XML 22 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restricted Investment In Bank Stock
6 Months Ended
Jun. 30, 2018
Restricted Investment In Bank Stock [Abstract]  
Restricted Investment In Bank Stock

Note 4 – Restricted Investment in Bank Stock



Restricted investments in bank stock consist of FHLBank of Pittsburgh (“FHLB”) stock and Atlantic Community Bankers Bank (“ACBB”) stock.  The restricted stocks are carried at cost.  Federal law requires a member institution of the FHLB to hold stock of its district FHLB according to a predetermined formula. The Bank had FHLB stock at a carrying value of $1.2 million and $2.1 million repurchased during the three and six months ended June 30, 2018 and $679 thousand and $1.3 million were repurchased during the three and six months ended June 30, 2017, respectively. Stock purchases of $2.1 million and  $3.3 million were made during the three and six months ended June 30, 2018 and $741 thousand and $1.3 million were made during the three and six months ended June 30, 2017, respectively. Dividend payments of $9 thousand and $13 thousand were received during the three and six months ended June 30, 2018 and $3 thousand and $6 thousand were received during the three and six months ended June 30,2017, respectively.

 

Management evaluates the FHLB and ACBB restricted stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the issuer as compared to the capital stock amount for the issuer and the length of time this situation has persisted, (2) commitments by the issuer to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuer, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuer.



Based upon its evaluation of the foregoing criteria, management believes no impairment charge is necessary related to the FHLB or ACBB stock as of June 30, 2018.