ 497,454 $ 8,263 $ 26,118 $ 479,599 December 31, 2019 States and political subdivisions $ 83,607 $ 4,288 $ 32 $ 87,863 GSE residential CMOs 67,928 1,000 774 68,154 Non-agency CMOs 17,210 — 123 17,087 Private label commercial CMOs 86,704 156 231 86,629 Asset-backed 235,406 138 5,029 230,515 Other 637 — — 637 Totals $ 491,492 $ 5,582 $ 6,189 $ 490,885 |
Summary of AFS Securities with Unrealized Losses | The following table summarizes investment securities with unrealized losses at March 31, 2020 and December 31, 2019, aggregated by major security type and the length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized March 31, 2020 States and political subdivisions 1 $ 9,595 $ 626 — $ — $ — 1 $ 9,595 $ 626 GSE residential CMOs 3 27,206 941 — — — 3 27,206 941 Non-agency CMOs 1 16,679 482 — — — 1 16,679 482 Private label commercial CMOs 7 34,983 3,121 8 31,151 4,723 15 66,134 7,844 Asset-backed 11 84,057 5,304 9 122,692 10,921 20 206,749 16,225 Totals 23 $ 172,520 $ 10,474 17 $ 153,843 $ 15,644 40 $ 326,363 $ 26,118 December 31, 2019 States and political subdivisions 1 $ 6,173 $ 32 — $ — $ — 1 $ 6,173 $ 32 GSE residential CMOs 5 37,158 309 1 11,602 465 6 48,760 774 Non-agency CMOs 1 17,087 123 — — — 1 17,087 123 Private label commercial CMOs 6 26,079 67 8 39,726 164 14 65,805 231 Asset-backed 9 92,189 1,145 9 121,399 3,884 18 213,588 5,029 Totals 22 $ 178,686 $ 1,676 18 $ 172,727 $ 4,513 40 $ 351,413 $ 6,189 |
Summarized Credit Ratings and Collateral Associated with the Investment Portfolio | The following table summarizes the credit ratings and collateral associated with the Company's investment portfolio, excluding equity securities, at March 31, 2020: Sector Portfolio Mix Amortized Book Fair Value Credit Enhancement AAA AA A BBB NR Collateral Type Unsecured ABS 2 % $ 12,112 $ 11,098 37 % 7 % — % — % — % 93 % Unsecured Consumer Debt Student Loan ABS 3 % 13,450 12,212 25 % — % — % — % — % 100 % Seasoned Student Loans Federal Family Education Loan ABS 37 % 184,009 170,418 6 % 4 % 73 % 23 % — % — % Federal Family Education Loan (1) PACE Loan ABS 1 % 6,488 6,563 5 % 100 % — % — % — % — % PACE Loans Non-Agency CMBS 15 % 73,978 66,134 55 % 87 % — % 3 % 10 % — % Commercial Real Estate Non-Agency RMBS 4 % 17,161 16,679 33 % 100 % — % — % — % — % Reverse Mortgages (2) Municipal - General Obligation 11 % 54,310 58,332 3 % 84 % 13 % — % — % Municipal - Revenue 10 % 51,263 52,725 — % 61 % 19 % — % 20 % SBA ReRemic 3 % 13,402 13,020 — % 100 % — % — % — % SBA Guarantee (3) Agency MBS 14 % 70,684 71,821 — % 100 % — % — % — % Residential Mortgages (3) Bank CDs — % 499 499 — % — % — % — % 100 % FDIC Insured CD 100 % $ 497,356 $ 479,502 20 % 60 % 12 % 1 % 7 % (1) 97% guaranteed by U.S. government (2) Currently 5% credit enhancement; expected credit enhancement is provided (3) 100% guaranteed by U.S. government agencies Note : Ratings in table are the lowest of the three rating agencies (Standard & Poors, Moody's & Fitch). Standard & Poors rates U.S. government obligations at AA+ |
Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity | The following table summarizes amortized cost and fair value of investment securities by contractual maturity at March 31, 2020. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Amortized Cost Fair Value Due in one year or less $ 480 $ 480 Due after one year through five years 249 249 Due after five years through ten years 27,296 28,734 Due after ten years 78,144 82,191 CMOs 161,824 154,634 Asset-backed 229,461 213,311 $ 497,454 $ 479,599 |
Proceeds From Sale of AFS Securities and Gross Gains and Gross Losses | The following table summarizes proceeds from sales of investment securities and gross gains and gross losses for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Proceeds from sale of investment securities $ — $ 59,464 Gross gains — 519 Gross losses 40 180 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes | The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial real estate: Owner occupied $ 168,586 $ 170,884 Non-owner occupied 377,933 361,050 Multi-family 107,797 106,893 Non-owner occupied residential 118,773 120,038 Acquisition and development: 1-4 family residential construction 13,037 15,865 Commercial and land development 49,348 41,538 Commercial and industrial 235,791 214,554 Municipal 46,551 47,057 Residential mortgage: First lien 324,766 336,372 Home equity - term 13,337 14,030 Home equity - lines of credit 165,375 165,314 Installment and other loans 35,654 50,735 Total Loans $ 1,656,948 $ 1,644,330 |
Loan Portfolio Ratings Based on Internal Risk Rating System | The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2020 and December 31, 2019: Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total March 31, 2020 Commercial real estate: Owner occupied $ 152,679 $ 4,538 $ 3,013 $ 3,487 $ — $ 4,869 $ 168,586 Non-owner occupied 361,029 15,996 — — — 908 377,933 Multi-family 102,838 3,951 672 336 — — 107,797 Non-owner occupied residential 111,102 4,374 1,380 340 — 1,577 118,773 Acquisition and development: 1-4 family residential construction 12,523 514 — — — — 13,037 Commercial and land development 47,762 200 549 837 — — 49,348 Commercial and industrial 222,152 967 8,108 840 — 3,724 235,791 Municipal 42,221 4,330 — — — — 46,551 Residential mortgage: First lien 316,296 — — 2,188 — 6,282 324,766 Home equity - term 13,233 72 — 12 — 20 13,337 Home equity - lines of credit 164,549 73 36 717 — — 165,375 Installment and other loans 35,540 — — 20 — 94 35,654 $ 1,581,924 $ 35,015 $ 13,758 $ 8,777 $ — $ 17,474 $ 1,656,948 December 31, 2019 Commercial real estate: Owner occupied $ 151,161 $ 4,513 $ 3,163 $ 5,872 $ — $ 6,175 $ 170,884 Non-owner occupied 342,753 17,152 — — — 1,145 361,050 Multi-family 100,361 4,822 682 345 — 683 106,893 Non-owner occupied residential 111,697 4,534 1,115 235 — 2,457 120,038 Acquisition and development: 1-4 family residential construction 15,865 — — — — — 15,865 Commercial and land development 39,939 206 1,393 — — — 41,538 Commercial and industrial 198,951 1,133 8,899 1,763 — 3,808 214,554 Municipal 42,649 4,408 — — — — 47,057 Residential mortgage: First lien 323,040 978 — 2,590 — 9,764 336,372 Home equity - term 13,774 74 149 13 — 20 14,030 Home equity - lines of credit 164,469 74 38 733 — — 165,314 Installment and other loans 50,497 — — 85 — 153 50,735 $ 1,555,156 $ 37,894 $ 15,439 $ 11,636 $ — $ 24,205 $ 1,644,330 |
Impaired Loans by Segment and Class | The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2020 and December 31, 2019. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) March 31, 2020 Commercial real estate: Owner-occupied $ — $ — $ — $ 3,487 $ 4,246 Multi-family — — — 336 565 Non-owner occupied residential — — — 340 537 Acquisition and development: Commercial and land development — — — 837 875 Commercial and industrial — — — 840 2,159 Residential mortgage: First lien 724 724 37 1,464 2,777 Home equity—term — — — 12 14 Home equity—lines of credit — — — 717 1,028 Installment and other loans — — — 20 30 $ 724 $ 724 $ 37 $ 8,053 $ 12,231 December 31, 2019 Commercial real estate: Owner-occupied $ — $ — $ — $ 5,872 $ 8,086 Multi-family — — — 345 569 Non-owner occupied residential — — — 235 422 Commercial and industrial — — — 1,763 3,361 Residential mortgage: First lien 425 425 36 2,165 3,164 Home equity—term — — — 13 15 Home equity—lines of credit — — — 733 1,077 Installment and other loans — — — 85 97 $ 425 $ 425 $ 36 $ 11,211 $ 16,791 |
Average Recorded Investment in Impaired Loans and Related Interest Income | The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2020 and 2019: 2020 2019 Average Interest Average Interest Three Months Ended March 31, Commercial real estate: Owner occupied $ 5,234 $ 1 $ 1,863 $ — Non-owner occupied — — — — Multi-family 341 — 127 — Non-owner occupied residential 257 — 301 — Acquisition and development: 1-4 family residential construction — — — — Commercial and land development 209 — — — Commercial and industrial 1,313 — 277 — Residential mortgage: First lien 2,400 12 2,788 15 Home equity - term 12 — 15 — Home equity - lines of credit 726 — 758 — Installment and other loans 46 — 7 — $ 10,538 $ 13 $ 6,136 $ 15 |
Troubled Debt Restructurings | The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 29 1 $ 30 Residential mortgage: First lien 9 925 9 931 Home equity - lines of credit 1 17 1 18 11 971 11 979 Nonaccruing: Commercial real estate: Owner occupied 2 218 4 1,909 Residential mortgage: First lien 5 350 5 359 7 568 9 2,268 18 $ 1,539 20 $ 3,247 |
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans | The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2020 and December 31, 2019: Days Past Due Current 30-59 60-89 90+ Total Non- Total March 31, 2020 Commercial real estate: Owner occupied $ 156,194 $ 4,065 $ — $ — $ 4,065 $ 3,458 $ 163,717 Non-owner occupied 377,025 — — — — — 377,025 Multi-family 107,180 281 — — 281 336 107,797 Non-owner occupied residential 116,222 634 — — 634 340 117,196 Acquisition and development: 1-4 family residential construction 12,780 257 — — 257 — 13,037 Commercial and land development 48,495 16 — — 16 837 49,348 Commercial and industrial 230,859 367 — 1 368 840 232,067 Municipal 46,551 — — — — — 46,551 Residential mortgage: First lien 305,689 10,705 621 206 11,532 1,263 318,484 Home equity - term 13,302 3 — — 3 12 13,317 Home equity - lines of credit 164,049 475 151 — 626 700 165,375 Installment and other loans 35,235 260 45 — 305 20 35,560 Subtotal 1,613,581 17,063 817 207 18,087 7,806 1,639,474 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 3,199 1,545 — 125 1,670 — 4,869 Non-owner occupied 338 — — 570 570 — 908 Non-owner occupied residential 1,296 1 — 280 281 — 1,577 Commercial and industrial 3,708 — — 16 16 — 3,724 Residential mortgage: First lien 3,551 1,814 — 917 2,731 — 6,282 Home equity - term 16 4 — — 4 — 20 Installment and other loans 67 10 17 — 27 — 94 Subtotal 12,175 3,374 17 1,908 5,299 — 17,474 $ 1,625,756 $ 20,437 $ 834 $ 2,115 $ 23,386 $ 7,806 $ 1,656,948 Days Past Due Current 30-59 60-89 90+ Total Non- Total December 31, 2019 Commercial real estate: Owner occupied $ 158,723 $ 144 $ — $ — $ 144 $ 5,842 $ 164,709 Non-owner occupied 359,425 480 — — 480 — 359,905 Multi-family 105,865 — — — — 345 106,210 Non-owner occupied residential 116,370 841 66 69 976 235 117,581 Acquisition and development: 1-4 family residential construction 15,587 278 — — 278 — 15,865 Commercial and land development 40,403 1,135 — — 1,135 — 41,538 Commercial and industrial 208,668 315 — — 315 1,763 210,746 Municipal 47,057 — — — — — 47,057 Residential mortgage: First lien 314,473 9,092 1,234 150 10,476 1,659 326,608 Home equity - term 13,993 — 4 — 4 13 14,010 Home equity - lines of credit 163,907 417 275 — 692 715 165,314 Installment and other loans 50,224 236 37 — 273 85 50,582 Subtotal 1,594,695 12,938 1,616 219 14,773 10,657 1,620,125 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 6,015 — 129 31 160 — 6,175 Non-owner occupied 564 — — 581 581 — 1,145 Multi-family 683 — — — — — 683 Non-owner occupied residential 1,710 105 111 531 747 — 2,457 Commercial and industrial 3,792 — — 16 16 — 3,808 Residential mortgage: First lien 6,308 1,857 745 854 3,456 — 9,764 Home equity - term 16 4 — — 4 — 20 Installment and other loans 131 22 — — 22 — 153 Subtotal 19,219 1,988 985 2,013 4,986 — 24,205 $ 1,613,914 $ 14,926 $ 2,601 $ 2,232 $ 19,759 $ 10,657 $ 1,644,330 |
Activity in Allowance for Loan Losses | The following table presents the activity in the ALL for the three months ended March 31, 2020 and 2019: Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2020 Balance, beginning of period $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 Provision for loan losses 383 71 322 (1) 775 77 42 119 31 925 Charge-offs — — (75) — (75) (91) (72) (163) — (238) Recoveries 403 3 44 — 450 6 5 11 — 461 Balance, end of period $ 8,420 $ 1,033 $ 2,647 $ 99 $ 12,199 $ 3,139 $ 294 $ 3,433 $ 171 $ 15,803 March 31, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 103 150 159 — 412 189 (26) 163 (175) 400 Charge-offs (25) — (43) — (68) (246) (20) (266) — (334) Recoveries 71 2 42 — 115 69 19 88 — 203 Balance, end of period $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 |
Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment | The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2020 and December 31, 2019. PCI loans are excluded from loans individually evaluated for impairment. Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2020 Loans allocated by: Individually evaluated for impairment $ 4,163 $ 837 $ 840 $ — $ 5,840 $ 2,917 $ 20 $ 2,937 $ — $ 8,777 Collectively evaluated for impairment 768,926 61,548 234,951 46,551 1,111,976 500,561 35,634 536,195 — 1,648,171 $ 773,089 $ 62,385 $ 235,791 $ 46,551 $ 1,117,816 $ 503,478 $ 35,654 $ 539,132 $ — $ 1,656,948 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 37 $ — $ 37 $ — $ 37 Collectively evaluated for impairment 8,420 1,033 2,647 99 12,199 3,102 294 3,396 171 15,766 $ 8,420 $ 1,033 $ 2,647 $ 99 $ 12,199 $ 3,139 $ 294 $ 3,433 $ 171 $ 15,803 December 31, 2019 Loans allocated by: Individually evaluated for impairment $ 6,452 $ — $ 1,763 $ — $ 8,215 $ 3,336 $ 85 $ 3,421 $ — $ 11,636 Collectively evaluated for impairment 752,413 57,403 212,791 47,057 1,069,664 512,380 50,650 563,030 — 1,632,694 $ 758,865 $ 57,403 $ 214,554 $ 47,057 $ 1,077,879 $ 515,716 $ 50,735 $ 566,451 $ — $ 1,644,330 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 36 $ — $ 36 $ — $ 36 Collectively evaluated for impairment 7,634 959 2,356 100 11,049 3,111 319 3,430 140 14,619 $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 |
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans | The following table provides activity for the accretable yield of PCI loans for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Accretable yield, beginning of period $ 6,950 $ 2,065 Additions (1) 570 — Accretion of income (598) (171) Reclassifications from nonaccretable difference due to improvement in expected cash flows 17 — Other changes, net (2) (2,525) — Accretable yield, end of period $ 4,414 $ 1,894 (1) This amount reflects a measurement period adjustment during three months ended March 31, 2020 for Hamilton loans that should have been in the PCI pool at the acquisition date. (2) This balance represents the impact of purchase credit impaired loans sold during the three months ended March 31, 2020. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of ROU Assets and Related Lease Liabilities | The following table presents information related to the Company's operating leases at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Operating lease ROU assets $ 8,985 $ 9,222 Operating lease ROU liabilities 9,478 9,688 Weighted-average remaining lease term (in years) 17.9 17.6 Weighted-average discount rate 4.6 % 4.5 % |
Information Related to Operating Leases | The following table presents information related to the Company's operating leases for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Cash paid for operating lease liabilities $ 318 $ 180 Operating lease expense 380 253 |
Schedule of Maturities of Lease Liabilities | The following table presents expected future maturities of the Company's lease liabilities as of March 31, 2020: Remainder of 2020 $ 961 2021 1,147 2022 727 2023 748 2024 738 Thereafter 10,549 14,870 Less: imputed interest 5,392 Total lease liabilities $ 9,478 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of in Changes in Goodwill | The following table presents changes in goodwill at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Balance, beginning of year $ 19,925 $ 12,592 Acquired goodwill — 7,029 Adjustments to acquired goodwill 217 304 Balance, end of period $ 20,142 $ 19,925 |
Schedule of Changes in Other Intangible Assets | The following table presents changes in other intangible assets for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Beginning of period $ 7,180 $ 3,910 Amortization Expense (463) (208) Balance, end of period $ 6,717 $ 3,702 |
Schedule of Components of Other Intangible Assets | The following table presents the components of other identifiable intangible assets at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Gross Amount Accumulated Gross Amount Accumulated Amortized intangible assets: Core deposit intangibles $ 8,390 $ 1,868 $ 8,390 $ 1,493 Other customer relationship intangibles 524 353 524 338 Non-compete agreement 290 266 290 193 Total $ 9,204 $ 2,487 $ 9,204 $ 2,024 |
Schedule of Estimated Aggregated Amortization Expense | The following table presents future estimated aggregate amortization expense for intangible assets remaining at March 31, 2020: Remainder of 2020 $ 1,128 2021 1,313 2022 1,137 2023 960 2024 784 Thereafter 1,395 $ 6,717 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | The following table summarizes income tax expense for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Current expense $ 28 $ 21 Deferred expense 1,011 211 Income tax expense $ 1,039 $ 232 |
Summary of Deferred Tax Assets and Liabilities | The following table summarizes deferred tax assets and liabilities at March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, December 31, Deferred tax assets: Allowance for loan losses $ 3,674 $ 3,418 Deferred compensation 414 415 Retirement and salary continuation plans 2,384 2,357 Share-based compensation 574 631 Off-balance sheet reserves 231 234 Nonaccrual loan interest 720 697 Net unrealized losses on AFS securities 3,749 127 Purchase accounting adjustments 3,042 4,081 Bonus accrual 167 493 Low-income housing credit carryforward 115 — Net operating loss carryovers 1,759 1,872 Other 629 672 Total deferred tax assets 17,458 14,997 Deferred tax liabilities: Depreciation 443 452 Mortgage servicing rights 694 694 Purchase accounting adjustments 1,471 1,599 Other 275 275 Total deferred tax liabilities 2,883 3,020 Net deferred tax asset, included in other assets $ 14,575 $ 11,977 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Nonvested Restricted Shares Activity | The table below presents a summary of nonvested restricted shares activity for the three months ended March 31, 2020: Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 228,758 $ 21.90 Granted 97,167 21.22 Forfeited (2,250) 17.45 Vested (34,497) 22.35 Nonvested shares, at period end 289,178 $ 21.65 |
Schedule of Restricted Shares Compensation Expense | The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested, for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Restricted share award expense $ 519 $ 496 Restricted share award tax benefit 109 110 Fair value of shares vested 742 444 |
Summary of Outstanding Stock Options Activity | The following table presents a summary of outstanding stock options activity for the three months ended March 31, 2020: Shares Weighted Average Exercise Price Outstanding, beginning of year 30,559 $ 21.56 Forfeited (100) 21.14 Options outstanding and exercisable 30,459 $ 21.56 |
Information Pertaining to Options Outstanding and Exercisable | The following table presents information pertaining to options outstanding and exercisable at March 31, 2020: Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $21.14 - $25.76 30,459 0.27 $ 21.56 |
Schedule of Employee Stock Purchase Plan | The following table presents information for the employee stock purchase plan for the three months ended March 31, 2020 and 2019: Three months ended March 31, 2020 2019 Shares purchased 3,613 3,004 Weighted average price of shares purchased $ 16.91 $ 18.96 Compensation expense recognized 3 3 Tax benefits 1 1 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table summarizes the fair value of the Company's derivative instruments at March 31, 2020 and December 31, 2019: 3/31/2020 12/31/2019 Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products $ 50,000 Other assets $ 104 $ — $ — Interest rate products 50,000 Other liabilities (1,359) — — Total derivatives designated as hedging instruments $ (1,255) $ — Derivatives not designated as hedging instruments: Interest rate lock commitments with customers $ 22,732 Other assets $ 435 $ 4,408 Other assets $ 103 Forward sale commitments 30,650 Other liabilities (195) 8,969 Other assets 1 Total derivatives not designated as hedging instruments $ 239 $ 104 |
Effect of Derivative Financial Instruments on OCI and Net Income | The following tables summarize the effect of the Company's derivative financial instruments on OCI and net income for the three months ended March 31, 2020 and 2019: Amount of Loss Recognized in OCI on Derivative Three Months Ended March 31, 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ (1,259) $ — Total $ (1,259) $ — Amount of Loss Reclassified from AOCI into Income Location of Loss Recognized from AOCI into Income Three Months Ended March 31, 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ (4) $ — Interest expense Total $ (4) $ — Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2020 2019 Derivatives not designated as hedging instruments: Interest rate lock commitments with customers $ 332 $ — Mortgage banking activities Forward sale commitment (197) — Mortgage banking activities Total $ 135 $ — |
Summary of Interest Rate Swap Components | The following table is a summary of interest rate swap components at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Weighted average pay rate 0.54 % — % Weighted average receive rate 0.08 % — % Weighted average maturity in years 6.0 — |
SHAREHOLDERS' EQUITY AND REGU_2
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Capital Amounts and Ratios | The following table presents capital amounts and ratios at March 31, 2020 and December 31, 2019: Actual For Capital Adequacy Purposes To Be Well Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total risk-based capital: Orrstown Financial Services, Inc. $ 247,209 14.0 % $ 185,714 10.5 % n/a n/a Orrstown Bank 237,121 13.4 % 185,634 10.5 % $ 176,794 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 198,508 11.2 % 150,340 8.5 % n/a n/a Orrstown Bank 220,281 12.5 % 150,275 8.5 % 141,435 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 198,508 11.2 % 123,809 7.0 % n/a n/a Orrstown Bank 220,281 12.5 % 123,756 7.0 % 114,916 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 198,508 8.5 % 93,406 4.0 % n/a n/a Orrstown Bank 220,281 9.4 % 93,441 4.0 % 116,802 5.0 % December 31, 2019 Total risk-based capital: Orrstown Financial Services, Inc. $ 244,003 14.1 % $ 182,028 10.5 % n/a n/a Orrstown Bank 231,805 13.4 % 181,948 10.5 % $ 173,284 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 147,356 8.5 % n/a n/a Orrstown Bank 216,100 12.5 % 147,291 8.5 % 138,627 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 121,352 7.0 % n/a n/a Orrstown Bank 216,100 12.5 % 121,299 7.0 % 112,635 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 196,451 8.6 % 91,782 4.0 % n/a n/a Orrstown Bank 216,100 9.4 % 91,798 4.0 % 114,747 5.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table presents earnings per share for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 Net income $ 5,068 $ 3,102 Weighted average shares outstanding - basic 10,959 9,160 Dilutive effect of share-based compensation 103 166 Weighted average shares outstanding - diluted 11,062 9,326 Per share information: Basic earnings per share $ 0.46 $ 0.34 Diluted earnings per share 0.46 0.33 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Commitments and Conditional Obligations, Contract or Notional Amounts | The following table presents these contractual, or notional, amounts: Contractual or Notional Amount March 31, 2020 December 31, 2019 Commitments to fund: Home equity lines of credit $ 210,908 $ 205,502 1-4 family residential construction loans 18,360 19,812 Commercial real estate, construction and land development loans 25,676 19,018 Commercial, industrial and other loans 266,287 222,288 Standby letters of credit 9,902 10,588 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total Fair March 31, 2020 Investment securities: States and political subdivisions $ — $ 111,057 $ — $ 111,057 GSE residential MBSs — 4,606 — 4,606 GSE residential CMOs — 67,215 — 67,215 Nonagency CMOs — — 16,679 16,679 Private label commercial CMOs — 59,563 6,571 66,134 Asset-backed — 213,311 — 213,311 Other 597 — — 597 Loans held for sale — 7,900 — 7,900 Interest rate lock commitments on residential mortgages — — 435 435 Totals $ 597 $ 463,652 $ 23,685 $ 487,934 December 31, 2019 Investment securities: States and political subdivisions $ — $ 87,863 $ — $ 87,863 GSE residential CMOs — 68,154 — 68,154 Nonagency CMOs — — 17,087 17,087 Private label commercial CMOs — 79,437 7,192 86,629 Asset-backed — 230,515 — 230,515 Other 637 — — 637 Loans held for sale — 9,364 — 9,364 Interest rate lock commitments on residential mortgages — — 103 103 Totals $ 637 $ 475,333 $ 24,382 $ 500,352 |
Level 3 Fair Value Measurement Activity | The following provides details of the Level 3 fair value measurement activity for the periods ended March 31, 2020 and 2019: CMOs: March 31, 2020 March 31, 2019 Balance, beginning of year $ 24,279 $ — Unrealized loss included in OCI (961) — Principal payments (68) — Balance, end of period $ 23,250 $ — Interest rate lock commitments on residential mortgages: March 31, 2020 March 31, 2019 Balance, beginning of year $ 103 $ — Total gains, realized/unrealized: Included in earnings 332 — Balance, end of period $ 435 $ — |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total March 31, 2020 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 909 $ 909 Multi-family — — 88 88 Non-owner occupied residential — — 96 96 Commercial and industrial — — 11 11 Residential mortgage: First lien — — 928 928 Home equity - lines of credit — — 302 302 Installment and other loans — — 7 7 Total impaired loans $ — $ — $ 2,341 $ 2,341 Mortgage servicing rights $ — $ 2,576 $ — $ 2,576 December 31, 2019 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 938 $ 938 Multi-family — — 96 96 Non-owner occupied residential — — 103 103 Commercial and industrial — — 11 11 Residential mortgage: First lien — — 641 641 Home equity - lines of credit — — 400 400 Installment and other loans — — 7 7 Total impaired loans $ — $ — $ 2,196 $ 2,196 Mortgage servicing rights $ — $ 3,119 $ — $ 3,119 |
Summary of Additional Qualitative Information | The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Fair Value Valuation Unobservable Input Range March 31, 2020 Impaired loans $ 2,341 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 20% discount - Management adjustments for liquidation expenses 6%- 33% discount Mortgage servicing rights $ 2,576 Discounted cash flows Weighted average CPR 15.16% - Weighted average discount rate 9.54% December 31, 2019 Impaired loans $ 2,196 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 20% discount - Management adjustments for liquidation expenses 6% - 33% discount Mortgage servicing rights $ 3,119 Discounted cash flows Weighted average CPR 11.63% - Weighted average discount rate 9.54% |
Financial Instruments at Estimated Fair Values | The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019: Carrying Fair Value Level 1 Level 2 Level 3 March 31, 2020 Financial Assets Cash and due from banks $ 33,974 $ 33,974 $ 33,974 $ — $ — Interest-bearing deposits with banks 23,163 23,163 23,163 — — Restricted investments in bank stocks 15,823 n/a n/a n/a n/a Investment securities 479,599 479,599 — 456,349 23,250 Loans held for sale 7,900 7,900 — 7,900 — Loans (carrying amount net of allowance for loan losses) 1,641,145 1,587,426 — — 1,587,426 Interest rate lock commitments on residential mortgages 435 435 — — 435 Interest rate swaps 104 104 — 104 — Accrued interest receivable 6,697 6,697 — 2,237 4,460 Financial Liabilities Deposits 1,897,296 1,901,268 — 1,901,268 — Securities sold under agreements to repurchase 10,933 10,933 — 10,933 — FHLB Advances 201,166 201,544 — 201,544 — Subordinated notes 31,861 32,970 — 32,970 — Interest rate swaps 1,359 1,359 — 1,359 — Accrued interest payable 1,040 1,040 — 1,040 — December 31, 2019 Financial Assets Cash and due from banks $ 25,969 $ 25,969 $ 25,969 $ — $ — Interest-bearing deposits with banks 30,493 30,493 30,493 — — Restricted investments in bank stocks 16,184 n/a n/a n/a n/a Investment securities 490,386 490,386 — 466,107 24,279 Loans held for sale 9,364 9,364 — 9,364 — Loans, net of allowance for loan losses 1,629,675 1,652,788 — — 1,652,788 Interest rate lock commitments on residential mortgages 103 103 — — 103 Accrued interest receivable 6,040 6,040 — 1,863 4,177 Financial Liabilities Deposits 1,875,522 1,876,555 — 1,876,555 — Securities sold under agreements to repurchase 8,269 8,269 — 8,269 — FHLB Advances 209,667 210,005 — 210,005 — Subordinated notes 31,847 33,953 — 33,953 — Accrued interest payable 879 879 — 879 — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liability | $ 9,478 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liability | $ 10,500 | |
Right-of-use asset | $ 7,500 |
MERGERS AND ACQUISITIONS - Narr
MERGERS AND ACQUISITIONS - Narrative (Details) - USD ($) | May 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 20,142,000 | $ 19,925,000 | $ 12,592,000 | |||
Unaudited pro forma net Income | $ 3,300,000 | |||||
Unaudited pro forma revenue | 23,300,000 | |||||
Merger related expenses | $ 0 | $ 645,000 | ||||
Hamilton Bancorp, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of ownership interests acquired | 100.00% | |||||
Acquisition, cash paid | $ 14,197,000 | |||||
Consideration paid | 50,819,000 | |||||
Total assets acquired excluding goodwill | 492,600,000 | |||||
Loans | 347,143,000 | |||||
Total liabilities assumed | 449,358,000 | |||||
Deposits | 388,246,000 | |||||
Goodwill | 7,551,000 | |||||
Core deposit intangible | $ 4,550,000 | |||||
Core deposit intangible amortization period | 10 years | |||||
Hamilton Bancorp, Inc. | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued for common stock (in shares) | 1,765,704 | |||||
Price per share (in usd per share) | $ 20.74 |
MERGERS AND ACQUISITIONS - Summ
MERGERS AND ACQUISITIONS - Summary of Consideration Paid and Estimated Fair Value of Assets Acquired and Liabilities Assume (Details) - USD ($) $ in Thousands | May 01, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated fair values of assets acquired and liabilities assumed: | ||||
Goodwill | $ 20,142 | $ 19,925 | $ 12,592 | |
Hamilton Bancorp, Inc. | ||||
Fair value of consideration transferred: | ||||
Cash | $ 14,197 | |||
Common stock issued | 36,622 | |||
Total consideration transferred | 50,819 | |||
Estimated fair values of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 43,140 | |||
Securities available for sale | 60,882 | |||
Restricted investments in bank stocks | 2,658 | |||
Loans | 347,143 | |||
Premises and equipment | 3,749 | |||
Core deposit intangible | 4,550 | |||
Goodwill | 7,551 | |||
Cash surrender value of life insurance | 17,948 | |||
Deferred tax asset, net | 5,838 | |||
ROU lease asset | 2,793 | |||
Other assets | 3,925 | |||
Total assets acquired | 500,177 | |||
Deposits | (388,246) | |||
Borrowings | (51,393) | |||
Other liabilities | (9,719) | |||
Total liabilities assumed | $ (449,358) |
MERGERS AND ACQUISITIONS - Perf
MERGERS AND ACQUISITIONS - Performing and PCI Loans Acquired (Details) - Hamilton Bancorp, Inc. $ in Thousands | May 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Performing loans | $ 327,875 |
PCI loans | 19,268 |
Total Loans | 347,143 |
Commercial and industrial | |
Business Acquisition [Line Items] | |
Performing loans | 32,316 |
PCI loans | 1,914 |
Total Loans | 34,230 |
Installment and other loans | |
Business Acquisition [Line Items] | |
Performing loans | 14,467 |
PCI loans | 195 |
Total Loans | 14,662 |
Owner occupied | Commercial real estate | |
Business Acquisition [Line Items] | |
Performing loans | 42,148 |
PCI loans | 5,894 |
Total Loans | 48,042 |
Non-owner occupied | Commercial real estate | |
Business Acquisition [Line Items] | |
Performing loans | 45,401 |
PCI loans | 770 |
Total Loans | 46,171 |
Multi-family | Commercial real estate | |
Business Acquisition [Line Items] | |
Performing loans | 10,773 |
PCI loans | 0 |
Total Loans | 10,773 |
1-4 family residential construction | Acquisition and development | |
Business Acquisition [Line Items] | |
Performing loans | 7,450 |
PCI loans | 0 |
Total Loans | 7,450 |
Commercial and land development | Acquisition and development | |
Business Acquisition [Line Items] | |
Performing loans | 4,528 |
PCI loans | 0 |
Total Loans | 4,528 |
First lien | Residential mortgage | |
Business Acquisition [Line Items] | |
Performing loans | 152,657 |
PCI loans | 10,494 |
Total Loans | 163,151 |
Home equity - term | Residential mortgage | |
Business Acquisition [Line Items] | |
Performing loans | 4,478 |
PCI loans | 1 |
Total Loans | 4,479 |
Home equity - lines of credit | Residential mortgage | |
Business Acquisition [Line Items] | |
Performing loans | 13,657 |
PCI loans | 0 |
Total Loans | $ 13,657 |
MERGERS AND ACQUISITIONS - Sche
MERGERS AND ACQUISITIONS - Schedule of Fair Value Adjustments Made to Amortized Cost Basis of Loans (Details) - Hamilton Bancorp, Inc. $ in Thousands | May 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at acquisition | $ 362,125 |
Market rate adjustment | (5,309) |
Credit fair value adjustment on non-credit impaired loans | (3,947) |
Credit fair value adjustment on PCI loans | (5,726) |
Estimated fair value of acquired loans | $ 347,143 |
MERGERS AND ACQUISITIONS - Info
MERGERS AND ACQUISITIONS - Information About Acquired PCI Loans (Details) - USD ($) $ in Thousands | May 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Nonaccretable difference | $ (17) | $ 0 | |
Hamilton Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Contractually required principal and interest at acquisition | $ 31,599 | ||
Nonaccretable difference | (8,834) | ||
Expected cash flows at acquisition | 22,765 | ||
Accretable yield | (3,497) | ||
Estimated fair value of acquired PCI loans | $ 19,268 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 497,454 | $ 491,492 |
Gross Unrealized Gains | 8,263 | 5,582 |
Gross Unrealized Losses | 26,118 | 6,189 |
Fair Value | 479,599 | 490,885 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 105,572 | 83,607 |
Gross Unrealized Gains | 6,111 | 4,288 |
Gross Unrealized Losses | 626 | 32 |
Fair Value | 111,057 | 87,863 |
GSE residential MBSs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,551 | |
Gross Unrealized Gains | 55 | |
Gross Unrealized Losses | 0 | |
Fair Value | 4,606 | |
GSE residential CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 66,134 | 67,928 |
Gross Unrealized Gains | 2,022 | 1,000 |
Gross Unrealized Losses | 941 | 774 |
Fair Value | 67,215 | 68,154 |
Non-agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,161 | 17,210 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 482 | 123 |
Fair Value | 16,679 | 17,087 |
Private label commercial CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73,978 | 86,704 |
Gross Unrealized Gains | 0 | 156 |
Gross Unrealized Losses | 7,844 | 231 |
Fair Value | 66,134 | 86,629 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 229,461 | 235,406 |
Gross Unrealized Gains | 75 | 138 |
Gross Unrealized Losses | 16,225 | 5,029 |
Fair Value | 213,311 | 230,515 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 597 | 637 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 597 | $ 637 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of AFS Securities with Unrealized Losses (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Number of Securities | ||
Less Than 12 Months | security | 23 | 22 |
12 Months or More | security | 17 | 18 |
Total | security | 40 | 40 |
Fair Value | ||
Less Than 12 Months | $ 172,520 | $ 178,686 |
12 Months or More | 153,843 | 172,727 |
Total | 326,363 | 351,413 |
Unrealized Losses | ||
Less Than 12 Months | 10,474 | 1,676 |
12 Months or More | 15,644 | 4,513 |
Total | $ 26,118 | $ 6,189 |
States and political subdivisions | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | 1 |
12 Months or More | security | 0 | 0 |
Total | security | 1 | 1 |
Fair Value | ||
Less Than 12 Months | $ 9,595 | $ 6,173 |
12 Months or More | 0 | 0 |
Total | 9,595 | 6,173 |
Unrealized Losses | ||
Less Than 12 Months | 626 | 32 |
12 Months or More | 0 | 0 |
Total | $ 626 | $ 32 |
GSE residential CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 3 | 5 |
12 Months or More | security | 0 | 1 |
Total | security | 3 | 6 |
Fair Value | ||
Less Than 12 Months | $ 27,206 | $ 37,158 |
12 Months or More | 0 | 11,602 |
Total | 27,206 | 48,760 |
Unrealized Losses | ||
Less Than 12 Months | 941 | 309 |
12 Months or More | 0 | 465 |
Total | $ 941 | $ 774 |
Non-agency CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | 1 |
12 Months or More | security | 0 | 0 |
Total | security | 1 | 1 |
Fair Value | ||
Less Than 12 Months | $ 16,679 | $ 17,087 |
12 Months or More | 0 | 0 |
Total | 16,679 | 17,087 |
Unrealized Losses | ||
Less Than 12 Months | 482 | 123 |
12 Months or More | 0 | 0 |
Total | $ 482 | $ 123 |
Private label commercial CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 7 | 6 |
12 Months or More | security | 8 | 8 |
Total | security | 15 | 14 |
Fair Value | ||
Less Than 12 Months | $ 34,983 | $ 26,079 |
12 Months or More | 31,151 | 39,726 |
Total | 66,134 | 65,805 |
Unrealized Losses | ||
Less Than 12 Months | 3,121 | 67 |
12 Months or More | 4,723 | 164 |
Total | $ 7,844 | $ 231 |
Asset-backed | ||
Number of Securities | ||
Less Than 12 Months | security | 11 | 9 |
12 Months or More | security | 9 | 9 |
Total | security | 20 | 18 |
Fair Value | ||
Less Than 12 Months | $ 84,057 | $ 92,189 |
12 Months or More | 122,692 | 121,399 |
Total | 206,749 | 213,588 |
Unrealized Losses | ||
Less Than 12 Months | 5,304 | 1,145 |
12 Months or More | 10,921 | 3,884 |
Total | $ 16,225 | $ 5,029 |
INVESTMENT SECURITIES -Summariz
INVESTMENT SECURITIES -Summarized Credit Ratings and Collateral Associated with Investment Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Book | $ 497,454 | $ 491,492 |
Fair Value | $ 479,599 | $ 490,885 |
Credit Enhancement | 5.00% | |
Guaranteed by U.S. Government, percentage | 97.00% | |
Guaranteed by U.S. Government Agencies, percentage | 100.00% | |
Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 100.00% | |
Amortized Book | $ 497,356 | |
Fair Value | $ 479,502 | |
Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 20.00% | |
Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 60.00% | |
Credit Rating, A, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 12.00% | |
Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 1.00% | |
Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 7.00% | |
Unsecured ABS | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 2.00% | |
Amortized Book | $ 12,112 | |
Fair Value | $ 11,098 | |
Credit Enhancement | 37.00% | |
Unsecured ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 7.00% | |
Unsecured ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Unsecured ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Unsecured ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Unsecured ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 93.00% | |
Student Loan ABS | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 3.00% | |
Amortized Book | $ 13,450 | |
Fair Value | $ 12,212 | |
Credit Enhancement | 25.00% | |
Student Loan ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
Federal Family Education Loan ABS | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 37.00% | |
Amortized Book | $ 184,009 | |
Fair Value | $ 170,418 | |
Credit Enhancement | 6.00% | |
Federal Family Education Loan ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 4.00% | |
Federal Family Education Loan ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 73.00% | |
Federal Family Education Loan ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 23.00% | |
Federal Family Education Loan ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Federal Family Education Loan ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 1.00% | |
Amortized Book | $ 6,488 | |
Fair Value | $ 6,563 | |
Credit Enhancement | 5.00% | |
PACE Loan ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
PACE Loan ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency CMBS | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 15.00% | |
Amortized Book | $ 73,978 | |
Fair Value | $ 66,134 | |
Credit Enhancement | 55.00% | |
Non-Agency CMBS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 87.00% | |
Non-Agency CMBS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency CMBS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 3.00% | |
Non-Agency CMBS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 10.00% | |
Non-Agency CMBS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 4.00% | |
Amortized Book | $ 17,161 | |
Fair Value | $ 16,679 | |
Credit enhancement, percentage expected | 33.00% | |
Non-Agency RMBS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
Non-Agency RMBS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - General Obligation | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 11.00% | |
Amortized Book | $ 54,310 | |
Fair Value | $ 58,332 | |
Municipal - General Obligation | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 3.00% | |
Municipal - General Obligation | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 84.00% | |
Municipal - General Obligation | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 13.00% | |
Municipal - General Obligation | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - General Obligation | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - Revenue | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 10.00% | |
Amortized Book | $ 51,263 | |
Fair Value | $ 52,725 | |
Municipal - Revenue | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - Revenue | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 61.00% | |
Municipal - Revenue | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 19.00% | |
Municipal - Revenue | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - Revenue | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 20.00% | |
SBA ReRemic | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 3.00% | |
Amortized Book | $ 13,402 | |
Fair Value | $ 13,020 | |
SBA ReRemic | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
SBA ReRemic | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
SBA ReRemic | Credit Rating, A, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
SBA ReRemic | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
SBA ReRemic | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 14.00% | |
Amortized Book | $ 70,684 | |
Fair Value | $ 71,821 | |
Agency MBS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
Agency MBS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 0.00% | |
Amortized Book | $ 499 | |
Fair Value | $ 499 | |
Bank CDs | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, A, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Amortized Cost | |
Due in one year or less | $ 480 |
Due after one year through five years | 249 |
Due after five years through ten years | 27,296 |
Due after ten years | 78,144 |
CMOs | 161,824 |
Asset-backed | 229,461 |
Total Amortized Cost | 497,454 |
Fair Value | |
Due in one year | 480 |
Due after one year through five years | 249 |
Due after five years through ten years | 28,734 |
Due after ten years | 82,191 |
CMOs | 154,634 |
Asset-backed | 213,311 |
Total Fair Value | $ 479,599 |
INVESTMENT SECURITIES - Proceed
INVESTMENT SECURITIES - Proceeds from Sales of AFS Securities and Gross Gains and Gross Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of investment securities | $ 0 | $ 59,464 | |
Gross gains | 0 | 519 | |
Gross losses | 40 | 180 | |
Debt Securities, Available-for-sale [Line Items] | |||
Loss on investment | (40) | ||
Gain on investments | $ 339 | ||
Collateral Pledged | |||
Debt Securities, Available-for-sale [Line Items] | |||
AFS securities pledged to secure public funds, fair value | $ 377,000 | $ 158,700 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)note | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Amount of loan on which review have been made annually | $ 500,000 |
Amount of loan on which reviews require approval | $ 500,000 |
Loans that are deemed impaired, number of days past due (more than) | 90 days |
Number of notes split | note | 2 |
Appraisals, required period interval | 18 months |
Minimum amount on which annual updated appraisals for classified loans is required | $ 250,000 |
Maximum | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Percentage of loan-to-value ratio upon loan origination | 80.00% |
Percentage of loan-to-value ratios of the value of the real estate taken as collateral | 90.00% |
Percentage of strong loan-to-value | 70.00% |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 1,656,948 | $ 1,644,330 |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 168,586 | 170,884 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 377,933 | 361,050 |
Commercial real estate | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 107,797 | 106,893 |
Commercial real estate | Non-owner occupied residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 118,773 | 120,038 |
Acquisition and development | 1-4 family residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 13,037 | 15,865 |
Acquisition and development | Commercial and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 49,348 | 41,538 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 235,791 | 214,554 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 46,551 | 47,057 |
Residential mortgage | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 324,766 | 336,372 |
Residential mortgage | Home equity - term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 13,337 | 14,030 |
Residential mortgage | Home equity - lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 165,375 | 165,314 |
Installment and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 35,654 | $ 50,735 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Company's Loan Portfolio Ratings Based on its Internal Risk Rating System (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,656,948 | $ 1,644,330 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 168,586 | 170,884 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 377,933 | 361,050 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 107,797 | 106,893 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 118,773 | 120,038 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,037 | 15,865 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 49,348 | 41,538 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 235,791 | 214,554 |
Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 46,551 | 47,057 |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 324,766 | 336,372 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,337 | 14,030 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 165,375 | 165,314 |
Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 35,654 | 50,735 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,581,924 | 1,555,156 |
Pass | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 152,679 | 151,161 |
Pass | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 361,029 | 342,753 |
Pass | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 102,838 | 100,361 |
Pass | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 111,102 | 111,697 |
Pass | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 12,523 | 15,865 |
Pass | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 47,762 | 39,939 |
Pass | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 222,152 | 198,951 |
Pass | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 42,221 | 42,649 |
Pass | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 316,296 | 323,040 |
Pass | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,233 | 13,774 |
Pass | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 164,549 | 164,469 |
Pass | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 35,540 | 50,497 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 35,015 | 37,894 |
Special Mention | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,538 | 4,513 |
Special Mention | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 15,996 | 17,152 |
Special Mention | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,951 | 4,822 |
Special Mention | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,374 | 4,534 |
Special Mention | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 514 | 0 |
Special Mention | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 200 | 206 |
Special Mention | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 967 | 1,133 |
Special Mention | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,330 | 4,408 |
Special Mention | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 978 |
Special Mention | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 72 | 74 |
Special Mention | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 73 | 74 |
Special Mention | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,758 | 15,439 |
Non-Impaired Substandard | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,013 | 3,163 |
Non-Impaired Substandard | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 672 | 682 |
Non-Impaired Substandard | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,380 | 1,115 |
Non-Impaired Substandard | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 549 | 1,393 |
Non-Impaired Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,108 | 8,899 |
Non-Impaired Substandard | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 149 |
Non-Impaired Substandard | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 36 | 38 |
Non-Impaired Substandard | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,777 | 11,636 |
Impaired - Substandard | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,487 | 5,872 |
Impaired - Substandard | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 336 | 345 |
Impaired - Substandard | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 340 | 235 |
Impaired - Substandard | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 837 | 0 |
Impaired - Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 840 | 1,763 |
Impaired - Substandard | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,188 | 2,590 |
Impaired - Substandard | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 12 | 13 |
Impaired - Substandard | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 717 | 733 |
Impaired - Substandard | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 20 | 85 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 17,474 | 24,205 |
PCI Loans | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,869 | 6,175 |
PCI Loans | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 908 | 1,145 |
PCI Loans | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 683 |
PCI Loans | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,577 | 2,457 |
PCI Loans | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,724 | 3,808 |
PCI Loans | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,282 | 9,764 |
PCI Loans | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 20 | 20 |
PCI Loans | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 94 | $ 153 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans by Segment and Class (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | $ 724 | $ 425 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 724 | 425 |
Impaired Loans with a Specific Allowance, Related Allowance | 37 | 36 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 8,053 | 11,211 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 12,231 | 16,791 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 3,487 | 5,872 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 4,246 | 8,086 |
Commercial real estate | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 336 | 345 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 565 | 569 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 340 | 235 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 537 | 422 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 840 | 1,763 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 2,159 | 3,361 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 837 | |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 875 | |
Residential mortgage | First lien | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 724 | 425 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 724 | 425 |
Impaired Loans with a Specific Allowance, Related Allowance | 37 | 36 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 1,464 | 2,165 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 2,777 | 3,164 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 12 | 13 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 14 | 15 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 717 | 733 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 1,028 | 1,077 |
Installment and other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 20 | 85 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | $ 30 | $ 97 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Average Recorded Investment in Impaired Loans and Related Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | $ 10,538 | $ 6,136 |
Interest Income Recognized | 13 | 15 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 5,234 | 1,863 |
Interest Income Recognized | 1 | 0 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial real estate | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 341 | 127 |
Interest Income Recognized | 0 | 0 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 257 | 301 |
Interest Income Recognized | 0 | 0 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 209 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 1,313 | 277 |
Interest Income Recognized | 0 | 0 |
Residential mortgage | First lien | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 2,400 | 2,788 |
Interest Income Recognized | 12 | 15 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 12 | 15 |
Interest Income Recognized | 0 | 0 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 726 | 758 |
Interest Income Recognized | 0 | 0 |
Installment and other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 46 | 7 |
Interest Income Recognized | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | Mar. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 18 | 20 |
Recorded Investment | $ | $ 1,539 | $ 3,247 |
Accruing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 11 | 11 |
Recorded Investment | $ | $ 971 | $ 979 |
Accruing | Commercial real estate | Owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | 1 |
Recorded Investment | $ | $ 29 | $ 30 |
Accruing | Residential mortgage | First lien | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 9 | 9 |
Recorded Investment | $ | $ 925 | $ 931 |
Accruing | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | 1 |
Recorded Investment | $ | $ 17 | $ 18 |
Nonaccruing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 7 | 9 |
Recorded Investment | $ | $ 568 | $ 2,268 |
Nonaccruing | Commercial real estate | Owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 2 | 4 |
Recorded Investment | $ | $ 218 | $ 1,909 |
Nonaccruing | Commercial real estate | New owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 0 | |
Nonaccruing | Residential mortgage | First lien | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 5 | 5 |
Recorded Investment | $ | $ 350 | $ 359 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 12,175 | $ 19,219 |
Past Due | 5,299 | 4,986 |
90+ (still accruing) Days Past Due | 1,908 | 2,013 |
Non-Accrual | 0 | 0 |
Total Loans | 17,474 | 24,205 |
30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,374 | 1,988 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,601 | |
60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 985 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 156,194 | 158,723 |
Past Due | 4,065 | 144 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 3,458 | 5,842 |
Total Loans | 163,717 | 164,709 |
Commercial real estate | Owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,199 | 6,015 |
Past Due | 1,670 | 160 |
90+ (still accruing) Days Past Due | 125 | 31 |
Non-Accrual | 0 | 0 |
Total Loans | 4,869 | 6,175 |
Commercial real estate | Owner occupied | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,065 | 144 |
Commercial real estate | Owner occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,545 | 0 |
Commercial real estate | Owner occupied | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Owner occupied | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 129 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 377,025 | 359,425 |
Past Due | 0 | 480 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Loans | 377,025 | 359,905 |
Commercial real estate | Non-owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 338 | 564 |
Past Due | 570 | 581 |
90+ (still accruing) Days Past Due | 570 | 581 |
Non-Accrual | 0 | 0 |
Total Loans | 908 | 1,145 |
Commercial real estate | Non-owner occupied | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 480 |
Commercial real estate | Non-owner occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 107,180 | 105,865 |
Past Due | 281 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 336 | 345 |
Total Loans | 107,797 | 106,210 |
Commercial real estate | Multi-family | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 683 | |
Past Due | 0 | |
90+ (still accruing) Days Past Due | 0 | |
Non-Accrual | 0 | |
Total Loans | 683 | |
Commercial real estate | Multi-family | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 281 | 0 |
Commercial real estate | Multi-family | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | |
Commercial real estate | Multi-family | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 116,222 | 116,370 |
Past Due | 634 | 976 |
90+ (still accruing) Days Past Due | 0 | 69 |
Non-Accrual | 340 | 235 |
Total Loans | 117,196 | 117,581 |
Commercial real estate | Non-owner occupied residential | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,296 | 1,710 |
Past Due | 281 | 747 |
90+ (still accruing) Days Past Due | 280 | 531 |
Non-Accrual | 0 | 0 |
Total Loans | 1,577 | 2,457 |
Commercial real estate | Non-owner occupied residential | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 634 | 841 |
Commercial real estate | Non-owner occupied residential | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 105 |
Commercial real estate | Non-owner occupied residential | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 66 |
Commercial real estate | Non-owner occupied residential | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 111 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,780 | 15,587 |
Past Due | 257 | 278 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Loans | 13,037 | 15,865 |
Acquisition and development | 1-4 family residential construction | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 257 | 278 |
Acquisition and development | 1-4 family residential construction | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 48,495 | 40,403 |
Past Due | 16 | 1,135 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 837 | 0 |
Total Loans | 49,348 | 41,538 |
Acquisition and development | Commercial and land development | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 1,135 |
Acquisition and development | Commercial and land development | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 230,859 | 208,668 |
Past Due | 368 | 315 |
90+ (still accruing) Days Past Due | 1 | 0 |
Non-Accrual | 840 | 1,763 |
Total Loans | 232,067 | 210,746 |
Commercial and industrial | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,708 | 3,792 |
Past Due | 16 | 16 |
90+ (still accruing) Days Past Due | 16 | 16 |
Non-Accrual | 0 | 0 |
Total Loans | 3,724 | 3,808 |
Commercial and industrial | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 367 | 315 |
Commercial and industrial | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 46,551 | 47,057 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Loans | 46,551 | 47,057 |
Municipal | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 305,689 | 314,473 |
Past Due | 11,532 | 10,476 |
90+ (still accruing) Days Past Due | 206 | 150 |
Non-Accrual | 1,263 | 1,659 |
Total Loans | 318,484 | 326,608 |
Residential mortgage | First lien | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,551 | 6,308 |
Past Due | 2,731 | 3,456 |
90+ (still accruing) Days Past Due | 917 | 854 |
Non-Accrual | 0 | 0 |
Total Loans | 6,282 | 9,764 |
Residential mortgage | First lien | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10,705 | 9,092 |
Residential mortgage | First lien | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,814 | 1,857 |
Residential mortgage | First lien | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 621 | 1,234 |
Residential mortgage | First lien | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 745 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,302 | 13,993 |
Past Due | 3 | 4 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 12 | 13 |
Total Loans | 13,317 | 14,010 |
Residential mortgage | Home equity - term | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 16 | 16 |
Past Due | 4 | 4 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Loans | 20 | 20 |
Residential mortgage | Home equity - term | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3 | 0 |
Residential mortgage | Home equity - term | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 4 |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 4 |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 164,049 | 163,907 |
Past Due | 626 | 692 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 700 | 715 |
Total Loans | 165,375 | 165,314 |
Residential mortgage | Home equity - lines of credit | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 475 | 417 |
Residential mortgage | Home equity - lines of credit | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 151 | 275 |
Installment and other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 35,235 | 50,224 |
Past Due | 305 | 273 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 20 | 85 |
Total Loans | 35,560 | 50,582 |
Installment and other loans | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 67 | 131 |
Past Due | 27 | 22 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Loans | 94 | 153 |
Installment and other loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 260 | 236 |
Installment and other loans | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 22 |
Installment and other loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 45 | 37 |
Installment and other loans | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 0 |
Loans Excluding Acquired PCI | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,613,581 | 1,594,695 |
Past Due | 18,087 | 14,773 |
90+ (still accruing) Days Past Due | 207 | 219 |
Non-Accrual | 7,806 | 10,657 |
Total Loans | 1,639,474 | 1,620,125 |
Loans Excluding Acquired PCI | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17,063 | 12,938 |
Loans Excluding Acquired PCI | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 817 | 1,616 |
Total Portfolio | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,625,756 | 1,613,914 |
Past Due | 23,386 | 19,759 |
90+ (still accruing) Days Past Due | 2,115 | 2,232 |
Non-Accrual | 7,806 | 10,657 |
Total Loans | 1,656,948 | 1,644,330 |
Total Portfolio | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 20,437 | $ 14,926 |
Total Portfolio | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 834 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Activity in allowance for loan losses | ||
Balance, beginning of period | $ 14,655 | $ 14,014 |
Provision for loan losses | 925 | 400 |
Charge-offs | (238) | (334) |
Recoveries | 461 | 203 |
Balance, end of period | 15,803 | 14,283 |
Unallocated | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 140 | 570 |
Provision for loan losses | 31 | (175) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 171 | 395 |
Commercial | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 11,049 | 9,447 |
Provision for loan losses | 775 | 412 |
Charge-offs | (75) | (68) |
Recoveries | 450 | 115 |
Balance, end of period | 12,199 | 9,906 |
Commercial | Commercial Real Estate | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 7,634 | 6,876 |
Provision for loan losses | 383 | 103 |
Charge-offs | 0 | (25) |
Recoveries | 403 | 71 |
Balance, end of period | 8,420 | 7,025 |
Commercial | Acquisition and Development | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 959 | 817 |
Provision for loan losses | 71 | 150 |
Charge-offs | 0 | 0 |
Recoveries | 3 | 2 |
Balance, end of period | 1,033 | 969 |
Commercial | Commercial and Industrial | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 2,356 | 1,656 |
Provision for loan losses | 322 | 159 |
Charge-offs | (75) | (43) |
Recoveries | 44 | 42 |
Balance, end of period | 2,647 | 1,814 |
Commercial | Municipal | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 100 | 98 |
Provision for loan losses | (1) | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 99 | 98 |
Consumer | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 3,466 | 3,997 |
Provision for loan losses | 119 | 163 |
Charge-offs | (163) | (266) |
Recoveries | 11 | 88 |
Balance, end of period | 3,433 | 3,982 |
Consumer | Residential Mortgage | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 3,147 | 3,753 |
Provision for loan losses | 77 | 189 |
Charge-offs | (91) | (246) |
Recoveries | 6 | 69 |
Balance, end of period | 3,139 | 3,765 |
Consumer | Installment and Other | ||
Activity in allowance for loan losses | ||
Balance, beginning of period | 319 | 244 |
Provision for loan losses | 42 | (26) |
Charge-offs | (72) | (20) |
Recoveries | 5 | 19 |
Balance, end of period | $ 294 | $ 217 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Ending Loan Balances Evaluated for Impairment and Related Allowance for Loan Losses Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | $ 8,777 | $ 11,636 | ||
Loans, Collectively evaluated for impairment | 1,648,171 | 1,632,694 | ||
Total Loans | 1,656,948 | 1,644,330 | ||
Allowance for loan losses, Individually evaluated for impairment | 37 | 36 | ||
Allowance for loan losses, Collectively evaluated for impairment | 15,766 | 14,619 | ||
Allowance for loan losses, Total | 15,803 | 14,655 | $ 14,283 | $ 14,014 |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Loans | 235,791 | 214,554 | ||
Municipal | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Loans | 46,551 | 47,057 | ||
Installment and Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Loans | 35,654 | 50,735 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 5,840 | 8,215 | ||
Loans, Collectively evaluated for impairment | 1,111,976 | 1,069,664 | ||
Total Loans | 1,117,816 | 1,077,879 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 12,199 | 11,049 | ||
Allowance for loan losses, Total | 12,199 | 11,049 | ||
Commercial | Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 4,163 | 6,452 | ||
Loans, Collectively evaluated for impairment | 768,926 | 752,413 | ||
Total Loans | 773,089 | 758,865 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 8,420 | 7,634 | ||
Allowance for loan losses, Total | 8,420 | 7,634 | ||
Commercial | Acquisition and Development | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 837 | 0 | ||
Loans, Collectively evaluated for impairment | 61,548 | 57,403 | ||
Total Loans | 62,385 | 57,403 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 1,033 | 959 | ||
Allowance for loan losses, Total | 1,033 | 959 | ||
Commercial | Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 840 | 1,763 | ||
Loans, Collectively evaluated for impairment | 234,951 | 212,791 | ||
Total Loans | 235,791 | 214,554 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 2,647 | 2,356 | ||
Allowance for loan losses, Total | 2,647 | 2,356 | ||
Commercial | Municipal | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 0 | 0 | ||
Loans, Collectively evaluated for impairment | 46,551 | 47,057 | ||
Total Loans | 46,551 | 47,057 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 99 | 100 | ||
Allowance for loan losses, Total | 99 | 100 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 2,937 | 3,421 | ||
Loans, Collectively evaluated for impairment | 536,195 | 563,030 | ||
Total Loans | 539,132 | 566,451 | ||
Allowance for loan losses, Individually evaluated for impairment | 37 | 36 | ||
Allowance for loan losses, Collectively evaluated for impairment | 3,396 | 3,430 | ||
Allowance for loan losses, Total | 3,433 | 3,466 | ||
Consumer | Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 2,917 | 3,336 | ||
Loans, Collectively evaluated for impairment | 500,561 | 512,380 | ||
Total Loans | 503,478 | 515,716 | ||
Allowance for loan losses, Individually evaluated for impairment | 37 | 36 | ||
Allowance for loan losses, Collectively evaluated for impairment | 3,102 | 3,111 | ||
Allowance for loan losses, Total | 3,139 | 3,147 | ||
Consumer | Installment and Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 20 | 85 | ||
Loans, Collectively evaluated for impairment | 35,634 | 50,650 | ||
Total Loans | 35,654 | 50,735 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 294 | 319 | ||
Allowance for loan losses, Total | 294 | 319 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 0 | 0 | ||
Loans, Collectively evaluated for impairment | 0 | 0 | ||
Total Loans | 0 | 0 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 171 | 140 | ||
Allowance for loan losses, Total | $ 171 | $ 140 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Accretable Yield of Purchased Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Accretable yield, beginning of period | $ 6,950 | $ 2,065 |
Additions | 570 | 0 |
Accretion of income | (598) | (171) |
Reclassification from nonaccretable difference due to improvement in expected cash flows | 17 | 0 |
Other charges, net | (2,525) | 0 |
Accretable yield, end of period | $ 4,414 | $ 1,894 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 31, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 50 years |
LEASES - Summary of Information
LEASES - Summary of Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease ROU assets | $ 8,985 | $ 9,222 | |
Operating lease ROU liabilities | $ 9,478 | $ 9,688 | |
Weighted-average remaining lease term (in years) | 17 years 10 months 24 days | 17 years 7 months 6 days | |
Weighted-average discount rate | 4.60% | 4.50% | |
Cash paid for operating lease liabilities | $ 318 | $ 180 | |
Operating lease expense | $ 380 | $ 253 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Leases Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 961 |
2021 | 1,147 |
2022 | 727 |
2023 | 748 |
2024 | 738 |
Thereafter | 10,549 |
Total payments due | 14,870 |
Less: imputed interest | 5,392 |
Total lease liabilities | $ 9,478 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of year | $ 19,925,000 | $ 12,592,000 |
Acquired goodwill | 0 | 7,029,000 |
Adjustments to acquired goodwill | 217,000 | 304,000 |
Goodwill, ending of period | 20,142,000 | $ 19,925,000 |
Goodwill impairment | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, beginning of period | $ 7,180 | $ 3,910 |
Amortization Expense | (463) | (208) |
Balance, end of period | $ 6,717 | $ 3,702 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Components of Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 9,204 | $ 9,204 |
Accumulated Amortization | 2,487 | 2,024 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 8,390 | 8,390 |
Accumulated Amortization | 1,868 | 1,493 |
Other customer relationship intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 524 | 524 |
Accumulated Amortization | 353 | 338 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 290 | 290 |
Accumulated Amortization | $ 266 | $ 193 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||
Remainder of 2020 | $ 1,128 | |||
2020 | 1,313 | |||
2021 | 1,137 | |||
2022 | 960 | |||
2023 | 784 | |||
Thereafter | 1,395 | |||
Total | $ 6,717 | $ 7,180 | $ 3,702 | $ 3,910 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current expense | $ 28 | $ 21 |
Deferred expense | 1,011 | 211 |
Income tax expense | $ 1,039 | $ 232 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Federal net operating loss carryforwards | $ 11.1 |
State net operating loss carryforwards | $ 6.7 |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,674 | $ 3,418 |
Deferred compensation | 414 | 415 |
Retirement and salary continuation plans | 2,384 | 2,357 |
Share-based compensation | 574 | 631 |
Off-balance sheet reserves | 231 | 234 |
Nonaccrual loan interest | 720 | 697 |
Net unrealized losses on AFS securities | 3,749 | 127 |
Purchase accounting adjustments | 3,042 | 4,081 |
Bonus accrual | 167 | 493 |
Low-income housing credit carryforward | 115 | 0 |
Net operating loss carryovers | 1,759 | 1,872 |
Other | 629 | 672 |
Total deferred tax assets | 17,458 | 14,997 |
Deferred tax liabilities: | ||
Depreciation | 443 | 452 |
Mortgage servicing rights | 694 | 694 |
Purchase accounting adjustments | 1,471 | 1,599 |
Other | 275 | 275 |
Total deferred tax liabilities | 2,883 | 3,020 |
Net deferred tax asset, included in other assets | $ 14,575 | $ 11,977 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, recognition period | 2 years 2 months 12 days | |
Orrstown 2011 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 881,920 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 360,111 | |
Orrstown 2011 Incentive Stock Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 3,600,000 | $ 2,200,000 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of options outstanding and exercisable | $ 0 | $ 41,000 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term to exercise option | 10 years | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 350,000 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 164,453 | |
Maximum shares purchase, as percentage of salary | 10.00% | |
Percentage of value of the shares on the semi-annual offering | 95.00% |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Summary of Nonvested Restricted Shares Activity (Details) - Orrstown 2011 Incentive Stock Plan - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Nonvested shares, beginning of year (in shares) | shares | 228,758 |
Granted (in shares) | shares | 97,167 |
Forfeited (in shares) | shares | (2,250) |
Vested (in usd per share) | shares | (34,497) |
Nonvested shares, at period end (in shares) | shares | 289,178 |
Weighted Average Grant Date Fair Value | |
Nonvested shares, beginning of year (in usd per share) | $ / shares | $ 21.90 |
Granted (in usd per share) | $ / shares | 21.22 |
Forfeited (in usd per share) | $ / shares | 17.45 |
Vested (in usd per share) | $ / shares | 22.35 |
Nonvested shares, at period end (in usd per share) | $ / shares | $ 21.65 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Schedule of Restricted Shares Compensation Expense (Details) - Orrstown 2011 Incentive Stock Plan - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share award expense | $ 519 | $ 496 |
Restricted share award tax benefit | 109 | 110 |
Fair value of shares vested | $ 742 | $ 444 |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Summary of Outstanding Stock Options Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Options exercisable (in shares) | shares | 30,459 |
Weighted Average Exercise Price | |
Options exercisable at period end (in usd per share) | $ / shares | $ 21.56 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 30,559 |
Forfeited (in shares) | shares | (100) |
Options outstanding at period end (in shares) | shares | 30,459 |
Weighted Average Exercise Price | |
Outstanding at beginning of year (in usd per share) | $ / shares | $ 21.56 |
Forfeited (in usd per share) | $ / shares | 21.14 |
Options outstanding at period end (in usd per share) | $ / shares | $ 21.56 |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Information Pertaining to Options Outstanding and Exercisable (Details) - Orrstown 2011 Incentive Stock Plan - Employee Stock Option - $21.14 - $25.76 | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Range of Exercise Prices | |
Range of Exercise Prices, Minimum (in usd per share) | $ 21.14 |
Range of Exercise Prices, Maximum (in usd per share) | $ 25.76 |
Number Outstanding (in shares) | shares | 30,459 |
Weighted Average Remaining Contractual Life (Years) | 3 months 7 days |
Weighted Average Exercise Price (in usd per share) | $ 21.56 |
SHARE-BASED COMPENSATION PLAN_7
SHARE-BASED COMPENSATION PLANS - Schedule of Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares purchased (in shares) | 3,613 | 3,004 |
Weighted average price of shares purchased (in usd per share) | $ 16.91 | $ 18.96 |
Compensation expense recognized | $ 3 | $ 3 |
Tax benefits | $ 1 | $ 1 |
DERIVATIVES FINANCIAL INSTRUMEN
DERIVATIVES FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($)numberOfDerivativeInstruments | Dec. 31, 2019numberOfDerivativeInstruments |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of derivatives | 0 | |
Interest rate derivative | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of derivatives | 2 | |
Derivative, notional amount | $ | $ 100 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives designated as hedging instruments: | ||
Fair Value | ||
Total derivatives | $ (1,255) | $ 0 |
Derivatives designated as hedging instruments: | Interest rate products | Other assets | ||
Notional Amount | ||
Derivative asset | 50,000 | 0 |
Fair Value | ||
Derivative asset | 104 | 0 |
Derivatives designated as hedging instruments: | Interest rate products | Other liabilities | ||
Notional Amount | ||
Derivative liabilities | 50,000 | 0 |
Fair Value | ||
Derivative liabilities | (1,359) | 0 |
Derivatives not designated as hedging instruments: | ||
Fair Value | ||
Total derivatives | 239 | 104 |
Derivatives not designated as hedging instruments: | Interest rate lock commitments with customers | Other assets | ||
Notional Amount | ||
Derivative asset | 22,732 | 4,408 |
Fair Value | ||
Derivative asset | 435 | 103 |
Derivatives not designated as hedging instruments: | Forward sale commitments | Other liabilities | ||
Notional Amount | ||
Derivative liabilities | 30,650 | 8,969 |
Fair Value | ||
Derivative liabilities | $ (195) | $ 1 |
DERIVATIVES FINANCIAL INSTRUM_2
DERIVATIVES FINANCIAL INSTRUMENTS - Effect of Derivative Financial Instruments on OCI and Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | $ (1,259) | $ 0 |
Amount of Loss Reclassified from AOCI into Income | 4 | 0 |
Interest expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Loss Reclassified from AOCI into Income | (4) | 0 |
Mortgage Banking | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | 135 | 0 |
Interest rate products | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | (1,259) | 0 |
Interest rate products | Interest expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Loss Reclassified from AOCI into Income | (4) | 0 |
Interest rate lock commitments with customers | Mortgage Banking | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | 332 | 0 |
Forward sale commitments | Mortgage Banking | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | $ (197) | $ 0 |
DERIVATIVES FINANCIAL INSTRUM_3
DERIVATIVES FINANCIAL INSTRUMENTS - Summary of Interest Rate Swap Components (Details) - Interest Rate Swap | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Weighted average pay rate | 0.54% | 0.00% |
Weighted average receive rate | 0.08% | 0.00% |
Weighted average maturity in years | 6 years |
SHAREHOLDERS_ EQUITY AND REGULA
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 247,209 | $ 244,003 |
Actual, Ratio | 14.00% | 14.10% |
Minimum Capital Requirement, Amount | $ 185,714 | $ 182,028 |
Minimum Capital Requirement, Ratio | 10.50% | 10.50% |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 198,508 | $ 196,451 |
Actual, Ratio | 11.20% | 11.30% |
Minimum Capital Requirement, Amount | $ 150,340 | $ 147,356 |
Minimum Capital Requirement, Ratio | 8.50% | 8.50% |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 198,508 | $ 196,451 |
Actual, Ratio | 11.20% | 11.30% |
Minimum Capital Requirement, Amount | $ 123,809 | $ 121,352 |
Minimum Capital Requirement, Ratio | 7.00% | 7.00% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 198,508 | $ 196,451 |
Actual, Ratio | 8.50% | 8.60% |
Minimum Capital Requirement, Amount | $ 93,406 | $ 91,782 |
Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Bank | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 237,121 | $ 231,805 |
Actual, Ratio | 13.40% | 13.40% |
Minimum Capital Requirement, Amount | $ 185,634 | $ 181,948 |
Minimum Capital Requirement, Ratio | 10.50% | 10.50% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 176,794 | $ 173,284 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 220,281 | $ 216,100 |
Actual, Ratio | 12.50% | 12.50% |
Minimum Capital Requirement, Amount | $ 150,275 | $ 147,291 |
Minimum Capital Requirement, Ratio | 8.50% | 8.50% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 141,435 | $ 138,627 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 220,281 | $ 216,100 |
Actual, Ratio | 12.50% | 12.50% |
Minimum Capital Requirement, Amount | $ 123,756 | $ 121,299 |
Minimum Capital Requirement, Ratio | 7.00% | 7.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 114,916 | $ 112,635 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 220,281 | $ 216,100 |
Actual, Ratio | 9.40% | 9.40% |
Minimum Capital Requirement, Amount | $ 93,441 | $ 91,798 |
Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 116,802 | $ 114,747 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
SHAREHOLDERS' EQUITY AND REGU_3
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 21, 2020 | Mar. 31, 2020 | Mar. 31, 2016 |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares authorized to be repurchased (in shares) | 416,000 | ||
Acquisition of treasury stock (in shares) | 154,680 | ||
Acquisition of treasury stock | $ 2,600 | ||
Acquisition of treasury stock (in usd per share) | $ 16.88 | ||
Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Dividends declared per share (in usd per share) | $ 0.17 | ||
Maximum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program authorized, maximum percentage of outstanding shares of common stock | 5.00% |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 5,068 | $ 3,102 |
Weighted average shares outstanding - basic (in shares) | 10,959 | 9,160 |
Dilutive effect of share-based compensation (in shares) | 103 | 166 |
Weighted average shares outstanding - diluted (in shares) | 11,062 | 9,326 |
Per share information: | ||
Basic earnings per share (in usd per share) | $ 0.46 | $ 0.34 |
Diluted earnings per share (in usd per share) | $ 0.46 | $ 0.33 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Average outstanding options excluded from diluted earnings per share (in shares) | 30,559 | 40,984 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Reserve for off-balance sheet credit exposures | $ 1,000 | $ 1,000 |
Home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 210,908 | 205,502 |
1-4 family residential construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 18,360 | 19,812 |
Commercial real estate, construction and land development loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 25,676 | 19,018 |
Commercial, industrial and other loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 266,287 | 222,288 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | $ 9,902 | $ 10,588 |
FAIR VALUE - Narrative (Detail)
FAIR VALUE - Narrative (Detail) | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value option, aggregate fair value exceeded principle amount | $ 149,000 | ||
Increase (decrease) in fair value | 20,851,000 | $ 16,682,000 | |
Specific charges to value the real estate owned | 0 | 0 | |
Changes in fair value of OREO still held | 0 | 0 | |
Reserve for mortgage servicing rights | 571,000 | $ 70,000 | |
Mortgage servicing rights impairment | 501,000 | $ 0 | |
Interest Rate Lock Commitments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Increase (decrease) in fair value | $ 41,000 | ||
Level 3 | Measurement Input, Pull Through Increase (Decrease) | Interest Rate Lock Commitments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset, measurement input (percent) | 0.05 | ||
Level 3 | Measurement Input, Pull Through | Interest Rate Lock Commitments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset, measurement input (percent) | 0.91 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value liabilities | $ 0 | $ 0 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | $ 479,599 | $ 490,885 |
States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 111,057 | 87,863 |
GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 67,215 | 68,154 |
Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 16,679 | 17,087 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 213,311 | 230,515 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 597 | 637 |
Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgages | 435 | 103 |
Level 3 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgages | 435 | 103 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 487,934 | 500,352 |
Loans held for sale | 7,900 | 9,364 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 111,057 | 87,863 |
Fair Value, Measurements, Recurring | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 4,606 | |
Fair Value, Measurements, Recurring | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 67,215 | 68,154 |
Fair Value, Measurements, Recurring | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 16,679 | 17,087 |
Fair Value, Measurements, Recurring | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 66,134 | 86,629 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 213,311 | 230,515 |
Fair Value, Measurements, Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 597 | 637 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 597 | 637 |
Loans held for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 597 | 637 |
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgages | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 463,652 | 475,333 |
Loans held for sale | 7,900 | 9,364 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 111,057 | 87,863 |
Fair Value, Measurements, Recurring | Level 2 | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 4,606 | |
Fair Value, Measurements, Recurring | Level 2 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 67,215 | 68,154 |
Fair Value, Measurements, Recurring | Level 2 | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 59,563 | 79,437 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 213,311 | 230,515 |
Fair Value, Measurements, Recurring | Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgages | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 23,685 | 24,382 |
Loans held for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 16,679 | 17,087 |
Fair Value, Measurements, Recurring | Level 3 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 6,571 | 7,192 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | $ 0 | $ 0 |
FAIR VALUE - Level 3 Fair Value
FAIR VALUE - Level 3 Fair Value Measurement Activity (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest Rate Lock Commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 103 | $ 0 |
Included in earnings | 332 | 0 |
Ending Balance | 435 | 0 |
Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 24,279 | 0 |
Unrealized loss included in OCI | (961) | 0 |
Principal payments | (68) | 0 |
Ending Balance | $ 23,250 | $ 0 |
FAIR VALUE- Summary of Assets M
FAIR VALUE- Summary of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 2,341 | $ 2,196 |
Mortgage servicing rights | 2,576 | 3,119 |
Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 909 | 938 |
Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 88 | 96 |
Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 96 | 103 |
Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 11 | 11 |
Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 928 | 641 |
Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 302 | 400 |
Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 7 | 7 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Level 1 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Mortgage servicing rights | 2,576 | 3,119 |
Level 2 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 2,341 | 2,196 |
Mortgage servicing rights | 0 | 0 |
Level 3 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 909 | 938 |
Level 3 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 88 | 96 |
Level 3 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 96 | 103 |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 11 | 11 |
Level 3 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 928 | 641 |
Level 3 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 302 | 400 |
Level 3 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 7 | $ 7 |
FAIR VALUE - Summary of Additio
FAIR VALUE - Summary of Additional Qualitative Information (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Impaired loans | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.06 | |
Impaired loans | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.33 | |
Impaired loans | Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.06 | |
Impaired loans | Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.33 | |
Impaired loans | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 2,341 | $ 2,196 |
Impaired loans | Appraisal of collateral | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0 | |
Impaired loans | Appraisal of collateral | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.20 | |
Impaired loans | Appraisal of collateral | Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0 | |
Impaired loans | Appraisal of collateral | Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.20 | |
Mortgage servicing rights | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.0954 | 0.0954 |
Mortgage servicing rights | Measurement Input, Constant Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.1516 | 0.1163 |
Mortgage servicing rights | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 2,576 | $ 3,119 |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments at Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Interest-bearing deposits with banks | $ 23,163 | $ 29,994 |
Restricted investments in bank stocks | 15,823 | 16,184 |
Investment securities | 479,599 | 490,885 |
Financial Liabilities | ||
Securities sold under agreements to repurchase | 10,933 | 8,269 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 33,974 | 25,969 |
Interest-bearing deposits with banks | 23,163 | 30,493 |
Restricted investments in bank stocks | 15,823 | 16,184 |
Investment securities | 479,599 | 490,386 |
Loans held for sale | 7,900 | 9,364 |
Loans, net of allowance for loan losses | 1,641,145 | 1,629,675 |
Interest rate lock commitments on residential mortgages | 435 | 103 |
Accrued interest receivable | 6,697 | 6,040 |
Financial Liabilities | ||
Deposits | 1,897,296 | 1,875,522 |
Securities sold under agreements to repurchase | 10,933 | 8,269 |
FHLB Advances | 201,166 | 209,667 |
Subordinated notes | 31,861 | 31,847 |
Accrued interest payable | 1,040 | 879 |
Carrying Amount | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 104 | |
Financial Liabilities | ||
Interest rate swaps | 1,359 | |
Fair Value | Fair Value, Inputs, Level 1, 2 and 3 | ||
Financial Assets | ||
Cash and due from banks | 33,974 | 25,969 |
Interest-bearing deposits with banks | 23,163 | 30,493 |
Investment securities | 479,599 | 490,386 |
Loans held for sale | 7,900 | 9,364 |
Loans, net of allowance for loan losses | 1,587,426 | 1,652,788 |
Interest rate lock commitments on residential mortgages | 435 | 103 |
Accrued interest receivable | 6,697 | 6,040 |
Financial Liabilities | ||
Deposits | 1,901,268 | 1,876,555 |
Securities sold under agreements to repurchase | 10,933 | 8,269 |
FHLB Advances | 201,544 | 210,005 |
Subordinated notes | 32,970 | 33,953 |
Accrued interest payable | 1,040 | 879 |
Fair Value | Fair Value, Inputs, Level 1, 2 and 3 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 104 | |
Financial Liabilities | ||
Interest rate swaps | 1,359 | |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 33,974 | 25,969 |
Interest-bearing deposits with banks | 23,163 | 30,493 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Interest rate lock commitments on residential mortgages | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB Advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value | Level 1 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 0 | |
Financial Liabilities | ||
Interest rate swaps | 0 | |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Investment securities | 456,349 | 466,107 |
Loans held for sale | 7,900 | 9,364 |
Loans, net of allowance for loan losses | 0 | 0 |
Interest rate lock commitments on residential mortgages | 0 | 0 |
Accrued interest receivable | 2,237 | 1,863 |
Financial Liabilities | ||
Deposits | 1,901,268 | 1,876,555 |
Securities sold under agreements to repurchase | 10,933 | 8,269 |
FHLB Advances | 201,544 | 210,005 |
Subordinated notes | 32,970 | 33,953 |
Accrued interest payable | 1,040 | 879 |
Fair Value | Level 2 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 104 | |
Financial Liabilities | ||
Interest rate swaps | 1,359 | |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Investment securities | 23,250 | 24,279 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 1,587,426 | 1,652,788 |
Interest rate lock commitments on residential mortgages | 435 | 103 |
Accrued interest receivable | 4,460 | 4,177 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB Advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | $ 0 |
Fair Value | Level 3 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 0 | |
Financial Liabilities | ||
Interest rate swaps | $ 0 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Jun. 22, 2015 | Apr. 30, 2020USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2020claim |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of legal proceedings (in claims) | claim | 0 | |||
Litigation settlement fees paid | $ 135,000 | |||
Number of days to file an amendment or stand on current amended complaint | 30 days | |||
Regulatory settlement | $ 1,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | 1 Months Ended | ||||
May 07, 2020USD ($)numberOfLoans | May 05, 2020USD ($)numberOfLoans | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Subsequent Event [Line Items] | |||||
Loans | $ 1,656,948 | $ 1,644,330 | |||
Subsequent Event | Payment Deferral | |||||
Subsequent Event [Line Items] | |||||
Loan deferral period | 90 days | ||||
Subsequent Event | Payment Deferral | Commercial | |||||
Subsequent Event [Line Items] | |||||
Loans | $ 179,600 | ||||
Subsequent Event | Payment Deferral | Consumer | |||||
Subsequent Event [Line Items] | |||||
Loans | $ 18,500 | ||||
Subsequent Event | SBA | |||||
Subsequent Event [Line Items] | |||||
Number of of PPP loans | numberOfLoans | 2,000 | ||||
PPP loans generated amount | $ 423,800 | ||||
Subsequent Event | Forecast | SBA | |||||
Subsequent Event [Line Items] | |||||
Number of of PPP loans | numberOfLoans | 2,500 | ||||
PPP loans generated amount | $ 450,000 | ||||
PPP Loan processing fee income | $ 12,000 |