☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
VIRGINIA
|
54-1265373
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
☐
|
Accelerated filer ☐
|
Non-accelerated filer
|
☐ (Do not check if a smaller reporting company)
|
Smaller reporting company ☒
|
Emerging growth company ☐
|
Page
|
||
Item 1.
|
Financial Statements
|
1
|
September 30, 2017 (unaudited) and December 31, 2016
|
1
|
|
Three Months Ended September 30, 2017 and 2016 (unaudited)
Nine Months Ended September 30, 2017 and 2016 (unaudited)
|
2
|
|
Three Months Ended September 30, 2017 and 2016 (unaudited)
Nine Months Ended September 30, 2017 and 2016 (unaudited)
|
3
|
|
Nine Months Ended September 30, 2017 and 2016 (unaudited)
|
4
|
|
Nine Months Ended September 30, 2017 and 2016 (unaudited)
|
5
|
|
6
|
||
Item 2.
|
35
|
|
Item 3.
|
47
|
|
Item 4.
|
48
|
|
PART II - OTHER INFORMATION
|
||
Item 1.
|
48
|
|
Item 1A.
|
49
|
|
Item 2.
|
50
|
|
Item 3.
|
51
|
|
Item 4.
|
51
|
|
Item 5.
|
51
|
|
Item 6.
|
52
|
|
52
|
ALLL
|
Allowance for Loan and Lease Losses
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Bank
|
The Old Point National Bank of Phoebus
|
CET1
|
Common Equity Tier 1
|
Citizens National
|
Citizens National Bank
|
Company
|
Old Point Financial Corporation
|
CRA
|
Community Reinvestment Act
|
ESPP
|
Employee Stock Purchase Plan
|
EVE
|
Economic Value of Equity
|
FASB
|
Financial Accounting Standards Board
|
FHLB
|
Federal Home Loan Bank
|
FOMC
|
Federal Open Market Committee
|
Federal Reserve
|
Board of Governors of the Federal Reserve System
|
FRB
|
Federal Reserve Bank
|
GAAP
|
Generally Accepted Accounting Principles
|
Incentive Stock Plan
|
Old Point Financial Corporation 2016 Incentive Stock Plan
|
IRS
|
Internal Revenue Service
|
OAEM
|
Other Assets Especially Mentioned
|
OCC
|
Office of the Comptroller of the Currency
|
OPM
|
Old Point Mortgage
|
OREO
|
Other Real Estate Owned
|
Pending Acquisition
|
Acquisition of Citizens National pursuant to a definitive merger agreement by and among the Company, the Bank and Citizens National, dated as of October 27, 2017
|
SEC
|
Securities and Exchange Commission
|
TDR
|
Troubled Debt Restructuring
|
Trust
|
Old Point Trust & Financial Services N.A.
|
VIE
|
Variable Interest Entities
|
September 30, 2017
|
December 31, 2016
|
|||||||
(dollars in thousands except per share data)
|
||||||||
(unaudited)
|
*
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
12,496
|
$
|
21,885
|
||||
Interest-bearing due from banks
|
1,648
|
1,667
|
||||||
Federal funds sold
|
1,291
|
2,302
|
||||||
Cash and cash equivalents
|
15,435
|
25,854
|
||||||
Securities available-for-sale, at fair value
|
164,112
|
199,365
|
||||||
Restricted securities, at cost
|
2,890
|
970
|
||||||
Loans held for sale, at fair value
|
981
|
-
|
||||||
Loans held for investment, net of allowance for loan losses of $8,951 and $8,245
|
692,045
|
595,637
|
||||||
Premises and equipment, net
|
37,750
|
39,324
|
||||||
Bank-owned life insurance
|
25,802
|
25,206
|
||||||
Other real estate owned, net of valuation allowance
|
-
|
1,067
|
||||||
Other assets
|
15,482
|
15,543
|
||||||
Total assets
|
$
|
954,497
|
$
|
902,966
|
||||
Liabilities & Stockholders' Equity
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing deposits
|
$
|
223,442
|
$
|
228,641
|
||||
Savings deposits
|
344,654
|
344,452
|
||||||
Time deposits
|
214,349
|
211,409
|
||||||
Total deposits
|
782,445
|
784,502
|
||||||
Federal funds purchased
|
2,000
|
-
|
||||||
Overnight repurchase agreements
|
21,885
|
18,704
|
||||||
Federal Home Loan Bank advances
|
45,000
|
-
|
||||||
Accrued expenses and other liabilities
|
5,526
|
5,770
|
||||||
Total liabilities
|
856,856
|
808,976
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' equity:
|
||||||||
Common stock, $5 par value, 10,000,000 shares authorized; 5,009,630 and 4,961,258 shares outstanding (includes 2,245 and zero shares of nonvested restricted stock)
|
25,037
|
24,806
|
||||||
Additional paid-in capital
|
17,112
|
16,427
|
||||||
Retained earnings
|
58,179
|
56,965
|
||||||
Accumulated other comprehensive loss, net
|
(2,687
|
)
|
(4,208
|
)
|
||||
Total stockholders' equity
|
97,641
|
93,990
|
||||||
Total liabilities and stockholders' equity
|
$
|
954,497
|
$
|
902,966
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||
Interest and Dividend Income:
|
||||||||||||||||
Interest and fees on loans
|
$
|
7,642
|
$
|
6,646
|
$
|
21,532
|
$
|
19,619
|
||||||||
Interest on due from banks
|
4
|
25
|
12
|
30
|
||||||||||||
Interest on federal funds sold
|
1
|
2
|
6
|
4
|
||||||||||||
Interest on securities:
|
||||||||||||||||
Taxable
|
487
|
357
|
1,474
|
1,376
|
||||||||||||
Tax-exempt
|
385
|
371
|
1,232
|
1,131
|
||||||||||||
Dividends and interest on all other securities
|
49
|
35
|
98
|
76
|
||||||||||||
Total interest and dividend income
|
8,568
|
7,436
|
24,354
|
22,236
|
||||||||||||
Interest Expense:
|
||||||||||||||||
Interest on savings deposits
|
103
|
56
|
240
|
165
|
||||||||||||
Interest on time deposits
|
560
|
538
|
1,599
|
1,572
|
||||||||||||
Interest on federal funds purchased, securities sold under agreements to repurchase and other borrowings
|
13
|
6
|
26
|
20
|
||||||||||||
Interest on Federal Home Loan Bank advances
|
161
|
33
|
233
|
177
|
||||||||||||
Total interest expense
|
837
|
633
|
2,098
|
1,934
|
||||||||||||
Net interest income
|
7,731
|
6,803
|
22,256
|
20,302
|
||||||||||||
Provision for (recovery of) loan losses
|
1,275
|
(100
|
)
|
2,925
|
1,300
|
|||||||||||
Net interest income, after provision for (recovery of) loan losses
|
6,456
|
6,903
|
19,331
|
19,002
|
||||||||||||
Noninterest Income:
|
||||||||||||||||
Income from fiduciary activities
|
903
|
858
|
2,820
|
2,636
|
||||||||||||
Service charges on deposit accounts
|
1,001
|
1,039
|
2,844
|
3,035
|
||||||||||||
Other service charges, commissions and fees
|
1,050
|
968
|
3,141
|
3,019
|
||||||||||||
Income from bank-owned life insurance
|
198
|
215
|
595
|
647
|
||||||||||||
Income from mortgage banking activities
|
172
|
187
|
462
|
276
|
||||||||||||
Gain on sale of available-for-sale securities, net
|
2
|
7
|
89
|
522
|
||||||||||||
Gain on acquisition of Old Point Mortgage
|
-
|
-
|
550
|
-
|
||||||||||||
Other operating income
|
35
|
53
|
114
|
143
|
||||||||||||
Total noninterest income
|
3,361
|
3,327
|
10,615
|
10,278
|
||||||||||||
Noninterest Expense:
|
||||||||||||||||
Salaries and employee benefits
|
5,104
|
5,063
|
15,650
|
15,107
|
||||||||||||
Occupancy and equipment
|
1,444
|
1,373
|
4,347
|
4,121
|
||||||||||||
Data processing
|
473
|
419
|
1,328
|
1,276
|
||||||||||||
FDIC insurance
|
128
|
66
|
322
|
387
|
||||||||||||
Customer development
|
153
|
146
|
451
|
450
|
||||||||||||
Legal and audit expenses
|
216
|
372
|
604
|
869
|
||||||||||||
Other outside service fees
|
292
|
200
|
797
|
561
|
||||||||||||
Employee professional development
|
196
|
147
|
651
|
474
|
||||||||||||
Loan expenses
|
302
|
46
|
483
|
103
|
||||||||||||
Capital stock tax
|
141
|
128
|
422
|
390
|
||||||||||||
ATM and other losses
|
103
|
131
|
435
|
301
|
||||||||||||
Prepayment fee on Federal Home Loan Bank advance
|
-
|
-
|
-
|
391
|
||||||||||||
Loss (gain) on other real estate owned
|
-
|
45
|
(18
|
)
|
153
|
|||||||||||
Other operating expenses
|
564
|
553
|
1,620
|
1,682
|
||||||||||||
Total noninterest expense
|
9,116
|
8,689
|
27,092
|
26,265
|
||||||||||||
Income before income taxes
|
701
|
1,541
|
2,854
|
3,015
|
||||||||||||
Income tax expense (benefit)
|
(56
|
)
|
212
|
(6
|
)
|
113
|
||||||||||
Net income
|
$
|
757
|
$
|
1,329
|
$
|
2,860
|
$
|
2,902
|
||||||||
Basic earnings per share
|
||||||||||||||||
Weighted average shares outstanding
|
4,993,805
|
4,959,009
|
4,985,135
|
4,959,009
|
||||||||||||
Net income per share of common stock
|
$
|
$0.15
|
$
|
$0.27
|
$
|
$0.57
|
$
|
$0.59
|
||||||||
Diluted earnings per share
|
||||||||||||||||
Weighted average shares outstanding
|
5,003,785
|
4,959,009
|
4,997,231
|
4,959,009
|
||||||||||||
Net income per share of common stock
|
$
|
$0.15
|
$
|
$0.27
|
$
|
$0.57
|
$
|
$0.59
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||
Net income
|
$
|
757
|
$
|
1,329
|
$
|
2,860
|
$
|
2,902
|
||||||||
Other comprehensive income (loss), net of tax
|
||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities
|
57
|
(299
|
)
|
1,521
|
1,877
|
|||||||||||
Comprehensive income
|
$
|
814
|
$
|
1,030
|
$
|
4,381
|
$
|
4,779
|
Shares of
Common
Stock
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Total
|
|||||||||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2017
|
||||||||||||||||||||||||
Balance at beginning of period
|
4,961,258
|
$
|
24,806
|
$
|
16,427
|
$
|
56,965
|
$
|
(4,208
|
)
|
$
|
93,990
|
||||||||||||
Net income
|
-
|
-
|
-
|
2,860
|
-
|
2,860
|
||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
-
|
-
|
-
|
1,521
|
1,521
|
||||||||||||||||||
Exercise of stock options
|
48,287
|
241
|
727
|
-
|
-
|
968
|
||||||||||||||||||
Employee Stock Purchase Plan share issuance
|
2,523
|
13
|
58
|
-
|
-
|
71
|
||||||||||||||||||
Repurchase of common stock related to stock option exercises
|
(4,683
|
)
|
(23
|
)
|
(109
|
)
|
-
|
-
|
(132
|
)
|
||||||||||||||
Stock-based compensation expense
|
-
|
-
|
9
|
-
|
-
|
9
|
||||||||||||||||||
Cash dividends ($0.33 per share)
|
-
|
-
|
-
|
(1,646
|
)
|
-
|
(1,646
|
)
|
||||||||||||||||
Balance at end of period
|
5,007,385
|
$
|
25,037
|
$
|
17,112
|
$
|
58,179
|
$
|
(2,687
|
)
|
$
|
97,641
|
||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2016
|
||||||||||||||||||||||||
Balance at beginning of period
|
4,959,009
|
$
|
24,795
|
$
|
16,392
|
$
|
55,151
|
$
|
(3,162
|
)
|
$
|
93,176
|
||||||||||||
Net income
|
-
|
-
|
-
|
2,902
|
-
|
2,902
|
||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
-
|
-
|
-
|
1,877
|
1,877
|
||||||||||||||||||
Cash dividends ($0.30 per share)
|
-
|
-
|
-
|
(1,488
|
)
|
-
|
(1,488
|
)
|
||||||||||||||||
Balance at end of period
|
4,959,009
|
$
|
24,795
|
$
|
16,392
|
$
|
56,565
|
$
|
(1,285
|
)
|
$
|
96,467
|
Nine Months Ended September 30,
|
||||||||
2017
|
2016
|
|||||||
(unaudited, dollars in thousands)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
2,860
|
$
|
2,902
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,081
|
2,034
|
||||||
Provision for loan losses
|
2,925
|
1,300
|
||||||
Net gain on sale of available-for-sale securities
|
(89
|
)
|
(522
|
)
|
||||
Net amortization of securities
|
1,727
|
1,595
|
||||||
(Increase) in loans held for sale
|
(981
|
)
|
-
|
|||||
Net (gain) loss on disposal of premises and equipment
|
4
|
(3
|
)
|
|||||
Net (gain) loss on write-down/sale of other real estate owned
|
(18
|
)
|
153
|
|||||
Income from bank owned life insurance
|
(595
|
)
|
(647
|
)
|
||||
Stock compensation expense
|
9
|
-
|
||||||
Deferred tax benefit
|
(171
|
)
|
(256
|
)
|
||||
Increase in other assets
|
(552
|
)
|
(942
|
)
|
||||
Increase (decrease) in other liabilities
|
(244
|
)
|
363
|
|||||
Net cash provided by operating activities
|
6,956
|
5,977
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases of available-for-sale securities
|
(25,220
|
)
|
(104,082
|
)
|
||||
Proceeds from redemption (cash used in purchases) of restricted securities, net
|
(1,920
|
)
|
196
|
|||||
Proceeds from maturities and calls of available-for-sale securities
|
46,625
|
42,330
|
||||||
Proceeds from sales of available-for-sale securities
|
7,030
|
106,761
|
||||||
Paydowns on available-for-sale securities
|
7,484
|
8,734
|
||||||
(Purchases) paydowns of consumer installment loans, net
|
(7,275
|
)
|
-
|
|||||
Net increase in all other loans (including repayments on student loans)
|
(92,058
|
)
|
(26,703
|
)
|
||||
Proceeds from sales of other real estate owned
|
1,084
|
1,625
|
||||||
Payments for improvements to other real estate owned
|
-
|
(52
|
)
|
|||||
Purchases of premises and equipment
|
(510
|
)
|
(710
|
)
|
||||
Net cash provided by (used in) investing activities
|
(64,760
|
)
|
28,099
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Increase (decrease) in noninterest-bearing deposits
|
(5,199
|
)
|
10,930
|
|||||
Increase in savings deposits
|
202
|
3,818
|
||||||
Increase in time deposits
|
2,940
|
3,278
|
||||||
Increase (decrease) in federal funds purchased and repurchase agreements, net
|
5,181
|
(7,711
|
)
|
|||||
Increase in Federal Home Loan Bank advances
|
120,000
|
55,000
|
||||||
Repayment of Federal Home Loan Bank advances
|
(75,000
|
)
|
(60,000
|
)
|
||||
Proceeds from exercise of stock options and ESPP issuance
|
1,039
|
-
|
||||||
Repurchase and retirement of common stock
|
(132
|
)
|
-
|
|||||
Cash dividends paid on common stock
|
(1,646
|
)
|
(1,488
|
)
|
||||
Net cash provided by financing activities
|
47,385
|
3,827
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(10,419
|
)
|
37,903
|
|||||
Cash and cash equivalents at beginning of period
|
25,854
|
36,990
|
||||||
Cash and cash equivalents at end of period
|
$
|
15,435
|
$
|
74,893
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$
|
2,029
|
$
|
1,948
|
||||
Income tax
|
$
|
750
|
$
|
-
|
||||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
|
||||||||
Unrealized gain on securities available-for-sale
|
$
|
2,305
|
$
|
2,844
|
||||
Former bank property transferred from fixed assets to foreclosed properties
|
$
|
-
|
$
|
127
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
September 30, 2017
|
||||||||||||||||
Obligations of U.S. Government agencies
|
$
|
9,574
|
$
|
11
|
$
|
(92
|
)
|
$
|
9,493
|
|||||||
Obligations of state and political subdivisions
|
67,815
|
771
|
(152
|
)
|
68,434
|
|||||||||||
Mortgage-backed securities
|
78,436
|
-
|
(1,120
|
)
|
77,316
|
|||||||||||
Money market investments
|
1,169
|
-
|
-
|
1,169
|
||||||||||||
Corporate bonds and other securities
|
7,349
|
166
|
(5
|
)
|
7,510
|
|||||||||||
Other marketable equity securities
|
100
|
90
|
-
|
190
|
||||||||||||
Total
|
$
|
164,443
|
$
|
1,038
|
$
|
(1,369
|
)
|
$
|
164,112
|
|||||||
December 31, 2016
|
||||||||||||||||
U.S. Treasury securities
|
$
|
20,000
|
$
|
-
|
$
|
-
|
$
|
20,000
|
||||||||
Obligations of U.S. Government agencies
|
9,361
|
-
|
(166
|
)
|
9,195
|
|||||||||||
Obligations of state and political subdivisions
|
78,645
|
358
|
(1,016
|
)
|
77,987
|
|||||||||||
Mortgage-backed securities
|
85,649
|
18
|
(1,973
|
)
|
83,694
|
|||||||||||
Money market investments
|
647
|
-
|
-
|
647
|
||||||||||||
Corporate bonds and other securities
|
7,598
|
92
|
(12
|
)
|
7,678
|
|||||||||||
Other marketable equity securities
|
100
|
64
|
-
|
164
|
||||||||||||
Total
|
$
|
202,000
|
$
|
532
|
$
|
(3,167
|
)
|
$
|
199,365
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Securities Available-for-sale
|
||||||||||||||||
Realized gains on sales of securities
|
$
|
2
|
$
|
24
|
$
|
89
|
$
|
578
|
||||||||
Realized losses on sales of securities
|
-
|
(17
|
)
|
-
|
(56
|
)
|
||||||||||
Net realized gain
|
$
|
2
|
$
|
7
|
$
|
89
|
$
|
522
|
September 30, 2017
|
||||||||||||||||||||||||||||
Less Than Twelve Months
|
More Than Twelve Months
|
Total
|
||||||||||||||||||||||||||
September 30, 2017
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Number
of
Securities
|
|||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||||||
Obligations of U.S. Government agencies
|
$
|
10
|
$
|
4,393
|
$
|
82
|
$
|
3,120
|
$
|
92
|
$
|
7,513
|
11
|
|||||||||||||||
Obligations of state and political subdivisions
|
80
|
5,006
|
72
|
6,898
|
152
|
11,904
|
15
|
|||||||||||||||||||||
Mortgage-backed securities
|
257
|
32,054
|
863
|
45,262
|
1,120
|
77,316
|
24
|
|||||||||||||||||||||
Corporate bonds
|
1
|
1,299
|
4
|
295
|
5
|
1,594
|
10
|
|||||||||||||||||||||
Total securities available-for-sale
|
$
|
348
|
$
|
42,752
|
$
|
1,021
|
$
|
55,575
|
$
|
1,369
|
$
|
98,327
|
60
|
December 31, 2016
|
||||||||||||||||||||||||||||
Less Than Twelve Months
|
More Than Twelve Months
|
Total
|
||||||||||||||||||||||||||
December 31, 2016
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Number
of
Securities
|
|||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||||||
Obligations of U.S. Government agencies
|
$
|
166
|
$
|
9,195
|
$
|
-
|
$
|
-
|
$
|
166
|
$
|
9,195
|
6
|
|||||||||||||||
Obligations of state and political subdivisions
|
1,016
|
38,020
|
-
|
-
|
1,016
|
38,020
|
56
|
|||||||||||||||||||||
Mortgage-backed securities
|
1,973
|
80,680
|
-
|
-
|
1,973
|
80,680
|
23
|
|||||||||||||||||||||
Corporate bonds
|
11
|
1,787
|
1
|
100
|
12
|
1,887
|
13
|
|||||||||||||||||||||
Total securities available-for-sale
|
$
|
3,166
|
$
|
129,682
|
$
|
1
|
$
|
100
|
$
|
3,167
|
$
|
129,782
|
98
|
September 30, 2017
|
December 31, 2016
|
|||||||
(in thousands)
|
||||||||
Mortgage loans on real estate:
|
||||||||
Residential 1-4 family
|
$
|
100,746
|
$
|
94,827
|
||||
Commercial
|
281,628
|
285,429
|
||||||
Construction
|
23,715
|
23,116
|
||||||
Second mortgages
|
17,557
|
17,128
|
||||||
Equity lines of credit
|
54,029
|
51,024
|
||||||
Total mortgage loans on real estate
|
477,675
|
471,524
|
||||||
Commercial and industrial loans
|
60,003
|
54,434
|
||||||
Consumer automobile loans
|
94,041
|
10,407
|
||||||
Other consumer loans
|
56,386
|
48,500
|
||||||
Other
|
12,891
|
19,017
|
||||||
Total loans, net of deferred fees (1)
|
700,996
|
603,882
|
||||||
Less: Allowance for loan losses
|
(8,951
|
)
|
(8,245
|
)
|
||||
Loans, net of allowance and deferred fees and costs (1)
|
$
|
692,045
|
$
|
595,637
|
Credit Quality Information
|
||||||||||||||||||||
As of September 30, 2017
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Pass
|
OAEM
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||
Residential 1-4 family
|
$
|
98,829
|
$
|
-
|
$
|
1,917
|
$
|
-
|
$
|
100,746
|
||||||||||
Commercial
|
256,898
|
11,696
|
13,034
|
-
|
281,628
|
|||||||||||||||
Construction
|
22,920
|
74
|
721
|
-
|
23,715
|
|||||||||||||||
Second mortgages
|
16,952
|
446
|
159
|
-
|
17,557
|
|||||||||||||||
Equity lines of credit
|
53,686
|
-
|
343
|
-
|
54,029
|
|||||||||||||||
Total mortgage loans on real estate
|
449,285
|
12,216
|
16,174
|
-
|
477,675
|
|||||||||||||||
Commercial and industrial loans
|
58,192
|
1,037
|
774
|
-
|
60,003
|
|||||||||||||||
Consumer automobile loans
|
93,984
|
-
|
57
|
-
|
94,041
|
|||||||||||||||
Other consumer loans
|
56,336
|
-
|
50
|
-
|
56,386
|
|||||||||||||||
Other
|
12,891
|
-
|
-
|
-
|
12,891
|
|||||||||||||||
Total
|
$
|
670,688
|
$
|
13,253
|
$
|
17,055
|
$
|
-
|
$
|
700,996
|
Credit Quality Information
|
||||||||||||||||||||
As of December 31, 2016
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Pass
|
OAEM
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||
Residential 1-4 family
|
$
|
92,458
|
$
|
1,138
|
$
|
1,231
|
$
|
-
|
$
|
94,827
|
||||||||||
Commercial
|
260,948
|
10,014
|
14,467
|
-
|
285,429
|
|||||||||||||||
Construction
|
22,219
|
162
|
735
|
-
|
23,116
|
|||||||||||||||
Second mortgages
|
16,445
|
475
|
208
|
-
|
17,128
|
|||||||||||||||
Equity lines of credit
|
50,387
|
500
|
137
|
-
|
51,024
|
|||||||||||||||
Total mortgage loans on real estate
|
442,457
|
12,289
|
16,778
|
-
|
471,524
|
|||||||||||||||
Commercial and industrial loans
|
49,979
|
2,278
|
2,177
|
-
|
54,434
|
|||||||||||||||
Consumer automobile loans
|
10,407
|
-
|
-
|
-
|
10,407
|
|||||||||||||||
Other consumer loans
|
48,334
|
-
|
166
|
-
|
48,500
|
|||||||||||||||
Other
|
19,017
|
-
|
-
|
-
|
19,017
|
|||||||||||||||
Total
|
$
|
570,194
|
$
|
14,567
|
$
|
19,121
|
$
|
-
|
$
|
603,882
|
Age Analysis of Past Due Loans as of September 30, 2017
|
||||||||||||||||||||||||||||
30 - 59
Days Past
Due
|
60 - 89
Days Past
Due
|
90 or More
Days Past
Due
|
Total Past
Due
|
Total
Current
Loans (1)
|
Total
Loans
|
Recorded
Investment
> 90 Days
Past Due
and
Accruing
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||||||
Residential 1-4 family
|
$
|
869
|
$
|
-
|
$
|
621
|
$
|
1,490
|
$
|
99,256
|
$
|
100,746
|
$
|
52
|
||||||||||||||
Commercial
|
169
|
984
|
3,530
|
4,683
|
276,945
|
281,628
|
974
|
|||||||||||||||||||||
Construction
|
204
|
-
|
-
|
204
|
23,511
|
23,715
|
-
|
|||||||||||||||||||||
Second mortgages
|
79
|
-
|
-
|
79
|
17,478
|
17,557
|
-
|
|||||||||||||||||||||
Equity lines of credit
|
49
|
-
|
53
|
102
|
53,927
|
54,029
|
-
|
|||||||||||||||||||||
Total mortgage loans on real estate
|
1,370
|
984
|
4,204
|
6,558
|
471,117
|
477,675
|
1,026
|
|||||||||||||||||||||
Commercial loans
|
853
|
154
|
1,226
|
2,233
|
57,770
|
60,003
|
473
|
|||||||||||||||||||||
Consumer automobile loans
|
266
|
44
|
16
|
326
|
93,715
|
94,041
|
16
|
|||||||||||||||||||||
Other consumer loans
|
1,541
|
585
|
2,466
|
4,592
|
51,794
|
56,386
|
2,466
|
|||||||||||||||||||||
Other
|
91
|
8
|
2
|
101
|
12,790
|
12,891
|
2
|
|||||||||||||||||||||
Total
|
$
|
4,121
|
$
|
1,775
|
$
|
7,914
|
$
|
13,810
|
$
|
687,186
|
$
|
700,996
|
$
|
3,983
|
Age Analysis of Past Due Loans as of December 31, 2016
|
||||||||||||||||||||||||||||
30 - 59
Days Past
Due
|
60 - 89
Days Past
Due
|
90 or More
Days Past
Due
|
Total Past
Due
|
Total
Current
Loans (1)
|
Total
Loans
|
Recorded
Investment
> 90 Days
Past Due
and
Accruing
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||||||
Residential 1-4 family
|
$
|
564
|
$
|
-
|
$
|
496
|
$
|
1,060
|
$
|
93,767
|
$
|
94,827
|
$
|
218
|
||||||||||||||
Commercial
|
2,280
|
1,625
|
227
|
4,132
|
281,297
|
285,429
|
-
|
|||||||||||||||||||||
Construction
|
162
|
-
|
-
|
162
|
22,954
|
23,116
|
-
|
|||||||||||||||||||||
Second mortgages
|
-
|
200
|
188
|
388
|
16,740
|
17,128
|
58
|
|||||||||||||||||||||
Equity lines of credit
|
394
|
9
|
86
|
489
|
50,535
|
51,024
|
-
|
|||||||||||||||||||||
Total mortgage loans on real estate
|
3,400
|
1,834
|
997
|
6,231
|
465,293
|
471,524
|
276
|
|||||||||||||||||||||
Commercial loans
|
5
|
-
|
86
|
91
|
54,343
|
54,434
|
-
|
|||||||||||||||||||||
Consumer automobile loans
|
-
|
11
|
-
|
11
|
10,396
|
10,407
|
-
|
|||||||||||||||||||||
Other consumer loans
|
1,876
|
702
|
2,684
|
5,262
|
43,238
|
48,500
|
2,603
|
|||||||||||||||||||||
Other
|
41
|
12
|
5
|
58
|
18,959
|
19,017
|
5
|
|||||||||||||||||||||
Total
|
$
|
5,322
|
$
|
2,559
|
$
|
3,772
|
$
|
11,653
|
$
|
592,229
|
$
|
603,882
|
$
|
2,884
|
Nonaccrual Loans by Class
|
||||||||
September 30, 2017
|
December 31, 2016
|
|||||||
(in thousands)
|
||||||||
Mortgage loans on real estate
|
||||||||
Residential 1-4 family
|
$
|
568
|
$
|
598
|
||||
Commercial
|
8,012
|
6,033
|
||||||
Construction
|
518
|
-
|
||||||
Second mortgages
|
-
|
129
|
||||||
Equity lines of credit
|
343
|
87
|
||||||
Total mortgage loans on real estate
|
9,441
|
6,847
|
||||||
Commercial loans
|
771
|
231
|
||||||
Other consumer loans
|
-
|
81
|
||||||
Total
|
$
|
10,212
|
$
|
7,159
|
Nine Months Ended September 30,
|
||||||||
2017
|
2016
|
|||||||
(in thousands)
|
||||||||
Interest income that would have been recorded under original loan terms
|
$
|
311
|
$
|
232
|
||||
Actual interest income recorded for the period
|
179
|
182
|
||||||
Reduction in interest income on nonaccrual loans
|
$
|
132
|
$
|
50
|
Troubled Debt Restructurings by Class
|
||||||||||||||||
For the Three Months Ended September 30, 2016
|
||||||||||||||||
Number of Modifications
|
Recorded Investment Prior to Modification
|
Recorded Investment After Modification
|
Current Investment on
September 30, 2016
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||
Residential 1-4 family
|
4
|
$
|
1,002
|
$
|
1,002
|
$
|
1,002
|
|||||||||
Commercial
|
1
|
150
|
150
|
150
|
||||||||||||
Second mortgages
|
1
|
53
|
53
|
53
|
||||||||||||
Equity lines of credit
|
1
|
93
|
93
|
93
|
||||||||||||
Total mortgage loans on real estate
|
7
|
1,298
|
1,298
|
1,298
|
||||||||||||
Other consumer loans
|
2
|
8
|
8
|
8
|
||||||||||||
Total
|
9
|
$
|
1,306
|
$
|
1,306
|
$
|
1,306
|
Troubled Debt Restructurings by Class
|
||||||||||||||||
For the Nine Months Ended September 30, 2017
|
||||||||||||||||
Number of Modifications
|
Recorded Investment Prior to Modification
|
Recorded Investment After Modification
|
Current Investment on
September 30, 2017
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||
Residential 1-4 family
|
1
|
$
|
142
|
$
|
142
|
$
|
141
|
|||||||||
Commercial
|
2
|
3,663
|
3,663
|
3,653
|
||||||||||||
Total
|
3
|
$
|
3,805
|
$
|
3,805
|
$
|
3,794
|
Troubled Debt Restructurings by Class
|
||||||||||||||||
For the Nine Months Ended September 30, 2016
|
||||||||||||||||
Number of Modifications
|
Recorded Investment Prior to Modification
|
Recorded Investment After Modification
|
Current Investment on September 30, 2016
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||
Residential 1-4 family
|
4
|
$
|
1,002
|
$
|
1,002
|
$
|
1
|
|||||||||
Commercial
|
1
|
150
|
150
|
0
|
||||||||||||
Second mortgages
|
1
|
53
|
53
|
0
|
||||||||||||
Equity lines of credit
|
1
|
93
|
93
|
0
|
||||||||||||
Total mortgage loans on real estate
|
7
|
1,298
|
1,298
|
1
|
||||||||||||
Commercial loans
|
1
|
152
|
152
|
0
|
||||||||||||
Other consumer loans
|
2
|
8
|
8
|
0
|
||||||||||||
Commercial loans
|
10
|
$
|
1,458
|
$
|
1,458
|
$
|
1
|
Impaired Loans by Class
|
||||||||||||||||||||||||
As of September 30, 2017
|
For the nine months ended
September 30, 2017
|
|||||||||||||||||||||||
Recorded Investment
|
||||||||||||||||||||||||
Unpaid
Principal
Balance
|
Without
Valuation
Allowance
|
With
Valuation
Allowance
|
Associated
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
2,449
|
$
|
1,980
|
$
|
390
|
$
|
75
|
$
|
2,429
|
$
|
74
|
||||||||||||
Commercial
|
12,430
|
10,758
|
436
|
87
|
13,447
|
435
|
||||||||||||||||||
Construction
|
93
|
-
|
93
|
18
|
269
|
4
|
||||||||||||||||||
Second mortgages
|
359
|
201
|
137
|
15
|
461
|
12
|
||||||||||||||||||
Equity lines of credit
|
344
|
53
|
290
|
61
|
250
|
-
|
||||||||||||||||||
Total mortgage loans on real estate
|
$
|
15,675
|
$
|
12,992
|
$
|
1,346
|
$
|
256
|
$
|
16,856
|
$
|
525
|
||||||||||||
Commercial loans
|
1,017
|
163
|
608
|
183
|
1,513
|
21
|
||||||||||||||||||
Other consumer loans
|
-
|
-
|
-
|
-
|
54
|
-
|
||||||||||||||||||
Total
|
$
|
16,692
|
$
|
13,155
|
$
|
1,954
|
$
|
439
|
$
|
18,423
|
$
|
546
|
Impaired Loans by Class
|
||||||||||||||||||||||||
As of December 31, 2016
|
For the Year Ended
December 31, 2016
|
|||||||||||||||||||||||
Recorded Investment
|
||||||||||||||||||||||||
Unpaid
Principal
Balance
|
Without
Valuation
Allowance
|
With
Valuation
Allowance
|
Associated
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
2,496
|
$
|
1,835
|
$
|
622
|
$
|
75
|
$
|
2,741
|
$
|
119
|
||||||||||||
Commercial
|
16,193
|
11,095
|
4,274
|
415
|
11,885
|
727
|
||||||||||||||||||
Construction
|
619
|
528
|
96
|
22
|
496
|
43
|
||||||||||||||||||
Second mortgages
|
526
|
309
|
141
|
17
|
511
|
25
|
||||||||||||||||||
Equity lines of credit
|
87
|
86
|
-
|
-
|
46
|
3
|
||||||||||||||||||
Total mortgage loans on real estate
|
$
|
19,921
|
$
|
13,853
|
$
|
5,133
|
$
|
529
|
$
|
15,679
|
$
|
917
|
||||||||||||
Commercial loans
|
1,077
|
-
|
989
|
271
|
827
|
74
|
||||||||||||||||||
Other consumer loans
|
81
|
81
|
-
|
-
|
68
|
1
|
||||||||||||||||||
Total
|
$
|
21,079
|
$
|
13,934
|
$
|
6,122
|
$
|
800
|
$
|
16,574
|
$
|
992
|
ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
For the Nine Months Ended
September 30, 2017
|
Commercial
|
Real Estate -
Construction
|
Real Estate -
Mortgage (1)
|
Consumer (2)
|
Other
|
Total
|
||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Balance at the beginning of period
|
$
|
1,493
|
$
|
846
|
$
|
5,267
|
$
|
455
|
$
|
184
|
$
|
8,245
|
||||||||||||
Charge-offs
|
(629
|
)
|
-
|
(1,473
|
)
|
(228
|
)
|
(136
|
)
|
(2,466
|
)
|
|||||||||||||
Recoveries
|
32
|
104
|
40
|
33
|
38
|
247
|
||||||||||||||||||
Provision for loan losses
|
679
|
(332
|
)
|
1,573
|
909
|
96
|
2,925
|
|||||||||||||||||
Ending balance
|
$
|
1,575
|
$
|
618
|
$
|
5,407
|
$
|
1,169
|
$
|
182
|
$
|
8,951
|
||||||||||||
Ending balance individually evaluated for impairment
|
$
|
183
|
$
|
18
|
$
|
238
|
$
|
-
|
$
|
-
|
$
|
439
|
||||||||||||
Ending balance collectively evaluated for impairment
|
1,392
|
600
|
5,169
|
1,169
|
182
|
8,512
|
||||||||||||||||||
Ending balance
|
$
|
1,575
|
$
|
618
|
$
|
5,407
|
$
|
1,169
|
$
|
182
|
$
|
8,951
|
||||||||||||
Loan Balances:
|
||||||||||||||||||||||||
Ending balance individually evaluated for impairment
|
$
|
771
|
$
|
93
|
$
|
14,245
|
$
|
-
|
$
|
-
|
$
|
15,109
|
||||||||||||
Ending balance collectively evaluated for impairment
|
59,232
|
23,622
|
439,715
|
150,427
|
12,891
|
685,887
|
||||||||||||||||||
Ending balance
|
$
|
60,003
|
$
|
23,715
|
$
|
453,960
|
$
|
150,427
|
$
|
12,891
|
$
|
700,996
|
For the Year Ended
December 31, 2016
|
Commercial
|
Real Estate -
Construction
|
Real Estate -
Mortgage (1)
|
Consumer
|
Other
|
Total
|
||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Balance at the beginning of period
|
$
|
633
|
$
|
985
|
$
|
5,628
|
$
|
279
|
$
|
213
|
$
|
7,738
|
||||||||||||
Charge-offs
|
(915
|
)
|
-
|
(504
|
)
|
(204
|
)
|
(147
|
)
|
(1,770
|
)
|
|||||||||||||
Recoveries
|
79
|
3
|
197
|
28
|
40
|
347
|
||||||||||||||||||
Provision for loan losses
|
1,696
|
(142
|
)
|
(54
|
)
|
352
|
78
|
1,930
|
||||||||||||||||
Ending balance
|
$
|
1,493
|
$
|
846
|
$
|
5,267
|
$
|
455
|
$
|
184
|
$
|
8,245
|
||||||||||||
Ending balance individually evaluated for impairment
|
$
|
271
|
$
|
22
|
$
|
507
|
$
|
-
|
$
|
-
|
$
|
800
|
||||||||||||
Ending balance collectively evaluated for impairment
|
1,222
|
824
|
4,760
|
455
|
184
|
7,445
|
||||||||||||||||||
Ending balance
|
$
|
1,493
|
$
|
846
|
$
|
5,267
|
$
|
455
|
$
|
184
|
$
|
8,245
|
||||||||||||
Loan Balances:
|
||||||||||||||||||||||||
Ending balance individually evaluated for impairment
|
$
|
989
|
$
|
624
|
$
|
18,362
|
$
|
81
|
$
|
-
|
$
|
20,056
|
||||||||||||
Ending balance collectively evaluated for impairment
|
53,445
|
22,492
|
430,046
|
58,826
|
19,017
|
583,826
|
||||||||||||||||||
Ending balance
|
$
|
54,434
|
$
|
23,116
|
$
|
448,408
|
$
|
58,907
|
$
|
19,017
|
$
|
603,882
|
Calculated Provision Based on Current Quarter Methodology
|
Calculated Provision Based on Prior Quarter Methodology
|
Difference
|
||||||||||
(in thousands)
|
||||||||||||
Portfolio Segment:
|
||||||||||||
Commercial
|
$
|
679
|
$
|
970
|
$
|
(291
|
)
|
|||||
Real estate - construction
|
(332
|
)
|
(815
|
)
|
483
|
|||||||
Real estate - mortgage
|
1,573
|
1,859
|
(286
|
)
|
||||||||
Consumer loans
|
909
|
1,262
|
(353
|
)
|
||||||||
Other
|
96
|
96
|
-
|
|||||||||
Total
|
$
|
2,925
|
$
|
3,372
|
$
|
(447
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Affected Line Item on
Consolidated Statements of Income
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
||||||||||||||
(in thousands)
|
|||||||||||||||||
Tax credits and other tax benefits
|
|||||||||||||||||
Amortization of operating losses
|
$
|
77
|
$
|
73
|
$
|
255
|
$
|
220
|
ATM and other losses
|
||||||||
Tax benefit of operating losses*
|
26
|
25
|
87
|
75
|
Income tax expense
|
||||||||||||
Tax credits
|
113
|
101
|
346
|
273
|
Income tax expense
|
||||||||||||
Total tax benefits
|
$
|
139
|
$
|
126
|
$
|
433
|
$
|
348
|
|||||||||
* Computed using a 34% taxable rate
|
September 30, 2017
|
December 31, 2016
|
|||||||
(in thousands)
|
||||||||
Federal funds purchased
|
$
|
2,000
|
$
|
-
|
||||
Overnight repurchase agreements
|
21,885
|
18,704
|
||||||
FHLB advances
|
35,000
|
-
|
||||||
Total short-term borrowings
|
$
|
58,885
|
$
|
18,704
|
||||
Maximum month-end outstanding balance
|
$
|
76,319
|
$
|
68,864
|
||||
Average outstanding balance during the period
|
$
|
49,131
|
$
|
39,364
|
||||
Average interest rate (year-to-date)
|
0.66
|
%
|
0.59
|
%
|
||||
Average interest rate at end of period
|
0.86
|
%
|
0.10
|
%
|
Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life
(in years)
|
Aggregate Intrinsic Value
(in thousands)
|
|||||||||||||
Options outstanding, January 1, 2017
|
60,605
|
$
|
20.05
|
|||||||||||||
Granted
|
-
|
-
|
||||||||||||||
Exercised
|
(48,287
|
)
|
20.05
|
|||||||||||||
Canceled or expired
|
(1,250
|
)
|
20.05
|
|||||||||||||
Options outstanding, September 30, 2017
|
11,068
|
$
|
20.05
|
0.04
|
$
|
137
|
||||||||||
Options exercisable, September 30, 2017
|
11,068
|
$
|
20.05
|
0.04
|
$
|
137
|
Shares
|
Weighted Average Grant Date Fair Value
|
|||||||
Nonvested, January 1, 2017
|
-
|
$
|
-
|
|||||
Issued
|
2,245
|
33.60
|
||||||
Vested
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Nonvested, September 30, 2017
|
2,245
|
$
|
33.60
|
Three months ended September 30,
|
2017
|
2016
|
||||||
(in thousands)
|
||||||||
Interest cost
|
$
|
67
|
$
|
70
|
||||
Expected return on plan assets
|
(94
|
)
|
(98
|
)
|
||||
Amortization of net loss
|
123
|
140
|
||||||
Net periodic pension plan cost
|
$
|
96
|
$
|
112
|
Nine months ended September 30,
|
2017
|
2016
|
||||||
(in thousands)
|
||||||||
Interest cost
|
$
|
201
|
$
|
210
|
||||
Expected return on plan assets
|
(282
|
)
|
(294
|
)
|
||||
Amortization of net loss
|
368
|
420
|
||||||
Net periodic pension plan cost
|
$
|
287
|
$
|
336
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Affected Line Item on
Consolidated Statements of Income
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
||||||||||||||
(in thousands)
|
|||||||||||||||||
Available-for-sale securities
|
|||||||||||||||||
Realized gains on sales of securities
|
$
|
2
|
$
|
7
|
$
|
89
|
$
|
522
|
Gain on sale of available-for-sale securities, net
|
||||||||
Tax effect
|
1
|
2
|
30
|
177
|
Income tax expense
|
||||||||||||
$
|
1
|
$
|
5
|
$
|
59
|
$
|
345
|
|
Unrealized Gains (Losses) on Available-for-Sale Securities
|
Defined Benefit Pension Plans
|
Accumulated Other Comprehensive Loss
|
|||||||||
(in thousands)
|
||||||||||||
Nine Months Ended September 30, 2017
|
||||||||||||
Balance at beginning of period
|
$
|
(1,739
|
)
|
$
|
(2,469
|
)
|
$
|
(4,208
|
)
|
|||
Net change for the period
|
1,521
|
-
|
1,521
|
|||||||||
Balance at end of period
|
$
|
(218
|
)
|
$
|
(2,469
|
)
|
$
|
(2,687
|
)
|
|||
Nine Months Ended September 30, 2016
|
||||||||||||
Balance at beginning of period
|
$
|
(576
|
)
|
$
|
(2,586
|
)
|
$
|
(3,162
|
)
|
|||
Net change for the period
|
1,877
|
-
|
1,877
|
|||||||||
Balance at end of period
|
$
|
1,301
|
$
|
(2,586
|
)
|
$
|
(1,285
|
)
|
Nine Months Ended September 30, 2017
|
||||||||||||
Pretax
|
Tax
|
Net-of-Tax
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gains on available-for-sale securities:
|
||||||||||||
Unrealized holding gains arising during the period
|
$
|
2,394
|
$
|
814
|
$
|
1,580
|
||||||
Reclassification adjustment for gains recognized in income
|
(89
|
)
|
(30
|
)
|
(59
|
)
|
||||||
Total change in accumulated other comprehensive loss, net
|
$
|
2,305
|
$
|
784
|
$
|
1,521
|
Nine Months Ended September 30, 2016
|
||||||||||||
Pretax
|
Tax
|
Net-of-Tax
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gains on available-for-sale securities:
|
||||||||||||
Unrealized holding gains arising during the period
|
$
|
3,366
|
$
|
1,144
|
$
|
2,222
|
||||||
Reclassification adjustment for gains recognized in income
|
(522
|
)
|
(177
|
)
|
(345
|
)
|
||||||
Total change in accumulated other comprehensive loss, net
|
$
|
2,844
|
$
|
967
|
$
|
1,877
|
Net Income Available to Common Shareholders (Numerator)
|
Weighted Average Common Shares (Denominator)
|
Per Share Amount
|
||||||||||
(in thousands except per share data)
|
||||||||||||
Three Months Ended September 30, 2017
|
||||||||||||
Net income, basic
|
$
|
757
|
4,994
|
$
|
0.15
|
|||||||
Potentially dilutive common shares - stock options
|
-
|
10
|
-
|
|||||||||
Potentially dilutive common shares - employee stock purchase program
|
-
|
-
|
-
|
|||||||||
Diluted
|
$
|
757
|
5,004
|
$
|
0.15
|
|||||||
Three Months Ended September 30, 2016
|
||||||||||||
Net income, basic
|
$
|
1,329
|
4,959
|
$
|
0.27
|
|||||||
Potentially dilutive common shares - stock options
|
-
|
-
|
-
|
|||||||||
Potentially dilutive common shares - employee stock purchase program
|
-
|
-
|
-
|
|||||||||
Diluted
|
$
|
1,329
|
4,959
|
$
|
0.27
|
|||||||
Nine Months Ended September 30, 2017
|
||||||||||||
Net income, basic
|
$
|
2,860
|
4,985
|
$
|
0.57
|
|||||||
Potentially dilutive common shares - stock options
|
-
|
12
|
-
|
|||||||||
Potentially dilutive common shares - employee stock purchase program
|
-
|
-
|
-
|
|||||||||
Diluted
|
$
|
2,860
|
4,997
|
$
|
0.57
|
|||||||
Nine Months Ended September 30, 2016
|
||||||||||||
Net income, basic
|
$
|
2,902
|
4,959
|
$
|
0.59
|
|||||||
Potentially dilutive common shares - stock options
|
-
|
-
|
-
|
|||||||||
Potentially dilutive common shares - employee stock purchase program
|
-
|
-
|
-
|
|||||||||
Diluted
|
$
|
2,902
|
4,959
|
$
|
0.59
|
Fair Value Measurements at September 30, 2017 Using
|
||||||||||||||||
Balance
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Obligations of U.S. Government agencies
|
$
|
9,493
|
$
|
-
|
$
|
9,493
|
$
|
-
|
||||||||
Obligations of state and political subdivisions
|
68,434
|
-
|
68,434
|
-
|
||||||||||||
Mortgage-backed securities
|
77,316
|
-
|
77,316
|
-
|
||||||||||||
Money market investments
|
1,169
|
-
|
1,169
|
-
|
||||||||||||
Corporate bonds
|
7,510
|
-
|
7,510
|
-
|
||||||||||||
Other marketable equity securities
|
190
|
-
|
190
|
-
|
||||||||||||
Total available-for-sale securities
|
$
|
164,112
|
$
|
-
|
$
|
164,112
|
$
|
-
|
Fair Value Measurements at December 31, 2016 Using
|
||||||||||||||||
Balance
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Treasury securities
|
$
|
20,000
|
$
|
-
|
$
|
20,000
|
$
|
-
|
||||||||
Obligations of U.S. Government agencies
|
9,195
|
-
|
9,195
|
-
|
||||||||||||
Obligations of state and political subdivisions
|
77,987
|
-
|
77,987
|
-
|
||||||||||||
Mortgage-backed securities
|
83,694
|
-
|
83,694
|
-
|
||||||||||||
Money market investments
|
647
|
-
|
647
|
-
|
||||||||||||
Corporate bonds
|
7,678
|
-
|
7,678
|
-
|
||||||||||||
Other marketable equity securities
|
164
|
-
|
164
|
-
|
||||||||||||
Total available-for-sale securities
|
$
|
199,365
|
$
|
-
|
$
|
199,365
|
$
|
-
|
Carrying Value at September 30, 2017 Using
|
||||||||||||||||
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||
(in thousands)
|
||||||||||||||||
Impaired loans
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||
Residential 1-4 family
|
$
|
316
|
$
|
-
|
$
|
-
|
$
|
316
|
||||||||
Commercial
|
349
|
-
|
-
|
349
|
||||||||||||
Construction
|
74
|
-
|
-
|
74
|
||||||||||||
Equity lines of credit
|
229
|
-
|
-
|
229
|
||||||||||||
Total mortgage loans on real estate
|
$
|
968
|
$
|
-
|
$
|
-
|
$
|
968
|
||||||||
Loans
|
||||||||||||||||
Loans held for sale
|
$
|
981
|
$
|
-
|
$
|
981
|
$
|
0
|
Carrying Value at December 31, 2016 Using
|
||||||||||||||||
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||
(in thousands)
|
||||||||||||||||
Impaired loans
|
||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||
Residential 1-4 family
|
$
|
400
|
$
|
-
|
$
|
-
|
$
|
400
|
||||||||
Commercial
|
1,483
|
-
|
-
|
1,483
|
||||||||||||
Construction
|
74
|
-
|
-
|
74
|
||||||||||||
Total mortgage loans on real estate
|
$
|
1,957
|
$
|
-
|
$
|
-
|
$
|
1,957
|
||||||||
Commercial loans
|
718
|
-
|
-
|
718
|
||||||||||||
Total
|
$
|
2,675
|
$
|
-
|
$
|
-
|
$
|
2,675
|
||||||||
Other real estate owned
|
||||||||||||||||
Construction
|
$
|
940
|
$
|
-
|
$
|
-
|
$
|
940
|
Quantitative Information About Level 3 Fair Value Measurements
|
||||||||||
Fair Value at
September 30, 2017
(dollars in thousands)
|
Valuation Techniques
|
Unobservable Input
|
Range (Weighted Average)
|
|||||||
Impaired loans
|
||||||||||
Residential 1-4 family real estate
|
$
|
316
|
Market comparables
|
Selling costs
|
0.00% - 7.25% (3.36
|
%)
|
||||
Liquidation discount
|
0.00% - 4.00% (3.12
|
%)
|
||||||||
Commercial real estate
|
$
|
349
|
Market comparables
|
Selling costs
|
7.25
|
%
|
||||
Liquidation discount
|
4.00
|
%
|
||||||||
Construction
|
$
|
74
|
Market comparables
|
Selling costs
|
7.25
|
%
|
||||
Liquidation discount
|
4.00
|
%
|
||||||||
Equity lines of credit
|
$
|
229
|
Market comparables
|
Selling costs
|
6.07
|
%
|
||||
Liquidation discount
|
4.00
|
%
|
||||||||
Quantitative Information About Level 3 Fair Value Measurements
|
||||||||||
Fair Value at
December 31, 2016
(dollars in thousands)
|
Valuation Techniques
|
Unobservable Input
|
Range (Weighted Average)
|
|||||||
Impaired loans
|
||||||||||
Residential 1-4 family real estate
|
$
|
400
|
Market comparables
|
Selling costs
|
7.25
|
%
|
||||
Liquidation discount
|
4.00
|
%
|
||||||||
Commercial real estate
|
$
|
1,483
|
Market comparables
|
Selling costs
|
7.25
|
%
|
||||
Liquidation discount
|
4.00
|
%
|
||||||||
Construction
|
$
|
74
|
Market comparables
|
Selling costs
|
7.25
|
%
|
||||
Liquidation discount
|
4.00
|
%
|
||||||||
Commercial loans
|
$
|
718
|
Market comparables
|
Selling costs
|
0.00
|
%
|
||||
Liquidation discount
|
0.00% - 38.58% (32.40
|
%)
|
||||||||
Other real estate owned
|
||||||||||
Construction
|
$
|
940
|
Market comparables
|
Selling costs
|
7.25
|
%
|
||||
Liquidation discount
|
0.00
|
%
|
Fair Value Measurements at September 30, 2017 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
15,435
|
$
|
15,435
|
$
|
-
|
$
|
-
|
||||||||
Securities available-for-sale
|
164,112
|
-
|
164,112
|
-
|
||||||||||||
Restricted securities
|
2,890
|
-
|
2,890
|
-
|
||||||||||||
Loans held for sale
|
981
|
-
|
981
|
-
|
||||||||||||
Loans, net of allowances for loan losses
|
692,045
|
-
|
-
|
691,615
|
||||||||||||
Bank-owned life insurance
|
25,802
|
-
|
25,802
|
-
|
||||||||||||
Accrued interest receivable
|
2,987
|
-
|
2,987
|
-
|
||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$
|
782,445
|
$
|
-
|
$
|
782,315
|
$
|
-
|
||||||||
Federal funds purchased
|
2,000
|
-
|
2,000
|
-
|
||||||||||||
Overnight repurchase agreements
|
21,885
|
-
|
21,885
|
-
|
||||||||||||
Federal Home Loan Bank advances
|
45,000
|
-
|
44,959
|
-
|
||||||||||||
Accrued interest payable
|
297
|
-
|
297
|
-
|
Fair Value Measurements at December 31, 2016 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
25,854
|
$
|
25,854
|
$
|
-
|
$
|
-
|
||||||||
Securities available-for-sale
|
199,365
|
-
|
199,365
|
-
|
||||||||||||
Restricted securities
|
970
|
-
|
970
|
-
|
||||||||||||
Loans, net of allowances for loan losses
|
595,637
|
-
|
-
|
594,190
|
||||||||||||
Bank-owned life insurance
|
25,206
|
-
|
25,206
|
-
|
||||||||||||
Accrued interest receivable
|
3,189
|
-
|
3,189
|
-
|
||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$
|
784,502
|
$
|
-
|
$
|
783,450
|
$
|
-
|
||||||||
Overnight repurchase agreements
|
18,704
|
-
|
18,704
|
-
|
||||||||||||
Accrued interest payable
|
228
|
-
|
228
|
-
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||
Bank
|
Trust
|
Parent
|
Eliminations
|
Consolidated
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
8,550
|
$
|
18
|
$
|
898
|
$
|
(898
|
)
|
$
|
8,568
|
|||||||||
Income from fiduciary activities
|
-
|
903
|
-
|
-
|
903
|
|||||||||||||||
Other income
|
2,275
|
198
|
50
|
(65
|
)
|
2,458
|
||||||||||||||
Total operating income
|
10,825
|
1,119
|
948
|
(963
|
)
|
11,929
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
837
|
-
|
-
|
-
|
837
|
|||||||||||||||
Provision for loan losses
|
1,275
|
-
|
-
|
-
|
1,275
|
|||||||||||||||
Salaries and employee benefits
|
4,343
|
657
|
104
|
-
|
5,104
|
|||||||||||||||
Other expenses
|
3,664
|
253
|
160
|
(65
|
)
|
4,012
|
||||||||||||||
Total operating expenses
|
10,119
|
910
|
264
|
(65
|
)
|
11,228
|
||||||||||||||
Income before taxes
|
706
|
209
|
684
|
(898
|
)
|
701
|
||||||||||||||
Income tax expense (benefit)
|
(55
|
)
|
72
|
(73
|
)
|
-
|
(56
|
)
|
||||||||||||
Net income
|
$
|
761
|
$
|
137
|
$
|
757
|
$
|
(898
|
)
|
$
|
757
|
|||||||||
Capital expenditures
|
$
|
60
|
$
|
6
|
$
|
-
|
$
|
-
|
$
|
66
|
||||||||||
Total assets
|
$
|
948,377
|
$
|
6,141
|
$
|
97,645
|
$
|
(97,666
|
)
|
$
|
954,497
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||
Bank
|
Trust
|
Parent
|
Eliminations
|
Consolidated
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
7,420
|
$
|
16
|
$
|
1,572
|
$
|
(1,572
|
)
|
$
|
7,436
|
|||||||||
Income from fiduciary activities
|
-
|
858
|
-
|
-
|
858
|
|||||||||||||||
Other income
|
2,277
|
207
|
50
|
(65
|
)
|
2,469
|
||||||||||||||
Total operating income
|
9,697
|
1,081
|
1,622
|
(1,637
|
)
|
10,763
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
633
|
-
|
-
|
-
|
633
|
|||||||||||||||
Recovery of loan losses
|
(100
|
)
|
-
|
-
|
-
|
(100
|
)
|
|||||||||||||
Salaries and employee benefits
|
4,296
|
665
|
102
|
-
|
5,063
|
|||||||||||||||
Other expenses
|
3,114
|
262
|
315
|
(65
|
)
|
3,626
|
||||||||||||||
Total operating expenses
|
7,943
|
927
|
417
|
(65
|
)
|
9,222
|
||||||||||||||
Income before taxes
|
1,754
|
154
|
1,205
|
(1,572
|
)
|
1,541
|
||||||||||||||
Income tax expense (benefit)
|
284
|
53
|
(125
|
)
|
-
|
212
|
||||||||||||||
Net income
|
$
|
1,470
|
$
|
101
|
$
|
1,330
|
$
|
(1,572
|
)
|
$
|
1,329
|
|||||||||
Capital expenditures
|
$
|
234
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
234
|
||||||||||
Total assets
|
$
|
900,160
|
$
|
5,814
|
$
|
96,467
|
$
|
(96,685
|
)
|
$
|
905,756
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||
Bank
|
Trust
|
Parent
|
Eliminations
|
Consolidated
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
24,300
|
$
|
52
|
$
|
3,251
|
$
|
(3,249
|
)
|
$
|
24,354
|
|||||||||
Income from fiduciary activities
|
-
|
2,820
|
-
|
-
|
2,820
|
|||||||||||||||
Other income
|
7,133
|
708
|
150
|
(196
|
)
|
7,795
|
||||||||||||||
Total operating income
|
31,433
|
3,580
|
3,401
|
(3,445
|
)
|
34,969
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
2,097
|
-
|
-
|
1
|
2,098
|
|||||||||||||||
Provision for loan losses
|
2,925
|
-
|
-
|
-
|
2,925
|
|||||||||||||||
Salaries and employee benefits
|
13,252
|
2,068
|
330
|
-
|
15,650
|
|||||||||||||||
Other expenses
|
10,460
|
766
|
412
|
(196
|
)
|
11,442
|
||||||||||||||
Total operating expenses
|
28,734
|
2,834
|
742
|
(195
|
)
|
32,115
|
||||||||||||||
Income before taxes
|
2,699
|
746
|
2,659
|
(3,250
|
)
|
2,854
|
||||||||||||||
Income tax expense (benefit)
|
(60
|
)
|
255
|
(201
|
)
|
-
|
(6
|
)
|
||||||||||||
Net income
|
$
|
2,759
|
$
|
491
|
$
|
2,860
|
$
|
(3,250
|
)
|
$
|
2,860
|
|||||||||
Capital expenditures
|
$
|
504
|
$
|
6
|
$
|
-
|
$
|
-
|
$
|
510
|
||||||||||
Total assets
|
$
|
948,377
|
$
|
6,141
|
$
|
97,645
|
$
|
(97,666
|
)
|
$
|
954,497
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||
Bank
|
Trust
|
Parent
|
Eliminations
|
Consolidated
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
22,191
|
$
|
45
|
$
|
3,443
|
$
|
(3,443
|
)
|
$
|
22,236
|
|||||||||
Income from fiduciary activities
|
-
|
2,636
|
-
|
-
|
2,636
|
|||||||||||||||
Other income
|
6,954
|
734
|
150
|
(196
|
)
|
7,642
|
||||||||||||||
Total operating income
|
29,145
|
3,415
|
3,593
|
(3,639
|
)
|
32,514
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
1,934
|
-
|
-
|
-
|
1,934
|
|||||||||||||||
Provision for loan losses
|
1,300
|
-
|
-
|
-
|
1,300
|
|||||||||||||||
Salaries and employee benefits
|
12,782
|
2,022
|
303
|
-
|
15,107
|
|||||||||||||||
Other expenses
|
9,913
|
774
|
667
|
(196
|
)
|
11,158
|
||||||||||||||
Total operating expenses
|
25,929
|
2,796
|
970
|
(196
|
)
|
29,499
|
||||||||||||||
Income before taxes
|
3,216
|
619
|
2,623
|
(3,443
|
)
|
3,015
|
||||||||||||||
Income tax expense (benefit)
|
181
|
211
|
(279
|
)
|
-
|
113
|
||||||||||||||
Net income
|
$
|
3,035
|
$
|
408
|
$
|
2,902
|
$
|
(3,443
|
)
|
$
|
2,902
|
|||||||||
Capital expenditures
|
$
|
706
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
710
|
||||||||||
Total assets
|
$
|
900,160
|
$
|
5,814
|
$
|
96,467
|
$
|
(96,685
|
)
|
$
|
905,756
|
AVERAGE BALANCE SHEETS, NET INTEREST INCOME* AND RATES*
|
||||||||||||||||||||||||
For the quarter ended September 30,
|
||||||||||||||||||||||||
2017
|
2016
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Loans held for investment*
|
$
|
693,693
|
$
|
7,661
|
4.42
|
%
|
$
|
590,964
|
$
|
6,678
|
4.52
|
%
|
||||||||||||
Loans held for sale
|
1,090
|
12
|
4.40
|
%
|
0
|
0
|
0.00
|
%
|
||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
101,612
|
487
|
1.92
|
%
|
88,462
|
357
|
1.61
|
%
|
||||||||||||||||
Tax-exempt*
|
64,662
|
584
|
3.61
|
%
|
64,389
|
563
|
3.50
|
%
|
||||||||||||||||
Total investment securities
|
166,274
|
1,071
|
2.58
|
%
|
152,851
|
920
|
2.41
|
%
|
||||||||||||||||
Interest-bearing due from banks
|
1,093
|
4
|
1.46
|
%
|
19,671
|
25
|
0.51
|
%
|
||||||||||||||||
Federal funds sold
|
457
|
1
|
0.88
|
%
|
1,596
|
2
|
0.50
|
%
|
||||||||||||||||
Other investments
|
3,132
|
49
|
6.26
|
%
|
1,935
|
35
|
7.24
|
%
|
||||||||||||||||
Total earning assets
|
865,739
|
$
|
8,798
|
4.06
|
%
|
767,017
|
$
|
7,660
|
3.99
|
%
|
||||||||||||||
Allowance for loan losses
|
(9,128
|
)
|
(8,048
|
)
|
||||||||||||||||||||
Other non-earning assets
|
97,420
|
141,759
|
||||||||||||||||||||||
Total assets
|
$
|
954,031
|
$
|
900,728
|
||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Time and savings deposits:
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$
|
27,705
|
$
|
2
|
0.03
|
%
|
$
|
27,404
|
$
|
2
|
0.03
|
%
|
||||||||||||
Money market deposit accounts
|
231,785
|
90
|
0.16
|
%
|
213,597
|
44
|
0.08
|
%
|
||||||||||||||||
Savings accounts
|
84,220
|
11
|
0.05
|
%
|
78,997
|
10
|
0.05
|
%
|
||||||||||||||||
Time deposits
|
207,491
|
560
|
1.08
|
%
|
212,057
|
538
|
1.01
|
%
|
||||||||||||||||
Total time and savings deposits
|
551,201
|
663
|
0.48
|
%
|
532,055
|
594
|
0.45
|
%
|
||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings
|
27,046
|
13
|
0.19
|
%
|
26,506
|
6
|
0.09
|
%
|
||||||||||||||||
Federal Home Loan Bank advances
|
50,707
|
161
|
1.27
|
%
|
22,717
|
33
|
0.58
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
628,954
|
837
|
0.53
|
%
|
581,278
|
633
|
0.44
|
%
|
||||||||||||||||
Demand deposits
|
222,429
|
217,020
|
||||||||||||||||||||||
Other liabilities
|
5,006
|
6,294
|
||||||||||||||||||||||
Stockholders' equity
|
97,642
|
96,136
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
954,031
|
$
|
900,728
|
||||||||||||||||||||
Net interest margin
|
$
|
7,961
|
3.68
|
%
|
$
|
7,027
|
3.66
|
%
|
||||||||||||||||
*Computed on a fully tax-equivalent basis using a 34% rate; the tax-equivalent adjustment to interest income was $230 thousand and $224 thousand for the three months ended September 30, 2017 and 2016, respectively.
|
||||||||||||||||||||||||
**Annualized
|
AVERAGE BALANCE SHEETS, NET INTEREST INCOME* AND RATES*
|
||||||||||||||||||||||||
For the nine months ended September 30,
|
||||||||||||||||||||||||
2017
|
2016
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Loans held for investment*
|
$
|
656,937
|
$
|
21,607
|
4.39
|
%
|
$
|
580,900
|
$
|
19,717
|
4.53
|
%
|
||||||||||||
Loans held for sale
|
373
|
20
|
7.15
|
%
|
0
|
0
|
0.00
|
%
|
||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
104,059
|
1,474
|
1.89
|
%
|
104,631
|
1,376
|
1.75
|
%
|
||||||||||||||||
Tax-exempt*
|
69,274
|
1,867
|
3.59
|
%
|
65,610
|
1,713
|
3.48
|
%
|
||||||||||||||||
Total investment securities
|
173,333
|
3,341
|
2.57
|
%
|
170,241
|
3,089
|
2.42
|
%
|
||||||||||||||||
Interest-bearing due from banks
|
1,502
|
12
|
1.07
|
%
|
7,867
|
30
|
0.51
|
%
|
||||||||||||||||
Federal funds sold
|
1,096
|
6
|
0.73
|
%
|
1,549
|
4
|
0.34
|
%
|
||||||||||||||||
Other investments
|
2,075
|
98
|
6.30
|
%
|
1,491
|
76
|
6.80
|
%
|
||||||||||||||||
Total earning assets
|
835,316
|
$
|
25,084
|
4.00
|
%
|
762,048
|
$
|
22,916
|
4.01
|
%
|
||||||||||||||
Allowance for loan losses
|
(8,851
|
)
|
(7,893
|
)
|
||||||||||||||||||||
Other non-earning assets
|
102,726
|
120,346
|
||||||||||||||||||||||
Total assets
|
$
|
929,191
|
$
|
874,501
|
||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Time and savings deposits:
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$
|
28,121
|
$
|
7
|
0.03
|
%
|
$
|
17,559
|
$
|
7
|
0.05
|
%
|
||||||||||||
Money market deposit accounts
|
234,446
|
202
|
0.11
|
%
|
219,907
|
129
|
0.08
|
%
|
||||||||||||||||
Savings accounts
|
82,160
|
31
|
0.05
|
%
|
78,033
|
29
|
0.05
|
%
|
||||||||||||||||
Time deposits
|
206,150
|
1,599
|
1.03
|
%
|
209,654
|
1,572
|
1.00
|
%
|
||||||||||||||||
Total time and savings deposits
|
550,877
|
1,839
|
0.45
|
%
|
525,153
|
1,737
|
0.44
|
%
|
||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings
|
24,684
|
26
|
0.14
|
%
|
26,151
|
20
|
0.10
|
%
|
||||||||||||||||
Federal Home Loan Bank advances
|
25,879
|
233
|
1.20
|
%
|
12,372
|
177
|
1.91
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
601,440
|
2,098
|
0.47
|
%
|
563,676
|
1,934
|
0.46
|
%
|
||||||||||||||||
Demand deposits
|
226,103
|
209,147
|
||||||||||||||||||||||
Other liabilities
|
5,477
|
6,507
|
||||||||||||||||||||||
Stockholders' equity
|
96,171
|
95,171
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
929,191
|
$
|
874,501
|
||||||||||||||||||||
Net interest margin
|
$
|
22,986
|
3.67
|
%
|
$
|
20,982
|
3.67
|
%
|
||||||||||||||||
*Computed on a fully tax-equivalent basis using a 34% rate; the tax-equivalent adjustment to interest income was $730 thousand and $680 thousand for the nine months ended September 30, 2017 and 2016, respectively.
|
||||||||||||||||||||||||
**Annualized
|
Loans Secured by 1 - 4 Family First Mortgages,
|
||||||||
1 - 4 Family Open-end and 1 - 4 Family Junior Liens
|
||||||||
As of September 30, 2017
|
||||||||
(dollars in thousands)
|
||||||||
Amount
|
Percent
|
|||||||
Subprime
|
$
|
21,406
|
12.88
|
%
|
||||
Non-subprime
|
144,829
|
87.12
|
%
|
|||||
$
|
166,235
|
100.00
|
%
|
|||||
Total loans
|
$
|
700,996
|
||||||
Percentage of Real Estate-Secured Subprime Loans to Total Loans
|
3.05
|
%
|
NONPERFORMING ASSETS
|
||||||||||||
September 30,
|
December 31,
|
Increase
|
||||||||||
|
2017
|
2016
|
(Decrease)
|
|||||||||
(in thousands)
|
||||||||||||
Nonaccrual loans
|
||||||||||||
Commercial
|
$
|
771
|
$
|
231
|
$
|
540
|
||||||
Real estate-construction
|
518
|
-
|
518
|
|||||||||
Real estate-mortgage (1)
|
8,923
|
6,847
|
2,076
|
|||||||||
Consumer loans
|
-
|
81
|
(81
|
)
|
||||||||
Total nonaccrual loans
|
$
|
10,212
|
$
|
7,159
|
$
|
3,053
|
||||||
Loans past due 90 days or more and accruing interest
|
||||||||||||
Commercial
|
$
|
473
|
$
|
-
|
$
|
473
|
||||||
Real estate-mortgage (1)
|
1,026
|
276
|
750
|
|||||||||
Consumer loans (2)
|
2,482
|
2,603
|
(121
|
)
|
||||||||
Other
|
2
|
5
|
(3
|
)
|
||||||||
Total loans past due 90 days or more and accruing interest
|
$
|
3,983
|
$
|
2,884
|
$
|
1,099
|
||||||
Restructured loans
|
||||||||||||
Commercial
|
$
|
100
|
$
|
144
|
$
|
(44
|
)
|
|||||
Real estate-construction
|
93
|
96
|
(3
|
)
|
||||||||
Real estate-mortgage (1)
|
13,586
|
11,616
|
1,970
|
|||||||||
Total restructured loans
|
$
|
13,779
|
$
|
11,856
|
$
|
1,923
|
||||||
Less nonaccrual restructured loans (included above)
|
8,321
|
2,838
|
5,483
|
|||||||||
Less restructured loans currently in compliance (3)
|
5,458
|
9,018
|
(3,560
|
)
|
||||||||
Net nonperforming, accruing restructured loans
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Nonperforming loans
|
$
|
14,195
|
$
|
10,043
|
$
|
4,152
|
||||||
Other real estate owned
|
||||||||||||
Construction, land development, and other land
|
$
|
-
|
$
|
940
|
$
|
(940
|
)
|
|||||
Former bank building
|
-
|
127
|
(127
|
)
|
||||||||
Total other real estate owned
|
$
|
-
|
$
|
1,067
|
$
|
(1,067
|
)
|
|||||
Total nonperforming assets
|
$
|
14,195
|
$
|
11,110
|
$
|
3,085
|
||||||
(1) The real estate-mortgage segment includes residential 1 – 4 family, commercial real estate, second mortgages and equity lines of credit.
|
||||||||||||
(2) Amounts listed include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The portion of these guaranteed loans that is past due 90 days or more totaled $4.1 million at September 30, 2017 and $4.8 million at December 31, 2016.
|
||||||||||||
(3) As of September 30, 2017 and December 31, 2016, all of the Company's restructured accruing loans were performing in compliance with their modified terms.
|
|
2017
Regulatory
Minimums
|
September 30, 2017
|
||||||
Common Equity Tier 1 Capital
|
4.500
|
%
|
12.06
|
%
|
||||
Tier 1 Capital
|
6.000
|
%
|
12.06
|
%
|
||||
Tier 1 Leverage
|
4.000
|
%
|
10.47
|
%
|
||||
Total Capital
|
8.000
|
%
|
13.16
|
%
|
||||
Capital Conservation Buffer
|
1.250
|
%
|
5.16
|
%
|
Change In Net Interest Income
|
||||||||||||||||
As of September 30,
|
||||||||||||||||
2017
|
2016
|
|||||||||||||||
Change in interest Rates
|
%
|
$ |
|
%
|
|
$ | ||||||||||
+300 basis points
|
(0.29
|
)%
|
(92
|
)
|
1.06
|
%
|
285
|
|||||||||
+200 basis points
|
(0.08
|
)%
|
(26
|
)
|
0.74
|
%
|
198
|
|||||||||
+100 basis points
|
0.10
|
%
|
30
|
0.46
|
%
|
122
|
||||||||||
Unchanged
|
0.00
|
%
|
0
|
0.00
|
%
|
0
|
||||||||||
-50 basis points
|
(0.77
|
)%
|
(242
|
)
|
(0.46
|
)%
|
(122
|
)
|
||||||||
-100 basis points
|
(1.52
|
)%
|
(478
|
)
|
(0.64
|
)%
|
(171
|
)
|
Period
|
Total Number of Shares Purchased (1)
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||||||||
July 1, 2017-July 31, 2017
|
0
|
$
|
0
|
n/a
|
n/a
|
|||||||||||
August 1, 2017-August 31, 2017
|
819
|
30.58
|
n/a
|
n/a
|
||||||||||||
September 1, 2017-September 30, 2017
|
264
|
30.49
|
n/a
|
n/a
|
||||||||||||
Total
|
1,083
|
$
|
30.56
|
Exhibit No.
|
Description
|
|
2.1
|
||
3.1
|
||
3.1.1
|
||
3.2
|
||
10.19
|
||
31.1
|
||
31.2
|
||
32.1
|
||
101
|
The following materials from Old Point Financial Corporation's quarterly report on Form 10-Q for the quarter ended September 30, 2017, formatted in XBRL (Extensible Business Reporting Language), filed herewith: (i) Consolidated Balance Sheets (unaudited for September 30, 2017), (ii) Consolidated Statements of Income (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Changes in Stockholders' Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Consolidated Financial Statements (unaudited)
|
OLD POINT FINANCIAL CORPORATION
|
|||
November 14, 2017
|
/s/Robert F. Shuford, Sr.
|
||
Robert F. Shuford, Sr.
|
|||
Chairman, President & Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
November 14, 2017
|
/s/Jeffrey W. Farrar
|
||
Jeffrey W. Farrar
|
|||
Chief Financial Officer & Senior Vice President/Finance
|
|||
(Principal Financial & Accounting Officer)
|
Date: November 14, 2017
|
/s/Robert F. Shuford, Sr.
|
Robert F. Shuford, Sr.
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Chairman, President & Chief Executive Officer
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Date: November 14, 2017
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/s/Jeffrey W. Farrar
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Chief Financial Officer & Senior Vice President/Finance
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.
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November 14, 2017
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/s/Robert F. Shuford, Sr.
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Robert F. Shuford, Sr.
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Chairman, President & Chief Executive Officer
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||
November 14, 2017
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/s/Jeffrey W. Farrar
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Jeffrey W. Farrar
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||
Chief Financial Officer & Senior Vice President/Finance
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Document and Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2017 |
Oct. 31, 2017 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | OLD POINT FINANCIAL CORP | |
Entity Central Index Key | 0000740971 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,018,678 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Assets | ||
Allowance for loan losses | $ 8,951 | $ 8,245 |
Foreclosed assets, valuation allowance | $ 0 | $ 1,026 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 5,009,630 | 4,961,258 |
Common stock, shares outstanding (in shares) | 5,009,630 | 4,961,258 |
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract] | ||||
Net income | $ 757 | $ 1,329 | $ 2,860 | $ 2,902 |
Other comprehensive income (loss) | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 57 | (299) | 1,521 | 1,877 |
Other comprehensive income, net of tax (total) | 1,521 | 1,877 | ||
Comprehensive income (loss) | $ 814 | $ 1,030 | $ 4,381 | $ 4,779 |
Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
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Consolidated Statements of Changes in Stockholders' Equity (unaudited) [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.33 | $ 0.30 |
General |
9 Months Ended |
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Sep. 30, 2017 | |
General [Abstract] | |
General | Note 1. General The accompanying unaudited consolidated financial statements of Old Point Financial Corporation (NASDAQ: OPOF) (the Company) and its subsidiaries have been prepared in accordance with U.S. GAAP for interim financial information. All significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications of a normal and recurring nature considered necessary to present fairly the financial position at September 30, 2017 and December 31, 2016, the statements of income and comprehensive income for the three and nine months ended September 30, 2017 and 2016, and the statements of changes in stockholders' equity and cash flows for the nine months ended September 30, 2017 and 2016. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2016 annual report on Form 10-K. Certain previously reported amounts have been reclassified to conform to current period presentation, none of which were material in nature. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). Also included are the accounts of Old Point Mortgage, LLC (OPM) which became a wholly-owned subsidiary of the Bank in the second quarter of 2017. All significant intercompany balances and transactions have been eliminated in consolidation. NATURE OF OPERATIONS Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries, the Bank and Trust. The Bank serves individual and commercial customers, the majority of which are in Hampton Roads, Virginia. As of September 30, 2017, the Bank had 18 branch offices. The Bank offers a full range of deposit and loan products to its retail and commercial customers, including mortgage loan products offered through its subsidiary, OPM. Trust offers a full range of services for individuals and businesses. Products and services include retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax services and investment management services. SUBSEQUENT EVENTS In accordance with ASC 855-10, "Subsequent Events," the Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) nonrecognized, or those that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. On October 27, 2017, the Company and the Bank entered into a definitive Agreement and Plan of Reorganization with Citizens National Bank (OTC Pink: CNBV) (Citizens National) pursuant to which the Company will acquire Citizens National in a stock and cash transaction for total consideration valued at approximately $7.9 million (the Pending Acquisition), based on a volume-weighted average price of $31.48 for Old Point common stock for the three trading days ended October 27, 2017. Upon the closing of the Pending Acquisition, Citizens National will merge into the Bank with the Bank as the surviving entity. The Pending Acquisition has been unanimously approved by the boards of directors of the Company, the Bank and Citizens National. The Pending Acquisition is expected to be completed in first quarter of 2018, subject to the approval of Citizens National shareholders as well as customary regulatory approvals and other closing conditions. |
Securities |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Note 2. Securities Amortized costs and fair values of securities available-for-sale as of the dates indicated are as follows:
The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest-rate related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial position and access to capital of the issuer, including the current and future impact of any specific events; and (d) for fixed maturity securities, the Company's intent to sell a security or whether it is more-likely-than-not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity, and for equity securities, the Company's ability and intent to hold the security for a period of time that allows for the recovery in value. The Company has not recorded impairment charges through income on securities for the three or nine months ended September 30, 2017 or the year ended December 31, 2016. The following table summarizes realized gains and losses on the sale of investment securities during the periods indicated:
The following table shows the number of securities with unrealized losses, and the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of September 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:
Certain investments within the Company's portfolio had unrealized losses for more than twelve months at September 30, 2017 and December 31, 2016, as shown in the tables above. The unrealized losses were caused by increases in market interest rates. Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at September 30, 2017 or December 31, 2016. Restricted Securities The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB) and the Federal Reserve Bank (FRB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB and FRB stock is carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered. |
Loans and the Allowance for Loan Losses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Loans and the Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and the Allowance for Loan Losses | Note 3. Loans and the Allowance for Loan Losses The following is a summary of the balances in each class of the Company's loan portfolio as of the dates indicated:
(1) Net deferred loan fees totaled $874 thousand and $522 thousand at September 30, 2017 and December 31, 2016, respectively. Overdrawn deposit accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts totaled $728 thousand and $536 thousand at September 30, 2017 and December 31, 2016, respectively. CREDIT QUALITY INFORMATION The Company uses internally-assigned risk grades to estimate the capability of borrowers to repay the contractual obligations of their loan agreements as scheduled or at all. The Company's internal risk grade system is based on experiences with similarly graded loans. Credit risk grades are updated at least quarterly as additional information becomes available, at which time management analyzes the resulting scores to track loan performance. The Company's internally assigned risk grades are as follows:
The following table presents credit quality exposures by internally assigned risk ratings as of the dates indicated:
AGE ANALYSIS OF PAST DUE LOANS BY CLASS All classes of loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Interest and fees continue to accrue on past due loans until the date the loan is placed in nonaccrual status, if applicable. The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection. Loans in nonaccrual status that are also past due are included in the aging categories in the table below.
(1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. In the table above, the other consumer loans category includes student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $4.1 million at September 30, 2017.
(1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. In the table above, the other consumer loans category includes student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $4.8 million at December 31, 2016. Although the portion of the student loan portfolio that is 90 days or more past due would normally be considered impaired, the Company does not include these loans in its impairment analysis. Because the federal government has provided guarantees of repayment of these student loans in an amount ranging from 97% to 98% of the total principal and interest of the loans, management does not expect significant increases in past due student loans to have a material effect on the Company. NONACCRUAL LOANS The Company generally places commercial loans (including construction loans and commercial loans secured and not secured by real estate) in nonaccrual status when the full and timely collection of interest or principal becomes uncertain, part of the principal balance has been charged off and no restructuring has occurred or the loan reaches 90 days past due, unless the credit is well-secured and in the process of collection. Under regulatory rules, consumer loans, which are loans to individuals for household, family and other personal expenditures, and consumer loans secured by real estate (including residential 1 - 4 family mortgages, second mortgages, and equity lines of credit) are not required to be placed in nonaccrual status. Although consumer loans and consumer loans secured by real estate are not required to be placed in nonaccrual status, the Company may elect to place these loans in nonaccrual status, if necessary to avoid a material overstatement of interest income. Generally, consumer loans secured by real estate are placed in nonaccrual status only when payments are 120 days past due. Generally, consumer loans not secured by real estate are placed in nonaccrual status only when part of the principal has been charged off. If a charge-off has not occurred sooner for other reasons, a consumer loan not secured by real estate will generally be placed in nonaccrual status when payments are 120 days past due. These loans are charged off or written down to the net realizable value of the collateral when deemed uncollectible, when classified as a "loss," when repayment is unreasonably protracted, when bankruptcy has been initiated, or when the loan is 120 days or more past due unless the credit is well-secured and in the process of collection. When management places a loan in nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and the loan is accounted for by the cash basis or cost recovery method, until it qualifies for return to accrual status or is charged off. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months. The following table presents loans in nonaccrual status by class of loan as of the dates indicated:
The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented:
TROUBLED DEBT RESTRUCTURINGS The Company's loan portfolio includes certain loans that have been modified in a troubled debt restructuring (TDR), where economic concessions have been granted to borrowers who are experiencing financial difficulties. These concessions typically result from the Company's loss mitigation activities and could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The Company defines a TDR as nonperforming if the TDR is in nonaccrual status or is 90 days or more past due and still accruing interest at the report date. When the Company modifies a loan, management evaluates any possible impairment as stated in the impaired loan section below. The following tables present TDRs during the periods indicated, by class of loan. There were no troubled debt restructurings in the three months ended September 30, 2017.
Of the loans restructured in the first nine months of 2017 one was given a below-market rate for debt with similar risk characteristics and two were granted terms that the Company would not otherwise extend to borrowers with similar risk characteristics. Two of the loans restructured in the first nine months ended September 30, 2016 were given below-market rates for debt with similar risk characteristics, and eight of the loans, which were part of a single borrowing relationship, were given terms not otherwise offered to borrowers with similar risk characteristics. At September 30, 2017 and December 31, 2016, the Company had no outstanding commitments to disburse additional funds on any TDR. At December 31, 2016, the Company had $10 thousand in loans secured by residential 1 - 4 family real estate that were in the process of foreclosure. There were loans totaling $142 thousand secured by residential 1 - 4 family real estate in the process of foreclosure at September 30, 2017. In the three and nine months ended September 30, 2017 and 2016, there were no defaulting TDRs where the default occurred within twelve months of restructuring. The Company considers a TDR in default when any of the following occurs: the loan, as restructured, becomes 90 days or more past due; the loan is moved to nonaccrual status following the restructure; the loan is restructured again under terms that would qualify it as a TDR if it were not already so classified; or any portion of the loan is charged off. All TDRs are factored into the determination of the allowance for loan losses and included in the impaired loan analysis, as discussed below. IMPAIRED LOANS A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans and loans modified in a TDR. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole or remaining source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs, when foreclosure is probable, instead of the discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a specific allocation in the allowance or a charge-off to the allowance. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is in nonaccrual status, all payments are applied to principal under the cost-recovery method. For financial statement purposes, the recorded investment in the loan is the actual principal balance reduced by payments that would otherwise have been applied to interest. When reporting information on these loans to the applicable customers, the unpaid principal balance is reported as if payments were applied to principal and interest under the original terms of the loan agreements. Therefore, the unpaid principal balance reported to the customer would be higher than the recorded investment in the loan for financial statement purposes. When the ultimate collectability of the total principal of the impaired loan is not in doubt and the loan is in nonaccrual status, contractual interest is credited to interest income when received under the cash-basis method. The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances.
MONITORING OF LOANS AND EFFECT OF MONITORING FOR THE ALLOWANCE FOR LOAN LOSSES Loan officers are responsible for continual portfolio analysis and prompt identification and reporting of problem loans, which includes assigning a risk grade to each applicable loan at its origination and revising such grade as the situation dictates. Loan officers maintain frequent contact with borrowers, which should enable the loan officer to identify potential problems before other personnel. In addition, meetings with loan officers and upper management are held to discuss problem loans and review risk grades. Nonetheless, in order to avoid over-reliance upon loan officers for problem loan identification, the Company's loan review system provides for review of loans and risk grades by individuals who are independent of the loan approval process. Risk grades and historical loss rates (determined by migration analysis) by risk grades are used as a component of the calculation of the allowance for loan losses. ALLOWANCE FOR LOAN LOSSES Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and probable losses inherent in the loan portfolio. The Company segments the loan portfolio into categories as defined by Schedule RC-C of the Federal Financial Institutions Examination Council Consolidated Reports of Condition and Income Form 041 (Call Report). Loans are segmented into the following pools: commercial, real estate-construction, real estate-mortgage, consumer and other loans. The Company also sub-segments the real estate-mortgage segment into four classes: residential 1-4 family, commercial real estate, second mortgages and equity lines of credit. The Company uses an internally developed risk evaluation model in the estimation of the credit risk process. The model and assumptions used to determine the allowance are independently validated and reviewed to ensure that the theoretical foundation, assumptions, data integrity, computational processes and reporting practices are appropriate and properly documented. Each portfolio segment has risk characteristics as follows:
Each segment of the portfolio is pooled by risk grade or by days past due. Consumer loans not secured by real estate and made to individuals for household, family and other personal expenditures are segmented into pools based on days past due, while all other loans, including loans to consumers that are secured by real estate, are segmented by risk grades. A historical loss percentage is then calculated by migration analysis and applied to each pool. The migration analysis applied to all pools is able to track the risk grading and historical performance of individual loans throughout a number of periods set by management, which provides management with information regarding trends (or migrations) in a particular loan segment. At December 31, 2016 management used four twelve-quarter migration periods; at September 30, 2017 management used eight twelve-quarter migration periods. See "Changes in Allowance Methodology" section later in this note. Management also provides an allocated component of the allowance for loans that are specifically identified that may be impaired, and are individually analyzed for impairment. An allocated allowance is established when the present value of expected future cash flows from the impaired loan (or the collateral value or observable market price of the impaired loan) is lower than the carrying value of that loan. Based on credit risk assessments and management's analysis of qualitative factors, additional loss factors are applied to loan balances. These additional qualitative factors include: economic conditions, trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal and regulatory environment. ALLOWANCE FOR LOAN LOSSES BY SEGMENT The total allowance reflects management's estimate of losses inherent in the loan portfolio at the balance sheet date. The Company considers the allowance for loan losses of $9.0 million adequate to cover probable loan losses inherent in the loan portfolio at September 30, 2017. The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(1) The real estate-mortgage segment includes residential 1 – 4 family, commercial real estate, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. CHANGES IN ALLOWANCE METHODOLOGY Historical loss rates calculated by migration analysis are determined by the performance of a loan over a period of time (the migration period). This migration period can be lengthened or shortened based on management's assessment of the most appropriate length of time over which to analyze losses in the loan portfolio. The Company can also calculate multiple migration periods, allowing management to assess the migration of loans based on more than one starting point. In the third quarter of 2017, management changed its migration approach for calculating the allowance to better match the length of the current credit cycle. The number of migration periods was changed from four to eight. Each migration period remains at twelve quarters, the length of the migration period used by the Company in prior periods. This change had the result of reducing the calculated provision from $3.4 million to $2.9 million, a difference of $447 thousand. The prior quarters' methodology was resulting in distortion between required allocations by segment and the underlying credit metrics for those segments. By increasing the number of migration periods from four to eight, the migration is better able to capture the performance of the portfolio segment over a greater portion of the credit cycle. The following table represents the effect on the loan loss provision as a result of this change in methodology. It compares the methodology results actually used for the three and nine months ended September 30, 2017 to that used in prior periods.
The allowance for loan losses was 1.28% of total loans at September 30, 2017, compared to 1.37% at December 31, 2016. While the overall coverage of the allowance for loan losses decreased from December 31, 2016 at the same time that both nonaccrual loans and total past dues increased, the increases noted in nonaccrual and past due levels are not considered reflective of general trends in the portfolio. With respect to nonaccruals, the increase is a result of two loan relationships totaling $4.0 million that were placed on nonaccrual status in the first quarter of 2017 based on declines in the borrowers' performance and changes in the status of the loans' collateral. Both relationships were identified as impaired at December 31, 2016. Management has charged off portions of these relationships and believes that the collateral on these loans will be sufficient to cover remaining balances for which it has no specific allocation. With respect to past dues, approximately $1 million of the increase is associated with matured loans that have since renewed, and another $500 thousand is guaranteed by the SBA. Lastly, both impaired loans and classified assets reflect decreased balances from December 31, 2016, respectively. |
Low-Income Housing Tax Credits |
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Low-Income Housing Tax Credits | Note 4. Low-Income Housing Tax Credits The Company was invested in 4 separate housing equity funds at both September 30, 2017 and December 31, 2016. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia; develop and implement strategies to maintain projects as low-income housing; deliver Federal Low Income Housing Credits to investors; allocate tax losses and other possible tax benefits to investors; and preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were $3.6 million and $3.9 million at September 30, 2017 and December 31, 2016, respectively. The expected terms of these investments and the related tax benefits run through 2033. Total projected tax credits to be received for 2017 are $461 thousand, which is based on the most recent quarterly estimates received from the funds. Additional capital calls expected for the funds totaled $1.1 million at September 30, 2017 and $2.5 million at December 31, 2016, respectively, and are recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheet.
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Borrowings |
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Borrowings [Text Block] | Note 5. Borrowings Short-Term Borrowings The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within one to four days), and advances from the FHLB. The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At September 30, 2017 and December 31, 2016 the remaining credit available from these lines totaled $55.0 million. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $239.0 million and $270.0 as of September 30, 2017 and December 31, 2016, respectively. The following table presents total short-term borrowings as of the dates indicated:
Long-Term Borrowings The Company had one fixed rate hybrid FHLB advance for $10.0 million classified as a long-term borrowing at September 30, 2017. The advance is scheduled to mature on February 28, 2019. There were no long-term borrowings at December 31, 2016. |
Share-Based Compensation |
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Share-Based Compensation | Note 6. Share-Based Compensation The Company has adopted an employee stock purchase plan and offers share-based compensation through its equity compensation plans. Share-based compensation arrangements include stock options, restricted and unrestricted stock awards, restricted stock units, performance-based awards and stock appreciation rights. Accounting standards require all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period. The Company accounts for forfeitures during the vesting period as they occur. The Company's 1998 Stock Option Plan, pursuant to which stock options could be granted to key employees and non-employee directors, expired on March 9, 2008. Stock options that were outstanding on March 9, 2008 remained outstanding in accordance with their terms, but no new awards could be granted under the plan after March 9, 2008. Options to purchase 11,068 shares of common stock were outstanding under the Company's 1998 Stock Option Plan at September 30, 2017. The exercise price of each option equals the market price of the Company's common stock on the date of the grant and each option's maximum term is ten years. Stock option activity for the nine months ended September 30, 2017 is summarized below:
The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current fair value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2017. This amount changes based on changes in the fair value of the Company's common stock. During the nine months ended September 30, 2017, the Company received $968 thousand from the exercise of stock options. No options were exercised during the nine months ended September 30, 2016. No options were granted during the nine months ended September 30, 2017 or the nine months ended September 30, 2016. As of September 30, 2017, all outstanding stock options were fully vested and there was no unrecognized stock-based compensation expense. The Incentive Stock Plan permits the issuance of up to 300,000 shares of common stock for awards to key employees and non-employee directors of the Company and its subsidiaries in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and performance units. The Company did not award any equity compensation under the Incentive Stock Plan during 2016. Restricted stock activity for the nine months ended September 30, 2017 is summarized below:
The weighted average period over which nonvested awards are expected to be recognized is 2.00 years. The fair value of restricted stock granted during the nine months ended September 30, 2017 was $75 thousand. The remaining unrecognized compensation expense for the shares granted during the nine months ended September 30, 2017 totaled $67 thousand as of September 30, 2017. Stock-based compensation expense was $9 thousand for the three and nine months ended September 30, 2017. There was no stock compensation expense in 2016. Under the Company's Employee Stock Purchase Plan (ESPP), substantially all employees of the Company and its subsidiaries can authorize a specific payroll deduction from their base compensation for the periodic purchase of the Company's common stock. Shares of stock are issued quarterly at a discount to the market price of the Company's stock on the day of purchase, which can range from 0-15% and was set at 5% for 2016 and for the first nine months of 2017. Total stock purchases under the ESPP amounted to 999 shares during 2016. 2,523 shares were purchased under the ESPP during the nine months ended September 30, 2017. At September 30, 2017, the Company had 246,478 remaining shares reserved for issuance under this plan. |
Pension Plan |
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Pension Plan | Note 7. Pension Plan The Company provides pension benefits for eligible participants through a non-contributory defined benefit pension plan. The plan was frozen effective September 30, 2006; therefore, no additional participants will be added to the plan. The components of net periodic pension plan cost are as follows for the periods indicated:
On November 23, 2016, the Company's board of directors voted to terminate the pension plan, effective January 31, 2017. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the plan by the end of the fourth quarter of 2017. Management estimates that the settlement of the plan will result in a nonrecurring pretax termination charge of $3.0 to $3.5 million, which will be recorded in the fourth quarter of 2017. |
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Stockholders' Equity and Earnings Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Earnings Per Common Share | Note 8. Stockholders' Equity and Earnings per Share STOCKHOLDERS' EQUITY – Accumulated Other Comprehensive Loss The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:
The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated:
The following table presents the change in each component of accumulated other comprehensive loss on a pre-tax and after-tax basis for the periods indicated.
EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to outstanding stock options. The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2017 and 2016:
The Company had no antidilutive shares in the third quarter or first nine months of 2017. The Company did not include an average of 69 thousand potential common shares attributable to outstanding stock options in the diluted earnings per share calculation for both the three and nine months ended September 30, 2016. Non-vested restricted common shares, which carry all rights and privileges of a common share with respect to the stock, including the right to vote, were included in the basic and diluted per common share calculations. |
Recent Accounting Pronouncements |
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Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS During February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. As the Company owns the majority of its buildings, management does not anticipate that the ASU will have a material impact. During June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments in this ASU, among other things, require the measurement of 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 now 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. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements and has formed a committee to oversee the adoption of the new standard. The ALLL model currently in use by the Company already provides it with the ability to archive prior period information and contains loan balance and charge-off information beginning with September 30, 2011. The committee has reviewed the data included in each monthly archive file and has added fields to enhance its data analysis capabilities under the new standard. During August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. During January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business—inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a "set") that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this ASU provide a screen to determine when a set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The ASU provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. The Company's pending merger with Citizens National Bank will be accounted for under the acquisition accounting guidance. During January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. During March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments in this ASU require an employer that offers defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715 to report the service cost component of net periodic benefit cost in the same line item(s) as other compensation costs arising from services rendered during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component. If the other components of net periodic benefit cost are not presented on a separate line or lines, the line item(s) used in the income statement must be disclosed. In addition, only the service cost component will be eligible for capitalization as part of an asset, when applicable. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2017-07 to have a material impact on its consolidated financial statements. During March 2017, the FASB issued ASU No. 2017‐08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310‐20), Premium Amortization on Purchased Callable Debt Securities." The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that ASU 2017‐08 will have on its consolidated financial statements. During May 2017, the FASB issued ASU 2017‐09, "Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting." The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The amendments are effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The Company is currently assessing the impact that ASU 2017‐08 will have on its consolidated financial statements. During August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements. |
Fair Value Measurements |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 9. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the "Fair Value Measurements and Disclosures" topics of FASB ASU 2010-06 and FASB ASU 2011-04, the fair value of a financial instrument is the price that would be received in the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value can be a reasonable point within a range that is most representative of fair value under current market conditions. In estimating the fair value of assets and liabilities, the Company relies mainly on two models. The first model, used by the Company's bond accounting service provider, determines the fair value of securities. Securities are priced based on an evaluation of observable market data, including benchmark yield curves, reported trades, broker/dealer quotes, and issuer spreads. Pricing is also impacted by credit information about the issuer, perceived market movements, and current news events impacting the individual sectors. For assets other than securities and for all liabilities, fair value is determined using the Company's asset/liability modeling software. The software uses current yields, anticipated yield changes, and estimated duration of assets and liabilities to calculate fair value. In accordance with ASC 820, "Fair Value Measurements and Disclosures," the Company groups its financial assets and financial liabilities generally measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
An instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS Debt and equity securities with readily determinable fair values that are classified as "available-for-sale" are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). 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. Currently, all of the Company's available-for-sale securities are considered to be Level 2 securities. The following table presents the balances of certain assets measured at fair value on a recurring basis as of the dates indicated:
ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS Under certain circumstances, adjustments are made to the fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. Impaired loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due from the borrower in accordance with the contractual terms of the loan. The measurement of fair value and loss associated with impaired loans can be based on the observable market price of the loan, the fair value of the collateral securing the loan, or the present value of the loan's expected future cash flows. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable, with the vast majority of the collateral in real estate. The value of real estate collateral is determined utilizing an income, market, or cost valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company. In the case of loans with lower balances, the Company may obtain a real estate evaluation instead of an appraisal. Evaluations utilize many of the same techniques as appraisals, and are typically performed by independent appraisers. Once received, appraisals and evaluations are reviewed by trained staff independent of the lending function to verify consistency and reasonability. Appraisals and evaluations are based on significant unobservable inputs, including but not limited to: adjustments made to comparable properties, judgments about the condition of the subject property, the availability and suitability of comparable properties, capitalization rates, projected income of the subject or comparable properties, vacancy rates, projected depreciation rates, and the state of the local and regional economy. The Company may also elect to make additional reductions in the collateral value based on management's best judgment, which represents another source of unobservable inputs. Because of the subjective nature of collateral valuation, impaired loans are considered Level 3. Impaired loans may be secured by collateral other than real estate. 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). If a loan is not collateral-dependent, its impairment may be measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate. Because the loan is discounted at its effective rate of interest, rather than at a market rate, the loan is not considered to be held at fair value and is not included in the tables below. Collateral-dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as part of the provision for loan losses on the Consolidated Statements of Income. Other Real Estate Owned (OREO) Loans are transferred to OREO when the collateral securing them is foreclosed on. The measurement of gain or loss associated with OREOs is based on the fair value of the collateral compared to the unpaid loan balance and anticipated costs to sell the property. If there is a contract for the sale of a property, and management reasonably believes the transaction will be consummated in accordance with the terms of the contract, fair value is based on the sale price in that contract (Level 1). If management has recent information about the sale of identical properties, such as when selling multiple condominium units on the same property, the remaining units would be valued based on the observed market data (Level 2). Lacking either a contract or such recent data, management would obtain an appraisal or evaluation of the value of the collateral as discussed above under Impaired Loans (Level 3). After the asset has been booked, a new appraisal or evaluation is obtained when management has reason to believe the fair value of the property may have changed and no later than two years after the last appraisal or evaluation was received. Any fair value adjustments to OREOs below the original book value are recorded in the period incurred and expensed against current earnings. Loans Held For Sale Loans held for sale are carried at fair value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). Gains and losses on the sale of loans are recorded within the mortgage segment and are reported on a separate line item on the Company's Consolidated Statements of Income. The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan's expected future cash flows, discounted at the loan's effective interest rate rather than at a market rate. These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below.
The following table displays quantitative information about Level 3 Fair Value Measurements as of the dates indicated:
ASC 825, "Financial Instruments," requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company's assets. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: CASH AND CASH EQUIVALENTS The carrying amounts of cash and short-term instruments, including interest-bearing due from banks, approximate fair values. RESTRICTED SECURITIES The restricted security category is comprised of FHLB and FRB stock. These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and they lack a market. When the FHLB or FRB repurchases stock, they repurchase at the stock's book value. Therefore, the carrying amounts of restricted securities approximate fair value. LOANS RECEIVABLE The fair value of a loan is based on its interest rate in relation to its risk profile, in comparison to what an investor could earn on a different investment with a similar risk profile. Variations in risk tolerance between lenders, and thus in risk pricing, can result in the same loan being priced differently at different institutions. A bank's experience with the type of lending (such as commercial real estate) can also impact its assessment of the riskiness of a loan. A comprehensive picture of competitors' rates in relation to borrower risk profiles is not available. Instead, the Company uses a model which estimates market value based on the loan's interest rate (regardless of its risk level) and rates for debt of similar maturities where market data is available. Since the rate and risk profile are the primary factors in determining the fair value of a loan, both of which are unobservable in the market, the Company classifies loans as Level 3 in the fair value hierarchy. Fair values for non-performing loans are estimated as described above. BANK-OWNED LIFE INSURANCE Bank-owned life insurance represents insurance policies on certain current and former officers of the Company. The cash value of the policies is estimated using information provided by the insurance carrier. The insurance carrier uses actuarial data to estimate the value of each policy, based on the age and health of the insured relative to other individuals about whom the carrier has information. Health information can be broken down into quantitative, observable inputs, such as smoking habits, blood pressure, and weight, which, along with the insured's age, can be compared to observable data the insurance carrier has available. The carrier can then estimate the cash value of each policy. Since the cash value represents the amount of cash the Company would receive when the policies are paid, the cash value closely approximates the fair value of the policies. Accordingly, bank-owned life insurance is classified as Level 2. DEPOSITS The fair value of demand deposits, savings and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Information about the rates paid by other institutions for deposits of similar terms is readily available, and rates are mainly influenced by the term of the deposit itself. As a result, fair value calculations are based on observable inputs, and are classified as Level 2. OVERNIGHT REPURCHASE AGREEMENTS The carrying amounts of federal funds purchased, overnight repurchase agreements, and other short-term borrowings maturing within 90 days approximate their fair values. Since the contractual terms of these borrowings provide all information necessary to calculate the amounts that will be due at maturity, these liabilities are classified as Level 2. FEDERAL HOME LOAN BANK ADVANCES The fair values of the Company's long-term borrowings are estimated based on the current cost to repay the debt in full, discounted to current values and including any prepayment penalties that may apply. As the contractual terms of the borrowing provide all the necessary inputs for this calculation, long-term borrowings are classified as Level 2. ACCRUED INTEREST The calculation of accrued interest is based on readily observable information, such as the rate and term of the underlying asset or liability. Since these amounts are expected to be realized quickly (generally within 30 to 90 days), the carrying value approximates fair value and is classified as Level 2. COMMITMENTS TO EXTEND CREDIT AND IRREVOCABLE LETTERS OF CREDIT The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit-worthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At September 30, 2017 and December 31, 2016, the fair value of fees charged for loan commitments and irrevocable letters of credit was immaterial. The estimated fair values, and related carrying or notional amounts, of the Company's financial instruments as of the dates indicated are as follows:
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Note 10. Segment Reporting The Company operates in a decentralized fashion in three principal business segments: The Old Point National Bank of Phoebus (the Bank), Old Point Trust & Financial Services, N. A. (Trust), and the Company as a separate segment (for purposes of this Note, the Parent). Revenues from the Bank's operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust's operating revenues consist principally of income from fiduciary activities. The Parent's revenues are mainly fees and dividends received from the Bank and Trust companies. The Company has no other segments. The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies. Information about reportable segments, and reconciliation of such information to the consolidated financial statements as of and for the three and nine months ended September 30, 2017 and 2016 follows:
The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company's 2016 annual report on Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses. Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals. |
Commitments and Contingencies |
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Sep. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies There have been no material changes in the Company's commitments and contingencies from those disclosed in the Company's 2016 annual report on Form 10-K. |
General (Policies) |
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Sep. 30, 2017 | |
General [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). Also included are the accounts of Old Point Mortgage, LLC (OPM) which became a wholly-owned subsidiary of the Bank in the second quarter of 2017. All significant intercompany balances and transactions have been eliminated in consolidation. |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries, the Bank and Trust. The Bank serves individual and commercial customers, the majority of which are in Hampton Roads, Virginia. As of September 30, 2017, the Bank had 18 branch offices. The Bank offers a full range of deposit and loan products to its retail and commercial customers, including mortgage loan products offered through its subsidiary, OPM. Trust offers a full range of services for individuals and businesses. Products and services include retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax services and investment management services. |
Recent Accounting Pronouncements (Policies) |
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Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS During February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. As the Company owns the majority of its buildings, management does not anticipate that the ASU will have a material impact. During June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments in this ASU, among other things, require the measurement of 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 now 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. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements and has formed a committee to oversee the adoption of the new standard. The ALLL model currently in use by the Company already provides it with the ability to archive prior period information and contains loan balance and charge-off information beginning with September 30, 2011. The committee has reviewed the data included in each monthly archive file and has added fields to enhance its data analysis capabilities under the new standard. During August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. During January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business—inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a "set") that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this ASU provide a screen to determine when a set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The ASU provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. The Company's pending merger with Citizens National Bank will be accounted for under the acquisition accounting guidance. During January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. During March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments in this ASU require an employer that offers defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715 to report the service cost component of net periodic benefit cost in the same line item(s) as other compensation costs arising from services rendered during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component. If the other components of net periodic benefit cost are not presented on a separate line or lines, the line item(s) used in the income statement must be disclosed. In addition, only the service cost component will be eligible for capitalization as part of an asset, when applicable. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2017-07 to have a material impact on its consolidated financial statements. During March 2017, the FASB issued ASU No. 2017‐08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310‐20), Premium Amortization on Purchased Callable Debt Securities." The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that ASU 2017‐08 will have on its consolidated financial statements. During May 2017, the FASB issued ASU 2017‐09, "Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting." The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The amendments are effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The Company is currently assessing the impact that ASU 2017‐08 will have on its consolidated financial statements. During August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements. |
Securities (Tables) |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Costs and Fair Value of Securities Available-for-Sale | Amortized costs and fair values of securities available-for-sale as of the dates indicated are as follows:
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Realized Gains and (Losses) on Sale of Investments | The following table summarizes realized gains and losses on the sale of investment securities during the periods indicated:
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Available-for-Sale Securities and Held-to-Maturity Securities, Continuous Unrealized Loss Position | The following table shows the number of securities with unrealized losses, and the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of September 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:
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Loans and the Allowance for Loan Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Loans and the Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Loans By Segment Type | The following is a summary of the balances in each class of the Company's loan portfolio as of the dates indicated:
(1) Net deferred loan fees totaled $874 thousand and $522 thousand at September 30, 2017 and December 31, 2016, respectively. Overdrawn deposit accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts totaled $728 thousand and $536 thousand at September 30, 2017 and December 31, 2016, respectively. |
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Credit Quality Information | The following table presents credit quality exposures by internally assigned risk ratings as of the dates indicated:
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Past Due Loans | All classes of loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Interest and fees continue to accrue on past due loans until the date the loan is placed in nonaccrual status, if applicable. The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection. Loans in nonaccrual status that are also past due are included in the aging categories in the table below.
(1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. In the table above, the other consumer loans category includes student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $4.1 million at September 30, 2017.
(1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. In the table above, the other consumer loans category includes student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $4.8 million at December 31, 2016. Although the portion of the student loan portfolio that is 90 days or more past due would normally be considered impaired, the Company does not include these loans in its impairment analysis. Because the federal government has provided guarantees of repayment of these student loans in an amount ranging from 97% to 98% of the total principal and interest of the loans, management does not expect significant increases in past due student loans to have a material effect on the Company. |
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Nonaccrual Loans | The following table presents loans in nonaccrual status by class of loan as of the dates indicated:
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Interest Income Would Have Been Recorded Under Original Loan Terms | The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented:
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Troubled Debt Restructurings by Class | The following tables present TDRs during the periods indicated, by class of loan. There were no troubled debt restructurings in the three months ended September 30, 2017.
In the three and nine months ended September 30, 2017 and 2016, there were no defaulting TDRs where the default occurred within twelve months of restructuring. The Company considers a TDR in default when any of the following occurs: the loan, as restructured, becomes 90 days or more past due; the loan is moved to nonaccrual status following the restructure; the loan is restructured again under terms that would qualify it as a TDR if it were not already so classified; or any portion of the loan is charged off. |
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Impaired Loans by Class | The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances.
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Allowance for Loan Losses by Segment | The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(1) The real estate-mortgage segment includes residential 1 – 4 family, commercial real estate, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. |
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Financing Receivable, Allowance for Credit Losses, Policy or Methodology Change [Policy Text Block] | Historical loss rates calculated by migration analysis are determined by the performance of a loan over a period of time (the migration period). This migration period can be lengthened or shortened based on management's assessment of the most appropriate length of time over which to analyze losses in the loan portfolio. The Company can also calculate multiple migration periods, allowing management to assess the migration of loans based on more than one starting point. In the third quarter of 2017, management changed its migration approach for calculating the allowance to better match the length of the current credit cycle. The number of migration periods was changed from four to eight. Each migration period remains at twelve quarters, the length of the migration period used by the Company in prior periods. This change had the result of reducing the calculated provision from $3.4 million to $2.9 million, a difference of $447 thousand. The prior quarters' methodology was resulting in distortion between required allocations by segment and the underlying credit metrics for those segments. By increasing the number of migration periods from four to eight, the migration is better able to capture the performance of the portfolio segment over a greater portion of the credit cycle. The following table represents the effect on the loan loss provision as a result of this change in methodology. It compares the methodology results actually used for the three and nine months ended September 30, 2017 to that used in prior periods.
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Borrowings (Tables) |
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Schedule of Short-term Debt [Table Text Block] | The following table presents total short-term borrowings as of the dates indicated:
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Share-Based Compensation (Tables) |
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Share-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Plan Activity | Stock option activity for the nine months ended September 30, 2017 is summarized below:
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Pension Plan (Tables) |
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Pension Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Plan Cost | The Company provides pension benefits for eligible participants through a non-contributory defined benefit pension plan. The plan was frozen effective September 30, 2006; therefore, no additional participants will be added to the plan. The components of net periodic pension plan cost are as follows for the periods indicated:
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Stockholders' Equity and Earnings per Common Share (Tables) |
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Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss), by Category | The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:
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Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated:
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Component of Other Comprehensive Income on a Pre-Tax and After-Tax | The following table presents the change in each component of accumulated other comprehensive loss on a pre-tax and after-tax basis for the periods indicated.
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to outstanding stock options. The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2017 and 2016:
The Company had no antidilutive shares in the third quarter or first nine months of 2017. The Company did not include an average of 69 thousand potential common shares attributable to outstanding stock options in the diluted earnings per share calculation for both the three and nine months ended September 30, 2016. Non-vested restricted common shares, which carry all rights and privileges of a common share with respect to the stock, including the right to vote, were included in the basic and diluted per common share calculations. |
Fair Value Measurements (Tables) |
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Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | The following table presents the balances of certain assets measured at fair value on a recurring basis as of the dates indicated:
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Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan's expected future cash flows, discounted at the loan's effective interest rate rather than at a market rate. These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below.
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Fair Value Inputs, Assets, Quantitative Information | The following table displays quantitative information about Level 3 Fair Value Measurements as of the dates indicated:
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Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company's financial instruments as of the dates indicated are as follows:
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Segment Reporting (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Assets and Revenues from Segment to Consolidated | Information about reportable segments, and reconciliation of such information to the consolidated financial statements as of and for the three and nine months ended September 30, 2017 and 2016 follows:
The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company's 2016 annual report on Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses. Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals. |
General (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017
USD ($)
Branch
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Branch
|
Sep. 30, 2016
USD ($)
|
|
General [Abstract] | ||||
Number of branch offices | Branch | 18 | 18 | ||
Business Combinations [Abstract] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ | $ 0 | $ 0 | $ 550 | $ 0 |
Loans and the Allowance for Loan Losses, Troubled Debt Restructuring (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
Modification
|
Sep. 30, 2016
USD ($)
Modification
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
Modification
|
Sep. 30, 2017
USD ($)
Contract
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
Modification
|
Sep. 30, 2016
USD ($)
Contract
|
Dec. 31, 2016
USD ($)
|
|
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | 0 | 9 | 3 | 2 | 10 | 8 | |||
Recorded Investment Prior to Modification | $ 0 | $ 1,306 | $ 3,805 | $ 1,458 | |||||
Recorded Investment After Modification | 0 | 1,306 | 3,805 | 1,458 | |||||
Current Investment on June 30, 2016 | 3,794 | 3,794 | $ 3,794 | $ 3,794 | |||||
Unfunded Commitments on TDRs | 0 | $ 0 | 0 | 0 | 0 | 0 | $ 0 | $ 0 | |
Mortgage Loans in Foreclosure Process, Amount | $ 142 | 142 | $ 142 | $ 142 | $ 10 | ||||
Interest Rate Below Market Reduction [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Contract | 1 | 2 | |||||||
Total Mortgage Loans on Real Estate [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 0 | 7 | 3 | 7 | |||||
Recorded Investment Prior to Modification | $ 0 | $ 1,298 | 3,805 | 1,298 | |||||
Recorded Investment After Modification | 0 | $ 1,298 | 3,805 | 1,298 | |||||
Current Investment on June 30, 2016 | 3,794 | 3,794 | $ 3,794 | $ 3,794 | |||||
Residential 1-4 Family [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 4 | 1 | 4 | ||||||
Recorded Investment Prior to Modification | $ 1,002 | 142 | 1,002 | ||||||
Recorded Investment After Modification | $ 1,002 | 142 | 1,002 | ||||||
Current Investment on June 30, 2016 | $ 141 | 141 | $ 141 | 141 | |||||
Commercial [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 0 | 1 | 2 | 1 | |||||
Recorded Investment Prior to Modification | $ 0 | $ 150 | 3,663 | 150 | |||||
Recorded Investment After Modification | 0 | $ 150 | 3,663 | 150 | |||||
Current Investment on June 30, 2016 | $ 3,653 | $ 3,653 | $ 3,653 | $ 3,653 | |||||
Second Mortgage [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 1 | 1 | |||||||
Recorded Investment Prior to Modification | $ 53 | 53 | |||||||
Recorded Investment After Modification | $ 53 | 53 | |||||||
Equity Line of Credit [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 1 | 1 | |||||||
Recorded Investment Prior to Modification | $ 93 | 93 | |||||||
Recorded Investment After Modification | $ 93 | 93 | |||||||
Commercial Portfolio Segment [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 1 | ||||||||
Recorded Investment Prior to Modification | 152 | ||||||||
Recorded Investment After Modification | 152 | ||||||||
Consumer Portfolio Segment [Member] | |||||||||
Financing Receivable, Modifications [Line Items] | |||||||||
Number of Modifications | Modification | 2 | 2 | |||||||
Recorded Investment Prior to Modification | $ 8 | 8 | |||||||
Recorded Investment After Modification | $ 8 | $ 8 |
Loans and the Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 16,692 | $ 21,079 |
Recorded Investment, Without Valuation Allowance | 13,155 | 13,934 |
Recorded Investment, With Valuation Allowance | 1,954 | 6,122 |
Associated Allowance | 439 | 800 |
Average Recorded Investment | 18,423 | 16,574 |
Interest Income Recognized | 546 | 992 |
Total Mortgage Loans on Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 15,675 | 19,921 |
Recorded Investment, Without Valuation Allowance | 12,992 | 13,853 |
Recorded Investment, With Valuation Allowance | 1,346 | 5,133 |
Associated Allowance | 256 | 529 |
Average Recorded Investment | 16,856 | 15,679 |
Interest Income Recognized | 525 | 917 |
Residential 1-4 Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,449 | 2,496 |
Recorded Investment, Without Valuation Allowance | 1,980 | 1,835 |
Recorded Investment, With Valuation Allowance | 390 | 622 |
Associated Allowance | 75 | 75 |
Average Recorded Investment | 2,429 | 2,741 |
Interest Income Recognized | 74 | 119 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 12,430 | 16,193 |
Recorded Investment, Without Valuation Allowance | 10,758 | 11,095 |
Recorded Investment, With Valuation Allowance | 436 | 4,274 |
Associated Allowance | 87 | 415 |
Average Recorded Investment | 13,447 | 11,885 |
Interest Income Recognized | 435 | 727 |
Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 93 | 619 |
Recorded Investment, Without Valuation Allowance | 0 | 528 |
Recorded Investment, With Valuation Allowance | 93 | 96 |
Associated Allowance | 18 | 22 |
Average Recorded Investment | 269 | 496 |
Interest Income Recognized | 4 | 43 |
Second Mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 359 | 526 |
Recorded Investment, Without Valuation Allowance | 201 | 309 |
Recorded Investment, With Valuation Allowance | 137 | 141 |
Associated Allowance | 15 | 17 |
Average Recorded Investment | 461 | 511 |
Interest Income Recognized | 12 | 25 |
Equity Line of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 344 | 87 |
Recorded Investment, Without Valuation Allowance | 53 | 86 |
Recorded Investment, With Valuation Allowance | 290 | 0 |
Associated Allowance | 61 | 0 |
Average Recorded Investment | 250 | 46 |
Interest Income Recognized | 0 | 3 |
Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 1,017 | 1,077 |
Recorded Investment, Without Valuation Allowance | 163 | 0 |
Recorded Investment, With Valuation Allowance | 608 | 989 |
Associated Allowance | 183 | 271 |
Average Recorded Investment | 1,513 | 827 |
Interest Income Recognized | 21 | 74 |
Consumer Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 81 |
Recorded Investment, Without Valuation Allowance | 0 | 81 |
Recorded Investment, With Valuation Allowance | 0 | 0 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 54 | 68 |
Interest Income Recognized | $ 0 | $ 1 |
Loans and the Allowance for Loan Losses, Activity In Period (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Sep. 30, 2017 |
Dec. 31, 2016 |
||||
Allowance for loan losses by segment [Roll Forward] | ||||||||||
Beginning Balance | $ 8,245 | $ 7,738 | $ 7,738 | |||||||
Charges-offs | (2,466) | (1,770) | ||||||||
Recoveries | 247 | 347 | ||||||||
Provision for loan losses | $ 1,275 | $ (100) | 2,925 | 1,300 | 1,930 | |||||
Ending balance | 8,951 | 8,951 | 8,245 | |||||||
Ending balances individually evaluated for impairment | $ 439 | $ 800 | ||||||||
Ending balances collectively evaluated for impairment | 8,512 | 7,445 | ||||||||
Ending balance | 8,951 | 8,245 | 7,738 | 8,245 | 8,951 | 8,245 | ||||
Loan Balances [Abstract] | ||||||||||
Ending balance individually evaluated for impairment | 15,109 | 20,056 | ||||||||
Ending balance collectively evaluated for impairment | 685,887 | 583,826 | ||||||||
Ending balance | 700,996 | 603,882 | ||||||||
Commercial [Member] | ||||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||||
Beginning Balance | 1,493 | 633 | 633 | |||||||
Charges-offs | (629) | (915) | ||||||||
Recoveries | 32 | 79 | ||||||||
Provision for loan losses | 679 | 1,696 | ||||||||
Ending balance | 1,575 | 1,575 | 1,493 | |||||||
Ending balances individually evaluated for impairment | 183 | 271 | ||||||||
Ending balances collectively evaluated for impairment | 1,392 | 1,222 | ||||||||
Ending balance | 1,575 | 1,493 | 633 | 633 | 1,575 | 1,493 | ||||
Loan Balances [Abstract] | ||||||||||
Ending balance individually evaluated for impairment | 771 | 989 | ||||||||
Ending balance collectively evaluated for impairment | 59,232 | 53,445 | ||||||||
Ending balance | 60,003 | 54,434 | ||||||||
Real Estate - Construction [Member] | ||||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||||
Beginning Balance | 846 | 985 | 985 | |||||||
Charges-offs | 0 | 0 | ||||||||
Recoveries | 104 | 3 | ||||||||
Provision for loan losses | (332) | (142) | ||||||||
Ending balance | 618 | 618 | 846 | |||||||
Ending balances individually evaluated for impairment | 18 | 22 | ||||||||
Ending balances collectively evaluated for impairment | 600 | 824 | ||||||||
Ending balance | 618 | 846 | 985 | 846 | 618 | 846 | ||||
Loan Balances [Abstract] | ||||||||||
Ending balance individually evaluated for impairment | 93 | 624 | ||||||||
Ending balance collectively evaluated for impairment | 23,622 | 22,492 | ||||||||
Ending balance | 23,715 | 23,116 | ||||||||
Real Estate - Mortgage [Member] | ||||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||||
Beginning Balance | [1] | 5,267 | 5,628 | 5,628 | ||||||
Charges-offs | [1] | (1,473) | (504) | |||||||
Recoveries | [1] | 40 | 197 | |||||||
Provision for loan losses | [1] | 1,573 | (54) | |||||||
Ending balance | [1] | 5,407 | 5,407 | 5,267 | ||||||
Ending balances individually evaluated for impairment | [1] | 238 | 507 | |||||||
Ending balances collectively evaluated for impairment | [1] | 5,169 | 4,760 | |||||||
Ending balance | [1] | 5,407 | 5,267 | 5,628 | 5,267 | 5,407 | 5,267 | |||
Loan Balances [Abstract] | ||||||||||
Ending balance individually evaluated for impairment | [1] | 14,245 | 18,362 | |||||||
Ending balance collectively evaluated for impairment | [1] | 439,715 | 430,046 | |||||||
Ending balance | [1] | 453,960 | 448,408 | |||||||
Consumer [Member] | ||||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||||
Beginning Balance | 455 | 279 | 279 | |||||||
Charges-offs | (228) | (204) | ||||||||
Recoveries | 33 | 28 | ||||||||
Provision for loan losses | 909 | 352 | ||||||||
Ending balance | 1,169 | 1,169 | 455 | |||||||
Ending balances individually evaluated for impairment | 0 | 0 | ||||||||
Ending balances collectively evaluated for impairment | 1,169 | 455 | ||||||||
Ending balance | 1,169 | 455 | 279 | 455 | 1,169 | 455 | ||||
Loan Balances [Abstract] | ||||||||||
Ending balance individually evaluated for impairment | 0 | 81 | ||||||||
Ending balance collectively evaluated for impairment | 150,427 | 58,826 | ||||||||
Ending balance | 150,427 | 58,907 | ||||||||
Other [Member] | ||||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||||
Beginning Balance | 184 | 213 | 213 | |||||||
Charges-offs | (136) | (147) | ||||||||
Recoveries | 38 | 40 | ||||||||
Provision for loan losses | 96 | 78 | ||||||||
Ending balance | 182 | 182 | 184 | |||||||
Ending balances individually evaluated for impairment | 0 | 0 | ||||||||
Ending balances collectively evaluated for impairment | 182 | 184 | ||||||||
Ending balance | $ 182 | $ 184 | $ 213 | $ 184 | 182 | 184 | ||||
Loan Balances [Abstract] | ||||||||||
Ending balance individually evaluated for impairment | 0 | 0 | ||||||||
Ending balance collectively evaluated for impairment | 12,891 | 19,017 | ||||||||
Ending balance | $ 12,891 | $ 19,017 | ||||||||
|
Low-Income Housing Tax Credits (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
Fund
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Fund
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
Fund
|
|
Low-Income Housing Tax Credits [Abstract] | ||||||
Affordable Housing Program, Number of Investments | Fund | 4 | 4 | 4 | |||
Amortization Method Qualified Affordable Housing Project Investments | $ 3,630 | $ 3,630 | $ 3,885 | |||
Qualified Affordable Housing Project Investments, Commitment | 1,137 | 1,137 | $ 2,542 | |||
Affordable Housing Investment Commitments, Term Expiration Year | 2033 | |||||
Expected Affordable Housing Tax Credits, Amount | $ 461 | |||||
Affordable Housing Tax Credits and Other Tax Benefits, Amount | $ 139 | $ 126 | $ 433 | $ 348 |
Borrowings (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Borrowings [Abstract] | ||
Federal Funds Purchased | $ 2,000 | $ 0 |
Securities Sold under Agreements to Repurchase | 21,885 | 18,704 |
Federal Home Loan Bank advances | 35,000 | 0 |
Short-term Debt | 58,885 | 18,704 |
Long-term Debt and Capital Lease Obligations, Current, Total | 10,000 | 0 |
Maximum month-end outstanding balance | 76,319 | 68,864 |
Average outstanding balance during the period | $ 49,131 | $ 39,364 |
Average interest rate (year-to-date) | 0.66% | 0.59% |
Average interest rate at end of period | 0.86% | 0.10% |
Available federal funds lines | $ 55,000 | $ 55,000 |
Available credit with FHLB | $ 238,990 | $ 270,048 |
Share-Based Compensation (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Share-Based Compensation [Abstract] | ||
Options maximum term period | 10 years | 10 years |
Shares [Roll Forward] | ||
Options outstanding, beginning of period (in shares) | 60,605 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (48,287) | |
Canceled or expired (in shares) | (1,250) | |
Options outstanding, end of period (in shares) | 11,068 | |
Options exercisable, end of period (in shares) | 11,068 | |
Weighted Average Exercise Price [Roll Forward] | ||
Options outstanding, beginning of period (in dollars per share) | $ 20.05 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 20.05 | |
Canceled or expired (in dollars per share) | 20.05 | |
Options outstanding, end of period (in dollars per share) | 20.05 | |
Options exercisable, end of period (in dollars per share) | $ 20.05 | |
Weighted Average Remaining Contractual Life (in years) [Abstract] | ||
Options outstanding, end of period | 14 days | |
Options exercisable, end of period | 14 days | |
Aggregate Intrinsic Value [Abstract] | ||
Options outstanding, end of period | $ 137,000 | |
Options exercisable, end of period | 137,000 | |
Proceeds from exercise of stock options | 968,000 | $ 0 |
Unrecognized compensation expense related to nonvested options | $ 0 | $ 0 |
Common Stock, Capital Shares Reserved for Future Issuance | 246,478 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 5.00% | 0.00% |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 2,523 | 0 |
Pension Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Components of net periodic pension cost [Abstract] | ||||
Interest cost | $ 67 | $ 70 | $ 201 | $ 210 |
Expected return on plan assets | (94) | (98) | (282) | (294) |
Amortization of actuarial loss | 123 | 140 | 368 | 420 |
Net Periodic Pension Plan Cost | $ 96 | $ 112 | $ 287 | $ 336 |
Stockholders' Equity and Earnings per Common Share (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Available-for-sale securities [Abstract] | ||||
Gain on sale of sale of available-for-sale securities, net | $ 2 | $ 7 | $ 89 | $ 522 |
Tax benefit | 1 | 2 | 30 | 177 |
Total | 1 | 5 | 59 | 345 |
Other comprehensive income, pretax [Abstract] | ||||
Unrealized holding gains (losses) arising during the period | 2,394 | 3,366 | ||
Reclassification adjustment for gains (loss) recognized in income, pretax | (2) | (7) | (89) | (522) |
Net unrealized losses on securities, pretax | 2,305 | 2,844 | ||
Total change in accumulated other comprehensive income or (loss), pretax | 2,305 | 2,844 | ||
Other Comprehensive Income Tax Effect [Abstract] | ||||
Unrealized holding losses arising during the period | 814 | 1,144 | ||
Reclassification adjustment for gains (losses) recognized in income, tax effect | (1) | (2) | (30) | (177) |
Net unrealized losses on securities, tax effect | 784 | 967 | ||
Other Comprehensive Income (Loss), Tax, Total | 784 | 967 | ||
Other Comprehensive Income, Net of Tax [Abstract] | ||||
Unrealized holding losses arising during the period | 1,580 | 2,222 | ||
Reclassification adjustment for gains recognized in income, net of tax | (1) | (5) | (59) | (345) |
Net unrealized losses on securities, net of tax | $ 57 | $ (299) | 1,521 | 1,877 |
Other comprehensive income, net of tax (total) | $ 1,521 | $ 1,877 |
Stockholders' Equity and Earnings per Common Share, OCI by Component, Anti-Dilutive Securities (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Unrealized Gains (Losses) on Securities [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ (1,739) | $ (576) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 57 | $ (299) | 1,521 | 1,877 |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (218) | 1,301 | (218) | 1,301 |
Defined Benefit Pension Plans [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (2,469) | (2,586) | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (2,469) | (2,586) | (2,469) | (2,586) |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,208) | (3,162) | ||
Other Comprehensive Income (Loss), Net of Tax | 1,521 | 1,877 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,687) | (1,285) | (2,687) | (1,285) |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | 757 | 1,329 | 2,860 | 2,902 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 757 | $ 1,329 | $ 2,860 | $ 2,902 |
Weighted Average Number of Shares Issued, Basic | 4,993,805 | 4,959,009 | 4,985,135 | 4,959,009 |
Weighted Average Shares Outstanding | 5,003,785 | 4,959,009 | 4,997,231 | 4,959,009 |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 10,000 | 0 | 12,000 | 0 |
Earnings Per Share, Basic | $ 0.15 | $ 0.27 | $ 0.57 | $ 0.59 |
Earnings Per Share, Diluted | $ 0.15 | $ 0.27 | $ 0.57 | $ 0.59 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 67,000 | 0 | 69,000 |
Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | $ 164,112 | $ 199,365 |
US Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 20,000 | |
US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 9,493 | 9,195 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 68,434 | 77,987 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 77,316 | 83,694 |
Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 1,169 | 647 |
Corporate bond and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 7,510 | 7,678 |
Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 164,112 | 199,365 |
Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 20,000 | |
Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 9,493 | 9,195 |
Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 68,434 | 77,987 |
Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 77,316 | 83,694 |
Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 1,169 | 647 |
Recurring [Member] | Corporate bond and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 7,510 | 7,678 |
Recurring [Member] | Other Marketable Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 190 | 164 |
Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans Held-for-sale, Fair Value Disclosure | 981 | |
Loans, net of allowances for loan losses | 968 | 2,675 |
Other assets, fair value disclosure | 940 | |
Nonrecurring [Member] | Total Mortgage Loans on real estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 968 | 1,957 |
Nonrecurring [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 316 | |
Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 349 | 1,483 |
Nonrecurring [Member] | Construction Loans [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 74 | 74 |
Nonrecurring [Member] | Equity Line of Credit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 229 | |
Nonrecurring [Member] | Commercial Loan [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 718 |
Nonrecurring [Member] | Foreclosed Assets, Construction [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Other assets, fair value disclosure | 940 | |
Nonrecurring [Member] | Foreclosed Assets, Residential 1 to 4 Family [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 400 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | |
Loans, net of allowances for loan losses | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Corporate bond and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Other Marketable Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | |
Loans, net of allowances for loan losses | 0 | 0 |
Other assets, fair value disclosure | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Total Mortgage Loans on real estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Construction Loans [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Equity Line of Credit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Commercial Loan [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Foreclosed Assets, Construction [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Other assets, fair value disclosure | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Foreclosed Assets, Residential 1 to 4 Family [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 164,112 | 199,365 |
Loans Held-for-sale, Fair Value Disclosure | 981 | |
Loans, net of allowances for loan losses | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 164,112 | 199,365 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 20,000 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 9,493 | 9,195 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 68,434 | 77,987 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 77,316 | 83,694 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 1,169 | 647 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Corporate bond and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 7,510 | 7,678 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Other Marketable Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 190 | 164 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans Held-for-sale, Fair Value Disclosure | 981 | |
Loans, net of allowances for loan losses | 0 | 0 |
Other assets, fair value disclosure | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Total Mortgage Loans on real estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Construction Loans [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Equity Line of Credit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Commercial Loan [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Foreclosed Assets, Construction [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Other assets, fair value disclosure | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Foreclosed Assets, Residential 1 to 4 Family [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | |
Loans, net of allowances for loan losses | 691,615 | 594,190 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Corporate bond and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Other Marketable Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | |
Loans, net of allowances for loan losses | 968 | 2,675 |
Other assets, fair value disclosure | 940 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Total Mortgage Loans on real estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 968 | 1,957 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 316 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 349 | 1,483 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Construction Loans [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 74 | 74 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Equity Line of Credit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | 229 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Commercial Loan [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | $ 0 | 718 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Foreclosed Assets, Construction [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Other assets, fair value disclosure | 940 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Foreclosed Assets, Residential 1 to 4 Family [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans, net of allowances for loan losses | $ 400 |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Carrying Value [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | $ 15,435 | $ 15,435 | $ 25,854 |
Securities available-for-sale, at fair value | 164,112 | 164,112 | 199,365 |
Restricted securities | 2,890 | 2,890 | 970 |
Loans, net of allowances for loan losses | 692,045 | 692,045 | 595,637 |
Bank owned life insurance | 25,802 | 25,802 | 25,206 |
Accrued interest receivable | 2,987 | 2,987 | 3,189 |
Loans Held-for-sale, Fair Value Disclosure | 981 | 981 | |
Liabilities [Abstract] | |||
Deposits | 782,445 | 782,445 | 784,502 |
Federal Funds Purchased, Fair Value Disclosure | 2,000 | 2,000 | |
Overnight repurchase agreements | 21,885 | 21,885 | 18,704 |
Federal Home Loan Bank advances | 45,000 | 45,000 | 0 |
Accrued interest payable | 297 | 297 | 228 |
Securities available-for-sale, at fair value | 164,112 | 164,112 | 199,365 |
Residential Mortgage [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | 316 | $ 316 | $ 400 |
Residential Mortgage [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 7.25% | |
Liquidation Discount | 0.00% | 4.00% | |
Residential Mortgage [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Residential Mortgage [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 3.36% | 7.25% | |
Liquidation Discount | 3.12% | 4.00% | |
Commercial Real Estate [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | 349 | $ 349 | $ 1,483 |
Commercial Real Estate [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Commercial Real Estate [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Commercial Real Estate [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Construction Loans [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | 74 | $ 74 | $ 74 |
Construction Loans [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Construction Loans [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Construction Loans [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | 7.25% | |
Liquidation Discount | 4.00% | 4.00% | |
Equity Line of Credit [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | 229 | $ 229 | |
Equity Line of Credit [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | ||
Liquidation Discount | 4.00% | ||
Equity Line of Credit [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 7.25% | ||
Liquidation Discount | 4.00% | ||
Equity Line of Credit [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 6.07% | ||
Liquidation Discount | 4.00% | ||
Commercial Loan [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 718 | ||
Commercial Loan [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | ||
Liquidation Discount | 0.00% | ||
Commercial Loan [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | ||
Liquidation Discount | 38.58% | ||
Commercial Loan [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | ||
Liquidation Discount | 32.40% | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 15,435 | $ 15,435 | $ 25,854 |
Securities available-for-sale, at fair value | 0 | 0 | 0 |
Restricted securities | 0 | 0 | 0 |
Loans, net of allowances for loan losses | 0 | 0 | 0 |
Bank owned life insurance | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits | 0 | 0 | 0 |
Federal Funds Purchased, Fair Value Disclosure | 0 | 0 | |
Overnight repurchase agreements | 0 | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 | 0 |
Accrued interest payable | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Securities available-for-sale, at fair value | 164,112 | 164,112 | 199,365 |
Restricted securities | 2,890 | 2,890 | 970 |
Loans, net of allowances for loan losses | 0 | 0 | 0 |
Bank owned life insurance | 25,802 | 25,802 | 25,206 |
Accrued interest receivable | 2,987 | 2,987 | 3,189 |
Loans Held-for-sale, Fair Value Disclosure | 981 | 981 | |
Liabilities [Abstract] | |||
Deposits | 782,315 | 782,315 | 783,450 |
Federal Funds Purchased, Fair Value Disclosure | 2,000 | 2,000 | |
Overnight repurchase agreements | 21,885 | 21,885 | 18,704 |
Federal Home Loan Bank advances | 44,959 | 44,959 | 0 |
Accrued interest payable | 297 | 297 | 228 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Securities available-for-sale, at fair value | 0 | 0 | 0 |
Restricted securities | 0 | 0 | 0 |
Loans, net of allowances for loan losses | 691,615 | 691,615 | 594,190 |
Bank owned life insurance | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits | 0 | 0 | 0 |
Federal Funds Purchased, Fair Value Disclosure | 0 | 0 | |
Overnight repurchase agreements | 0 | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 | 0 |
Accrued interest payable | 0 | 0 | 0 |
Foreclosed Assets, Residential 1-4 Family [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 0 | 0 | $ 0 |
Foreclosed Assets, Residential 1-4 Family [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 0.00% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Residential 1-4 Family [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 0.00% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Residential 1-4 Family [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 0.00% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Commercial [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 0 | ||
Foreclosed Assets, Commercial [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 0.00% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Commercial [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 0.00% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Commercial [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 0.00% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Construction [Member] | Market Comparables [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 0 | $ 0 | $ 940 |
Foreclosed Assets, Construction [Member] | Market Comparables [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 7.25% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Construction [Member] | Market Comparables [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 7.25% | |
Liquidation Discount | 0.00% | 0.00% | |
Foreclosed Assets, Construction [Member] | Market Comparables [Member] | Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Selling costs | 0.00% | 7.25% | |
Liquidation Discount | 0.00% | 0.00% |
Segment Reporting (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Segment
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Segment Reporting [Abstract] | |||||
Number of operating segments | Segment | 3 | ||||
Description of operating segments | The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies. | ||||
Revenues | |||||
Interest and dividend income | $ 8,568 | $ 7,436 | $ 24,354 | $ 22,236 | |
Income from fiduciary activities | 903 | 858 | 2,820 | 2,636 | |
Other income | 2,458 | 2,469 | 7,795 | 7,642 | |
Total operating income | 11,929 | 10,763 | 34,969 | 32,514 | |
Expenses | |||||
Interest expense | 837 | 633 | 2,098 | 1,934 | |
Provision for loan losses | 1,275 | (100) | 2,925 | 1,300 | $ 1,930 |
Salaries and employee benefits | 5,104 | 5,063 | 15,650 | 15,107 | |
Other expenses | 4,012 | 3,626 | 11,442 | 11,158 | |
Total operating expenses | 11,228 | 9,222 | 32,115 | 29,499 | |
Income before Income Taxes | 701 | 1,541 | 2,854 | 3,015 | |
Income tax expense (benefit) | (56) | 212 | (6) | 113 | |
Net income | 757 | 1,329 | 2,860 | 2,902 | |
Property, Plant and Equipment, Additions | 66 | 234 | 510 | 710 | |
Total assets | 954,497 | 905,756 | 954,497 | 905,756 | $ 902,966 |
Bank [Member] | |||||
Revenues | |||||
Interest and dividend income | 8,550 | 7,420 | 24,300 | 22,191 | |
Income from fiduciary activities | 0 | 0 | 0 | 0 | |
Other income | 2,275 | 2,277 | 7,133 | 6,954 | |
Total operating income | 10,825 | 9,697 | 31,433 | 29,145 | |
Expenses | |||||
Interest expense | 837 | 633 | 2,097 | 1,934 | |
Provision for loan losses | 1,275 | (100) | 2,925 | 1,300 | |
Salaries and employee benefits | 4,343 | 4,296 | 13,252 | 12,782 | |
Other expenses | 3,664 | 3,114 | 10,460 | 9,913 | |
Total operating expenses | 10,119 | 7,943 | 28,734 | 25,929 | |
Income before Income Taxes | 706 | 1,754 | 2,699 | 3,216 | |
Income tax expense (benefit) | (55) | 284 | (60) | 181 | |
Net income | 761 | 1,470 | 2,759 | 3,035 | |
Property, Plant and Equipment, Additions | 60 | 234 | 504 | 706 | |
Total assets | 948,377 | 900,160 | 948,377 | 900,160 | |
Trust [Member] | |||||
Revenues | |||||
Interest and dividend income | 18 | 16 | 52 | 45 | |
Income from fiduciary activities | 903 | 858 | 2,820 | 2,636 | |
Other income | 198 | 207 | 708 | 734 | |
Total operating income | 1,119 | 1,081 | 3,580 | 3,415 | |
Expenses | |||||
Interest expense | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Salaries and employee benefits | 657 | 665 | 2,068 | 2,022 | |
Other expenses | 253 | 262 | 766 | 774 | |
Total operating expenses | 910 | 927 | 2,834 | 2,796 | |
Income before Income Taxes | 209 | 154 | 746 | 619 | |
Income tax expense (benefit) | 72 | 53 | 255 | 211 | |
Net income | 137 | 101 | 491 | 408 | |
Property, Plant and Equipment, Additions | 6 | 0 | 6 | 4 | |
Total assets | 6,141 | 5,814 | 6,141 | 5,814 | |
Unconsolidated Parent [Member] | |||||
Revenues | |||||
Interest and dividend income | 898 | 1,572 | 3,251 | 3,443 | |
Income from fiduciary activities | 0 | 0 | 0 | 0 | |
Other income | 50 | 50 | 150 | 150 | |
Total operating income | 948 | 1,622 | 3,401 | 3,593 | |
Expenses | |||||
Interest expense | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Salaries and employee benefits | 104 | 102 | 330 | 303 | |
Other expenses | 160 | 315 | 412 | 667 | |
Total operating expenses | 264 | 417 | 742 | 970 | |
Income before Income Taxes | 684 | 1,205 | 2,659 | 2,623 | |
Income tax expense (benefit) | (73) | (125) | (201) | (279) | |
Net income | 757 | 1,330 | 2,860 | 2,902 | |
Property, Plant and Equipment, Additions | 0 | 0 | 0 | 0 | |
Total assets | 97,645 | 96,467 | 97,645 | 96,467 | |
Eliminations [Member] | |||||
Revenues | |||||
Interest and dividend income | (898) | (1,572) | (3,249) | (3,443) | |
Income from fiduciary activities | 0 | 0 | 0 | 0 | |
Other income | (65) | (65) | (196) | (196) | |
Total operating income | (963) | (1,637) | (3,445) | (3,639) | |
Expenses | |||||
Interest expense | 0 | 0 | 1 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Salaries and employee benefits | 0 | 0 | 0 | 0 | |
Other expenses | (65) | (65) | (196) | (196) | |
Total operating expenses | (65) | (65) | (195) | (196) | |
Income before Income Taxes | (898) | (1,572) | (3,250) | (3,443) | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Net income | (898) | (1,572) | (3,250) | (3,443) | |
Property, Plant and Equipment, Additions | 0 | 0 | 0 | 0 | |
Total assets | $ (97,666) | $ (96,685) | $ (97,666) | $ (96,685) |
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